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Is Cree, Inc. (CREE) A Good Stock To Buy? Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts, usually don't make them change their opinion towards a company. This time it may be different. During the fourth quarter of 2018 we observed increased volatility and small-cap stocks underperformed the market. Things completely reversed during the first quarter. Hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let’s take a look at the hedge fund sentiment towards Cree, Inc. (NASDAQ:CREE) to find out whether it was one of their high conviction long-term ideas. Cree, Inc. (NASDAQ:CREE)investors should be aware of an increase in enthusiasm from smart money of late. Our calculations also showed that CREE isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. We're going to take a look at the fresh hedge fund action regarding Cree, Inc. (NASDAQ:CREE). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 56% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CREE over the last 15 quarters. With the smart money's sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions). When looking at the institutional investors followed by Insider Monkey,Columbus Circle Investors, managed by Principal Global Investors, holds the biggest position in Cree, Inc. (NASDAQ:CREE). Columbus Circle Investors has a $40 million position in the stock, comprising 1% of its 13F portfolio. The second most bullish fund manager isPEAK6 Capital Management, led by Matthew Hulsizer, holding a $15.9 million call position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining peers that are bullish comprise Brian Ashford-Russell and Tim Woolley'sPolar Capital, Louis Bacon'sMoore Global Investmentsand Ken Griffin'sCitadel Investment Group. With a general bullishness amongst the heavyweights, some big names were breaking ground themselves.Moore Global Investments, managed by Louis Bacon, created the biggest position in Cree, Inc. (NASDAQ:CREE). Moore Global Investments had $14.3 million invested in the company at the end of the quarter. Larry Chen and Terry Zhang'sTairen Capitalalso made a $8.5 million investment in the stock during the quarter. The following funds were also among the new CREE investors: Bruce Kovner'sCaxton Associates LP, Michael Gelband'sExodusPoint Capital, and Dmitry Balyasny'sBalyasny Asset Management. Let's now take a look at hedge fund activity in other stocks similar to Cree, Inc. (NASDAQ:CREE). These stocks are Sabre Corporation (NASDAQ:SABR), Woodward Inc (NASDAQ:WWD), LPL Financial Holdings Inc (NASDAQ:LPLA), and CAE, Inc. (NYSE:CAE). This group of stocks' market values are similar to CREE's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SABR,21,260999,-3 WWD,20,268959,6 LPLA,33,807308,-1 CAE,10,117527,1 Average,21,363698,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $364 million. That figure was $88 million in CREE's case. LPL Financial Holdings Inc (NASDAQ:LPLA) is the most popular stock in this table. On the other hand CAE, Inc. (NYSE:CAE) is the least popular one with only 10 bullish hedge fund positions. Cree, Inc. (NASDAQ:CREE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CREE wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); CREE investors were disappointed as the stock returned 1.1% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Pilgrim’s Pride Corporation (PPC) A Good Stock To Buy? The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Pilgrim's Pride Corporation (NASDAQ:PPC). IsPilgrim's Pride Corporation (NASDAQ:PPC)a first-rate investment today? The smart money is in a pessimistic mood. The number of long hedge fund positions were trimmed by 3 lately. Our calculations also showed that PPC isn't among the30 most popular stocks among hedge funds.PPCwas in 14 hedge funds' portfolios at the end of the first quarter of 2019. There were 17 hedge funds in our database with PPC holdings at the end of the previous quarter. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's view the fresh hedge fund action surrounding Pilgrim's Pride Corporation (NASDAQ:PPC). At the end of the first quarter, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -18% from the previous quarter. On the other hand, there were a total of 22 hedge funds with a bullish position in PPC a year ago. With hedgies' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions). When looking at the institutional investors followed by Insider Monkey,AQR Capital Management, managed by Cliff Asness, holds the most valuable position in Pilgrim's Pride Corporation (NASDAQ:PPC). AQR Capital Management has a $58.6 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Peter Rathjens, Bruce Clarke and John Campbell ofArrowstreet Capital, with a $17.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors with similar optimism consist of D. E. Shaw'sD E Shaw, Ken Griffin'sCitadel Investment Groupand David Rosen'sRubric Capital Management. Because Pilgrim's Pride Corporation (NASDAQ:PPC) has experienced bearish sentiment from the aggregate hedge fund industry, it's safe to say that there were a few hedgies who sold off their full holdings in the third quarter. Interestingly, Matthew Tewksbury'sStevens Capital Managementsold off the largest investment of the "upper crust" of funds tracked by Insider Monkey, worth close to $1.5 million in stock. Minhua Zhang's fund,Weld Capital Management, also dropped its stock, about $1.5 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 3 funds in the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Pilgrim's Pride Corporation (NASDAQ:PPC) but similarly valued. We will take a look at First Solar, Inc. (NASDAQ:FSLR), Leggett & Platt, Inc. (NYSE:LEG), Equitrans Midstream Corporation (NYSE:ETRN), and WPX Energy Inc (NYSE:WPX). This group of stocks' market valuations are closest to PPC's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FSLR,23,358479,1 LEG,10,27949,1 ETRN,19,559560,-9 WPX,42,794081,-4 Average,23.5,435017,-2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 23.5 hedge funds with bullish positions and the average amount invested in these stocks was $435 million. That figure was $141 million in PPC's case. WPX Energy Inc (NYSE:WPX) is the most popular stock in this table. On the other hand Leggett & Platt, Inc. (NYSE:LEG) is the least popular one with only 10 bullish hedge fund positions. Pilgrim's Pride Corporation (NASDAQ:PPC) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on PPC as the stock returned 13.4% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is MSC Industrial Direct Co Inc (MSM) A Good Stock To Buy? Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards MSC Industrial Direct Co Inc (NYSE:MSM). MSC Industrial Direct Co Inc (NYSE:MSM)investors should pay attention to a decrease in support from the world's most elite money managers in recent months. Our calculations also showed that MSM isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to take a glance at the latest hedge fund action regarding MSC Industrial Direct Co Inc (NYSE:MSM). At Q1's end, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -33% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards MSM over the last 15 quarters. With hedge funds' sentiment swirling, there exists a few key hedge fund managers who were upping their stakes substantially (or already accumulated large positions). The largest stake in MSC Industrial Direct Co Inc (NYSE:MSM) was held byAQR Capital Management, which reported holding $28.6 million worth of stock at the end of March. It was followed by D E Shaw with a $14.9 million position. Other investors bullish on the company included Winton Capital Management, Renaissance Technologies, and Two Sigma Advisors. Judging by the fact that MSC Industrial Direct Co Inc (NYSE:MSM) has experienced falling interest from the smart money, it's safe to say that there was a specific group of hedgies who were dropping their positions entirely heading into Q3. Interestingly, Matt Simon (Citadel)'sAshler Capitalsold off the biggest investment of the 700 funds watched by Insider Monkey, comprising an estimated $50.8 million in stock. Paul Marshall and Ian Wace's fund,Marshall Wace LLP, also sold off its stock, about $2.5 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 7 funds heading into Q3. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as MSC Industrial Direct Co Inc (NYSE:MSM) but similarly valued. We will take a look at NovoCure Limited (NASDAQ:NVCR), Carter's, Inc. (NYSE:CRI), Assured Guaranty Ltd. (NYSE:AGO), and Medidata Solutions Inc (NASDAQ:MDSO). This group of stocks' market valuations are similar to MSM's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NVCR,25,331474,8 CRI,19,278631,-3 AGO,34,559263,1 MDSO,16,214798,5 Average,23.5,346042,2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 23.5 hedge funds with bullish positions and the average amount invested in these stocks was $346 million. That figure was $75 million in MSM's case. Assured Guaranty Ltd. (NYSE:AGO) is the most popular stock in this table. On the other hand Medidata Solutions Inc (NASDAQ:MDSO) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks MSC Industrial Direct Co Inc (NYSE:MSM) is even less popular than MDSO. Hedge funds dodged a bullet by taking a bearish stance towards MSM. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately MSM wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); MSM investors were disappointed as the stock returned -12.1% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is United States Cellular Corporation (USM) A Good Stock To Buy? Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 750 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds' 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about United States Cellular Corporation (NYSE:USM) in this article. IsUnited States Cellular Corporation (NYSE:USM)the right investment to pursue these days? Hedge funds are selling. The number of long hedge fund positions went down by 3 in recent months. Our calculations also showed that USM isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. We're going to take a look at the new hedge fund action regarding United States Cellular Corporation (NYSE:USM). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -18% from the previous quarter. The graph below displays the number of hedge funds with bullish position in USM over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,GAMCO Investorsheld the most valuable stake in United States Cellular Corporation (NYSE:USM), which was worth $93.4 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $42.8 million worth of shares. Moreover, Arrowstreet Capital, Millennium Management, and AQR Capital Management were also bullish on United States Cellular Corporation (NYSE:USM), allocating a large percentage of their portfolios to this stock. Judging by the fact that United States Cellular Corporation (NYSE:USM) has faced a decline in interest from the aggregate hedge fund industry, it's easy to see that there is a sect of hedge funds who sold off their positions entirely in the third quarter. At the top of the heap, David Costen Haley'sHBK Investmentssaid goodbye to the biggest position of the "upper crust" of funds watched by Insider Monkey, comprising close to $0.7 million in stock. Hoon Kim's fund,Quantinno Capital, also sold off its stock, about $0.3 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds in the third quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as United States Cellular Corporation (NYSE:USM) but similarly valued. These stocks are Wright Medical Group N.V. (NASDAQ:WMGI), Amedisys Inc (NASDAQ:AMED), IBERIABANK Corporation (NASDAQ:IBKC), and Agios Pharmaceuticals Inc (NASDAQ:AGIO). This group of stocks' market caps match USM's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WMGI,35,889529,2 AMED,26,295842,-6 IBKC,26,194750,2 AGIO,22,316343,5 Average,27.25,424116,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 27.25 hedge funds with bullish positions and the average amount invested in these stocks was $424 million. That figure was $183 million in USM's case. Wright Medical Group N.V. (NASDAQ:WMGI) is the most popular stock in this table. On the other hand Agios Pharmaceuticals Inc (NASDAQ:AGIO) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks United States Cellular Corporation (NYSE:USM) is even less popular than AGIO. Hedge funds clearly dropped the ball on USM as the stock delivered strong returns, though hedge funds' consensus picks still generated respectable returns. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on USM as the stock returned 9% during the same period and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is PNM Resources, Inc. (PNM) A Good Stock To Buy? Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point. PNM Resources, Inc. (NYSE:PNM)has experienced a decrease in support from the world's most elite money managers lately. Our calculations also showed that PNM isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to view the key hedge fund action regarding PNM Resources, Inc. (NYSE:PNM). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -22% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in PNM over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Renaissance Technologiesheld the most valuable stake in PNM Resources, Inc. (NYSE:PNM), which was worth $119.6 million at the end of the first quarter. On the second spot was GAMCO Investors which amassed $98.8 million worth of shares. Moreover, AQR Capital Management, Citadel Investment Group, and Shelter Harbor Advisors were also bullish on PNM Resources, Inc. (NYSE:PNM), allocating a large percentage of their portfolios to this stock. Seeing as PNM Resources, Inc. (NYSE:PNM) has faced declining sentiment from the entirety of the hedge funds we track, it's safe to say that there is a sect of funds that elected to cut their full holdings by the end of the third quarter. Intriguingly, Paul Tudor Jones'sTudor Investment Corpcut the biggest stake of all the hedgies followed by Insider Monkey, comprising about $1.4 million in stock, and Ian Cumming and Joseph Steinberg's Leucadia National was right behind this move, as the fund dumped about $1.3 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 4 funds by the end of the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as PNM Resources, Inc. (NYSE:PNM) but similarly valued. We will take a look at FirstCash, Inc. (NASDAQ:FCFS), Univar Inc (NYSE:UNVR), Penske Automotive Group, Inc. (NYSE:PAG), and Graphic Packaging Holding Company (NYSE:GPK). This group of stocks' market caps are similar to PNM's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FCFS,12,164726,0 UNVR,42,1098378,19 PAG,18,70927,-5 GPK,24,639511,4 Average,24,493386,4.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $493 million. That figure was $323 million in PNM's case. Univar Inc (NYSE:UNVR) is the most popular stock in this table. On the other hand FirstCash, Inc. (NASDAQ:FCFS) is the least popular one with only 12 bullish hedge fund positions. PNM Resources, Inc. (NYSE:PNM) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on PNM as the stock returned 9.3% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Why Pacific Basin Shipping Limited (HKG:2343) Could Have A Place In Your Portfolio Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of Pacific Basin Shipping Limited ( HKG:2343 ), there's is a company with a a great history of performance, trading at a great value. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Pacific Basin Shipping here . Undervalued with solid track record Over the past few years, 2343 has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did 2343 outperformed its past performance, its growth also exceeded the Shipping industry expansion, which generated a -16% earnings growth. This is an notable feat for the company. 2343's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if 2343's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the shipping industry, 2343 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 2343's price is currently discounted. SEHK:2343 Income Statement, June 29th 2019 Next Steps: For Pacific Basin Shipping, I've compiled three fundamental factors you should further research: Future Outlook : What are well-informed industry analysts predicting for 2343’s future growth? Take a look at our free research report of analyst consensus for 2343’s outlook. Financial Health : Are 2343’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here . Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2343? Explore our interactive list of stocks with large potential to 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Liberty Latin America Ltd. (LILA) A Good Stock To Buy? Hedge funds are not perfect. They have their bad picks just like everyone else. Facebook, a stock hedge funds have loved dearly, lost nearly 40% of its value at one point in 2018. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 20 S&P 500 stocks among hedge funds beat the S&P 500 Index by more than 6 percentage points so far in 2019. Because hedge funds have a lot of resources and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of Liberty Latin America Ltd. (NASDAQ:LILA). Liberty Latin America Ltd. (NASDAQ:LILA)was in 14 hedge funds' portfolios at the end of the first quarter of 2019. LILA has experienced an increase in hedge fund interest of late. There were 13 hedge funds in our database with LILA positions at the end of the previous quarter. Our calculations also showed that LILA isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to review the key hedge fund action surrounding Liberty Latin America Ltd. (NASDAQ:LILA). At Q1's end, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards LILA over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions). According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey,Ashe Capital, managed by William Crowley, William Harker, and Stephen Blass, holds the largest position in Liberty Latin America Ltd. (NASDAQ:LILA). Ashe Capital has a $68.7 million position in the stock, comprising 4.8% of its 13F portfolio. The second most bullish fund manager isBerkshire Hathaway, led by Warren Buffett, holding a $52.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism contain Ryan Pedlow'sTwo Creeks Capital Management, Michael Larson'sBill & Melinda Gates Foundation Trustand Paul Marshall and Ian Wace'sMarshall Wace LLP. With a general bullishness amongst the heavyweights, some big names were breaking ground themselves.Renaissance Technologies, managed by Jim Simons, established the largest position in Liberty Latin America Ltd. (NASDAQ:LILA). Renaissance Technologies had $2.7 million invested in the company at the end of the quarter. D. E. Shaw'sD E Shawalso initiated a $1.3 million position during the quarter. The following funds were also among the new LILA investors: Ken Griffin'sCitadel Investment Groupand Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital. Let's also examine hedge fund activity in other stocks similar to Liberty Latin America Ltd. (NASDAQ:LILA). We will take a look at Telephone & Data Systems, Inc. (NYSE:TDS), Stag Industrial Inc (NYSE:STAG), Valvoline Inc. (NYSE:VVV), and Embraer SA (NYSE:ERJ). This group of stocks' market values are similar to LILA's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TDS,23,438093,1 STAG,15,186424,3 VVV,19,306405,1 ERJ,8,83463,-2 Average,16.25,253596,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $254 million. That figure was $164 million in LILA's case. Telephone & Data Systems, Inc. (NYSE:TDS) is the most popular stock in this table. On the other hand Embraer SA (NYSE:ERJ) is the least popular one with only 8 bullish hedge fund positions. Liberty Latin America Ltd. (NASDAQ:LILA) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately LILA wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); LILA investors were disappointed as the stock returned -4.2% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Standard Motor Products, Inc. (SMP) A Good Stock To Buy? The elite funds run by legendary investors such as David Tepper and Dan Loeb make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don't follow. Because of their pay structures, they have strong incentives to do the research necessary to beat the market. That's why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Standard Motor Products, Inc. (NYSE:SMP) from the perspective of those elite funds. IsStandard Motor Products, Inc. (NYSE:SMP)undervalued? The best stock pickers are buying. The number of bullish hedge fund bets rose by 1 lately. Our calculations also showed that SMP isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a gander at the recent hedge fund action regarding Standard Motor Products, Inc. (NYSE:SMP). At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 9% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SMP over the last 15 quarters. With the smart money's sentiment swirling, there exists a select group of notable hedge fund managers who were adding to their stakes substantially (or already accumulated large positions). The largest stake in Standard Motor Products, Inc. (NYSE:SMP) was held byRoyce & Associates, which reported holding $107 million worth of stock at the end of March. It was followed by GAMCO Investors with a $7.5 million position. Other investors bullish on the company included Millennium Management, Renaissance Technologies, and Citadel Investment Group. As aggregate interest increased, specific money managers have jumped into Standard Motor Products, Inc. (NYSE:SMP) headfirst.D E Shaw, managed by D. E. Shaw, created the largest position in Standard Motor Products, Inc. (NYSE:SMP). D E Shaw had $0.8 million invested in the company at the end of the quarter. Cliff Asness'sAQR Capital Managementalso made a $0.3 million investment in the stock during the quarter. The only other fund with a new position in the stock is David Harding'sWinton Capital Management. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Standard Motor Products, Inc. (NYSE:SMP) but similarly valued. We will take a look at Apellis Pharmaceuticals, Inc. (NASDAQ:APLS), FTS International, Inc. (NYSE:FTSI), Weis Markets, Inc. (NYSE:WMK), and United Fire Group, Inc. (NASDAQ:UFCS). This group of stocks' market caps are closest to SMP's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position APLS,19,283479,2 FTSI,21,108942,-1 WMK,15,82577,-2 UFCS,10,14894,-1 Average,16.25,122473,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $122 million. That figure was $129 million in SMP's case. FTS International, Inc. (NYSE:FTSI) is the most popular stock in this table. On the other hand United Fire Group, Inc. (NASDAQ:UFCS) is the least popular one with only 10 bullish hedge fund positions. Standard Motor Products, Inc. (NYSE:SMP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately SMP wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); SMP investors were disappointed as the stock returned -9.2% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here is What Hedge Funds Think About Sandstorm Gold Ltd. (SAND) At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Tiger Global because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space. Sandstorm Gold Ltd. (NYSE:SAND)has seen an increase in support from the world's most elite money managers in recent months. Our calculations also showed that SAND isn't among the30 most popular stocks among hedge funds. At the moment there are a multitude of indicators stock market investors have at their disposal to appraise publicly traded companies. Some of the less known indicators are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace their index-focused peers by a solid amount (see the details here). We're going to take a peek at the key hedge fund action regarding Sandstorm Gold Ltd. (NYSE:SAND). At Q1's end, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 33% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in SAND over the last 15 quarters. With the smart money's sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions). Among these funds,Sprott Asset Managementheld the most valuable stake in Sandstorm Gold Ltd. (NYSE:SAND), which was worth $14.4 million at the end of the first quarter. On the second spot was Horizon Asset Management which amassed $11.8 million worth of shares. Moreover, Waratah Capital Advisors, Royce & Associates, and Citadel Investment Group were also bullish on Sandstorm Gold Ltd. (NYSE:SAND), allocating a large percentage of their portfolios to this stock. As industrywide interest jumped, specific money managers were breaking ground themselves.Waratah Capital Advisors, managed by Brad Dunkley and Blair Levinsky, created the most valuable position in Sandstorm Gold Ltd. (NYSE:SAND). Waratah Capital Advisors had $10 million invested in the company at the end of the quarter. Jim Simons'sRenaissance Technologiesalso made a $0.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander'sMillennium Management, Ronald Hua'sQtron Investments, and Joel Greenblatt'sGotham Asset Management. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Sandstorm Gold Ltd. (NYSE:SAND) but similarly valued. These stocks are Hailiang Education Group Inc. (NASDAQ:HLG), Bain Capital Specialty Finance, Inc. (NYSE:BCSF), Playa Hotels & Resorts N.V. (NASDAQ:PLYA), and Clementia Pharmaceuticals Inc. (NASDAQ:CMTA). This group of stocks' market values match SAND's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HLG,3,5277,0 BCSF,2,29694,-1 PLYA,19,415878,-1 CMTA,15,456920,3 Average,9.75,226942,0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9.75 hedge funds with bullish positions and the average amount invested in these stocks was $227 million. That figure was $45 million in SAND's case. Playa Hotels & Resorts N.V. (NASDAQ:PLYA) is the most popular stock in this table. On the other hand Bain Capital Specialty Finance, Inc. (NYSE:BCSF) is the least popular one with only 2 bullish hedge fund positions. Sandstorm Gold Ltd. (NYSE:SAND) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately SAND wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SAND were disappointed as the stock returned 1.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Triumph Group Inc (TGI) A Good Stock To Buy? Hedge funds run by legendary names like George Soros and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant outperformance. That's why we pay special attention to hedge fund activity in these stocks. Triumph Group Inc (NYSE:TGI)was in 12 hedge funds' portfolios at the end of March. TGI investors should pay attention to an increase in support from the world's most elite money managers of late. There were 8 hedge funds in our database with TGI holdings at the end of the previous quarter. Our calculations also showed that TGI isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a peek at the latest hedge fund action regarding Triumph Group Inc (NYSE:TGI). At Q1's end, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in TGI over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Royce & Associateswas the largest shareholder of Triumph Group Inc (NYSE:TGI), with a stake worth $15.5 million reported as of the end of March. Trailing Royce & Associates was Renaissance Technologies, which amassed a stake valued at $10.2 million. D E Shaw, Citadel Investment Group, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios. As industrywide interest jumped, key money managers were breaking ground themselves.Renaissance Technologies, managed by Jim Simons, assembled the most outsized position in Triumph Group Inc (NYSE:TGI). Renaissance Technologies had $10.2 million invested in the company at the end of the quarter. Israel Englander'sMillennium Managementalso made a $1.2 million investment in the stock during the quarter. The other funds with brand new TGI positions are Benjamin A. Smith'sLaurion Capital Management, Louis Bacon'sMoore Global Investments, and Michael Platt and William Reeves'sBlueCrest Capital Mgmt.. Let's also examine hedge fund activity in other stocks similar to Triumph Group Inc (NYSE:TGI). We will take a look at Granite Point Mortgage Trust Inc. (NYSE:GPMT), Berry Petroleum Corporation (NASDAQ:BRY), Trueblue Inc (NYSE:TBI), and Lantheus Holdings Inc (NASDAQ:LNTH). This group of stocks' market caps resemble TGI's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GPMT,12,43820,6 BRY,16,166506,2 TBI,17,78413,2 LNTH,18,99743,1 Average,15.75,97121,2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $97 million. That figure was $45 million in TGI's case. Lantheus Holdings Inc (NASDAQ:LNTH) is the most popular stock in this table. On the other hand Granite Point Mortgage Trust Inc. (NYSE:GPMT) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Triumph Group Inc (NYSE:TGI) is even less popular than GPMT. Hedge funds dodged a bullet by taking a bearish stance towards TGI. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately TGI wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); TGI investors were disappointed as the stock returned -0.5% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Granite Point Mortgage Trust Inc. (GPMT) Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can't match. So should one consider investing in Granite Point Mortgage Trust Inc. (NYSE:GPMT)? The smart money sentiment can provide an answer to this question. Granite Point Mortgage Trust Inc. (NYSE:GPMT)was in 12 hedge funds' portfolios at the end of March. GPMT investors should be aware of an increase in hedge fund interest lately. There were 6 hedge funds in our database with GPMT positions at the end of the previous quarter. Our calculations also showed that GPMT isn't among the30 most popular stocks among hedge funds. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. [caption id="attachment_758442" align="aligncenter" width="450"] Michael Platt of Bluecrest Capital Management[/caption] We're going to take a look at the new hedge fund action encompassing Granite Point Mortgage Trust Inc. (NYSE:GPMT). At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 100% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in GPMT over the last 15 quarters. With hedgies' capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions). Among these funds,Alyeska Investment Groupheld the most valuable stake in Granite Point Mortgage Trust Inc. (NYSE:GPMT), which was worth $14.9 million at the end of the first quarter. On the second spot was Clough Capital Partners which amassed $10.1 million worth of shares. Moreover, Renaissance Technologies, Balyasny Asset Management, and D E Shaw were also bullish on Granite Point Mortgage Trust Inc. (NYSE:GPMT), allocating a large percentage of their portfolios to this stock. As aggregate interest increased, key money managers were breaking ground themselves.Alyeska Investment Group, managed by Anand Parekh, initiated the largest position in Granite Point Mortgage Trust Inc. (NYSE:GPMT). Alyeska Investment Group had $14.9 million invested in the company at the end of the quarter. Dmitry Balyasny'sBalyasny Asset Managementalso made a $5.9 million investment in the stock during the quarter. The following funds were also among the new GPMT investors: Michael Platt and William Reeves'sBlueCrest Capital Mgmt., David Harding'sWinton Capital Management, and Mike Vranos'sEllington. Let's now take a look at hedge fund activity in other stocks similar to Granite Point Mortgage Trust Inc. (NYSE:GPMT). We will take a look at Berry Petroleum Corporation (NASDAQ:BRY), Trueblue Inc (NYSE:TBI), Lantheus Holdings Inc (NASDAQ:LNTH), and Ra Pharmaceuticals, Inc. (NASDAQ:RARX). This group of stocks' market values match GPMT's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BRY,16,166506,2 TBI,17,78413,2 LNTH,18,99743,1 RARX,20,267787,3 Average,17.75,153112,2 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $153 million. That figure was $44 million in GPMT's case. Ra Pharmaceuticals, Inc. (NASDAQ:RARX) is the most popular stock in this table. On the other hand Berry Petroleum Corporation (NASDAQ:BRY) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Granite Point Mortgage Trust Inc. (NYSE:GPMT) is even less popular than BRY. Hedge funds dodged a bullet by taking a bearish stance towards GPMT. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately GPMT wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); GPMT investors were disappointed as the stock returned 2.6% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Best Hidden Beaches To Visit for All Budgets Oceanfront vacations can be just the thing for some soothing fun in the sun, but many of the world’s most beautiful beaches are already swarming with tourists. You can hardly kick back and relax if you’re stuck playing tropical Tetris with the teeming, tanning masses. Luckily, Earth has plenty of coastline — 372,000 miles of it, to be exact — to go around. To help you select the ideal spot for a seaside getaway, GOBankingRates researched lodging costs at some of the most beautiful beaches in the least-trafficked locales. Hotel Rates Start at:$55 per night for vintage-style hotels in the off-season Cayucos dubs itself “the last of the California beach towns.” Its public shores showcase that old-school vibe and make for a budget-friendly beach vacation. These days, you won’t find many other Golden State spots that blend rustic ranches, grazing cattle and surf-friendly waves into one bygone bundle of beachy Americana. Post-beach, be sure to check out Old Cayucos Tavern & Cardroom for a slice of 110-year-old history with your drinks. Hotel Rates Start at:$20 per night for rustic bungalows Despite the fact that it’s known as “pig island,” Koh Sukorn is a beautiful vacation destination for human travelers. Only 3,000 people — mostly fisherman and farmers — call this secluded paradise home, and they all use a single, 10-mile road. You won’t have to worry about traffic sounds disrupting your rest or a keg party obscuring your view of the sea. Hotel Rates Start at:$88 per night at L’Hotel Etche Ona Pyla-sur-Mer is a sapphire-watered hideaway that caters to all price ranges, so you can travel like a millionaire, without the millionaire budget. Though famous for its costly modern boutiques, the area offers modest, old-world lodging options, as well. The beach is public, but its Atlantic waters and pristine sand stretch far enough that you’ll find space of your own for a picnic. When you’re tired of lounging, take time out of your day to dive for oysters. Hotel Rates Start at:$440 per person, per night, for luxury, all-inclusive resorts You’ll need to save up for a robust travel budget just to get to Rocktail. First, you’ll have to get an air charter from Kruger National Park or hire a personal safari guide to deliver you to what the African Travel Gateway calls “the most private beach experience in South Africa.” Upon arrival, you’ll have your choice of activities, including reef diving, whale watching, beach hiking and fishing. Hotel Rates Start at:$275 per night The unspoiled, green and very low-key Nevis island offers no shortage of lush beaches, from Gallows Bay to the popular Nisbet Beach. But it’s Lovers Beach you’re after if privacy is your No. 1 goal. The tourist crowd won’t be able to see you from the road at this hideaway to the north. Hotel Rates Start at:$45 for two people, per night, during the peak season for a caravan at Farewell Gardens You can hardly bring up under-the-radar beach destinations without mentioning New Zealand. This 15.5-mile sand spit — New Zealand’s longest — is a strictly protected nature sanctuary. Although you can’t bring vehicles or pets, you can take in the breathtaking rocky landforms and hidden sand dunes. Additionally, visitors can marvel at the penguins, seals and more than 90 bird species that call this spot home. Hotel Rates Start at:$115 per night on Airbnb When you think of Hawaii, touristy dives rather than hidden beaches might come to mind. However, you actually have to hike to Kauapea Secret Beach, as it isn’t reachable by road. Your journey will be rewarded with delectable seclusion, tidal pools, lava-formed rocks and picturesque waterfalls. For Your Travels:15 Insider Secrets To Know Before Your Hawaiian Vacation Hotel Rates Start at:$230 per night at the local Holiday Inn If Hawaii is a beach vacation cliche, Delaware is just about the polar opposite. Don’t write off the sleepy vacation towns of Bethany Beach and Fenwick Island, though, which together form the duo known as the “Quiet Resorts.” Visitors can soak up all the surfing and fishing they desire. The area only has 350 residents during the off-season, but be warned, the population jumps to 40,000 in summer. Hotel Rates Start at:$85 at Armonia Boutique hotel At about 157 square miles, Zakynthos isn’t small. Yet, unlike tourist traps such as Mykonos, it’s fairly undiscovered. That means you can spread out and enjoy the sun on one of the Mediterranean’s most beautiful isles. As an added bonus, this site offers tourists the opportunity to swim with sea turtles or spelunk in underwater caves. Hotel Rates Start at:$66 per night Stunning white sands and electric blue waters characterize this Mexican beach paradise. The Yucatan Peninsula’s Isla Holbox hasn’t gotten popular yet, so get there while it’s quiet. Just figure out the best time to book your travel plans to get the best deals. Once you ferry over to the mile-wide island from the port of Chiquila, you can scope out everything from cheap margaritas to giant-but-gentle whale sharks. Hotel Rates Start at:$42 per night The pine-carpeted mountains that surround Cirali create a natural privacy screen for this Antalya destination. The 2-mile long beach is protected from development by the Turkish government, so you can watch the local turtles thrive in peace while enjoying the sun. Hotel Rates Start at:$585 per night at the Six Senses resort The first five–star resort to stake a claim in the region, Six Senses calls Con Dao “Vietnam’s untouched archipelago.” Only about 7,500 people live among the islands, which are classified as a National Park. Fresh seafood, French-colonial architecture and virtually no traffic accent quiet, coral-heavy beaches in this hidden spot. Hotel Rates Start at:$20 per night on Airbnb Northern Peru’s Mancora is like a sleepy fishing village of yore. Complete with horses roaming the beach, the site is located about an hour from the equator, meaning it’s warm year round. Plan a trip to enjoy the sun and some fresh ceviche. Hotel Rates Start at:$178 per night for bungalows at Villa Authentique The Republic of Seychelles offers plenty of islands to explore and some of the best beaches in the world, but La Digue’s ox carts, coconuts and hibiscus flowers lend a particularly peaceful backdrop to tucked-away beaches like Anse Source d’Argent. This hidden destination is so secluded that you’ll need to start on the island of Mahe and helicopter or ferry your way to paradise. Hotel Rates Start at:$62 per night at Ulisa Bay Lodge You know a beach is truly hidden when its official tourism website describes it as “somewhat barren.” Boasting startlingly clear waters, Likoma is ideal for jet-setters seeking true solitude. The island is only accessible via charter aircraft or boat, but if you get lonely you can always check out the cathedral back on shore. Hotel Rates Start at:$171 per night, in the peak season It takes about two hours to fly from Brisbane or Sydney to Lord Howe Island in the Tasman Sea, but once you get there, you might just find yourself hand-feeding coral-dwelling fish in the clear waters. Here’s how you know this beach is a well-kept secret: Only 400 tourists are allowed on the island at any given time, making it one of the most secluded places on Earth. Hotel Rates Start at:$47 for a yurt or$95 per night at a local hotel Far outside the bustling city of Portland, tranquility awaits. The little town of Manzanita sports 7 miles of exquisite coastline along with breezy, grassy beaches that are a full 40 miles from the nearest city. Let your hipster flag fly by liking this beach before it’s truly “cool.” Hotel Rates Start at:$411 per night for a luxury eco-resort It’s no secret that the Philippines offers some of the best beach vacations in the world, but El Nido Pangulasian Island really is a hidden paradise. The travel experts at Kuoni named it one of the three best-kept travel secrets in the world in 2017. The “Island of the Sun” offers just what you’d expect — white sand, crystal waters and a secluded jungle backdrop. Hotel Rates Start at:$152 per night It takes a little effort to reach the happy hideaway of Boka Kokolishi. You’ll fly to Kralendijk before embarking on a 40-mile drive to reach this beach destination. Once you see it, though, you won’t be able to forget the beach’s dramatically crashing waves and beautiful black sand, which is made from — are you ready for this? — the crushed skeletons of local snails. Hotel Rates Start at:$595 per night, to share an upscale villa at Ibo Island Lodge Despite the presence of a modern lodge, Ibo Island boasts a rustic vibe complete with quiet, sun-baked streets and crumbling, old-world architecture. Watch the locals cast their fishing nets in the Indian Ocean as you chill on warm shores that can only be accessed by boat. Hotel Rates Start at: $56 per night for a hotel in Vigo Head to the Cies Islands while their beaches are still hidden — it won’t be long before tourists are arriving in droves. In fact, The Guardian named Rodas Beach the best in the world. This three-island archipelago is part of the Atlantic Islands of Galicia National Park, a fact that keeps its beaches unspoiled and its wildlife flourishing. You can even swim with the dolphins. Hotel Rates Start at:$724 per person for the minimum three nights required A vacation destination suited for the big-budget traveler, Palm Island is a private resort island resting on the southern tip of St. Vincent and the Grenadines. To scope out the oasis-like atmosphere, you have to fly from Barbados to Union Island before arriving by boat. The resort’s exclusivity means that you’ll only be bothered by as many people as 41 rooms can fit, plus a few curious iguanas. Click through tolearn the best and worst U.S. vacation cities for your wallet. More on Travel: • Lengthy Layover? How to Turn One Trip Into Two • How To Book Last Minute Travel Plans on the Cheap • 96% of Americans Are Missing Out On Major Savings Using This Trick Priscilla AguileraandAmen Oyiboke-Osifocontributed to the reporting for this article. Methodology: Rates were taken from individual hotel websites or else reflect a sampling of local lodging costs. Prices are valid as of June 27, 2019. This article originally appeared onGOBankingRates.com:Best Hidden Beaches To Visit for All Budgets
Does Pacific Basin Shipping Limited (HKG:2343) Have A Particularly Volatile Share Price? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Pacific Basin Shipping Limited ( HKG:2343 ) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta 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 Pacific Basin Shipping What we can learn from 2343's beta value Zooming in on Pacific Basin Shipping, we see it has a five year beta of 1.45. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, Pacific Basin Shipping shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Pacific Basin Shipping fares in that regard, below. Story continues SEHK:2343 Income Statement, June 29th 2019 Could 2343's size cause it to be more volatile? With a market capitalisation of HK$6.8b, Pacific Basin Shipping is a small cap stock. However, it is big enough to catch the attention of professional investors. It is quite common to see a small-cap stock with a beta greater than one. In part, that's because relatively few investors can influence the price of a smaller company, compared to a large company. What this means for you: Since Pacific Basin Shipping tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether 2343 is a good investment for you, we also need to consider important company-specific fundamentals such as Pacific Basin Shipping’s financial health and performance track record. I urge you to continue your research by taking a look at the following: Future Outlook : What are well-informed industry analysts predicting for 2343’s future growth? Take a look at our free research report of analyst consensus for 2343’s outlook. Past Track Record : Has 2343 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 at the free visual representations of 2343's historicals for more clarity. Other Interesting Stocks : It's worth checking to see how 2343 measures up against other companies on valuation. You could start with this free 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why I Like China Aviation Oil (Singapore) Corporation Ltd (SGX:G92) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of China Aviation Oil (Singapore) Corporation Ltd (SGX:G92), there's is a highly-regarded dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on China Aviation Oil (Singapore) here. G92'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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. G92 currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise. For those seeking income streams from their portfolio, G92 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.3%. For China Aviation Oil (Singapore), there are three key factors you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for G92’s future growth? Take a look at ourfree research report of analyst consensusfor G92’s outlook. 2. Historical Performance: What has G92's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of G92? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does China Resources Medical Holdings Company Limited's (HKG:1515) Recent Track Record Look Strong? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! After reading China Resources Medical Holdings Company Limited's ( HKG:1515 ) most recent earnings announcement (31 December 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether China Resources Medical Holdings's performance has been impacted by industry movements. In this article I briefly touch on my key findings. Check out our latest analysis for China Resources Medical Holdings How 1515 fared against its long-term earnings performance and its industry 1515 recently turned a profit of CN¥431m (most recent trailing twelve-months) compared to its average loss of -CN¥42.8m over the past five years. SEHK:1515 Income Statement, June 29th 2019 In terms of returns from investment, China Resources Medical Holdings has fallen short of achieving a 20% return on equity (ROE), recording 7.7% instead. However, its return on assets (ROA) of 5.1% exceeds the HK Healthcare industry of 4.0%, indicating China Resources Medical Holdings has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for China Resources Medical Holdings’s debt level, has declined over the past 3 years from 9.6% to 8.8%. What does this mean? China Resources Medical Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as China Resources Medical Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research China Resources Medical Holdings to get a better picture of the stock by looking at: Story continues Future Outlook : What are well-informed industry analysts predicting for 1515’s future growth? Take a look at our free research report of analyst consensus for 1515’s outlook. Financial Health : Are 1515’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here . Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here . NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Here’s What Hedge Funds Think About SITE Centers Corp. (SITC) At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Tiger Global because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space. SITE Centers Corp. (NYSE:SITC)has seen a decrease in hedge fund interest recently.SITCwas in 14 hedge funds' portfolios at the end of the first quarter of 2019. There were 15 hedge funds in our database with SITC holdings at the end of the previous quarter. Our calculations also showed that SITC isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's take a glance at the key hedge fund action encompassing SITE Centers Corp. (NYSE:SITC). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in SITC over the last 15 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Capital Growth Managementwas the largest shareholder of SITE Centers Corp. (NYSE:SITC), with a stake worth $42.8 million reported as of the end of March. Trailing Capital Growth Management was Citadel Investment Group, which amassed a stake valued at $6.6 million. Balyasny Asset Management, Millennium Management, and Two Sigma Advisors were also very fond of the stock, giving the stock large weights in their portfolios. Since SITE Centers Corp. (NYSE:SITC) has witnessed falling interest from hedge fund managers, logic holds that there is a sect of hedge funds that slashed their positions entirely by the end of the third quarter. Interestingly, Ray Dalio'sBridgewater Associatesdropped the largest stake of the "upper crust" of funds followed by Insider Monkey, comprising close to $0.4 million in stock. D. E. Shaw's fund,D E Shaw, also dropped its stock, about $0.4 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 1 funds by the end of the third quarter. Let's go over hedge fund activity in other stocks similar to SITE Centers Corp. (NYSE:SITC). These stocks are National Vision Holdings, Inc. (NASDAQ:EYE), RPC, Inc. (NYSE:RES), Liberty Expedia Holdings, Inc. (NASDAQ:LEXEA), and Integer Holdings Corporation (NYSE:ITGR). This group of stocks' market values match SITC's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EYE,16,395351,1 RES,20,138878,8 LEXEA,29,390781,3 ITGR,29,241568,10 Average,23.5,291645,5.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 23.5 hedge funds with bullish positions and the average amount invested in these stocks was $292 million. That figure was $65 million in SITC's case. Liberty Expedia Holdings, Inc. (NASDAQ:LEXEA) is the most popular stock in this table. On the other hand National Vision Holdings, Inc. (NASDAQ:EYE) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks SITE Centers Corp. (NYSE:SITC) is even less popular than EYE. Hedge funds dodged a bullet by taking a bearish stance towards SITC. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately SITC wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); SITC investors were disappointed as the stock returned 0.9% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Veritiv Corp (VRTV) We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article we look at what those investors think of Veritiv Corp (NYSE:VRTV). IsVeritiv Corp (NYSE:VRTV)a buy, sell, or hold? Prominent investors are in an optimistic mood. The number of long hedge fund positions inched up by 2 in recent months. Our calculations also showed that vrtv isn't among the30 most popular stocks among hedge funds.VRTVwas in 12 hedge funds' portfolios at the end of March. There were 10 hedge funds in our database with VRTV positions at the end of the previous quarter. To most stock holders, hedge funds are seen as slow, old investment vehicles of years past. While there are greater than 8000 funds trading today, Our experts look at the top tier of this club, about 750 funds. It is estimated that this group of investors preside over the lion's share of all hedge funds' total asset base, and by tailing their unrivaled equity investments, Insider Monkey has determined numerous investment strategies that have historically outstripped the market. Insider Monkey's flagship hedge fund strategy exceeded the S&P 500 index by around 5 percentage points a year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). Let's take a look at the key hedge fund action surrounding Veritiv Corp (NYSE:VRTV). Heading into the second quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from the previous quarter. The graph below displays the number of hedge funds with bullish position in VRTV over the last 15 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Seth Klarman'sBaupost Grouphas the biggest position in Veritiv Corp (NYSE:VRTV), worth close to $93.8 million, amounting to 0.8% of its total 13F portfolio. The second largest stake is held by Jim Simons ofRenaissance Technologies, with a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that hold long positions comprise D. E. Shaw'sD E Shaw, Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitaland Cliff Asness'sAQR Capital Management. As industrywide interest jumped, key money managers have been driving this bullishness.Renaissance Technologies, managed by Jim Simons, established the most valuable position in Veritiv Corp (NYSE:VRTV). Renaissance Technologies had $2 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitalalso initiated a $1.1 million position during the quarter. The other funds with brand new VRTV positions are Paul Marshall and Ian Wace'sMarshall Wace LLP, Mike Vranos'sEllington, and Matthew Hulsizer'sPEAK6 Capital Management. Let's now review hedge fund activity in other stocks similar to Veritiv Corp (NYSE:VRTV). We will take a look at Limoneira Company (NASDAQ:LMNR), Cellcom Israel Ltd. (NYSE:CEL), Hibbett Sports, Inc. (NASDAQ:HIBB), and America First Multifamily Investors, L.P. (NASDAQ:ATAX). This group of stocks' market values are closest to VRTV's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LMNR,2,8529,-2 CEL,2,14426,0 HIBB,15,113528,0 ATAX,2,1764,1 Average,5.25,34562,-0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 5.25 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $102 million in VRTV's case. Hibbett Sports, Inc. (NASDAQ:HIBB) is the most popular stock in this table. On the other hand Limoneira Company (NASDAQ:LMNR) is the least popular one with only 2 bullish hedge fund positions. Veritiv Corp (NYSE:VRTV) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately VRTV wasn't nearly as popular as these 20 stocks and hedge funds that were betting on VRTV were disappointed as the stock returned -27.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Gogo Inc (GOGO) A Good Stock To Buy? As we already know from media reports and hedge fund investor letters, many hedge funds lost money in fourth quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with technology among them. Nevertheless, most investors decided to stick to their bullish theses and recouped their losses by the end of the first quarter. We get to see hedge funds' thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about Gogo Inc (NASDAQ:GOGO). Gogo Inc (NASDAQ:GOGO)was in 12 hedge funds' portfolios at the end of March. GOGO has experienced an increase in activity from the world's largest hedge funds lately. There were 11 hedge funds in our database with GOGO holdings at the end of the previous quarter. Our calculations also showed that gogo isn't among the30 most popular stocks among hedge funds. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to take a look at the fresh hedge fund action encompassing Gogo Inc (NASDAQ:GOGO). At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 9% from the previous quarter. On the other hand, there were a total of 16 hedge funds with a bullish position in GOGO a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings significantly (or already accumulated large positions). More specifically,Stelliam Investment Managementwas the largest shareholder of Gogo Inc (NASDAQ:GOGO), with a stake worth $30.4 million reported as of the end of March. Trailing Stelliam Investment Management was Valinor Management, which amassed a stake valued at $14.5 million. North Peak Capital, GAMCO Investors, and Tenzing Global Investors were also very fond of the stock, giving the stock large weights in their portfolios. Consequently, key money managers were breaking ground themselves.Tenzing Global Investors, managed by Chet Kapoor, assembled the most outsized position in Gogo Inc (NASDAQ:GOGO). Tenzing Global Investors had $5.4 million invested in the company at the end of the quarter. D. E. Shaw'sD E Shawalso made a $2.3 million investment in the stock during the quarter. The following funds were also among the new GOGO investors: Glenn Russell Dubin'sHighbridge Capital Management, Glenn Russell Dubin'sHighbridge Capital Management, and Israel Englander'sMillennium Management. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Gogo Inc (NASDAQ:GOGO) but similarly valued. These stocks are CryoPort, Inc. (NASDAQ:CYRX), Village Super Market, Inc. (NASDAQ:VLGEA), Hawkins, Inc. (NASDAQ:HWKN), and Tailored Brands, Inc. (NYSE:TLRD). This group of stocks' market caps match GOGO's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CYRX,7,6423,3 VLGEA,8,49382,0 HWKN,6,7279,-3 TLRD,18,53895,0 Average,9.75,29245,0 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9.75 hedge funds with bullish positions and the average amount invested in these stocks was $29 million. That figure was $77 million in GOGO's case. Tailored Brands, Inc. (NYSE:TLRD) is the most popular stock in this table. On the other hand Hawkins, Inc. (NASDAQ:HWKN) is the least popular one with only 6 bullish hedge fund positions. Gogo Inc (NASDAQ:GOGO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately GOGO wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GOGO were disappointed as the stock returned 2% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Golden Entertainment Inc (GDEN) It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more than 6 percentage points, as investors fled less-known quantities for safe havens. Luckily hedge funds were shifting their holdings into large-cap stocks. The 20 most popular hedge fund stocks actually generated an average return of 18.7% so far in 2019 and outperformed the S&P 500 ETF by 6.6 percentage points. We are done processing the latest 13f filings and in this article we will study how hedge fund sentiment towards Golden Entertainment Inc (NASDAQ:GDEN) changed during the first quarter. Hedge fund interest inGolden Entertainment Inc (NASDAQ:GDEN)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare GDEN to other stocks including Gores Metropoulos, Inc. (NASDAQ:GMHI), Bank First National Corporation (NASDAQ:BFC), and Albireo Pharma, Inc. (NASDAQ:ALBO) to get a better sense of its popularity. To most stock holders, hedge funds are assumed to be underperforming, old financial vehicles of the past. While there are over 8000 funds trading at the moment, Our experts choose to focus on the aristocrats of this group, around 750 funds. Most estimates calculate that this group of people administer the majority of all hedge funds' total asset base, and by watching their top investments, Insider Monkey has found various investment strategies that have historically outrun Mr. Market. Insider Monkey's flagship hedge fund strategy defeated the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). We're going to check out the fresh hedge fund action encompassing Golden Entertainment Inc (NASDAQ:GDEN). Heading into the second quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. By comparison, 15 hedge funds held shares or bullish call options in GDEN a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions). More specifically,Nantahala Capital Managementwas the largest shareholder of Golden Entertainment Inc (NASDAQ:GDEN), with a stake worth $34.7 million reported as of the end of March. Trailing Nantahala Capital Management was Indaba Capital Management, which amassed a stake valued at $13.2 million. Bridger Management, 1060 Capital Management, and Lafitte Capital Management were also very fond of the stock, giving the stock large weights in their portfolios. Seeing as Golden Entertainment Inc (NASDAQ:GDEN) has witnessed falling interest from the aggregate hedge fund industry, we can see that there was a specific group of funds that elected to cut their positions entirely last quarter. At the top of the heap, Ken Griffin'sCitadel Investment Groupcut the largest investment of the 700 funds tracked by Insider Monkey, comprising about $7.4 million in stock, and David Brown's Hawk Ridge Management was right behind this move, as the fund said goodbye to about $3.8 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's also examine hedge fund activity in other stocks similar to Golden Entertainment Inc (NASDAQ:GDEN). We will take a look at Gores Metropoulos, Inc. (NASDAQ:GMHI), Bank First National Corporation (NASDAQ:BFC), Albireo Pharma, Inc. (NASDAQ:ALBO), and Tekla Life Sciences Investors (NYSE:HQL). This group of stocks' market valuations resemble GDEN's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GMHI,18,172284,18 BFC,4,4587,4 ALBO,13,95457,1 HQL,2,678,0 Average,9.25,68252,5.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9.25 hedge funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $88 million in GDEN's case. Gores Metropoulos, Inc. (NASDAQ:GMHI) is the most popular stock in this table. On the other hand Tekla Life Sciences Investors (NYSE:HQL) is the least popular one with only 2 bullish hedge fund positions. Golden Entertainment Inc (NASDAQ:GDEN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately GDEN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GDEN were disappointed as the stock returned -2% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Ares Management L.P. (ARES) Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by nearly 9 percentage points since the end of the third quarter of 2018 as investors worried over the possible ramifications of rising interest rates and escalation of the trade war with China. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor (i.e. only 298 S&P 500 constituents were among the 500 most popular stocks among hedge funds), and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Ares Management L.P. (NYSE:ARES) and see how the stock is affected by the recent hedge fund activity. Ares Management L.P. (NYSE:ARES)was in 14 hedge funds' portfolios at the end of the first quarter of 2019. ARES has experienced an increase in enthusiasm from smart money lately. There were 11 hedge funds in our database with ARES holdings at the end of the previous quarter. Our calculations also showed that ARES isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to go over the latest hedge fund action surrounding Ares Management L.P. (NYSE:ARES). At Q1's end, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 27% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ARES over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Royce & Associateswas the largest shareholder of Ares Management L.P. (NYSE:ARES), with a stake worth $117.7 million reported as of the end of March. Trailing Royce & Associates was Citadel Investment Group, which amassed a stake valued at $49 million. Millennium Management, Becker Drapkin Management, and Point72 Asset Management were also very fond of the stock, giving the stock large weights in their portfolios. Now, specific money managers have been driving this bullishness.BlueCrest Capital Mgmt., managed by Michael Platt and William Reeves, initiated the largest position in Ares Management L.P. (NYSE:ARES). BlueCrest Capital Mgmt. had $1.5 million invested in the company at the end of the quarter. Benjamin A. Smith'sLaurion Capital Managementalso initiated a $0.9 million position during the quarter. The other funds with new positions in the stock are Michael Gelband'sExodusPoint Capital, David Harding'sWinton Capital Management, and Paul Marshall and Ian Wace'sMarshall Wace LLP. Let's check out hedge fund activity in other stocks similar to Ares Management L.P. (NYSE:ARES). These stocks are Prospect Capital Corporation (NASDAQ:PSEC), Baozun Inc (NASDAQ:BZUN), EVO Payments, Inc. (NASDAQ:EVOP), and Mednax Inc. (NYSE:MD). This group of stocks' market caps are closest to ARES's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PSEC,11,16611,0 BZUN,14,60742,0 EVOP,13,61327,3 MD,23,298044,-2 Average,15.25,109181,0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $109 million. That figure was $232 million in ARES's case. Mednax Inc. (NYSE:MD) is the most popular stock in this table. On the other hand Prospect Capital Corporation (NASDAQ:PSEC) is the least popular one with only 11 bullish hedge fund positions. Ares Management L.P. (NYSE:ARES) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on ARES as the stock returned 21.9% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Fortis Inc. (FTS) "The end to the U.S. Government shutdown, reports of progress on China-U.S. trade talks, and the Federal Reserve’s confirmation that it did not plan further interest rate hikes in 2019 allayed investor fears and drove U.S. markets substantially higher in the first quarter of the year. Global markets followed suit pretty much across the board delivering what some market participants described as a “V-shaped” recovery," This is how Evermore Global Value summarized the first quarter in itsinvestor letter. We pay attention to what hedge funds are doing in a particular stock before considering a potential investment because it works for us. So let’s take a glance at the smart money sentiment towards one of the stocks hedge funds invest in. Fortis Inc. (NYSE:FTS)has experienced a decrease in enthusiasm from smart money in recent months. Our calculations also showed that FTS isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. [caption id="attachment_746893" align="aligncenter" width="473"] Paul Marshall of Marshall Wace[/caption] We're going to take a gander at the fresh hedge fund action encompassing Fortis Inc. (NYSE:FTS). At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -7% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards FTS over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Renaissance Technologiesheld the most valuable stake in Fortis Inc. (NYSE:FTS), which was worth $78.8 million at the end of the first quarter. On the second spot was Citadel Investment Group which amassed $71.3 million worth of shares. Moreover, GLG Partners, AQR Capital Management, and D E Shaw were also bullish on Fortis Inc. (NYSE:FTS), allocating a large percentage of their portfolios to this stock. Seeing as Fortis Inc. (NYSE:FTS) has experienced falling interest from the aggregate hedge fund industry, it's easy to see that there is a sect of money managers that decided to sell off their entire stakes in the third quarter. Intriguingly, Phill Gross and Robert Atchinson'sAdage Capital Managementdumped the biggest investment of the "upper crust" of funds tracked by Insider Monkey, comprising about $60.1 million in stock. Ric Dillon's fund,Diamond Hill Capital, also dropped its stock, about $15.3 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 1 funds in the third quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Fortis Inc. (NYSE:FTS) but similarly valued. We will take a look at Lennar Corporation (NYSE:LEN), KeyCorp (NYSE:KEY), SK Telecom Co., Ltd. (NYSE:SKM), and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN). This group of stocks' market valuations are closest to FTS's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LEN,61,2310446,-1 KEY,32,496942,-1 SKM,6,73101,0 BMRN,41,1908601,4 Average,35,1197273,0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1197 million. That figure was $231 million in FTS's case. Lennar Corporation (NYSE:LEN) is the most popular stock in this table. On the other hand SK Telecom Co., Ltd. (NYSE:SKM) is the least popular one with only 6 bullish hedge fund positions. Fortis Inc. (NYSE:FTS) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on FTS as the stock returned 8.2% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Braemar Hotels & Resorts Inc. (BHR) We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article we look at what those investors think of Braemar Hotels & Resorts Inc. (NYSE:BHR). Braemar Hotels & Resorts Inc. (NYSE:BHR)was in 13 hedge funds' portfolios at the end of March. BHR has seen an increase in hedge fund interest of late. There were 12 hedge funds in our database with BHR holdings at the end of the previous quarter. Our calculations also showed that bhr isn't among the30 most popular stocks among hedge funds. In today’s marketplace there are many formulas shareholders can use to appraise their holdings. A couple of the less utilized formulas are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the best money managers can outclass their index-focused peers by a healthy margin (see the details here). [caption id="attachment_758454" align="aligncenter" width="450"] James Dondero of Highland Capital Management[/caption] We're going to take a glance at the latest hedge fund action surrounding Braemar Hotels & Resorts Inc. (NYSE:BHR). At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from the fourth quarter of 2018. By comparison, 0 hedge funds held shares or bullish call options in BHR a year ago. With hedge funds' sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions). More specifically,Highland Capital Managementwas the largest shareholder of Braemar Hotels & Resorts Inc. (NYSE:BHR), with a stake worth $29.9 million reported as of the end of March. Trailing Highland Capital Management was Forward Management, which amassed a stake valued at $16.3 million. Renaissance Technologies, Caerus Global Investors, and AQR Capital Management were also very fond of the stock, giving the stock large weights in their portfolios. Consequently, some big names were leading the bulls' herd.Element Capital Management, managed by Jeffrey Talpins, initiated the most valuable position in Braemar Hotels & Resorts Inc. (NYSE:BHR). Element Capital Management had $0.2 million invested in the company at the end of the quarter. Matthew Hulsizer'sPEAK6 Capital Managementalso initiated a $0.1 million position during the quarter. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Braemar Hotels & Resorts Inc. (NYSE:BHR) but similarly valued. These stocks are New Frontier Corp (NYSE:NFC), DryShips Inc. (NASDAQ:DRYS), GenMark Diagnostics, Inc (NASDAQ:GNMK), and Avalon GloboCare Corp. (NASDAQ:AVCO). This group of stocks' market caps match BHR's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NFC,13,64688,-1 DRYS,3,171,2 GNMK,14,76000,2 AVCO,3,1423,2 Average,8.25,35571,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 8.25 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $70 million in BHR's case. GenMark Diagnostics, Inc (NASDAQ:GNMK) is the most popular stock in this table. On the other hand DryShips Inc. (NASDAQ:DRYS) is the least popular one with only 3 bullish hedge fund positions. Braemar Hotels & Resorts Inc. (NYSE:BHR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately BHR wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BHR were disappointed as the stock returned -17.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been More Bullish On Albireo Pharma, Inc. (ALBO) A market surge in the first quarter, spurred by easing global macroeconomic concerns and Powell's pivot ended up having a positive impact on the markets and many hedge funds as a result. The stocks of smaller companies which were especially hard hit during the fourth quarter slightly outperformed the market during the first quarter. Unfortunately, Trump is unpredictable and volatility returned in the second quarter and smaller-cap stocks went back to selling off. We finished compiling the latest 13F filings to get an idea about what hedge funds are thinking about the overall market as well as individual stocks. In this article we will study the hedge fund sentiment to see how those concerns affected their ownership of Albireo Pharma, Inc. (NASDAQ:ALBO) during the quarter. Albireo Pharma, Inc. (NASDAQ:ALBO)has seen an increase in activity from the world's largest hedge funds of late. Our calculations also showed that ALBO isn't among the30 most popular stocks among hedge funds. To most market participants, hedge funds are seen as underperforming, outdated financial vehicles of the past. While there are greater than 8000 funds in operation at the moment, Our experts choose to focus on the elite of this group, approximately 750 funds. Most estimates calculate that this group of people shepherd most of the hedge fund industry's total capital, and by tracking their best stock picks, Insider Monkey has unsheathed many investment strategies that have historically outperformed Mr. Market. Insider Monkey's flagship hedge fund strategy outstripped the S&P 500 index by around 5 percentage points per annum since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). Let's review the fresh hedge fund action regarding Albireo Pharma, Inc. (NASDAQ:ALBO). Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in ALBO over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Albireo Pharma, Inc. (NASDAQ:ALBO) was held byPerceptive Advisors, which reported holding $54.9 million worth of stock at the end of March. It was followed by Prosight Capital with a $8.7 million position. Other investors bullish on the company included Baker Bros. Advisors, Sectoral Asset Management, and Biotechnology Value Fund / BVF Inc. As industrywide interest jumped, some big names have been driving this bullishness.GLG Partners, managed by Noam Gottesman, established the most valuable position in Albireo Pharma, Inc. (NASDAQ:ALBO). GLG Partners had $0.7 million invested in the company at the end of the quarter. Let's go over hedge fund activity in other stocks similar to Albireo Pharma, Inc. (NASDAQ:ALBO). We will take a look at Tekla Life Sciences Investors (NYSE:HQL), Tekla World Healthcare Fund (NYSE:THW), Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), and Gritstone Oncology, Inc. (NASDAQ:GRTS). This group of stocks' market caps are closest to ALBO's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HQL,2,678,0 THW,1,283,0 ASPS,10,33161,-1 GRTS,8,83888,-1 Average,5.25,29503,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 5.25 hedge funds with bullish positions and the average amount invested in these stocks was $30 million. That figure was $95 million in ALBO's case. Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) is the most popular stock in this table. On the other hand Tekla World Healthcare Fund (NYSE:THW) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Albireo Pharma, Inc. (NASDAQ:ALBO) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately ALBO wasn't nearly as popular as these 20 stocks and hedge funds that were betting on ALBO were disappointed as the stock returned -0.7% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Xylem Inc (XYL) Hedge fund managers like David Einhorn, Bill Ackman, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Xylem Inc (NYSE:XYL). IsXylem Inc (NYSE:XYL)a buy right now? Money managers are getting less optimistic. The number of long hedge fund positions decreased by 5 recently. Our calculations also showed that XYL isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. [caption id="attachment_746830" align="aligncenter" width="473"] Matthew Hulsizer of PEAK6 Capital[/caption] Let's analyze the latest hedge fund action surrounding Xylem Inc (NYSE:XYL). At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -28% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in XYL over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Impax Asset Managementheld the most valuable stake in Xylem Inc (NYSE:XYL), which was worth $346 million at the end of the first quarter. On the second spot was GAMCO Investors which amassed $143.5 million worth of shares. Moreover, Locust Wood Capital Advisers, GLG Partners, and AQR Capital Management were also bullish on Xylem Inc (NYSE:XYL), allocating a large percentage of their portfolios to this stock. Judging by the fact that Xylem Inc (NYSE:XYL) has witnessed bearish sentiment from the aggregate hedge fund industry, it's safe to say that there exists a select few money managers that elected to cut their entire stakes in the third quarter. At the top of the heap, Richard Chilton'sChilton Investment Companydumped the largest investment of all the hedgies tracked by Insider Monkey, comprising about $59.6 million in stock. Steve Cohen's fund,Point72 Asset Management, also said goodbye to its stock, about $13.1 million worth. These moves are important to note, as total hedge fund interest was cut by 5 funds in the third quarter. Let's check out hedge fund activity in other stocks similar to Xylem Inc (NYSE:XYL). We will take a look at CDW Corporation (NASDAQ:CDW), Hologic, Inc. (NASDAQ:HOLX), Franco-Nevada Corporation (NYSE:FNV), and Cincinnati Financial Corporation (NASDAQ:CINF). This group of stocks' market values are closest to XYL's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CDW,28,1148152,2 HOLX,23,755952,-5 FNV,19,457607,-4 CINF,21,545563,-1 Average,22.75,726819,-2 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $727 million. That figure was $521 million in XYL's case. CDW Corporation (NASDAQ:CDW) is the most popular stock in this table. On the other hand Franco-Nevada Corporation (NYSE:FNV) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Xylem Inc (NYSE:XYL) is even less popular than FNV. Hedge funds dodged a bullet by taking a bearish stance towards XYL. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately XYL wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); XYL investors were disappointed as the stock returned 3.5% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Did Hedge Funds Drop The Ball On Strategic Education Inc (STRA) ? The market has been volatile in the last 6 months as the Federal Reserve continued its rate hikes and then abruptly reversed its stance and uncertainty looms over trade negotiations with China. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by nearly 9 percentage points. SEC filings and hedge fund investor letters indicate that the smart money seems to be paring back their overall long exposure since summer months, though some funds increased their exposure dramatically at the end of Q4 and the beginning of Q1. In this article, we analyze what the smart money thinks of Strategic Education Inc (NASDAQ:STRA) and find out how it is affected by hedge funds' moves. IsStrategicEducation Inc (NASDAQ:STRA)a worthy stock to buy now? Hedge funds are getting more bullish. The number of long hedge fund bets improved by 1 lately. Our calculations also showed that STRA isn't among the30 most popular stocks among hedge funds. To most stock holders, hedge funds are viewed as worthless, outdated financial tools of yesteryear. While there are greater than 8000 funds trading at present, Our experts look at the top tier of this club, around 750 funds. These investment experts administer most of all hedge funds' total asset base, and by keeping track of their best equity investments, Insider Monkey has spotted several investment strategies that have historically beaten Mr. Market. Insider Monkey's flagship hedge fund strategy beat the S&P 500 index by around 5 percentage points per annum since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). Let's take a glance at the latest hedge fund action encompassing Strategic Education Inc (NASDAQ:STRA). Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 8% from the fourth quarter of 2018. By comparison, 12 hedge funds held shares or bullish call options in STRA a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Strategic Education Inc (NASDAQ:STRA), with a stake worth $100.5 million reported as of the end of March. Trailing Renaissance Technologies was ValueAct Capital, which amassed a stake valued at $57.3 million. Columbus Circle Investors, SG Capital Management, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios. As aggregate interest increased, key hedge funds were leading the bulls' herd.SG Capital Management, managed by Ken Grossman and Glen Schneider, initiated the most valuable position in Strategic Education Inc (NASDAQ:STRA). SG Capital Management had $6.8 million invested in the company at the end of the quarter. Matthew Drapkin and Steven R. Becker'sBecker Drapkin Managementalso initiated a $2.2 million position during the quarter. The other funds with new positions in the stock are Ken Griffin'sCitadel Investment Group, Matthew Hulsizer'sPEAK6 Capital Management, and Noam Gottesman'sGLG Partners. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Strategic Education Inc (NASDAQ:STRA) but similarly valued. These stocks are Old National Bancorp (NASDAQ:ONB), TerraForm Power Inc (NASDAQ:TERP), AmeriGas Partners, L.P. (NYSE:APU), and Sensient Technologies Corporation (NYSE:SXT). All of these stocks' market caps match STRA's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ONB,9,34803,2 TERP,11,221131,3 APU,6,9263,2 SXT,8,65991,-7 Average,8.5,82797,0 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 8.5 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $215 million in STRA's case. TerraForm Power Inc (NASDAQ:TERP) is the most popular stock in this table. On the other hand AmeriGas Partners, L.P. (NYSE:APU) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Strategic Education Inc (NASDAQ:STRA) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on STRA as the stock returned 37.5% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Did Hedge Funds Drop The Ball On CRISPR Therapeutics AG (CRSP) ? The elite funds run by legendary investors such as David Tepper and Dan Loeb make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don't follow. Because of their pay structures, they have strong incentives to do the research necessary to beat the market. That's why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at CRISPR Therapeutics AG (NASDAQ:CRSP) from the perspective of those elite funds. IsCRISPR Therapeutics AG (NASDAQ:CRSP)the right pick for your portfolio? Money managers are buying. The number of bullish hedge fund bets rose by 3 recently. Our calculations also showed that CRSP isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. We're going to check out the new hedge fund action surrounding CRISPR Therapeutics AG (NASDAQ:CRSP). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 27% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards CRSP over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes significantly (or already accumulated large positions). More specifically,EcoR1 Capitalwas the largest shareholder of CRISPR Therapeutics AG (NASDAQ:CRSP), with a stake worth $67.1 million reported as of the end of March. Trailing EcoR1 Capital was Cormorant Asset Management, which amassed a stake valued at $32.1 million. Farallon Capital, Clough Capital Partners, and Valiant Capital were also very fond of the stock, giving the stock large weights in their portfolios. Now, some big names were leading the bulls' herd.GLG Partners, managed by Noam Gottesman, created the biggest position in CRISPR Therapeutics AG (NASDAQ:CRSP). GLG Partners had $1.8 million invested in the company at the end of the quarter. Kamran Moghtaderi'sEversept Partnersalso initiated a $1.5 million position during the quarter. The other funds with new positions in the stock are Mike Vranos'sEllington, Michael S. Weiss and Lindsay A. Rosenwald'sOpus Point Partners Management, and Steve Cohen'sPoint72 Asset Management. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as CRISPR Therapeutics AG (NASDAQ:CRSP) but similarly valued. These stocks are ForeScout Technologies, Inc. (NASDAQ:FSCT), Forward Air Corporation (NASDAQ:FWRD), HudBay Minerals Inc (NYSE:HBM), and Avaya Holdings Corp. (NYSE:AVYA). This group of stocks' market valuations are closest to CRSP's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FSCT,23,265548,6 FWRD,15,102299,4 HBM,11,295270,-2 AVYA,40,427447,4 Average,22.25,272641,3 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 22.25 hedge funds with bullish positions and the average amount invested in these stocks was $273 million. That figure was $173 million in CRSP's case. Avaya Holdings Corp. (NYSE:AVYA) is the most popular stock in this table. On the other hand HudBay Minerals Inc (NYSE:HBM) is the least popular one with only 11 bullish hedge fund positions. CRISPR Therapeutics AG (NASDAQ:CRSP) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on CRSP as the stock returned 31.4% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been More Bullish On Clarus Corporation (CLAR) We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article we look at what those investors think of Clarus Corporation (NASDAQ:CLAR). Clarus Corporation (NASDAQ:CLAR)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 13 hedge funds' portfolios at the end of the first quarter of 2019. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Gladstone Investment Corporation (NASDAQ:GAIN), MiX Telematics Limited (NYSE:MIXT), and Regalwood Global Energy Ltd. (NYSE:RWGE) to gather more data points. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's take a glance at the latest hedge fund action surrounding Clarus Corporation (NASDAQ:CLAR). Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in CLAR over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Greenhouse Fundswas the largest shareholder of Clarus Corporation (NASDAQ:CLAR), with a stake worth $26.9 million reported as of the end of March. Trailing Greenhouse Funds was Renaissance Technologies, which amassed a stake valued at $12.2 million. Wynnefield Capital, Arrowstreet Capital, and Royce & Associates were also very fond of the stock, giving the stock large weights in their portfolios. Judging by the fact that Clarus Corporation (NASDAQ:CLAR) has experienced declining sentiment from the smart money, it's easy to see that there was a specific group of funds who were dropping their positions entirely heading into Q3. It's worth mentioning that Mark Broach'sManatuck Hill Partnersdumped the largest position of the "upper crust" of funds monitored by Insider Monkey, comprising close to $2.8 million in stock. Frederick DiSanto's fund,Ancora Advisors, also said goodbye to its stock, about $1.3 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's now review hedge fund activity in other stocks similar to Clarus Corporation (NASDAQ:CLAR). We will take a look at Gladstone Investment Corporation (NASDAQ:GAIN), MiX Telematics Limited (NYSE:MIXT), Regalwood Global Energy Ltd. (NYSE:RWGE), and Smart & Final Stores Inc (NYSE:SFS). This group of stocks' market caps are similar to CLAR's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GAIN,7,3922,3 MIXT,8,52028,1 RWGE,14,133850,0 SFS,12,24066,-2 Average,10.25,53467,0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $55 million in CLAR's case. Regalwood Global Energy Ltd. (NYSE:RWGE) is the most popular stock in this table. On the other hand Gladstone Investment Corporation (NASDAQ:GAIN) is the least popular one with only 7 bullish hedge fund positions. Clarus Corporation (NASDAQ:CLAR) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on CLAR as the stock returned 7.2% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Halcon Resources Corp (HK) We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn't mean that they don't have occasional colossal losses; they do (like Peltz's recent General Electric losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Halcon Resources Corp (NYSE:HK). Halcon Resources Corp (NYSE:HK)investors should be aware of a decrease in activity from the world's largest hedge funds in recent months. Our calculations also showed that HK isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a gander at the recent hedge fund action regarding Halcon Resources Corp (NYSE:HK). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of -36% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in HK over the last 15 quarters. With hedge funds' sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions). More specifically,Oaktree Capital Managementwas the largest shareholder of Halcon Resources Corp (NYSE:HK), with a stake worth $15.5 million reported as of the end of March. Trailing Oaktree Capital Management was Fir Tree, which amassed a stake valued at $11.3 million. Luminus Management, Brigade Capital, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios. Since Halcon Resources Corp (NYSE:HK) has witnessed falling interest from hedge fund managers, logic holds that there lies a certain "tier" of hedgies that elected to cut their full holdings last quarter. Intriguingly, Brett Hendrickson'sNokomis Capitaldumped the largest position of the 700 funds monitored by Insider Monkey, totaling close to $4.3 million in stock, and Bernard Selz's Selz Capital was right behind this move, as the fund sold off about $2.7 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 8 funds last quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Halcon Resources Corp (NYSE:HK) but similarly valued. These stocks are Bridgford Foods Corporation (NASDAQ:BRID), Apyx Medical Corporation (NASDAQ:APYX), Advanced Emissions Solutions, Inc. (NASDAQ:ADES), and Independence Contract Drilling Inc (NYSE:ICD). This group of stocks' market caps match HK's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BRID,1,378,1 APYX,13,28136,4 ADES,6,36808,0 ICD,13,95880,1 Average,8.25,40301,1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 8.25 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $69 million in HK's case. Apyx Medical Corporation (NASDAQ:APYX) is the most popular stock in this table. On the other hand Bridgford Foods Corporation (NASDAQ:BRID) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Halcon Resources Corp (NYSE:HK) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately HK wasn't nearly as popular as these 20 stocks and hedge funds that were betting on HK were disappointed as the stock returned -87.4% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Del Frisco’s Restaurant Group Inc (DFRG) Is Del Frisco's Restaurant Group Inc (NASDAQ:DFRG) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market. Del Frisco's Restaurant Group Inc (NASDAQ:DFRG)has seen an increase in hedge fund sentiment lately.DFRGwas in 14 hedge funds' portfolios at the end of March. There were 13 hedge funds in our database with DFRG positions at the end of the previous quarter. Our calculations also showed that DFRG isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's review the fresh hedge fund action encompassing Del Frisco's Restaurant Group Inc (NASDAQ:DFRG). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in DFRG over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Del Frisco's Restaurant Group Inc (NASDAQ:DFRG) was held byArmistice Capital, which reported holding $35.9 million worth of stock at the end of March. It was followed by Engaged Capital with a $21.3 million position. Other investors bullish on the company included Nokomis Capital, Antara Capital, and Highbridge Capital Management. With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves.Nokomis Capital, managed by Brett Hendrickson, initiated the most valuable position in Del Frisco's Restaurant Group Inc (NASDAQ:DFRG). Nokomis Capital had $3.7 million invested in the company at the end of the quarter. Himanshu Gulati'sAntara Capitalalso initiated a $3.5 million position during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin'sHighbridge Capital Management, Himanshu Gulati'sAntara Capital, and Matthew Hulsizer'sPEAK6 Capital Management. Let's now take a look at hedge fund activity in other stocks similar to Del Frisco's Restaurant Group Inc (NASDAQ:DFRG). We will take a look at Nemaura Medical Inc. (NASDAQ:NMRD), Leju Holdings Ltd (NYSE:LEJU), RGC Resources, Inc. (NASDAQ:RGCO), and 22nd Century Group, Inc (NYSE:XXII). This group of stocks' market values match DFRG's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NMRD,1,36,1 LEJU,2,1888,0 RGCO,1,416,0 XXII,2,359,-3 Average,1.5,675,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 1.5 hedge funds with bullish positions and the average amount invested in these stocks was $1 million. That figure was $81 million in DFRG's case. Leju Holdings Ltd (NYSE:LEJU) is the most popular stock in this table. On the other hand Nemaura Medical Inc. (NASDAQ:NMRD) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Del Frisco's Restaurant Group Inc (NASDAQ:DFRG) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on DFRG, though not to the same extent, as the stock returned 5.8% during the same period and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Could Tongda Group Holdings Limited's (HKG:698) Investor Composition Influence The Stock Price? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in Tongda Group Holdings Limited (HKG:698) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Tongda Group Holdings is a smaller company with a market capitalization of HK$4.0b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about 698. See our latest analysis for Tongda Group 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. Tongda Group Holdings already has institutions on the share registry. Indeed, they own 25% 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Tongda Group Holdings, (below). Of course, keep in mind that there are other factors to consider, too. Hedge funds don't have many shares in Tongda Group Holdings. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 a reasonable proportion of Tongda Group Holdings Limited. It has a market capitalization of just HK$4.0b, and insiders have HK$656m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently. With a 34% ownership, the general public have some degree of sway over 698. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Our data indicates that Private Companies hold 24%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research. It's always worth thinking about the different groups who own shares in a company. But to understand Tongda Group Holdings better, we need to consider many other factors. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Taking A Look At The United Laboratories International Holdings Limited's (HKG:3933) ROE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine The United Laboratories International Holdings Limited (HKG:3933), by way of a worked example. Our data showsUnited Laboratories International Holdings has a return on equity of 11%for the last year. Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.11. Check out our latest analysis for United Laboratories International Holdings Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for United Laboratories International Holdings: 11% = CN¥683m ÷ CN¥6.1b (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 the capital paid in by shareholders, plus any retained earnings. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. The higher the ROE, the more profit the company is making. So, 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. You can see in the graphic below that United Laboratories International Holdings has an ROE that is fairly close to the average for the Pharmaceuticals industry (13%). That's not overly surprising. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. 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. That will make the ROE look better than if no debt was used. While United Laboratories International Holdings does have some debt, with debt to equity of just 0.69, we wouldn't say debt is excessive. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. 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. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREEvisualization of analyst forecasts for the company. Of courseUnited Laboratories International Holdings may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Chile beat Colombia in shootout to reach Copa semi-finals SAO PAULO (Reuters) - Reigning champions Chile advanced to the semi-finals of the Copa America on Friday after beating Colombia 5-4 in a penalty shootout following a 0-0 draw at the Corinthians arena. Alexis Sanchez got the winning spot kick after William Tesillo pulled Colombias last penalty wide of the post. Chile will face either Uruguay or Peru in Wednesdays semi-final in Porto Alegre. The other semi is between hosts Brazil and Argentina. Chile had beaten Argentina in the last two finals of the tournament on penalty kicks and they gave Colombian goalkeeper David Ospina no chance on Friday. "I think we had opportunities (during the game)," said Chile's Charles Aranguiz. "We didnt take them and we had to do it on penalties. "Our team is confident when it comes to penalties, we have won two finals on penalties. So that gives us energy." The kick-off at the Corinthians arena was delayed by 20 minutes after the Chilean coach got stuck in Sao Paulos notorious traffic, keeping more than 40,000 fans waiting. Tempers frequently flared in a match with 35 fouls but there was no lack of quality on show as both sides created chances. Chile were unlucky not to win in regulation time, with Aranguiz in the first half and Vidal in the second having goals chalked off after video assistant referee (VAR) reviews. "Its difficult because youre going at 100 miles an hour and then they annul two goals," said Vidal. "But we kept our heads and won it on the penalties. "We deserved it." (Reporting by Andrew Downie; Editing by Peter Rutherford)
Jagran Prakashan Limited (NSE:JAGRAN): Should The Recent Earnings Drop Worry You? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Jagran Prakashan Limited's (NSE:JAGRAN) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Jagran Prakashan JAGRAN's trailing twelve-month earnings (from 31 March 2019) of ₹2.6b has declined by -13% compared to the previous year. Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 1.9%, indicating the rate at which JAGRAN is growing has slowed down. Why is this? Let's examine what's going on with margins and whether the whole industry is experiencing the hit as well. In terms of returns from investment, Jagran Prakashan has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 9.2% exceeds the IN Media industry of 8.7%, indicating Jagran Prakashan has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Jagran Prakashan’s debt level, has declined over the past 3 years from 22% to 17%. Jagran Prakashan's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Typically companies that endure a prolonged period of decline in earnings are undergoing some sort of reinvestment phase with the aim of keeping up with the latest industry disruption and growth. You should continue to research Jagran Prakashan to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for JAGRAN’s future growth? Take a look at ourfree research report of analyst consensusfor JAGRAN’s outlook. 2. Financial Health: Are JAGRAN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 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. NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Popular Analyst Sees Bitcoin Mirroring the 2012 Bull Run Bitcoin may be headed for a major bull market run if it repeats a similar pattern to the one seen in 2012 as opposed to 2015. \| Source: Shutterstock Many traders were caught off guard by bitcoin’s recent ascent past $13,000 . Suddenly, however, BTC sharply fell by about 20% after reaching a high of almost $14,000. Many in the Crypto Twitter community were expecting a long consolidation period after BTC dropped by almost 85 percent from all-time highs of $20,000. That’s why some of those who were able to catch the bottom at $3,100 took heavy profits at $6,000, thinking that the market will respect the former resistance. Imagine the look on their faces when the leading crypto token sliced through $6,000 like a hot knife through butter. Where did these expectations come from? Simple: many of those who stuck during the 2018 bear market referred to the 2015 crypto winter to look for signs of reversal. In reality, however, bitcoin is behaving like the bull market of 2012. One respected analyst was quick to point out the difference. Rounding Bottom Versus Double Bottom Reversal On June 24, a pseudonymous account on Twitter named the Crypto Dog , who has amassed 147,000 followers, posted a chart that shows how bitcoin closely resembles the 2012 bull run. It also highlights how the current trend reversal is quite different from the 2015 consolidation. In the tweet, the analyst wrote, “Bitcoin is acting a whole lot more like 2012 than 2015.” #Bitcoin is acting a whole lot more like 2012 than 2015. $BTC $BTCUSD #BitcoinIsBack pic.twitter.com/Pd5IBPZd6X — The Crypto Dog (@TheCryptoDog) June 25, 2019 Read the full story on CCN.com .
Is Ipca Laboratories Limited's (NSE:IPCALAB) High P/E Ratio A Problem For Investors? 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 Ipca Laboratories Limited's ( NSE:IPCALAB ), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months, Ipca Laboratories has a P/E ratio of 26.21 . That is equivalent to an earnings yield of about 3.8%. View our latest analysis for Ipca Laboratories How Do You Calculate Ipca Laboratories's P/E Ratio? The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Ipca Laboratories: P/E of 26.21 = ₹917.5 ÷ ₹35.01 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? A higher P/E ratio means that investors are paying a higher price for each ₹1 of company earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future. How Growth Rates Impact P/E Ratios Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. When earnings grow, the 'E' increases, over time. That means unless the share price increases, the P/E will reduce in a few years. Then, a lower P/E should attract more buyers, pushing the share price up. Ipca Laboratories's 85% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive. And earnings per share have improved by 68% annually, over the last three years. So you might say it really deserves to have an above-average P/E ratio. On the other hand, the longer term performance is poor, with EPS down 1.6% per year over 5 years. Does Ipca Laboratories Have A Relatively High Or Low P/E For Its Industry? We can get an indication of market expectations by looking at the P/E ratio. The image below shows that Ipca Laboratories has a higher P/E than the average (18.3) P/E for companies in the pharmaceuticals industry. Story continues NSEI:IPCALAB Price Estimation Relative to Market, June 29th 2019 Ipca Laboratories'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 investors should always consider the P/E ratio alongside other factors, such as whether company directors have been buying shares . A Limitation: P/E Ratios Ignore Debt and Cash In The Bank Don't forget that the P/E ratio considers market capitalization. So it won't reflect the advantage of cash, or disadvantage of debt. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. Such 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. So What Does Ipca Laboratories's Balance Sheet Tell Us? The extra options and safety that comes with Ipca Laboratories's ₹1.3b net cash position means that it deserves a higher P/E than it would if it had a lot of net debt. The Verdict On Ipca Laboratories's P/E Ratio Ipca Laboratories's P/E is 26.2 which is above average (15.4) in the IN market. The excess cash it carries is the gravy on top its fast EPS growth. To us, this is the sort of company that we would expect to carry an above average price tag (relative to earnings). Investors should be looking to buy stocks that the market is wrong about. 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. You might be able to find a better buy than Ipca Laboratories. 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). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
UPDATE 1-Trump says he appreciates Saudi purchase of U.S. military equipment (Adds comment from crown prince, background) By Roberta Rampton OSAKA, June 29 (Reuters) - President Donald Trump said on Saturday he appreciated Saudi Arabia's purchase of U.S. military equipment, calling Crown Prince Mohammed bin Salman a "friend of mine" who had worked to open up the country with economic and social reforms. Trump's plan to boost defence sales to the kingdom has hit obstacles in Congress, where Democrats and some fellow Republicans are not happy about human rights abuses, including the murder last year of Saudi journalist Jamal Khashoggi. "It's an honour to be with the crown prince of Saudi Arabia, a friend of mine - a man who has really done things in the last five years in terms of opening up Saudi Arabia," Trump said ahead of a bilateral meeting with the crown prince. "I think especially what you’ve done for women and seeing what’s happening - it’s like a revolution in a very positive way," he added, speaking on the sidelines of a Group of 20 (G20) summit. "We’re trying to do our best for our country, Saudi Arabia, and it’s a long journey," the crown prince said. The Senate this month voted to block the sale of billions of dollars of military equipment to Saudi Arabia, the United Arab Emirates and other countries, rejecting Trump's decision to sidestep Congress's review of such deals by declaring an emergency over Iran. Trump has promised to veto the Senate action. On Saturday, Trump declined to say whether he would address the death of Khashoggi, who was a critic of the crown prince, in his meeting. The CIA has determined the crown prince ordered Khashoggi's killing, while a U.N. rights investigator has also said he should be investigated over the murder, saying there was "sufficient credible evidence" of his responsibility. Saudi officials have denied any involvement. Critics have said Trump let the Saudis off the hook by expressing doubt in the CIA assessment and arguing that the United States could not risk its alliance with Saudi Arabia because of the threat posed by Iran. The United States has blamed Iran for recent attacks on oil tankers in Gulf shipping lanes, which the Unites States is working with Saudi Arabia and other allies to protect. Trump said Saudi purchases of military equipment supported at least 1 million U.S. jobs, and appeared to exonerate the kingdom for any past acts of "terror". "For a long time there were questions as to whether or not Saudi Arabia and other countries were sponsoring terror," said Trump, as he sat next to the crown prince. "You have absolutely stopped and I really appreciate that and the world really appreciates it," Trump said. (Reporting by Roberta Rampton Writing by Chang-Ran Kim)
Here's How We Evaluate Ipca Laboratories Limited's (NSE:IPCALAB) Dividend Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll take a closer look at Ipca Laboratories Limited (NSE:IPCALAB) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A 0.3% yield is nothing to get excited about, but investors probably think the long payment history suggests Ipca Laboratories has some staying power. Some simple research can reduce the risk of buying Ipca Laboratories for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Ipca Laboratories! 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. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Ipca Laboratories paid out 8.6% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. Consider gettingour latest analysis on Ipca Laboratories'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. For the purpose of this article, we only scrutinise the last decade of Ipca Laboratories's dividend payments. Its dividend payments have fallen by 20% or more on at least one occasion over the past ten years. During the past ten-year period, the first annual payment was ₹1.60 in 2009, compared to ₹3.00 last year. Dividends per share have grown at approximately 6.5% per year over this time. The dividends haven't grown at precisely 6.5% every year, but this is a useful way to average out the historical rate of growth. It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. Ipca Laboratories might have put its house in order since then, but we remain cautious. With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? While there may be fluctuations in the past , Ipca Laboratories'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. 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. It's great to see that Ipca Laboratories is paying out a low percentage of its earnings and cash flow. Earnings per share are down, and Ipca Laboratories's dividend has been cut at least once in the past, which is disappointing. In sum, we find it hard to get excited about Ipca Laboratories 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. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. See if the 15 analysts are forecasting a turnaround in ourfree collection of analyst estimates here. 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
NBA free agency: Kevin Durant narrows list to four teams NBA free agency begins on Sunday, and Golden State Warriors star Kevin Durant already has a short list of teams his camp is planning to engage, according to ESPN’s Adrian Wojnarowski. That list is reportedly the Warriors, the New York Knicks, the Brooklyn Nets and the Los Angeles Clippers. So basically, Durant’s current team and the teams of the NBA’s biggest media markets. Story filed to ESPN: Golden State’s Kevin Durant is planning to engage four teams in discussions upon the opening of NBA free agency on Sunday – the Brooklyn Nets, Los Angeles Clippers, New York Knicks and Warriors, league sources tell ESPN. — Adrian Wojnarowski (@wojespn) June 29, 2019 Per Wojnarowski , Durant’s decision-making process could extend well into next week. Durant declined his player option for the 2019-20 season earlier this week and will officially be one of the most coveted free agents on the market, no matter his health. Kevin Durant is already narrowing down his free agent options. (AP Photo/Jeff Chiu) A ruptured Achilles tendon took some of the excitement away from Durant’s destination, as the superstar will likely spend most, if not all, of the first year of any contract rehabbing the injury. There’s also no guarantee Durant will be his unstoppable scoring self when he returns due to the bleak history of the injury . Still, players like Durant are rare, even with the injury. If Durant returns even close to his former self, he’s capable of contending for a title. That may be easier with some teams than others, though. Where will Kevin Durant land in free agency? None of these teams are too surprising if you’ve been following the breadcrumbs of Durant’s impending decision. Even with their reported locker room friction , the Warriors were always going to be a player for Durant. The Knicks were widely considered to be a favorite for Durant during the season, especially after the team dealt Kristaps Porzingis and cleared the cap space necessary for two max free agents . The Nets also emerged as a player thanks to their New York City location and dalliance with Kyrie Irving, whom Durant has been rumored to be interested in joining forces . Story continues There was also noise around the Clippers making a big splash in free agency, though the team seems to be more interested in Kawhi Leonard at this point. The team was one of many that pursued Durant when he hit free agency in 2016, and the strength of their pitch then could reportedly help now, according to the Los Angeles Times . Even injured, Durant has options, and figures to sign a max contract for whichever team he wants. More from Yahoo Sports: Rose responds to LaVar Ball's cringeworthy remark Former WWE star tells harrowing depression tale Brady takes subtle shot at ESPN star's 'cliff' comment Report: Thompson, Warriors expected to reach max deal
Berger Paints India Limited (NSE:BERGEPAINT): What Are The Future Prospects? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The latest earnings update Berger Paints India Limited (NSE:BERGEPAINT) released in May 2019 indicated that the company benefited from a small tailwind, eventuating to a single-digit earnings growth of 8.0%. Below is my commentary, albeit very simple and high-level, on how market analysts view Berger Paints India's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for Berger Paints India Analysts' expectations for the coming year seems buoyant, with earnings expanding by a robust 27%. This growth seems to continue into the following year with rates reaching double digit 52% compared to today’s earnings, and finally hitting ₹9.0b by 2022. Although it’s informative understanding the growth rate year by year relative to today’s level, it may be more insightful to estimate the rate at which the business is rising or falling on average every year. The benefit of this technique is that we can get a bigger picture of the direction of Berger Paints India's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 19%. This means, we can assume Berger Paints India will grow its earnings by 19% every year for the next few years. For Berger Paints India, there are three important aspects you should look at: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is BERGEPAINT 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 BERGEPAINT is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BERGEPAINT? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Should We Expect From Minda Industries Limited's (NSE:MINDAIND) Earnings In The Years Ahead? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The latest earnings announcement Minda Industries Limited (NSE:MINDAIND) released in May 2019 showed that the business faced a minor headwind with earnings deteriorating from ₹3.1b to ₹2.9b, a change of -7.9%. Investors may find it useful to understand how market analysts view Minda Industries's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Minda Industries Market analysts' consensus outlook for this coming year seems positive, with earnings expanding by a robust 24%. This growth seems to continue into the following year with rates arriving at double digit 57% compared to today’s earnings, and finally hitting ₹5.4b by 2022. Even though it’s helpful to be aware of the growth rate year by year relative to today’s value, it may be more insightful analyzing the rate at which the company is growing on average every year. The advantage of this technique is that we can get a better picture of the direction of Minda Industries's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 21%. This means that, we can expect Minda Industries will grow its earnings by 21% every year for the next couple of years. For Minda Industries, there are three fundamental factors you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is MINDAIND 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 MINDAIND is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MINDAIND? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Lisa Vanderpump Arrives for Jax Taylor and Brittany Cartwright's Wedding Weekend Following Her Mother's Death Lisa Vanderpump has briefly resumed filming on Vanderpump Rules, following the recent death of her mother. The reality star posed for pictures as Jax Taylor and Brittany Cartwright kicked off their wedding weekend in Kentucky on Friday. Cameras will be rolling all weekend long on the festivities, despite the fact that Lisa recently stepped back from production to privately mourn the loss of her mother, Jean, who died unexpectedly last week. "Lisa & Ken Vanderpump has made it to KY💕," Brittany's mom, Sherri, captioned a smiling shot with Lisa, her husband, Ken Todd, and the couple's hot pink-clad pup, Puffy. View this post on Instagram Lisa & Ken Vanderpump has made it to KY💕 A post shared by Sherri Cartwright (@sherri.cartwright) on Jun 28, 2019 at 4:52pm PDT ET learned last week that Lisa was planning to take a step back from filming for her Bravo series, following her mother's death. The reality star's reps confirmed the news to ET, saying she was "shocked and devastated" by the sudden news and asking for privacy as she coped with the loss. However, ET also learned that Lisa still planned to attend the wedding if it didn't conflict with memorial plans for her mother. Two sources also confirmed to ET that *NSYNC singer Lance Bass will be officiating the ceremony , which is being held at The Kentucky Castle. Bass and Taylor are partners together in several business ventures, including Just Add X non-alcoholic mixers. When ET's Brice Sander spoke with the couple at the 4th Annual World Dog Day celebration in West Hollywood last month, they said wedding planning was going "really well," but still had a few things to sort out, including their married name. Jax’s legal name, Jason Cauchi, was included on the couple's Beauty and the Beast -themed wedding invitations, and the couple told ET they’ll likely go by Jax’s legal moniker after the wedding, in part to honor his late father , Ronald Cauchi. Story continues “It’ll be our family name,” Jax said. “For sure, our kids will have my last name.” See more on the upcoming nuptials in the video below. RELATED CONTENT: Lance Bass to Officiate Jax Taylor and Brittany Cartwright's 'Vanderpump Rules' Wedding Lisa Vanderpump Breaks Silence With Touching Photos Following Her Mom's Death 'Pump Rules': Jax Taylor and Brittany Cartwright Will Be 'the Cauchis' After Wedding (Exclusive) Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear
U.S. federal judge blocks use of some funds for border wall (Reuters) - A U.S. federal judge on Friday blocked the Trump administration from using $2.5 billion in funds intended for anti-drug activities to construct a wall along the southern border with Mexico. U.S. President Donald Trump has sought to build a wall along the U.S.-Mexico border, but has so far proven unsuccessful at receiving congressional approval to do so. In February, the Trump administration declared a national emergency to reprogram $6.7 billion in funds that Congress had allocated for other purposes to build the wall, which groups and states including California had challenged. U.S. District Court Judge Haywood Gilliam in Oakland, California said in a pair of rulings that the Trump administration's proposal to transfer Defense Department funds intended for anti-drug activities was unlawful. One of Gilliam's rulings was in a lawsuit filed by California on behalf of 20 states, while the other was in a case brought by the American Civil Liberties Union in coordination with the Sierra Club and the Southern Border Communities Coalition. "These rulings critically stop President Trumps illegal money grab to divert $2.5 billion of unauthorized funding for his pet project," California Attorney General Xavier Becerra said in a statement, "All President Trump has succeeded in building is a constitutional crisis, threatening immediate harm to our state." The Justice Department, which is representing Trump in the litigation, did not immediately respond to a request for comment on Saturday. Gilliam's rulings clear the way for an expected Justice Department appeal to the San Francisco-based 9th U.S. Circuit Court of Appeals. (Reporting by Makini Brice and Jan Wolfe in Washington; Editing by David Gregorio and Paul Simao)
Best Buy Is Making a Smart High-Tech Home Fitness Move Home gyms andBest Buy(NYSE: BBY)might not seem like they belong in the same sentence, but the consumer electronics retailer has begun selling connected fitness equipment in what could be a very savvy move that just might help offset some of the decline it is experiencing in smartphone sales. Best Buy said it would be introducing connected-home gym equipment to 100 stores by the end of the year, and consumers can find the products from Flywheel Sports, NormaTec, Hyperice, Hydrow, and NordicTrack on its website now. It says the collection "is part of the company's commitment to helping customers use technology to live better, healthier lives." Image source: Best Buy. Although working out and electronics don't necessarily seem like a natural fit, the two worlds have been moving closer together for some time now, perhaps most prominently in the wearables category, where the likes ofFitbitfitness trackers and theAppleWatch help users gather data about their bodies. But actual exercise equipment is getting more technologically advanced, too. Consider high-end fitness start-up Peloton, best known for its connected indoor stationary bike that allows users to stream live or on-demand classes, which recently filed for an IPO. Best Buy Chief Merchandising Officer Jason Bonfig said in a statement, "We know there's a growing intersection between fitness and technology, and no one knows tech like we do." That's not just hyperbole, as the retailer has made a concerted effort to become the go-to source for tech knowledge and know-how. Its Geek Squad supplies information and support and Best Buy has used it to lead a stunning turnaround from near ruin to being able to effectively challengeAmazon.comin consumer electronics sales. It subsequently launched itsTotal Tech Support subscription program, which provides members unlimited Geek Squad support for all of their technology, regardless of whether it was purchased at Best Buy. Best Buy saw a 14% gain in its servicescompslast year, and while half of that was due to changes in revenue recognition policies, the remainder represents strong growth. The company still needs time to figure out how the program will do with renewals and whether it increases store purchases and keeps customers engaged, but with the new initiative Best Buy will be leading with its strength again by providing its employees with training to best advise customers on selecting the proper equipment, and its Geek Squad technicians will handle delivery and setup in the home. Bringing fitness equipment into its stores is a smart move. People who might be too intimidated to enter a dedicated home gym and fitness store will likely feel much more at ease looking at the equipment in a Best Buy setting. And, getting the assistance needed from the retailer to (literally) get up and running should lead to sales. Best Buy's computing and mobile segment generated over $17.4 billion in sales in 2018. Fitness equipment won't get near that number, but Best Buy's push intohealth and fitnesscould supplement revenue as smartphone sales decline. Best Buy CFO Corie Barry told analysts on last month's earnings conference call that the retailer views the health category as "a bit of a longer-term value driver for us." Best Buy has already entered the space, acquiringaging-in-place specialistGreatCall last year, then following it up earlier this year by partnering with TytoCare, a telehealth platform that allows people to perform a home health examination, record it with TytoCare's technology, and relay it to a doctor for consultation. Best Buy described it as "another example of Best Buy's growing commitment to health and wellness and our dedication to enriching the lives of our customers through technology." Selling internet-connected fitness machines enhances Best Buy's relationship with its customers. Since it remains in Best Buy's technology wheelhouse, it widens the playing field and offers a prescription for continued growth. 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 Rich Dupreyhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple and Fitbit. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy.
What Did Wheels India Limited's (NSE:WHEELS) CEO Take Home Last Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Srivats Ram became the CEO of Wheels India Limited (NSE:WHEELS) in 2013. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels. View our latest analysis for Wheels India According to our data, Wheels India Limited has a market capitalization of ₹19b, and pays its CEO total annual compensation worth ₹30m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹9.6m. When we examined a selection of companies with market caps ranging from ₹6.9b to ₹28b, we found the median CEO total compensation was ₹17m. Thus we can conclude that Srivats Ram receives more in total compensation than the median of a group of companies in the same market, and of similar size to Wheels India Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see a visual representation of the CEO compensation at Wheels India, below. On average over the last three years, Wheels India Limited has grown earnings per share (EPS) by 19% each year (using a line of best fit). It achieved revenue growth of 34% over the last year. This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. I think that the total shareholder return of 35%, over three years, would leave most Wheels India Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. We compared total CEO remuneration at Wheels India Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group. However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Wheels India (free visualization of insider trades). Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Shareholders Are Raving About How The Tata Metaliks (NSE:TATAMETALI) Share Price Increased 702% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who heldTata Metaliks Limited(NSE:TATAMETALI) shares for the last five years, while they gained 702%. This just goes to show the value creation that some businesses can achieve. We love happy stories like this one. The company should be really proud of that performance! Check out our latest analysis for Tata Metaliks 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. 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, Tata Metaliks managed to grow its earnings per share at 37% a year. This EPS growth is slower than the share price growth of 52% per year, over the same period. 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. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). We know that Tata Metaliks has improved its bottom line lately, but is it going to grow revenue? Thisfreereport showing analyst revenue forecastsshould help you figure out if the EPS growth can be sustained. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Tata Metaliks the TSR over the last 5 years was 713%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Investors in Tata Metaliks had a tough year, with a total loss of 8.7% (including dividends), against a market gain of about 4.9%. 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. Longer term investors wouldn't be so upset, since they would have made 52%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Before deciding if you like the current share price, check how Tata Metaliks scores on these3 valuation metrics. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Ex-prosecutor locked up after guilty verdict in Hawaii HONOLULU (AP) — Two U.S. marshals led a former Honolulu prosecutor out of a courtroom Friday when a U.S. judge ordered her detained after a jury found her guilty of conspiracy and he expressed concern that she could try to obstruct justice before being sentenced. Katherine Kealoha left her purse with her defense attorney as the marshals approached to take her into custody after the bail hearing. She "lies as easily as she draws breath" and will do anything to avoid consequences, prosecutors said in court documents seeking her detention. "This defendant is a walking crime-spree," Michael Wheat, a special federal prosecutor, told the judge in court, saying she holds sway with police and has tampered with grand jury witnesses in the past. Her lawyer said Friday that the judge should consider that the 48-year-old Kealoha had previously complied with all the conditions of her release on bond during the trial. "That has to count for something," defense attorney Cynthia Kagiwada said. She also said there was no showing that Kealoha had engaged in obstructive behavior. U.S. District Judge J. Michael Seabright interrupted: "We heard from 12 people yesterday." In finding Kealoha and her husband, former police chief Louis Kealoha, 58, guilty of conspiracy Thursday, the jury also determined they obstructed justice. The jury also convicted two officers in a plot to frame Katherine Kealoha's uncle Gerard Puana for the theft of a mailbox to discredit him in a family financial dispute. Prosecutors said during the trial that the Kealohas were afraid the uncle would reveal fraud that enriched the couple's lavish life. Maintaining their power and prestige was a motive for the framing, prosecutors said. Prosecutors didn't oppose allowing Louis Kealoha, police Lt. Derek Hahn and Officer Bobby Nguyen to remain free on bond. The jury acquitted retired Major Gordon Shiraishi. Louis Kealoha didn't attend his wife's bail hearing. They have appeared hand-in-hand or arm-in-arm when arriving at court since their 2017 indictment and during the trial that began in May. Story continues The conspiracy charge carries a maximum 20-year sentence but legal observers believe Katherine Kealoha could get less than 10 years behind bars. The Kealohas face another trial on bank fraud and identity theft charges involving allegations that she bilked relatives and children whose trusts she controlled. Prosecutors say Katherine Kealoha stole from her now-99-year-old grandmother in a reverse mortgage scheme that forced her grandmother to sell her family home. They say Kealoha spent the money on Maserati and Mercedes-Benz car payments, a banquet when her husband became police chief and Elton John concert tickets. Prosecutors say some was lavished on her firefighter lover. Katherine Kealoha also faces a third trial on a separate indictment accusing her and her pain physician brother of drug dealing. She used her position as a prosecutor to cover up their crimes and protect her brother, the indictment said. During the trial, prosecutors portrayed Katherine Kealoha as the ringleader of the conspiracy. She invented an alias, Alison Lee Wong, to forge documents, and tried to have her grandmother declared incompetent to silence her, prosecutors told the jury. Jurors watched a deposition from Puana's mother, Florence Puana, who was unable to testify in court because of her failing health. Gerard Puana testified that Katherine Kealoha came to them with an idea about taking out a reverse mortgage on her grandmother's home to help buy a condo her uncle wanted. Kealoha said she would consolidate her debts — which prosecutors described as massive — and promised her uncle and grandmother that she would pay off the loan. Wheat noted that Kealoha tampered with potential witnesses, including sending letters trying to convince them Alison Lee Wong is a real person. "Well, it's pretty clear who Alison Lee Wong is," Seabright said. "It's Katherine Kealoha." Kealoha had an innocent man incarcerated and tried to silence her grandmother "after engaging in an outright theft of their money," Seabright said. "To be clear, it was her own grandmother she did this to," he said. She also got her firefighter boyfriend to lie about their affair to a grand jury and convinced the man whose childhood trust she controlled that his mother would go to jail if he didn't lie and say Kealoha gave him his money, Seabright said. Attempting to obstruct justice is "Ms. Kealoha's bread and butter," Seabright said. Kenneth Lawson, who teaches criminal law at the University of Hawaii's law school, attended her bail hearing and said he knows how humiliating it is to be detained. He said he was sentenced to two years in federal prison for fraudulently obtaining prescriptions to feed an opioid addiction. Kealoha will "adapt" at the Honolulu Federal Detention Center, he said, adding that like he did, she will be able to trade her legal expertise for "food and candy."
Could The Finolex Cables Limited (NSE:FINCABLES) Ownership Structure Tell Us Something Useful? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of Finolex Cables Limited (NSE:FINCABLES) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Finolex Cables isn't enormous, but it's not particularly small either. It has a market capitalization of ₹68b, which means it would generally expect to see some institutions on the share registry. In the chart below below, we can see 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 FINCABLES. Check out our latest analysis for Finolex Cables 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. We can see that Finolex Cables does have institutional investors; and they hold 24% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Finolex Cables, (below). Of course, keep in mind that there are other factors to consider, too. We note that hedge funds don't have a meaningful investment in Finolex Cables. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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 a reasonable proportion of Finolex Cables Limited. Insiders have a ₹7.0b stake in this ₹68b business. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling. The general public holds a 20% stake in FINCABLES. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. We can see that Private Companies own 31%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. Public companies currently own 15% of FINCABLES stock. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together. While it is well worth considering the different groups that own a company, there are other factors that are even more important. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Onward Technologies Limited (NSE:ONWARDTEC) Is Employing Capital Very Effectively Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at Onward Technologies Limited ( NSE:ONWARDTEC ) and reflect on its potential as an investment. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First, we'll go over how we calculate ROCE. Then we'll compare its ROCE to similar companies. Then we'll determine how its current liabilities are affecting its ROCE. Return On Capital Employed (ROCE): What is it? ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. In general, businesses with a higher ROCE are usually better quality. 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 Onward Technologies: 0.24 = ₹152m ÷ (₹1.1b - ₹439m) (Based on the trailing twelve months to March 2019.) Therefore, Onward Technologies has an ROCE of 24%. Check out our latest analysis for Onward Technologies Is Onward Technologies's ROCE Good? When making comparisons between similar businesses, investors may find ROCE useful. Onward Technologies's ROCE appears to be substantially greater than the 14% average in the IT industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Separate from Onward Technologies's performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth. Story continues You can see in the image below how Onward Technologies's ROCE compares to its industry. Click to see more on past growth. NSEI:ONWARDTEC Past Revenue and Net Income, June 29th 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 only a point-in-time measure. If Onward Technologies is cyclical, it could make sense to check out this free graph of past earnings, revenue and cash flow . How Onward Technologies's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. 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 check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Onward Technologies has total liabilities of ₹439m and total assets of ₹1.1b. Therefore its current liabilities are equivalent to approximately 41% of its total assets. With this level of current liabilities, Onward Technologies's ROCE is boosted somewhat. What We Can Learn From Onward Technologies's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better. Onward Technologies looks strong on this analysis, but there are plenty of other companies that could be a good opportunity . Here is a free list of companies growing earnings rapidly. For those who like to find winning investments this free list 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should We Worry About Kalpataru Power Transmission Limited's (NSE:KALPATPOWR) P/E Ratio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). To keep it practical, we'll show how Kalpataru Power Transmission Limited's (NSE:KALPATPOWR) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,Kalpataru Power Transmission has a P/E ratio of 17.25. That means that at current prices, buyers pay ₹17.25 for every ₹1 in trailing yearly profits. See our latest analysis for Kalpataru Power Transmission Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Kalpataru Power Transmission: P/E of 17.25 = ₹524.6 ÷ ₹30.42 (Based on the year to March 2019.) The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. P/E ratios primarily reflect market expectations around earnings growth rates. Earnings growth means that in the future the 'E' will be higher. And in that case, the P/E ratio itself will drop rather quickly. Then, a lower P/E should attract more buyers, pushing the share price up. Kalpataru Power Transmission's 66% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive. The cherry on top is that the five year growth rate was an impressive 31% per year. With that kind of growth rate we would generally expect a high P/E ratio. The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that Kalpataru Power Transmission has a higher P/E than the average (14.8) P/E for companies in the construction industry. That means that the market expects Kalpataru Power Transmission will outperform other companies in its industry. Clearly the market expects growth, but it isn't guaranteed. So investors should delve deeper. I like to checkif company insiders have been buying or 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. 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. Kalpataru Power Transmission's net debt equates to 26% of its market capitalization. You'd want to be aware of this fact, but it doesn't bother us. Kalpataru Power Transmission has a P/E of 17.2. That's higher than the average in the IN market, which is 15.4. Its debt levels do not imperil its balance sheet and its EPS growth is very healthy indeed. So on this analysis a high P/E ratio seems reasonable. Investors should be looking to buy stocks that the market is wrong about. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should Kalpataru Power Transmission Limited (NSE:KALPATPOWR) Be Part Of Your Dividend Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could Kalpataru Power Transmission Limited (NSE:KALPATPOWR) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. 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. A 0.6% yield is nothing to get excited about, but investors probably think the long payment history suggests Kalpataru Power Transmission has some staying power. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. 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. 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. In the last year, Kalpataru Power Transmission paid out 9.9% of its profit as dividends. We like this low payout ratio, because it implies the dividend is well covered and leaves ample opportunity for reinvestment. As Kalpataru Power Transmission has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) 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. Kalpataru Power Transmission has net debt of 1.55 times its EBITDA, which is generally an okay level of debt for most companies. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Interest cover of 2.83 times its interest expense is starting to become a concern for Kalpataru Power Transmission, and be aware that lenders may place additional restrictions on the company as well. Consider gettingour latest analysis on Kalpataru Power Transmission'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. Kalpataru Power Transmission has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. Its dividend payments have fallen by 20% or more on at least one occasion over the past ten years. During the past ten-year period, the first annual payment was ₹1.50 in 2009, compared to ₹3.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 7.2% a year over that time. The growth in dividends has not been linear, but the CAGR is a decent approximation of the rate of change over this time frame. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Kalpataru Power Transmission has grown its earnings per share at 31% per annum over the past five years. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. 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. First, we like that the company's dividend payments appear well covered, although the retained capital also needs to be effectively reinvested. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Overall we think Kalpataru Power Transmission scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look. Earnings growth generally bodes well for the future value of company dividend payments. See if the 12 Kalpataru Power Transmission 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is K.C.P. Sugar and Industries Corporation Limited (NSE:KCPSUGIND) A Great Dividend Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like K.C.P. Sugar and Industries Corporation Limited (NSE:KCPSUGIND) 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. 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. A 0.6% yield is nothing to get excited about, but investors probably think the long payment history suggests K.C.P. Sugar and Industries has some staying power. Some simple research can reduce the risk of buying K.C.P. Sugar and Industries for its dividend - read on to learn more. 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. In the last year, K.C.P. Sugar and Industries paid out 6.9% of its profit as dividends. We like this low payout ratio, because it implies the dividend is well covered and leaves ample opportunity for reinvestment. As K.C.P. Sugar and Industries 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. With net debt of 2.43 times its EBITDA, K.C.P. Sugar and Industries's debt burden is within a normal range for most listed companies. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of 1.93 times its interest expense is starting to become a concern for K.C.P. Sugar and Industries, and be aware that lenders may place additional restrictions on the company as well. Remember, you can always get a snapshot of K.C.P. Sugar and Industries's latest financial position,by checking our visualisation of its financial health. 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. K.C.P. Sugar and Industries has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. This dividend has been unstable, which we define as having fallen by at least 20% one or more times over this time. During the past ten-year period, the first annual payment was ₹0.70 in 2009, compared to ₹0.10 last year. This works out to a decline of approximately 86% over that time. When a company's per-share dividend falls we question if this reflects poorly on either the business or management. Either way, we find it hard to get excited about a company with a declining dividend. With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS are growing. It's not great to see that K.C.P. Sugar and Industries's have fallen at approximately 13% over the past five years. 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. First, we like that the company's dividend payments appear well covered, although the retained capital also needs to be effectively reinvested. Earnings per share have been falling, and the company has cut its dividend at least once in the past. From a dividend perspective, this is a cause for concern. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than K.C.P. Sugar and Industries out there. Now, if you want to look closer, it would be worth checking out ourfreeresearch on K.C.P. Sugar and Industriesmanagement tenure, salary, and performance. 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The Late Show With Stephen Colbert Sees Kamala Harris Admit Impeachment Is Unlikely Click here to read the full article. Senator Kamala Harris proved to be one of the biggest winners of this weeks Democratic debates. Her memorable line about food fights not being what the American people wanted which shut down a shouting scrum brought order to chaos and stamped her presence among those unfamiliar with her style. The Late Show with Stephen Colbert revisited an earlier moment with her in the glow of that victory. During her interview, he asked her whether a potential impeachment of President Donald Trump is still on the table. Related stories Democratic Presidential Candidates Defend Kamala Harris Amid "Racist And Ugly" Attacks Democratic Debate Night 2 Viewership Hits All-Time Debate High For Party Of FDR, JFK & HRC - Update 'The Late Show With Stephen Colbert' Digs Into Democratic Debates Food Fight I have no reason to believe on the Senate side that they will do the right thing, said Harris. Given that, Colbert pressed, is it worth it to press for it? Part of the value is preserving the concept of our democracy, Harris said, later contending that this president has, in fact, obstructed justice and violated the law. We should fight for that. The reality is that the Senate will probably not vote to impeach him. Which means he will prance around and say, witch hunt, witch hunt. Watch the segment below. TONIGHT: Democratic presidential candidate @SenKamalaHarris fights to maintain the integrity of our democracy. #LSSC pic.twitter.com/O1mjuYalTJ The Late Show (@colbertlateshow) June 29, 2019 Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Why K.C.P. Sugar and Industries Corporation Limited's (NSE:KCPSUGIND) CEO Pay Matters To You Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Irmgard Velagapudi Rao is the CEO of K.C.P. Sugar and Industries Corporation Limited (NSE:KCPSUGIND). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO. View our latest analysis for K.C.P. Sugar and Industries Our data indicates that K.C.P. Sugar and Industries Corporation Limited is worth ₹1.7b, and total annual CEO compensation is ₹7.4m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹4.8m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m. It would therefore appear that K.C.P. Sugar and Industries Corporation Limited pays Irmgard Velagapudi Rao more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see a visual representation of the CEO compensation at K.C.P. Sugar and Industries, below. K.C.P. Sugar and Industries Corporation Limited has reduced its earnings per share by an average of 13% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 2.3% over the last year. Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow. With a three year total loss of 60%, K.C.P. Sugar and Industries Corporation Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously. We compared the total CEO remuneration paid by K.C.P. Sugar and Industries Corporation Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group. We think many shareholders would be underwhelmed with the business growth over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling K.C.P. Sugar and Industries (free visualization of insider trades). Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Can Investors Follow the Augmented Reality Industry? Many of the biggest technology companies have made major bets on augmented reality (AR). It's an emerging industry, however, and in addition to the big players, there are also a number of start-ups moving into that space. Following the industry isn't easy because many projects are either secret or relatively low-key. That makes it important to know which companies have niche AR products that may quietly become big money players. To catch full episodes of all The Motley Fool's free podcasts, check out ourpodcast center. A full transcript follows the video. 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 This video was recorded on June 25, 2019. Jason Moser:Speaking of companies, resources, different types of ways we can learn more about the space -- I've certainly dug in for quite some time now. It's a difficult space to fully understand the potential because it's so young. There are a lot of those no-brainer names out there that we've talked about today that are making early waves in the space. But part of the fun for me is finding a lot of those companies that people don't know about yet, or finding out companies that are doing neat things with the technology that people hadn't thought of before. When you learn about AR, VR, things like that, what are some of your go-to resources? Any places that you look to or people you consider? Dan Kline:I'm a big fan of GeekWire. It's not that they specifically cover a lot of augmented reality. But there is a lot of augmented reality coming out of the Seattle area, which is their bread and butter of coverage. That's where you're going to be most likely to read about an interesting start-up that, they got $50 million in funding, they have six ex-Microsoft guys working there. What you want to look at is the people who are doing things with it, where you go, "Oh, I never thought about that, but what a perfect application." The big hits are going to come from Apple, they're going to come from Facebook. You're probably not going to get aRoku-level player in this, where some company comes out of nowhere. Where you will get that is, "I'm the company that knows underwater surveying better than anyone else. Here is the specific underwater surveying augmented reality tool. By the way, one of them sells for $800,000 because it's a niche market." I'm making that up completely, but you understand what I'm saying. It's going to be the construction use, the very, very niche uses that will then get consumer stuff. ButSonyis not trying to sell a million-dollar medical device. They are trying to get one in every home. Moser:For me, a couple of things I noticed. One thing I'll let folks know, if you follow me onTwitter-- I don't even think you need to follow me on Twitter -- I'm putting together a list on Twitter of AR-related follows. Anybody in the AR space that I find entertaining, educational, informative, I'm just adding them to the list. You can essentially see this ongoing Twitter feed of cool, real time information that's happening in this space. One of the people I started following early on. She's proven to be an invaluable resource. She wrote a great book on it calledAugmented Human.Her name is Helen Papagiannis. She's been working in the space for close to 15 years now. I would certainly recommend for anyone looking to learn more about the space and its wide reach, check out the book,Augmented Human. Talking about little niche companies, these were companies I found over vacation, and I thought, "Wow, these are cases I didn't necessarily think of before, or companies I didn't know about." One guy I started following on Twitter. His name is Daniel Anderson. He is the CEO and founder of a company called 3DQR, a start-up in Germany focused on AR for education, industrial training, and corporate development. That's been a fun one to learn more about. Another one. I like painting watercolors. It's a challenge. I'm just learning how to do it. Kline:Which you can also see if you follow Jason on Twitter. Moser:I do that to keep myself honest! But I found this interesting app called Artivive. You can check them out at @ArtiviveApp on Twitter. It's a Vienna-based start-up. They have an AR tool for artists to create, for museums to expand, and for galleries to figure out new ways to incorporate art for the next generation into their displays. If you check out their site, they show you a really neat demo on YouTube of what their capabilities are. Small companies, but neat things that they're doing. Again, speaking to your point about niches, these are companies that are just pursuing a little niches where they may not ultimately be able to make it to become big companies, because they may be snapped up by some of these bigger companies. But that doesn't mean we can't win ultimately either way. Kline:I think it's fair to say we didn't give enough attention to education as a use. There's a price barrier there. But pretty much every kid has some level of smartphone. I have a 15 year old in a very mixed income school. It's fair to say all of his friends have a cellphone. With different learning styles, to be able to say, "OK, this is an active volcano here," and as you're seeing the picture, you can access facts, or pieces of it come to life, or different things happen, we should be able to very inexpensively address different learning styles in ways that have been very challenging to do. Most schools have laptops, but they're still using them for word processing. They're not using them for changing how we educate people. My son takes a virtual algebra class that essentially we could have put out a VHS tape back in 1985. There's nothing augmented or virtual about it. It's just a tape of a person, and then you do a test. I think you'll see leaps and bounds with this stuff. Maybe in the nonprofit area, on the education side, you'll see some people spending some money to create coursework or access to museums for kids that would never get to go to the Museum of Modern Art. I think there are a couple of museums here in D.C. A fast food museum, maybe? Moser:Something like that. Hit or miss. I think you're right, education is going to be a phenomenal space to follow. It's one that traditionally has been very difficult to scale. Clearly, technology is changing that. It's been fun to watch my kids going through, in seventh and eighth grade, they're going into eighth and ninth now, but to watch their school incorporate technology, basic YouTube lessons, things like that. As eyewear and new ways to experience things comes out, I have no question that augmented reality will serve as a very valuable educational tool. Kline:I don't think we could downplay this. We talked about very simple uses for like clothing and makeup and that stuff. How many people are going to be saved from a stupid beard... Michael Jordan is going to be able to test out the Hitler mustache before he grows it! [laughs] Moser:That's kind of like the makeup application, just a little bit different. Kline:It is, but I'd have to grow mutton chops to learn that mutton chops are a bad idea. Moser:Bad idea, Dan! Kline:To be able to be in a room with my wife, or even -- this is a strange one. I wear glasses. One of the hardest things about trying on glasses is, I wear glasses. You go in and you don't know what you look like. I had to bring my wife because my previous pair of glasses -- some of you who watch this show visually may have noticed -- were too small for my head, and I look like a giant egg head! There's going to be some very fun practical uses for this stuff. I don't think that's all that far away. Daniel B. Klinehas no position in any of the stocks mentioned.Jason Moserhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Twitter. The Motley Fool has adisclosure policy.
Should We Worry About Dr. Lal PathLabs Limited's (NSE:LALPATHLAB) P/E Ratio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Dr. Lal PathLabs Limited's (NSE:LALPATHLAB), to help you decide if the stock is worth further research.Dr. Lal PathLabs has a price to earnings ratio of 44.19, based on the last twelve months. That corresponds to an earnings yield of approximately 2.3%. See our latest analysis for Dr. Lal PathLabs Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Dr. Lal PathLabs: P/E of 44.19 = ₹1068.95 ÷ ₹24.19 (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. Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. 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. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. Dr. Lal PathLabs increased earnings per share by an impressive 16% over the last twelve months. And its annual EPS growth rate over 5 years is 11%. With that performance, you might expect an above average P/E ratio. We can get an indication of market expectations by looking at the P/E ratio. You can see in the image below that the average P/E (27.4) for companies in the healthcare industry is lower than Dr. Lal PathLabs's P/E. That means that the market expects Dr. Lal PathLabs will outperform other companies in its industry. The market is optimistic about the future, but that doesn't guarantee future growth. So further research is always essential. I often monitordirector buying and selling. Don't forget that the P/E ratio considers market capitalization. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth. 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. Dr. Lal PathLabs has net cash of ₹7.2b. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options. Dr. Lal PathLabs trades on a P/E ratio of 44.2, which is above the IN market average of 15.4. Its net cash position supports a higher P/E ratio, as does its solid recent earnings growth. So it is not surprising the market is probably extrapolating recent growth well into the future, reflected in the relatively high P/E ratio. Investors have an opportunity when market expectations about a stock are wrong. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. You might be able to find a better buy than Dr. Lal PathLabs. 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
A Look At The Intrinsic Value Of Kellton Tech Solutions Limited (NSE:KELLTONTEC) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! How far off is Kellton Tech Solutions Limited (NSE:KELLTONTEC) 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 their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. 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 Kellton Tech Solutions We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b9323.89", "2020": "\u20b9351.21", "2021": "\u20b9379.90", "2022": "\u20b9410.23", "2023": "\u20b9442.45", "2024": "\u20b9476.79", "2025": "\u20b9513.50", "2026": "\u20b9552.81", "2027": "\u20b9594.95", "2028": "\u20b9640.17"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 8.81%", "2020": "Est @ 8.44%", "2021": "Est @ 8.17%", "2022": "Est @ 7.98%", "2023": "Est @ 7.85%", "2024": "Est @ 7.76%", "2025": "Est @ 7.7%", "2026": "Est @ 7.65%", "2027": "Est @ 7.62%", "2028": "Est @ 7.6%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 17.93%", "2019": "\u20b9274.65", "2020": "\u20b9252.54", "2021": "\u20b9231.64", "2022": "\u20b9212.11", "2023": "\u20b9193.98", "2024": "\u20b9177.26", "2025": "\u20b9161.89", "2026": "\u20b9147.78", "2027": "\u20b9134.87", "2028": "\u20b9123.06"}] Present Value of 10-year Cash Flow (PVCF)= ₹1.91b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (7.6%) 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 17.9%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹640m × (1 + 7.6%) ÷ (17.9% – 7.6%) = ₹6.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹6.6b ÷ ( 1 + 17.9%)10= ₹1.28b 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 ₹3.18b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹32.75. Relative to the current share price of ₹27.75, the company appears about fair value at a 15% 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. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Kellton Tech Solutions 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 17.9%, which is based on a levered beta of 1.207. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Kellton Tech Solutions, I've compiled three pertinent aspects you should further research: 1. Financial Health: Does KELLTONTEC have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of KELLTONTEC? 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 IN 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
First 'Harry Potter: Wizards Unite' festival occurs Labor Day weekend Niantic promised real-world events forHarry Potter: Wizards Unitein the same vein as Pokémon Go Fests when itannouncedthe game's official launch. Now the company hasrevealedthat it has already scheduled the new game's first fan event for this Labor Day weekend (from August 31st to September 1st) at White River State Park in Indianapolis, Indiana. Niantic's announcement is pretty scarce on details, though. It sounds like the company is still ironing out things -- and probably making sure not to repeat the mistakes that led to thatdisastrous Pokémon Go Festin 2017 -- but it says it will reveal more information in the future through its social media channels. Harry Potter: Wizard's Uniteis an AR game for mobile that works pretty much likePokémon Go. You walk around looking for rogue magical objects and creatures, which you then have to magick away from the prying eyes of muggles. It first rolled out in the US and the UK on June 21st but has since become available in other regions.
How Much Of Kellton Tech Solutions Limited (NSE:KELLTONTEC) Do Insiders Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in Kellton Tech Solutions Limited (NSE:KELLTONTEC) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.' Kellton Tech Solutions is a smaller company with a market capitalization of ₹2.7b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about KELLTONTEC. See our latest analysis for Kellton Tech Solutions Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Since institutions own under 5% of Kellton Tech Solutions, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most. Hedge funds don't have many shares in Kellton Tech Solutions. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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. I can report that insiders do own shares in Kellton Tech Solutions Limited. In their own names, insiders own ₹226m worth of stock in the ₹2.7b company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying. The general public, with a 23% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. We can see that Private Companies own 65%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. While it is well worth considering the different groups that own a company, there are other factors that are even more important. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist of interesting companies. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Microsoft Corporation and Other Hedge Fund Favorites Performed in Q2 Insider Monkey tracks hedge funds, billionaires, and prominent value investors for a very simple reason: their consensus picks generally outperform the market. We aren’t the only research shop broadcasting this fact using a bullhorn. Here is what strategist Ben Snider said in Goldman Sachs’ periodic hedge fund report: “Despite the strong track record of popular hedge fund stocks, investors often view high ownership as a negative trait when evaluating stock prospects. Clients often ask us to include hedge fund ownership data in stock screens, expressing a preference for buying ‘under-owned’ stocks.” “In fact, during the past decade hedge fund popularity has been a more useful criterion for selecting stocks than valuations…. The signals from hedge fund popularity and valuation have been particularly useful in combination, especially for investors with slightly longer investment horizons. During the past decade, popular stocks have generally outperformed unpopular stocks across both 3- and 12-month investment horizons” Snider concluded. It may sound like I am tooting my own horn, but Insider Monkey’s quarterly newsletter is actually superior to Goldman’s report. That’s because we separated the hedge fund favorites into long and short buckets. Our long bucket of hedge fund favorites returned 34.1% in the first half of 2019, whereas our short bucket of hedge fund favorites gained 21.4% during the same period. Hedge funds’ favorite top 20 stocks, on the other hand, returned 24% so far in 2019. You could have beaten the S&P 500 Index funds by 5.7 percentage points by investing inhedge funds’ top 20 picksin 2019, whereas you could have outperformed the index funds by 15.8 percentage points if you invested in our top hedge fund picks. You cantry out our newsletterfree of charge for 14 days to see hedge funds’ latest best stock picks. The second most popular stock among the 743 hedge funds tracked by Insider Monkey was Microsoft Corporation(NASDAQ:MSFT).Microsoft was the most popular stock among hedge funds at the end of December (see the30 most popular stocks among hedge funds). We have to warn you against indiscriminately imitating hedge funds' all stock picks. Hedge funds' top 20 stock picks outperformed the S&P 500 Index funds by 5.7 percentage points this year, but hedge funds' top 500 stock picks had the same return as the S&P 500 Index this quarter. Investing in a hedge fund's 35th best idea doesn't give you the same return as investing in a hedge fund's best idea. [caption id="attachment_337391" align="aligncenter" width="450"] Bill Gates[/caption] We're going to analyze the recent hedge fund action encompassing Microsoft Corporation (NASDAQ:MSFT). At Q1's end, a total of 170 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -2% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards MSFT over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Eagle Capital Managementheld the most valuable stake in Microsoft Corporation (NASDAQ:MSFT), which was worth $2224.8 million at the end of the first quarter. On the second spot was AQR Capital Management which amassed $2105.9 million worth of shares. Moreover, Fisher Asset Management, Tiger Global Management, and Egerton Capital Limited were also bullish on Microsoft Corporation (NASDAQ:MSFT), allocating a large percentage of their portfolios to this stock. Since Microsoft Corporation (NASDAQ:MSFT) has experienced bearish sentiment from hedge fund managers, we can see that there lies a certain "tier" of hedge funds that decided to sell off their entire stakes last quarter. At the top of the heap, Ricky Sandler'sEminence Capitalsaid goodbye to the largest stake of the "upper crust" of funds watched by Insider Monkey, totaling about $168.6 million in stock. Billionaire Richard Chilton's fund,Chilton Investment Company, also sold off its stock, about $134.9 million worth. These moves are interesting, as aggregate hedge fund interest fell by 4 funds last quarter. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Microsoft Corporation (NASDAQ:MSFT) but similarly valued. We will take a look at Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL), and Alphabet Inc (NASDAQ:GOOG). This group of stocks' market values are similar to MSFT's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AAPL,98,55103895,-18 AMZN,166,19399725,-2 GOOGL,147,11115409,1 GOOG,133,13597514,-8 Average,136,24804136,-6.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 136 hedge funds with bullish positions and the average amount invested in these stocks was $24804 million. That figure was $24799 million in MSFT's case. Amazon.com, Inc. (NASDAQ:AMZN) is the most popular stock in this table. On the other hand Apple Inc. (NASDAQ:AAPL) is the least popular one with only 98 bullish hedge fund positions. Compared to these stocks Microsoft Corporation (NASDAQ:MSFT) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.4% in Q2 through June 28th and outperformed the S&P 500 ETF (SPY) by more than 2 percentage points. Hedge funds were also right about betting on MSFT as the stock returned 14% during Q2 and outperformed the market by an even larger margin. Microsoft shares also gained 32.9% during the first half of 2019 and significantly outperformed the market. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey.
Mother, wife of drowned Salvadoran migrants awaits their repatriation By Nelson Renteria SAN LUIS TALPA, El Salvador (Reuters) - Days after she lost her small daughter and husband to the treacherous currents of the Rio Grande, Tania Vanessa Avalos, 23, arrived back in El Salvador to await her family's return -- in coffins. Oscar Martinez, 25, and, Angie Valeria, just shy of 2 years old, died on June 23 as they were attempting to cross the river between Mexico and the United States. A photo of the two drowned migrants caught them face-down in the reeds of the river's trash-strewn shore. The little girl, in red tights swollen by a water-logged diaper, is entwined in her father's T-shirt, a small arm stretched across his neck as if in a final embrace. Martinez had apparently pulled his T-shirt over his daughter to improvise a baby carrier. The lacerating image spread virally, and became a lightning rod in the charged U.S. political discussion of President Donald Trump's hard-line policies against asylum seekers and other migrants. Democratic Party candidates for president brought it up in their first debate on Wednesday. Avalos, who escaped the strong current that dragged her family down, returned home to bury them. The bodies are due to arrive on Sunday after repatriation by land from Mexico, the Salvadoran government said. Avalos declined to speak to the media after arriving in El Salvador, accompanied by Vice Minister for Foreign Affairs Mauricio Cabrera. Cabrera urged Salvadorans not to undertake the perilous trip to the United States without documents. "Do not jeopardize your lives and those of your children," Cabrera said. "Do not trust people traffickers who only seek their own profit and who often fail to fulfill the promises they make." The United Nations refugee agency, UNHCR, compared the photo to that of a three-year-old Syrian boy, Aylan Kurdi, who drowned in the Mediterranean Sea and whose body washed ashore on a beach in Turkey in 2015. That image also sparked a public outcry about the desperate plight of asylum-seekers and the political challenges of welcoming them to safer shores. (Reporting by Nelson Renteria; Writing by Delphine Schrank; Editing by Richard Borsuk) View comments
Are Insiders Buying JK Tyre & Industries Limited (NSE:JKTYRE) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inJK Tyre & Industries Limited(NSE:JKTYRE). It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required. We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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'. See our latest analysis for JK Tyre & Industries There wasn't any very large single transaction over the last year, but we can still observe some trading. 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 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). Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.8% of JK Tyre & Industries shares, worth about ₹560m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings. It doesn't really mean much that no insider has traded JK Tyre & Industries shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like JK Tyre & Industries insiders think the business has merit. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future. Of courseJK Tyre & Industries may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Gujarat Pipavav Port Limited (NSE:GPPL)'s Earnings Grew 7.1%, Is It Enough? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! When Gujarat Pipavav Port Limited's (NSE:GPPL) announced its latest earnings (31 March 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Gujarat Pipavav Port's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not GPPL actually performed well. Below is a quick commentary on how I see GPPL has performed. See our latest analysis for Gujarat Pipavav Port GPPL's trailing twelve-month earnings (from 31 March 2019) of ₹2.4b has increased by 7.1% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -4.2%, indicating the rate at which GPPL is growing has accelerated. What's enabled this growth? Let's see whether it is solely owing to an industry uplift, or if Gujarat Pipavav Port has experienced some company-specific growth. In terms of returns from investment, Gujarat Pipavav Port has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 9.3% exceeds the IN Infrastructure industry of 5.8%, indicating Gujarat Pipavav Port has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Gujarat Pipavav Port’s debt level, has declined over the past 3 years from 13% to 12%. While past data is useful, it doesn’t tell the whole story. While Gujarat Pipavav Port has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Gujarat Pipavav Port to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for GPPL’s future growth? Take a look at ourfree research report of analyst consensusfor GPPL’s outlook. 2. Financial Health: Are GPPL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 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. NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Amazon.com Inc and Other Hedge Fund Favorites Performed in Q2 Insider Monkey tracks hedge funds, billionaires, and prominent value investors for a very simple reason: their consensus picks generally outperform the market. We aren’t the only research shop broadcasting this fact using a bullhorn. Here is what strategist Ben Snider said in Goldman Sachs’ periodic hedge fund report: “Despite the strong track record of popular hedge fund stocks, investors often view high ownership as a negative trait when evaluating stock prospects. Clients often ask us to include hedge fund ownership data in stock screens, expressing a preference for buying ‘under-owned’ stocks.” “In fact, during the past decade hedge fund popularity has been a more useful criterion for selecting stocks than valuations…. The signals from hedge fund popularity and valuation have been particularly useful in combination, especially for investors with slightly longer investment horizons. During the past decade, popular stocks have generally outperformed unpopular stocks across both 3- and 12-month investment horizons” Snider concluded. It may sound like I am tooting my own horn, but Insider Monkey’s quarterly newsletter is actually superior to Goldman’s report. That’s because we separated the hedge fund favorites into long and short buckets. Our long bucket of hedge fund favorites returned 34.1% in the first half of 2019, whereas our short bucket of hedge fund favorites gained 21.4% during the same period. Hedge funds’ favorite top 20 stocks, on the other hand, returned 24% so far in 2019. You could have beaten the S&P 500 Index funds by 5.7 percentage points by investing inhedge funds’ top 20 picksin 2019, whereas you could have outperformed the index funds by 15.8 percentage points if you invested in our top hedge fund picks. You cantry out our newsletterfree of charge for 14 days to see hedge funds’ latest best stock picks. The #3 most popular stock among the 743 hedge funds tracked by Insider Monkey wasAmazon.com Inc (NASDAQ:AMZN).Amazon was the second most popular stock among hedge funds at the end of December (see the30 most popular stocks among hedge funds). We have to warn you against indiscriminately imitating hedge funds' all stock picks. Hedge funds' top 20 stock picks outperformed the S&P 500 Index funds by 5.7 percentage points this year, but hedge funds' top 500 stock picks had the same return as the S&P 500 Index this quarter. Investing in a hedge fund's 35th best idea doesn't give you the same return as investing in a hedge fund's best idea. We're going to analyze the new hedge fund action surrounding Amazon.com, Inc. (NASDAQ:AMZN). At the end of the first quarter, a total of 166 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -1% from the fourth quarter of 2018. On the other hand, there were a total of 130 hedge funds with a bullish position in AMZN a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Citadel Investment Groupheld the most valuable stake in Amazon.com, Inc. (NASDAQ:AMZN), which was worth $5221.3 million at the end of the first quarter. On the second spot was Fisher Asset Management which amassed $2434.4 million worth of shares. Moreover, Eagle Capital Management, Tiger Global Management, and Lone Pine Capital were also bullish on Amazon.com, Inc. (NASDAQ:AMZN), allocating a large percentage of their portfolios to this stock. Since Amazon.com, Inc. (NASDAQ:AMZN) has experienced bearish sentiment from the aggregate hedge fund industry, it's safe to say that there lies a certain "tier" of hedgies that slashed their positions entirely last quarter. Interestingly, Daniel Sundheim'sD1 Capital Partnerssold off the biggest investment of all the hedgies tracked by Insider Monkey, comprising an estimated $426.3 million in call options. Andrew Hahn's fund,Ursa Fund Management, also sold off its call options, about $300.4 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 2 funds last quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Amazon.com, Inc. (NASDAQ:AMZN) but similarly valued. We will take a look at Alphabet Inc (NASDAQ:GOOGL), Alphabet Inc (NASDAQ:GOOG), Berkshire Hathaway Inc. (NYSE:BRK-B), and Facebook Inc (NASDAQ:FB). This group of stocks' market values are similar to AMZN's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GOOGL,147,11115409,1 GOOG,133,13597514,-8 BRK-B,91,20086059,4 FB,176,18349790,15 Average,136.75,15787193,3 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 136.75 hedge funds with bullish positions and the average amount invested in these stocks was $15787 million. That figure was $19400 million in AMZN's case. Facebook Inc (NASDAQ:FB) is the most popular stock in this table. On the other hand Berkshire Hathaway Inc. (NYSE:BRK-B) is the least popular one with only 91 bullish hedge fund positions. Amazon.com, Inc. (NASDAQ:AMZN) is not the most popular stock in this group but that's only because of Facebook. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.4% in Q2 and outperformed the S&P 500 ETF (SPY) by more than 2 percentage points. Hedge funds were also right about betting on AMZN, though not to the same extent, as the stock returned 6.3% during the same time frame and outperformed the market as well. Amazon shares also returned 26.1% year-to-date and outperformed the market by nearly 8 percentage points. Overall, hedge funds' favorite 3 stocks in 2019 delivered an average return of 35.3%. That's 17 percentage points better than investors who were investing in S&P 500 ETF (SPY). Disclosure: None. This article was originally published atInsider Monkey.
Putting 5G Speed to the Test in New York City Consumer Reports has no financial relationship with advertisers on this site. Consumer Reports has no financial relationship with advertisers on this site. Wireless carriers have been heralding the arrival of 5G—the ultra fast network of the future—for many months now. But don’t get too excited, at least, not yet. On Friday, T-Mobile officially flipped the switch on its fledgling network in parts of New York, Los Angeles, Las Vegas, Dallas, Cleveland, and Atlanta. So, Henry Parra, who spent decades working in the telecom industry and now heads Consumer Reports phone testing, and I trekked into Manhattan on a blisteringly hot day to try it out. We wanted to see exactly how widespread the carrier's 5G coverage was and what you could actually do with it. What we learned is that while we could get a signal at times, along with download speeds significantly faster than those of 4G, finding and keeping that signal wasn’t easy. It could disappear within a few steps, throwing you back to 4G, and the high-frequency millimeter wave (mmWave) T-Mobile employs, which can provide the fastest signal, doesn't travel far and can't penetrate obstacles such as walls, buses, and pedestrians, further limiting our 5G access in perhaps the most busy and crowded city in America. Clearly, 5G still has a long way to go to fulfill its promise—especially when you consider the premium price of a 5G phone. Looking for Antennas Armed with a map provided by T-Mobile , we set off on what felt like a scavenger hunt, or an especially nerdy version of Pokemon Go. We started off in Times Square, at the T-Mobile store, where we bought the Samsung Galaxy S10 5G, which is currently the only 5G phone compatible with T-Mobile’s network. And we were lucky to get one. According to our secret shopper, workers at the carrier’s flagship NYC store received just five of the $1,300 phones to sell on the first day. The store, not surprisingly, also was a great place to grab a 5G signal. After activating the phone, the 5G icon popped up right away. We logged some of our fastest speeds there, too. Story continues To test the phone's speed, we used a free browser-based test , as well as a popular free app available in the Google Play Store. Standing right under what store employees called a 5G “booster,” we captured speeds as high as 548 megabits per second (Mbps) on downloads. (At the moment, uploads still use 4G speeds.) That’s pretty impressive, given that a strong 4G signal can register at 60 Mbps, according to our New York City testing. A 5G speed in that range could allow you to download a movie to your phone in under a minute. It could also compete with wired internet connections. The average download speed to U.S. homes is now slightly above 95 Mbps. Once carriers' 5G networks blanket the country, thanks to the technology's shorter lag time, it could even help driverless cars communicate with each other and with smart highway infrastructure. But, as Parra noted, we logged those 500 Mbps speeds under what may well be atypical conditions. So, we headed out into the street to try our luck there. Times Square proved a brutal landscape for 5G. If you’ve never been, think about the annual New Year’s Eve ball drop. It’s packed with tall buildings, massive electric signs, city buses stuck in traffic and even the occasional tree. And, from the performers dressed as Minnie Mouse and Iron Man, angling for tips, to street vendors and hoards of tourists from every place in the world, there is no shortage of people. There are plenty of obstructions more than capable of stopping a 5G signal. We walked around hoping to capture a 5G signal. And when we caught one, we ran our speed tests again. Our results were mixed. One moment we had a strong 5G signal, but just a few steps and it would vanish. At times, it disappeared on its own, as we stood in the same place, probably because a bus or a person moved in the way and blocked the signal, Parra says. Our speed tests also were mixed. We logged 289 Mbps and a still-respectable 152 Mbps, but just a minute or two later, our speeds dropped into the single digits, possibly because we lost our 5G connection during part of the test and the phone fell back to 4G. Hoping to judge performance in a less-congested environment, we left Times Square and headed west toward the Hudson River, just north of the Jacob K. Javits Convention Center, which Parra had pinpointed on the map as likely to have a strong 5G signal. Parra, an electrical engineer who studied telecom networks up close for decades in his work for Sprint, Verizon, and other carriers, is an expert at finding antennas. After some searching and using our 5G phone as a sort of beacon, we found what appeared to be a T-Mobile transmission site not far from the water, near a shop where tourists rent bikes. Near the site, we logged speeds of about 377 Mbps, but as we moved farther away, the speeds slowed. At about 200 feet away, they had dropped to 145 Mbps. A little farther down the street, they fell to 103 Mpbs, before going away entirely. Like the problems with obstructions, this is another characteristic of T-Mobile’s millimeter wave signal, Parra says. They just don’t travel very far. So, instead of building a few big towers, the carrier—and its rivals—will need to install scores of small ones. “You almost have to be able to see the antenna to get a signal,” Parra says. That's one big reason why T-Mobile wants to merge with Sprint, which owns mid-band 5G frequencies that are less limited. Sprint and Verizon launched their own 5G networks in a handful of cities this spring. Sprint flipped the switch in Atlanta, Chicago, Dallas, and Kansas City, Kan.; the network can be used with the LG V50 ThinQ. Verizon offers 5G service in parts of Chicago and Minneapolis; it works with Samsung's Galaxy S10 5G, the LG V50 ThinQ, and Motorola's Moto Z3 and Z4, which can be made 5G-compatible with an attachment. In the end, Samsung's 5G phone still performed far better in New York City than a 4G model. At one point during the day, we ran speed tests at the exact same time and place on both the Galaxy S10 5G and a regular Galaxy S10 with 4G T-Mobile service. The 5G phone notched 191 Mbps, which was nearly 10 times the speed of the regular S10’s 20 Mbps. The Good and the Bad So, all things considered, is 5G something worth signing up for? As with most new technologies, that largely depends on you. Here’s a look at some of the pros and cons. Cost. T-Mobile isn’t charging more for 5G service and says it doesn’t plan to, assuming its merger with Sprint eventually closes. That’s not necessarily the case with other carriers. Verizon, for example, says it will eventually start charging $10 per device on top of the fee for an unlimited plan for access to its 5G network, though it hasn't said exactly when it plans to start doing that. On the flip side, the only phone right now that’s compatible with the T-Mobile network is the Samsung Galaxy S10 5G, which will cost you $1,300. And, while T-Mobile will finance your purchase interest free, it’s not offering any discounts. Limited service. Even under the best of conditions in areas with strong 5G signals, we found coverage in the places we tested to be spotty. The current 5G coverage of the other carriers remains spotty, too. Results are likely to vary city to city, and even neighborhood to neighborhood. But even in the best-covered areas, you’re not going to be able to get a quality 5G signal all the time, regardless of which company is supplying your 5G. As mentioned before, obstacles as seemingly benign as a small tree can stop a 5G signal. And the range of T-Mobile’s millimeter wave signal is very limited, making finding and keeping a signal tough. “It’s a shot in the dark,” Parra says. Our results may be exceptional. Even in an area so densely populated as Times Square, given the fact that T-Mobile’s phone just went on sale today and stores had such limited quantities, it’s doubtful we had to fight with more than a handful of other 5G users for network resources, Parra says. Once 5G phone sales start to take off, that’s not going to be the case anymore. The more users on the network, the slower speeds will be, he says. So Is It Worth It? While 5G is undoubtedly much faster than 4G, it’s not going to change your life dramatically. Big files, such as 4K movies, will download faster, but many people won’t notice much of a difference. While carriers like T-Mobile might not be charging extra for 5G right now, the Galaxy S10 5G is expensive. Future versions from Samsung and other smartphone makers could get cheaper as more models hit the market, though. And if you’re the type of person who has to have an iPhone, you’re going to have to wait until at least next year for Apple's first 5G models to come out. More to the point, next generation phones will likely have the radio hardware required to access 5G signals beyond T-Mobile’s millimeter wave. And the signals in those new bands will travel further and have an easier time passing through obstacles. While 5G might be fun to play with—especially on an afternoon scavenger hunt in midtown Manhattan—that may not be nearly enough upside to shell out for a 5G phone right now. More from Consumer Reports: Top pick tires for 2016 Best used cars for $25,000 and less 7 best mattresses for couples Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2019, Consumer Reports, Inc.
Has Gujarat Pipavav Port Limited (NSE:GPPL) Improved Earnings Growth In Recent Times? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Measuring Gujarat Pipavav Port Limited's (NSE:GPPL) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess GPPL's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements. See our latest analysis for Gujarat Pipavav Port GPPL's trailing twelve-month earnings (from 31 March 2019) of ₹2.4b has increased by 7.1% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -4.2%, indicating the rate at which GPPL is growing has accelerated. How has it been able to do this? Let's see whether it is only attributable to industry tailwinds, or if Gujarat Pipavav Port has experienced some company-specific growth. In terms of returns from investment, Gujarat Pipavav Port has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 9.3% exceeds the IN Infrastructure industry of 5.8%, indicating Gujarat Pipavav Port has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Gujarat Pipavav Port’s debt level, has declined over the past 3 years from 13% to 12%. While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Gujarat Pipavav Port gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Gujarat Pipavav Port to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for GPPL’s future growth? Take a look at ourfree research report of analyst consensusfor GPPL’s outlook. 2. Financial Health: Are GPPL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 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. NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Alphabet Inc and Other Hedge Fund Favorites Performed in Q2 Insider Monkey tracks hedge funds, billionaires, and prominent value investors for a very simple reason: their consensus picks generally outperform the market. We aren’t the only research shop broadcasting this fact using a bullhorn. Here is what strategist Ben Snider said in Goldman Sachs’ periodic hedge fund report: “Despite the strong track record of popular hedge fund stocks, investors often view high ownership as a negative trait when evaluating stock prospects. Clients often ask us to include hedge fund ownership data in stock screens, expressing a preference for buying ‘under-owned’ stocks.” “In fact, during the past decade hedge fund popularity has been a more useful criterion for selecting stocks than valuations…. The signals from hedge fund popularity and valuation have been particularly useful in combination, especially for investors with slightly longer investment horizons. During the past decade, popular stocks have generally outperformed unpopular stocks across both 3- and 12-month investment horizons” Snider concluded. It may sound like I am tooting my own horn, but Insider Monkey’s quarterly newsletter is actually superior to Goldman’s report. That’s because we separated the hedge fund favorites into long and short buckets. Our long bucket of hedge fund favorites returned 34.1% in the first half of 2019, whereas our short bucket of hedge fund favorites gained 21.4% during the same period. Hedge funds’ favorite top 20 stocks, on the other hand, returned 24% so far in 2019. You could have beaten the S&P 500 Index funds by 5.7 percentage points by investing inhedge funds’ top 20 picksin 2019, whereas you could have outperformed the index funds by 15.8 percentage points if you invested in our top hedge fund picks. You cantry out our newsletterfree of charge for 14 days to see hedge funds’ latest best stock picks. The #4 most popular stock among the 743 hedge funds tracked by Insider Monkey wasAlphabet Inc (NASDAQ:GOOGL).Alphabet was also the fourth most popular stock among hedge funds at the end of December (see the30 most popular stocks among hedge funds). We have to warn you against indiscriminately imitating hedge funds' all stock picks. Hedge funds' top 20 stock picks outperformed the S&P 500 Index funds by 5.7 percentage points this year, but hedge funds' top 500 stock picks had the same return as the S&P 500 Index this quarter. Investing in a hedge fund's 35th best idea doesn't give you the same return as investing in a hedge fund's best idea. We're going to take a look at the fresh hedge fund action encompassing Alphabet Inc (NASDAQ:GOOGL). Heading into the second quarter of 2019, a total of 147 of the hedge funds tracked by Insider Monkey were long this stock, a change of 1% from one quarter earlier. By comparison, 124 hedge funds held shares or bullish call options in GOOGL a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were adding to their stakes substantially (or already accumulated large positions). More specifically,Fisher Asset Managementwas the largest shareholder of Alphabet Inc (GOOGL), with a stake worth $1381.7 million reported as of the end of March. Trailing Fisher Asset Management was Citadel Investment Group, which amassed a stake valued at $1014.4 million. AQR Capital Management, Diamond Hill Capital, and Glenview Capital were also very fond of the stock, giving the stock large weights in their portfolios. As one would reasonably expect, key money managers have jumped into Alphabet Inc headfirst.OZ Management, managed by Daniel S. Och, established the most valuable call position in Alphabet Inc (NASDAQ:GOOGL). OZ Management had $107.5 million invested in the company at the end of the quarter. John Hempton'sBronte Capitalalso initiated a $35.1 million position during the quarter. The other funds with new positions in the stock are Mark Kingdon'sKingdon Capital, Eric W. Mandelblatt and Gaurav Kapadia'sSoroban Capital Partners, and Clint Carlson'sCarlson Capital. Let's also examine hedge fund activity in other stocks similar to Alphabet Inc (NASDAQ:GOOGL). We will take a look at Alphabet Inc (NASDAQ:GOOG), Berkshire Hathaway Inc. (NYSE:BRK-B), Facebook Inc (NASDAQ:FB), and Alibaba Group Holding Limited (NYSE:BABA). This group of stocks' market caps resemble GOOGL's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GOOG,133,13597514,-8 BRK-B,91,20086059,4 FB,176,18349790,15 BABA,117,13936754,4 Average,129.25,16492529,3.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 129.25 hedge funds with bullish positions and the average amount invested in these stocks was $16493 million. That figure was $11115 million in GOOGL's case. Facebook Inc (NASDAQ:FB) is the most popular stock in this table. On the other hand Berkshire Hathaway Inc. (NYSE:BRK-B) is the least popular one with only 91 bullish hedge fund positions. Alphabet Inc (NASDAQ:GOOGL) is not the most popular stock in this group but that's only because of Facebook. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.4% in Q2 and outperformed the S&P 500 ETF (SPY) by more than 2 percentage points. Unfortunately GOOGL wasn't nearly as successful a bet as these 20 stocks and hedge funds that were betting on GOOGL were disappointed as the stock returned -8% during the same period and underperformed the market. We should note that hedge funds' top 3 stock picks returned more than 35% so far this year and beat the S&P 500 Index Fund (IVV) by 17 percentage points. Disclosure: None. This article was originally published atInsider Monkey.
Is Godfrey Phillips India Limited's (NSE:GODFRYPHLP) ROE Of 13% Concerning? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 Godfrey Phillips India Limited (NSE:GODFRYPHLP). Over the last twelve monthsGodfrey Phillips India has recorded a ROE of 13%. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.13 in profit. See our latest analysis for Godfrey Phillips India Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Godfrey Phillips India: 13% = ₹2.6b ÷ ₹21b (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 all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the yearly profit. 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. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Godfrey Phillips India has a lower ROE than the average (16%) in the Tobacco industry. That certainly isn't ideal. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Nonetheless, it might be wise tocheck if insiders have been selling. Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the 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. Godfrey Phillips India has a debt to equity ratio of just 0.02, which is very low. Although the ROE isn't overly impressive, the debt load is modest, suggesting the business has potential. 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 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. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. 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 thisfreethisdetailed graphof past earnings, revenue and cash flow. Of courseGodfrey Phillips India may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Theresa May urges Saudi crown prince to work for peaceful solution in Yemen Prime Minister Theresa May has pressed the Crown Prince of Saudi Arabia to work with the United Nations to find a solution to the long-running conflict in Yemen . In a 20-minute meeting with Mohammed bin Salman at the G20 summit in Japan, described by officials as serious, Ms May also called for aopen and transparent legal process in relation to the murder of journalist Jamal Khashoggi . And officials said that she also spoke with the Prince about the need for de-escalation of tensions in the Persian Gulf, which has recently seen attacks on oil tankers in the Straits of Hormuz, and the preservation of the international deal preventing Iran from developing a military nuclear capability. The de facto Saudi ruler - known as MBS - has become the focus of international condemnation since taking the helm in Riyadh in 2017, due to his bombing of neighbouring Yemen and alleged links to the Khashoggi killing. Four years of the Saudi-led bombing campaign designed to oust the Houthi rebels who hold much of Yemen have led to more than 8,000 civilian deaths and 9,500 injuries, according to independent monitoring group Yemen Data Project. Britain last week froze arms sales to the Kingdom after a court ruled them unlawful because of the clear risk they could breach humanitarian law in Yemen. A United Nations-led peace process has been threatened by allegations from the Saudi-backed official Yemeni government that envoy Martin Griffiths was siding with the rebels. Meanwhile, a trial of 11 individuals at the Riyadh Criminal Court in relation to the Khashoggi murder has been taking place behind closed doors and the defendants - five of them facing the death penalty - have not been named. A UN report found there was credible evidence that MBS and senior officials were individually liable for Khashoggis death at the Saudi consulate in Istanbul last October. But Riyadh insists it was the result of a rogue operation by agents who were intended to return him to Saudi Arabia. Story continues Speaking after the meeting in Osaka , a senior British official said: The prime minister reiterated the need to keep working on finding a solution to the current conflict in Yemen, which is causing significant humanitarian suffering, and the importance of continuing to make progress through the UN peace process. Jamal Khashoggi (AP) On accountability for the murder of Jamal Khashoggi, the prime minister said the legal process needed to be open and transparent. He added: She underlined the need for urgent de-escalation of the current tension in the Gulf and the importance of preserving the JCPOA (Joint Comprehensive Plan of Action with Iran). Speaking ahead of the meeting, Ms May defended her decision to sit down with world leaders like MBS and Turkish president Recep Tayyip Erdogan, who has faced criticism for a heavy-handed response to the 2016 attempted coup in his country. "These are all individuals sitting around the G20 table, she said. The G20 is about that international co-operation. I will be promoting that international rules-based order, I will be promoting that international co-operation and I will be giving that message to those that I meet individually and collectively around the G20 table.
UPDATE 3-Turkey's Erdogan says U.S. will not impose sanctions over Russian missile deal * * Trump says Turkey has been treated unfairly * Erdogan welcomes Trump comments * Says Russian system will be delivered in July * (Recasts with Erdogan, adds Trump, details) By Roberta Rampton and Tuvan Gumrukcu OSAKA/ANKARA, June 29 (Reuters) - Turkish President Tayyip Erdogan said on Saturday the United States did not plan to impose sanctions on Ankara for buying Russian defence systems, after the U.S. president said Turkey had not been treated fairly over the contract. The NATO allies have been at odds over Turkey's decision to procure the Russian S-400 missile defence systems, with Washington warning of sanctions if the deal goes through. Russia's Interfax agency on Saturday quoted a Kremlin spokesman as saying that the deal envisaged a partial handover of technology. Turkey has said it would not back down before the early July delivery date, further testing relations that are already strained over a host of other issues. But in contrast to statements by U.S. officials, Donald Trump said Turkey had been treated unfairly over its decision to buy the S-400s and blamed the "mess" on the administration of former President Barack Obama. Trump did not rule out sanctions. Speaking shortly after bilateral talks with Trump at the G20 summit in Japan, Erdogan said that the S-400s would be delivered in the first half of July, adding he had heard directly from Trump that there would be no sanctions. "We have heard from him personally that this would not happen," Erdogan said. "We are strategic partners with the United States. As strategic partners, nobody has the right to meddle in Turkey's sovereign rights. Everyone should know this." Earlier, asked if the United States would impose sanctions on Turkey, Trump, sitting alongside Erdogan, said the issue was being discussed, but it was a "two-way street" and both sides were evaluating "different solutions". The United States says the S-400s are not compatible with NATO's defence network and could compromise its Lockheed Martin F-35 stealth fighter jets, an aircraft Turkey is helping to build and planning to buy. Under possible U.S. sanctions, Turkey could face expulsion from the F-35 programme, a move Erdogan has dismissed. But Washington has already started the process of removing Turkey from the F-35 programme, halting training of Turkish pilots in the United States on the aircraft. "We have a payment so far of $1.4 billion to the United States," Erdogan said. "As joint producers, until now four F-35 jets have been delivered to us, but we will still receive... a total of 116 jets. We are expecting these," he added. "What some people in lower ranks are saying absolutely do not align with Mr Trump's approach. I believe these will not harm our bilateral ties, and that is the commitment we are going on with." 'UNFAIR' TREATMENT Despite the threat of sanctions, Turkey had put its hopes on the relationship between Erdogan and Trump, saying it expected the U.S. president to protect it from sanctions over the S-400 deal. Ahead of Saturday's talks, the meeting between Erdogan and Trump was seen as Turkey's last push to avoid U.S. sanctions that could significantly damage its already ailing economy. Even minor U.S. sanctions could prompt another sharp sell-off in the Turkish lira. A 30% slide in the currency drove the economy into recession last year, and the lira has lost another 10 percent this year. Erdogan's comments also appeared to go beyond statements made by the Turkish presidency and the White House after the talks between the two leaders, which lasted around 40 minutes. The White House said Trump "expressed concern" over the S-400 deal and "encouraged Turkey to work with the United States on defence cooperation in a way that strengthens the NATO alliance", while the Turkish presidency said Trump had voiced a desire to resolve the dispute without harming bilateral ties. In an effort to sway Turkey, the United States has offered to supply it with Raytheon Co Patriot missiles, but Erdogan has said the U.S. offer was not as good as Russia's S-400 proposal. Speaking at a news conference at the G20 minutes before Erdogan, Trump blamed Barack Obama's administration for placing conditions on Turkey's purchase of Patriot missiles and treating Turkey unfairly, and added Erdogan had no fault in the dispute. "This administration previous to mine would not let him buy it (Patriots). So (Erdogan) goes out, he goes to Russia, and makes a deal for the S-400," Trump said. "He made a deal, he paid them a lot of money, put up a lot of money. And he bought it." "As soon as he bought it (S-400), people went back to him from our country and they said, 'Listen, we don't want you to use that system because it's not the NATO system," he added. "He got treated very unfairly." Trump also said he would visit Turkey, but added that a date had not been set yet. Erdogan said earlier this week that Trump may visit in July. (Additional reporting by Maria Vasilyeva in MOSCOW, Malcolm Foster and Chang-Ran Kim in TOKYO; Editing by Robert Birsel and Stephen Powell)
Brief Commentary On Jubilant Life Sciences Limited's (NSE:JUBILANT) Fundamentals Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of Jubilant Life Sciences Limited (NSE:JUBILANT), there's is a financially-robust company with a a strong history high-quality dividend payments, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the fullreport on Jubilant Life Sciences here. JUBILANT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that JUBILANT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. JUBILANT's has produced operating cash levels of 0.27x total debt over the past year, which implies that JUBILANT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. JUBILANT'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 JUBILANT's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, JUBILANT's share price is trading below the group's average. This supports the theory that JUBILANT is potentially underpriced. For those seeking income streams from their portfolio, JUBILANT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 0.9%. For Jubilant Life Sciences, there are three relevant factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for JUBILANT’s future growth? Take a look at ourfree research report of analyst consensusfor JUBILANT’s outlook. 2. Historical Performance: What has JUBILANT's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of JUBILANT? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Be Adding Hikal (NSE:HIKAL) To Your Watchlist Today? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Hikal ( NSE:HIKAL ). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. See our latest analysis for Hikal How Fast Is Hikal Growing? If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. It certainly is nice to see that Hikal has managed to grow EPS by 36% per year over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners. I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). While we note Hikal's EBIT margins were flat over the last year, revenue grew by a solid 23% to ₹16b. That's progress. In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers. NSEI:HIKAL Income Statement, June 29th 2019 The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. To that end, right now and today, you can check our visualization of consensus analyst forecasts for future Hikal EPS 100% free. Are Hikal Insiders Aligned With All Shareholders? I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. As a result, I'm encouraged by the fact that insiders own Hikal shares worth a considerable sum. To be specific, they have ₹2.8b worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Those holdings account for over 14% of the company; visible skin in the game. Story continues Is Hikal Worth Keeping An Eye On? For growth investors like me, Hikal's raw rate of earnings growth is a beacon in the night. Further, the high level of insider buying impresses me, and suggests that I'm not the only one who appreciates the EPS growth. Fast growth and confident insiders should be enough to warrant further research. So the answer is that I do think this is a good stock to follow along with. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want to check if Hikal is trading on a high P/E or a low P/E , relative to its industry. Of course, you can do well (sometimes) buying stocks that are not growing earnings and do not have insiders buying shares. But as a growth investor I always like to check out companies that do have those features. You can access a free list of them here . Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. View comments
Defense rests in war crimes trial of U.S. Navy SEAL platoon leader By Marty Graham SAN DIEGO (Reuters) - Defense lawyers in the murder trial of a U.S. Navy SEAL rested their case on Friday after three days of testimony contesting accusations that the platoon leader had fatally stabbed a wounded Iraqi captive and shot innocent civilians. The last defense witness called by lawyers for Special Operations Chief Edward Gallagher was Navy Lieutenant Commander Robert Breisch, who testified that no one made a report to him accusing Gallagher of war crimes while his platoon was in Iraq. After the defense rested, the presiding judge said he planned to give instructions to the seven-member jury on Monday before the two sides present closing arguments. Breisch, the SEAL Team 7 troop commander during the 2017 Iraq deployment in question, testified that complaints about Gallagher had only involved personal, petty issues or tactical grievances, until months after the troops returned. The Navy formally opened its investigation of Gallagher in September 2018, about a year after his platoon had returned to the United States. Breisch told jurors that one platoon member suddenly "blurted out" to him in April 2018 that Gallagher had stabbed a prisoner. an accusation Breisch said came after word surfaced that Gallagher was up for a Silver Star medal, the San Diego Union-Tribune said. Breisch's account was at odds with that of another defense witness, Master Chief Petty Officer Brian Alazzawi. He testified on Wednesday that Breisch was made aware of the stabbing allegation as early as October 2017, the Union-Tribune said. Gallagher, 39, a decorated career combat veteran, is charged with committing premeditated murder of a wounded, teenage Islamic State fighter in his custody by stabbing him in the neck with a knife. He is also charged with attempted murder in the wounding of two civilians, a schoolgirl and an elderly man, shot from a sniper's perch, as well as with obstruction of justice and other offenses. Those include unlawfully posing for photographs with the dead captive's corpse. Gallagher could face life in prison if convicted. He has denied all charges. The thrust of his defense has been that fellow SEAL team members testifying against him under grants of immunity are disgruntled subordinates fabricating allegations to force him from the Navy. In a major setback for prosecutors last week, a Navy SEAL medic testified it was he, not Gallagher, who caused the death of the Iraqi detainee by blocking the youth's breathing tube in what he described as a mercy killing. On Thursday, an Iraqi general and a U.S. Marine who took the witness stand each testified he never saw Gallagher or anyone else stab or otherwise mistreat the captive before he died of combat wounds. Story continues The case has drawn attention from U.S. President Donald Trump, who intervened months ago to order Gallagher moved from a military brig to less restrictive pre-trial confinement at a Navy base. The judge later released him from custody. (Reporting by Marty Graham in San Diego; Writing and additional reporting by Steve Gorman in Los Angeles; Editing by Clarence Fernandez) View comments
Don't Sell KEI Industries Limited (NSE:KEI) Before You Read This Want to participate in ashort 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 KEI Industries Limited's (NSE:KEI), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,KEI Industries has a P/E ratio of 20.87. In other words, at today's prices, investors are paying ₹20.87 for every ₹1 in prior year profit. View our latest analysis for KEI Industries Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for KEI Industries: P/E of 20.87 = ₹479.6 ÷ ₹22.98 (Based on the year to March 2019.) A higher P/E ratio means that investors are payinga higher pricefor each ₹1 of company earnings. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future. Earnings growth rates have a big influence on P/E ratios. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means unless the share price increases, the P/E will reduce in a few years. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. KEI Industries increased earnings per share by an impressive 24% over the last twelve months. And its annual EPS growth rate over 5 years is 71%. This could arguably justify a relatively high P/E ratio. We can get an indication of market expectations by looking at the P/E ratio. As you can see below, KEI Industries has a higher P/E than the average company (12.4) in the electrical industry. That means that the market expects KEI Industries will outperform other companies in its industry. 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. 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. 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). Net debt totals 14% of KEI Industries's market cap. It would probably deserve a higher P/E ratio if it was net cash, since it would have more options for growth. KEI Industries's P/E is 20.9 which is above average (15.3) in the IN market. While the company does use modest debt, its recent earnings growth is very good. So on this analysis it seems reasonable that its P/E ratio is above average. 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 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Trump says he could meet North Korea's Kim at DMZ OSAKA, Japan (AP) Eyeing a history-making photo opportunity, President Donald Trump on Saturday issued a Twitter invitation to North Korea's Kim Jong Un to join him for a hand shake during a visit to the demilitarized zone with South Korea. The invitation, while long rumored in diplomatic circles, still struck as an impulsive display of showmanship by a president bent on obtaining a legacy-defining nuclear accord. North Korea responded to offer by calling it a "very interesting suggestion." Presidential visits to the DMZ are traditionally treated as carefully guarded secrets for security reason. And White House officials couldn't immediately say whether Kim had agreed to meet with Trump. The president himself claimed he wasn't even sure Kim was in North Korea to accept the invitation. "All I did is put out a feeler, if you'd like to meet," Trump said later of the message to Kim. He added, somewhat implausibly, that "I just thought of it this morning." Trump is scheduled to fly to South Korea later Saturday after he concludes meetings at the Group of 20 summit in Osaka, Japan, including with the president of China. He told reporters during a breakfast with Saudi Arabian Crown Prince Mohammed bin Salman that he would be visiting the heavily fortified area between the two Koreas. "We're going there," the president said. Shortly before the breakfast, Trump tweeted his invitation for Kim to meet him there. "If Chairman Kim of North Korea sees this, I would meet him at the Border/DMZ just to shake his hand and say Hello(?)!" he wrote. It was not immediately clear what the agenda, if any, would be for the potential third Trump-Kim meeting. Trump predicted that, "If he's there we'll see each other for two minutes." Still, such a spectacle would present a valuable propaganda victory for Kim, who, with his family, has long been denied the recognition they sought on the international stage. Story continues Despite Trump's comments Saturday, he had told The Hill newspaper in an interview this week that he would be visiting the DMZ and said "he might" meet with Kim. The paper reported it had withheld Trump's comments, citing security concerns by the White House. North Korea's state media made no mention Saturday of a possible meeting between Trump and Kim. South Korea's presidential Blue House said in a tweet that Trump asked South Korean President Moon Jae-in at the G20 meetings whether he'd seen Trump's Twitter message to Kim. When Moon replied he had, Trump said "(Let's) try doing it" and raised his thumb, the Blue House said. Trump's summit with Kim in Vietnam earlier this year collapsed without an agreement for denuclearizing the Korean Peninsula. He became the first sitting U.S. president to meet with the leader of the isolated nation last year in Singapore, where they signed a broad agreement to bring the North toward denuclearization. Substantive talks between the two nations have largely broken down since then, as the North has balked at Trump's insistence that it give up its weapons before it sees relief from crushing international sanctions. Still, Trump has sought to publicly heap praise on Kim, who oversees an authoritarian government, in hopes of keeping the prospects of a deal alive, and the two have traded flowery letters in recent weeks. Every president since Ronald Reagan has visited the 1953 armistice line, except for George H.W. Bush, who visited when he was vice president. The show of bravado and support for South Korea, one of America's closest military allies, has evolved over the years to include binoculars and bomber jackets. Trump, ever the showman, appears to be looking to one-up his predecessors with a meeting with Kim. As he left the White House for Asia earlier this week, Trump was asked whether he'd meet with Kim while he is in the region. "I'll be meeting with a lot of other people ... but I may be speaking to him in a different form," Trump said. Such trips to the demilitarized zone, the heavily fortified border between North and South Korea, are usually undertaken under heavy security and the utmost secrecy. Trump tried to visit the DMZ when he was in Seoul in November 2017, but his helicopter was grounded by heavy fog. Trump has staked his self-professed deal-making reputation on his rapprochement with the North and has even turned it into a campaign rallying cry. Trump has repeatedly alleged that if he had lost the 2016 presidential campaign, the U.S. would be "at war" with North Korea over its nuclear weapons and ballistic missile programs. The meeting would come at a time of escalating tensions. While North Korea has not recently tested a long-range missile that could reach the U.S., it last month a fired off a series of short-range missiles. Trump has brushed off the significance of the tests, even as his own national security adviser, John Bolton, has said they violated U.N. Security Council resolutions. Trump also suggested Saturday that the North was prepared to turn over additional unidentified remains of unknown American and allied service-members. At least six Americans have been identified from 55 boxes of remains delivered by the North last year after Trump's first meeting with Kim, but the Defense Department in May announced it was halting efforts to recover additional remains, citing a lack of cooperation from North Korea. ___ Associated Press writers Hyung-jin Kim and Kim Tong-hyung in Seoul, South Korea, and Darlene Superville and Jill Colvin in Washington contributed to this report. ___ Follow Lemire on Twitter at http://twitter.com/@JonLemire and Miller at http://twitter.com/@zekejmiller
Should You Be Tempted To Sell KEI Industries Limited (NSE:KEI) Because Of Its P/E Ratio? Want to participate in ashort 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 KEI Industries Limited's (NSE:KEI), to help you decide if the stock is worth further research.KEI Industries has a price to earnings ratio of 20.87, based on the last twelve months. That means that at current prices, buyers pay ₹20.87 for every ₹1 in trailing yearly profits. See our latest analysis for KEI Industries Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for KEI Industries: P/E of 20.87 = ₹479.6 ÷ ₹22.98 (Based on the trailing twelve months 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 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. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up. KEI Industries increased earnings per share by an impressive 24% over the last twelve months. And it has bolstered its earnings per share by 71% per year over the last five years. This could arguably justify a relatively high P/E ratio. The P/E ratio indicates whether the market has higher or lower expectations of a company. You can see in the image below that the average P/E (12.4) for companies in the electrical industry is lower than KEI Industries's P/E. That means that the market expects KEI Industries will outperform other companies in its industry. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should delve deeper. I like to checkif company insiders have been buying or selling. Don't forget that the P/E ratio considers market capitalization. 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 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. KEI Industries's net debt is 14% of its market cap. It would probably deserve a higher P/E ratio if it was net cash, since it would have more options for growth. KEI Industries trades on a P/E ratio of 20.9, which is above the IN market average of 15.3. 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. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. You might be able to find a better buy than KEI Industries. 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Type Of Shareholder Owns Heritage Foods Limited's (NSE:HERITGFOOD)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of Heritage Foods Limited (NSE:HERITGFOOD) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Heritage Foods is a smaller company with a market capitalization of ₹19b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about HERITGFOOD. See our latest analysis for Heritage Foods 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. We can see that Heritage Foods does have institutional investors; and they hold 18% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Heritage Foods, (below). Of course, keep in mind that there are other factors to consider, too. Hedge funds don't have many shares in Heritage Foods. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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. It seems insiders own a significant proportion of Heritage Foods Limited. Insiders own ₹7.8b worth of shares in the ₹19b company. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling. The general public holds a 23% stake in HERITGFOOD. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. We can see that Private Companies own 16%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It's always worth thinking about the different groups who own shares in a company. But to understand Heritage Foods better, we need to consider many other factors. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Trump announces negotiations with China are back on track OSAKA, Japan President Donald Trump on Saturday stepped back from an escalation of his trade war with China that threatened to damage his 2020 reelection chances. During a 80-minute meeting with Chinese President Xi Jinping, Trump agreed not to proceed with plans to impose a 25 percent duty on another $300 billion worth of Chinese goods. Were holding on tariffs, and theyre going to buy farm product, Trump told reporters during a press conference after his meeting with Xi at the annual G-20 leaders summit here in Osaka. American farm exports to China have plummeted as a result of the trade war. Total sales this budget year are forecast at $6 billion, down from a high of nearly $26 billion when Barack Obama was president. The decision to halt additional tariffs will also be welcome news to retailers and consumers, especially lower-income voters who rely on cheap imports, going into the 2020 election. The United States will keep in place a 25 percent duty on $250 billion of Chinese goods that Trump imposed earlier. It will also give China a list of U.S. products to buy, Trump said. In what appears to be a concession to Xi, Trump said he would loosen a trade ban that his administration recently imposed on Chinese telecommunications giant Huawei. The president indicated he thought the restrictions were too tight because Huawei is a major customer for many U.S. technology products. We send and we sell to Huawei a tremendous amount of product that goes into the various things they make, Trump said. These are American companies that make product. It's very complex. Highly scientific. And in some cases we're the ones that do it and the only ones that do it. However, Trump said the ultimate resolution of the Huawei issue would be left until the end of negotiations with China. Trump also said he did not discuss the case of Huawei executive Meng Wanzhou, who was arrested in Canada last December at the request of the United States over allegations of breaching a U.S.-imposed ban on dealing with Iran. Story continues But in response to a reporters question, he said the administration would discuss the telecommunications company's continued presence on the Commerce Departments entity list in the coming days. Later, he said Huawei was very much in play, but repeated that the U.S.and China plan to resolve the issue at the end of the talks. In another area, he indicated his desire to reform U.S. visa policy to allow Chinese students remain and work in the United States after they finish their education. He called it a smart persons waiver. Well make it so they cannot only stay, but maybe they have access to green cards. We want to keep them here, Trump said. Trump did not specify any deadline for concluding the negotiations and was cautious about predicting success. This doesn't mean there will be a deal. They would like to make a deal. I can tell you that. If we can make a deal it would be historic, Trump said. Trumps decision to put tariffs on hold should please financial markets worried about the effects of an escalating trade war on U.S. and global growth. But heading into the 2020 presidential campaign he has little to show so far on the China trade front, except lost sales. Five months of negotiations between the two countries abruptly halted in May after Trump accused China of backtracking on commitments in a nearly 150-page draft agreement to change its laws to implement reforms required by the agreement. China said the U.S. was entirely to blame for the breakdown. Still, the freezing of new tariffs is likely to help the Chinese economy The trade war could slash one percentage point off Chinas economic growth this year, a top Chinese party official estimated in May. The U.S. is pushing for structural changes to the Chinese economy on issues such as the transfer of proprietary technologies from U.S. companies doing business in China. A more challenging issue will be changing government subsidies and other advantages that Chinese companies and state-owned enterprises enjoy. Trump brought several of his top advisers to meeting with Xi, including U.S. Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross, Secretary of State Mike Pompeo, Treasury Secretary Steve Mnuchin, acting White House chief of staff Mick Mulvaney and White House trade adviser Peter Navarro. The Chinese side included Vice Premier Liu He, Xis chief of staff Ding Xuexiang, top economic planning official He Lifeng, Commerce Minister Zhong Shan, Foreign Minister Wang Yi, Finance Minister Liu Kun, and Chinas ambassador in Washington Cui Tiankai. China and the United States both benefit from cooperation and lose in a confrontation, Xi told Trump during the meeting. Cooperation and dialogue are better than friction and confrontation."
Weekly Wrap – Geopolitics, Stats and the G20 Summit Provided Direction It was a relatively quiet week on the economic calendar in the week ending 28thJune, A total of 51 stats were monitored throughout the week. Of the 51 stats, 22 came in below forecasts, with just 16 economic indicators coming in ahead of forecast. 13 stats were in line with forecasts in the week. Looking at the numbers, 26 of the stats reflected a deterioration from previous figures. Of the remaining 25, 16 stats reflected an upward trend. While the economic data was skewed to the negative, sentiment towards Iran, the G20 Summit and economic outlook drove the Greenback and the majors. The U.S Dollar Index (“DXY”) slipped by 0.09% in the week to 96.130. On the data front, key stats were skewed to the negative once again in the week. On Wednesday, Core Durable Goods orders rose by 0.3%, month-on-month in May, reversing a 0.1% fall in April. The more influential Cap Goods Ship non-Defense ex-air also provided support, rising by 0.7% off the back of a 0.4% rise in April. The only other positive came on Friday, with the Michigan Consumer Sentiment Index. An upward revision from a prelim 97.9 to 98.2 was positive for June, though the Index was still down from May’s 100.0. On the negative side, consumer confidence tumbled in June, with the CB Consumer Confidence Index falling from 131.3 to 121.5. Ahead of the G20 Summit, the U.S goods trade data also disappointed, with the deficit widening from $70.92bn to $74.55bn. At the end of the week, the Chicago PMI also surprised, with the PMI falling from 54.2 to 49.7. Also on the negative side for the Greenback on Friday were inflation figures. The FED’s preferred Core PCE Price Index rose by 1.6% year-on-year, which was well below the FED’s 2% objective. Personal spending rose by 0.4% in May, which was in line with forecast, whilst easing from a 0.6% rise in April. Off less influence, though needing some consideration was a 7.8% slide in new home sales in May. The slide came off the back of a 3.7% fall in April and, when coinciding with the fall in consumer confidence, could be a red flag… Outside of the stats, FED Chair Powell spoke early in the week, dashing hopes of a near-term FED rate cut, leading to some upside in the Dollar on Tuesday. In the end, it all boiled down to market sentiment towards the G20 Summit and whether Trump and Xi could find common ground. In the equity markets, the U.S majors saw red for the 1sttime in 4-weeks. The Dow led the way down, falling by 0.45%. The NASDAQ and S&P500 fell by 0.32% and by 0.29% respectively. It was a relatively quiet week. On the economic calendar, key stats were limited to finalized 1stquarter GDP, business investment and current account figures. While GDP numbers were in line with prelim, affirming 1.8% growth year-on-year, business investment growth was revised down from 0.5% to 0.4%. The numbers had a muted impact on the Pound, however, with the UK leadership race and sentiment towards monetary policy the key drivers. On the policy front, BoE Governor Carney spoke of the likely need to cut interest rates should Britain tumble out of the EU without a deal. The leadership race continued to suggest that Boris Johnson will take the top spot and that certainly raises the stakes for a no-deal Brexit. The Pound ended the week down by 0.32% to $1.2696. For the FTSE100, a weaker Pound and rise in commodity prices provided support, with the index up by 0.24% for the week. It was also a particularly busy week. Business and consumer confidence figures were in focus on the week. Out of Germany, the IFO Business Climate Index slipped from 97.9 to 97.4, with falling new orders weighing. While the headline figure disappointed, sentiment towards current conditions improved marginally in June. German consumer confidence also deteriorated, with the GfK consumer climate survey easing from 10.1 to 9.8. The EU Commission released its business confidence figures on Thursday, which also disappointed. The Business Confidence Indicator fell from 0.3 to 0.17. On the positive side were prelim June inflation figures for Germany, France, Italy, and the Eurozone. The Eurozone’s annual rate of core inflation accelerated from 0.8% to 1.1% in June. Outside of the numbers, market sentiment towards rising tension in the Middle East and the G20 Summit also provided direction. In the equity markets, a Friday rally pulled the majors into the green for the week. The DAX30 rallied by 1.04% on Friday to end the week with a 0.48% gain. The CAC40 ended the week up by 0.19%. It was a particularly bullish month, despite the curve balls, with the CAC40 and DAX30 gaining 6.36% and 5.73% respectively. The EUR ended the week up 0.04% to $1.1373 against the Dollar. It was another bullish week for the Aussie and Kiwi Dollars. The Aussie Dollar rose by 1.36% to $0.7020, while the Kiwi Dollar rallied by 1.96% to $0.6718. The gains came in spite of the economic calendar being on the quieter side in the week. Stats were limited to May private sector credit figures on Friday, which rose by just 0.2%, month-on-month. Of greater influence through the week was rising commodity prices and some positive chatter on trade talks in the run-up to the G20 Summit. Economic data included May trade figures and June business confidence figures that provided direction on Tuesday and Friday. Year-on-year, New Zealand’s trade deficit narrowed from NZ$5.56bn to NZ$5.49bn, while the ANZ Business Confidence Index fell from -32 to -38.1. On the monetary policy front, the RBNZ delivered it’s June monetary policy decision, with the talk of further rate cuts ahead having a muted impact on the Kiwi on Wednesday. Better than expected trade figures amidst the ongoing U.S – China trade war was a positive, with rising commodity prices supporting. It was a relatively busy week. April wholesale sales figures provided support on Tuesday, with sales rising by 1.7%, month-on-month, off the back of a 1.4% rise in March. On Friday, GDP numbers were also positive. Month-on-month, the economy grew by 0.3% in April, coming in ahead of a forecasted 0.1% rise. Year-on-year, the economy grew by 1.5%, which was in line with forecast. On the negative side was a 2.3% slide in the RMPI in May, partially reversing a 5.7% increase in April. Outside of the numbers, the Bank of Canada released the Business Outlook Survey, which also provided the Loonie with support. The BoC noted an improvement in business sentiment in the 2ndquarter, the outlook for hiring and business investment on a more positive footing. Outside of the stats, rising tensions in the Middle East provided the Loonie with plenty of support. WTI and Brent ended the week up by 1.81% and 2.07% respectively. The Loonie ended the week up 0.96% to C$1.3095 against the Greenback. May retail sales figures on Thursday and industrial production and inflation figures on Friday delivered mixed results. On the positive side were retail sales and industrial production figures. Retail sales increase by 1.2% in May, following on from a 0.4% rise in Apri. More impressive was a 2.3% jump in industrial production in May. On the negative side, inflationary pressures eased in June, with Tokyo consumer prices rising by just 0.9% year-on-year. In May consumer prices had increased by 1.1%. Outside of the numbers, geopolitical risk continued to be a key driver. Both Iran and the G20 Summit were in focus. For the week, the Japanese Yen fell by 0.49% to ¥107.85. There were no material stats to influence the global financial markets. Concerns on Friday over the chances of a resolution to the U.S – China trade war weighed on the CSI300. The index fell by 0.24% on Friday to end the week down by 0.22%. It was a bullish month, however, with the Index up by 5.39%. Thisarticlewas originally posted on FX Empire • GBP/USD Price Forecast – British pound continues to grind • Crude Oil Price Forecast – Crude oil markets run into resistance • AUD/USD Price Forecast – Aussie forms bearish candle • Natural Gas Price Forecast – Natural gas markets roll over on Monday • E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7830.25, Weakens Under 7818.75 • EUR/USD Price Forecast – Euro falls yet finds support
Are Heritage Foods Limited’s Returns On Capital Worth Investigating? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Heritage Foods Limited (NSE:HERITGFOOD) to determine whether it could have potential as an investment idea. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. Firstly, we'll go over how we calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Then we'll determine how its current liabilities are affecting its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Heritage Foods: 0.11 = ₹1.4b ÷ (₹16b - ₹3.3b) (Based on the trailing twelve months to March 2019.) So,Heritage Foods has an ROCE of 11%. Check out our latest analysis for Heritage Foods When making comparisons between similar businesses, investors may find ROCE useful. We can see Heritage Foods's ROCE is around the 12% average reported by the Food industry. Separate from how Heritage Foods stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. It is possible that there are more rewarding investments out there. Heritage Foods's current ROCE of 11% is lower than 3 years ago, when the company reported a 35% ROCE. Therefore we wonder if the company is facing new headwinds. The image below shows how Heritage Foods's ROCE compares to its industry, and you can click it to see more detail on its past growth. 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 only a point-in-time measure. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Heritage Foods. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that 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 counter this, investors can check if a company has high current liabilities relative to total assets. Heritage Foods has total assets of ₹16b and current liabilities of ₹3.3b. Therefore its current liabilities are equivalent to approximately 20% of its total assets. This very reasonable level of current liabilities would not boost the ROCE by much. With that in mind, we're not overly impressed with Heritage Foods's ROCE, so it may not be the most appealing prospect. You might be able to find a better investment than Heritage Foods. 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). If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Ghosn's wife steps up call for G20 leaders to help her husband TOKYO (Reuters) - The wife of ousted Nissan Chairman Carlos Ghosn has again called on world leaders, who have gathered in Japan for a G20 summit, to help raise the issue of her husband's treatment in the country where he is facing financial misconduct charges. Ghosn, who holds French, Lebanese and Brazilian citizenship, has denied the charges and says he is the victim of a boardroom coup at Nissan Motor <7201.T>. While he has been released on bail, he remains restricted from contacting his wife. Carole called on leaders including U.S. President Donald Trump and French President Emmanuel Macron to hold Japanese Prime Minister Shinzo Abe accountable for what she has repeatedly called the country's "hostage justice system". "My husband's basic human rights have been violated. And all of this came about because a few people at Nissan were working to prevent a merger between Nissan and Renault which resulted in a corporate coup," she said in a statement on Saturday. Her comments come a day after Ghosn abruptly canceled what would have been his first press conference since his arrest in Tokyo in November. His lawyers cited concern that it could invite retaliation by Japanese authorities. (Reporting by Ritsuko Ando; Editing by Himani Sarkar)
UK property market: young people half as likely to own home File photo dated 14/10/14 of estate agent signs. Sales of homes across cities in southern England have plunged by 13% on average since 2015, according to analysis. Millennials chances of owning their own home in their early 20s have nearly halved over the past two decades, according to new figures. Only 11% of people born in the mid-1990s were homeowners by the age of 22, compared to 21% of people born in the mid-1970s. Many young people will be stuck renting into retirement, according to an analysis of official figures by the Local Government Association (LGA), which represents councils. The LGA says home ownership is a distant dream" for many would-be buyers as the high costs of renting privately prevent them saving for a deposit. Rents now eat up more than half of average household earnings in some parts of London, according to the LGA. READ MORE: How much first-time buyers need to get on the property ladder Separate figures released by HomeTrack on Thursday show first-time buyers need an average household income of £54,400 to afford a mortgage for their first home. Boris Johnson, the frontrunner in the race to be the next UK prime minister, is reportedly considering scrapping stamp duty on homes under £500,000 if Britain crashes out of the EU without a deal. First-time buyers already benefit from lower or zero stamp duty depending on a propertys value, but analysis by Yahoo Finance UK suggests it could save them up to £10,000 on their first home. READ MORE: Boris Johnson could slash stamp duty on homes under £500,000 SOMERSET, ENGLAND - JUNE 28: Boris Johnson, a leadership candidate for Britain's Conservative Party, gestures as he addresses party members at The Oaktree Arena in Highbridge on June 28, 2019 in Somerset, England. (Photo by Dylan Martinez - WPA Pool/Getty Images) Martin Tett, LGA housing spokesman and leader of Buckinghamshire county council, said: Home ownership remains a distant dream for most young people, with the high cost of the private rental sector meaning many are unable to save for a deposit to get on to the property ladder and face the prospect of being stuck renting into retirement. The LGA is calling for more powers for councils to build new social housing and take control of the right-to-buy scheme ahead of its annual conference next week. Lindsay Judge, senior policy analyst at the Resolution Foundation, told Yahoo Finance UK said more security for the record number of families renting privately was also key. While home ownership has finally started to rise in recent years, young families are still far less likely to own by their early 30s than their parents were. The barriers to home ownership remain significant. READ MORE: Nine ways millennials are worse off than previous generations
Why We Think Fiskars Oyj Abp (HEL:FSKRS) Could Be Worth Looking At Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Fiskars Oyj Abp (HEL:FSKRS) due to its excellent fundamentals in more than one area. FSKRS is a notable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Fiskars Oyj Abp here. FSKRS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. FSKRS's has produced operating cash levels of 0.55x total debt over the past year, which implies that FSKRS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. For those seeking income streams from their portfolio, FSKRS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.8%. For Fiskars Oyj Abp, there are three pertinent aspects you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for FSKRS’s future growth? Take a look at ourfree research report of analyst consensusfor FSKRS’s outlook. 2. Historical Performance: What has FSKRS's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of FSKRS? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The Latest: China says Trump, Xi strike deal on trade talks OSAKA, Japan (AP) — The Latest on President Donald Trump's trip to Asia (all times local): 2:00 p.m. President Donald Trump and Chinese President Xi Jinping agreed Saturday to a new cease-fire in a year-long trade war between the two nations. That's according to the Xinhua Chinese state-run news agency. It says the two countries have agreed to reboot stalled trade talks and that the U.S. will hold off on threatened additional tariffs on Chinese goods. Trump said earlier Saturday that the countries were "right back on track" and that he would be making an announcement on the results of his talks with Xi during an afternoon press conference. U.S. officials had signaled that a restart in talks was the likely outcome of Trump's meeting with Xi. The two leaders previously agreed to a truce at their last meeting in December to allow trade negotiations to continue, but talks broke down last month. ___ 1:55 p.m. President Donald Trump says the U.S. and China are "right back on track" when it comes to reaching a deal on trade. Trump is telling reporters that he and Chinese President Xi Jinping had a "very, very good meeting" on the sidelines of a Group of 20 summit in Japan that was better than expected. And he says that, while negotiations are continuing, China will soon be releasing a statement and he will be addressing the issue at a news conference later Saturday. The two countries have been at an impasse over trade after a breakdown in negations. But both sides had signaled a desire to de-escalate the year-long conflict despite. Trump made the comments during a meeting with Turkish President Recep Tayyip Erdogan. ___ 1:40 p.m. President Donald Trump says he and Turkish President Recep Tayyip Erdogan (REH'-jehp TY'-ihp UR'-doh-wahn) are looking at "solutions" to Turkey's decision to buy a Russian air-defense system. The purchase has been a sore point between the countries. Story continues Trump suggested Saturday that the NATO ally's treatment by the previous U.S. administration led Turkey to Russia. U.S. officials are threatening economic sanctions if Turkey goes ahead with the Russian purchase. Turkey says the first shipments are expected in July. The U.S. has also warned the purchase would halt the sale of U.S.-made F-35 Joint Strike Fighters. Asked about sanctions, Trump said "we're looking at it." Trump also says he'll visit Turkey "at some point." The leaders met during the Group of 20 summit in Japan. 11:55 a.m. President Donald Trump says he believes the U.S. and China can "do something" that will be "truly monumental" as he and China's Xi Jinping meet on the sidelines of a world leaders' conference in Japan. Trump is urging the Chinese leader to "even it up" on trade at start of talks on tariffs disputes. And he says, "it would be historic" if the sides could reach "a fair trade deal." Both sides have signaled a desire to ratchet down a yearlong trade war that has battered U.S. farmers and global markets as they meet Saturday on the sidelines of the Group of 20 summit in Osaka, Japan. Tensions rose in recent weeks after negotiations collapsed. Xi mentioned the benefits of "ping pong" diplomacy as he opened his remarks, saying that, "Cooperation and dialogue are better than friction and confrontation." __ 9:20 a.m. President Donald Trump says he wants to inspect the heavily-fortified Korean demilitarized zone as an example of what a "real border" looks like. Trump invited North Korean leader Kim Jong Un to meet him for a handshake at the DMZ. He praising the layers of barbed wire, mines and other security measures that form the armistice line between the two still-technically-warring Koreas. Says Trump: "By the way, when you talk about a wall when you talk about a border, that's what they call a border. Nobody goes through that border." He adds, "That's called a real border." Trump made curtailing illegal immigration and building a wall on the U.S.-Mexico border a central theme of his 2016 campaign, though he has struggled to fulfill his pledge. __ 9:15 a.m. President Donald Trump is praising his "friend" Saudi Crown Prince Mohammed bin Salman for taking steps to open up the kingdom and extend freedoms to Saudi women. The two are meeting over breakfast Saturday on the sidelines of the Group of 20 summit in Osaka, Japan. Trump, however, ignored reporters' questions about Mohammed's alleged role in the killing last year of Saudi writer Jamal Khashoggi. A U.N. expert has called for an investigation into Mohammed's alleged involvement in the killing at the Saudi consulate in Turkey last year. In a television interview before he left Washington, Trump brushed off calls for further inquiry by saying Khashoggi's death has been heavily investigated. He said the Saudi promise to buy billions of U.S. military equipment "means something to me." __ 9:05 a.m. President Donald Trump says he will visit the heavily fortified border between North and South Korea. Says Trump of the inter-Korean demilitarized zone, "We're going there." Presidential trips to the area are generally conducted under the cloak of heavy secrecy and security, but Trump previewed his visit in a Saturday tweet suggesting that North Korea's Kim Jong Un meet him there for a handshake. Trump says of the invitation, "All I did is put out a feeler if you'd like to meet," adding he's not sure of Kim's location. "I said if Chairman Kim would want I'd meet, I'll be at the border." Trump said he and Kim "seem to get along, adding that, "If he's there we'll see each other for two minutes." ___ 8:30 a.m. A trade war between two economic titans faces a critical junction Saturday, when President Donald Trump and China's Xi Jinping (shee jihn-peeng) meet as both are signaling a desire to de-escalate the yearlong conflict, yet seem unwilling to compromise. The meeting is taking place on the sidelines of the international Group of 20 summit in Japan and is the centerpiece of four days of diplomacy for Trump. The president's reelection chances have been put at risk by the trade war that has both hurt U.S. farmers and battered global markets. Tensions rose in recent weeks when negotiations collapsed last month, as the two sides levied intensifying eye-for-an-eye punishments. Trump struck a cautiously optimistic tone Friday, saying that "at a minimum" the meeting with Xi will be "productive."
China says Trump, Xi reach trade truce OSAKA, Japan (AP) President Donald Trump declared relations with China were "right back on track" after he and President Xi Jinping sought Saturday to de-escalate a prolonged trade war between the economic powerhouses despite doubts about either's willingness to compromise on a long term solution. Xinhua, the Chinese state-run news agency, said the leaders had agreed to a new cease-fire in a yearlong trade war, adding that stalled trade talks would resume and the U.S. would hold off on threatened additional tariffs on Chinese goods. The apparent truce marks a pattern for talks between Trump and Xi, who have professed their friendship with each other and hit the pause button on protectionist measures after their conversations, only to see negotiations later break down over the contentious details. White House officials declined immediate comment. But President Donald Trump said earlier Saturday that he would make an announcement on the results of his talks with Xi during a news conference later in the day. Taking place on the sidelines of the Group of 20 summit in Japan, the meeting with Xi marked the centerpiece of four days of diplomacy for Trump, whose re-election chances have been put at risk by the trade war that has hurt American farmers and battered global markets. Tensions rose in recent weeks after negotiations collapsed last month. At a subsequent meeting with Turkey's president, Trump said talks with Xi went "probably even better than expected." "The negotiations are continuing," he said. Seated across a lengthy table flanked by top aides, both leaders struck a cautiously optimistic tone after they posed for photographs. "We've had an excellent relationship," Trump told Xi as the meeting opened, "but we want to do something that will even it up with respect to trade." Xi, for his part, recounted the era of "ping-pong diplomacy" which helped jump-start U.S.-China relations two generations ago. Since then, he said, "one basic fact remains unchanged: China and the United States both benefit from cooperation and lose in confrontation." Story continues "Cooperation and dialogue are better than friction and confrontation," he added. The meeting with Xi is one of three Trump had lined up Saturday with world leaders displaying authoritarian tendencies. Trump had his first face-to-face sit-down with Saudi Arabia's Mohammed Bin Salman since the U.S. intelligence community concluded that the crown prince directed the grisly murder of Washington Post columnist, and American resident, Jamal Khashoggi last year. Trump also met with Turkish President Recep Tayyip Erdogan, an ostensible NATO ally whom the U.S. sees as drifting dangerously toward Russia's sphere of influence. Meeting with the Saudi crown prince, Trump praised his "friend" for taking steps to open up the kingdom and extend freedoms to Saudi women. Trump, however, ignored reporters' questions about Mohammed's alleged role in Khashoggi's death. He has long sought to minimize the crown prince's role in Khashoggi's murder, and has been reluctant to criticize the killing of the royal critic at a Saudi consulate in Turkey last year. Trump views the kingdom as the lynchpin of its Middle East strategy to counter Iran. He is also a fan of its pledges to spend billions on U.S. military hardware. The meeting came a week after Trump pulled back from ordering a military strike on Iran in retaliation for its downing an American unmanned spy plane. Trump is also relying on the Saudi government to support an elusive Israel-Palestinian peace plan being developed by his son-in-law, Jared Kushner. With Erdogan, Trump said the leaders will "look at different solutions" to Turkey's planned purchase of the Russian-made S-400 surface-to-air missile system. U.S. officials have threatened that purchase would halt the sale of the U.S.-made F-35 Joint Strike Fighter, though Erdogan has called it a done deal. "Turkey has been a friend of ours," Trump said. He blamed the Obama administration for not agreeing to sell U.S.-made Patriot missile batteries to Turkey. Saturday's meetings came the day after Trump, with a smirk and a finger point, dryly told another authoritarian leader, Russia's Vladimir Putin, "Don't meddle with the election" in their first meeting since the special counsel concluded that Russia extensively interfered with the 2016 campaign. The diplomacy plays out as Trump's re-election campaign battle is beginning to heat up, a contest that could be partially defined by whether a resolution to the trade war with China can be found before more economic pain is inflicted on Americans. The president has threatened to impose tariffs on an additional $300 billion in Chinese imports on top of the $250 billion in goods he's already taxed extending his import taxes to virtually everything China ships to the United States. He has said the new tariffs, which are paid by U.S. importers and usually passed onto consumers, might start at 10%. Earlier, the administration had said additional tariffs might reach 25%. The two countries are sparring over the Trump administration's allegations that Beijing steals technology and coerces foreign companies into handing over trade secrets. China denies it engages in such practices. The U.S. has also tried to rally other nations to block Chinese telecom firm Huawei from their upcoming 5G systems, branding the company a national security threat and barring it from buying American technology. Beijing has retaliated by levying its own tariffs on goods from the United States. On Friday, it criticized what it calls "negative content" about China in legislation before the U.S. Congress, saying it would further damage relations already roiled by disputes over trade and technology. Chinese Foreign ministry spokesman Geng Shuang said cooperation in important areas would be disrupted if the draft National Defense Authorization Act passes. The bill blocks transfer of sensitive technology to China and prevents Chinese state companies from receiving U.S. federal funds. But if history repeats itself and most analysts are betting it will Trump and Xi will agree to some kind of cease-fire. Under the cease-fire scenario, existing tariffs and counter-tariffs on many of each other's goods would remain in place. But no additional import taxes would take effect. This would buy time for U.S. and Chinese officials to restart talks that stalled last month after 11 rounds of negotiations. Trump said Friday he had not agreed to a cease-fire with Xi as a precondition for their meeting. ___ Associated Press writers Patrick Quinn in Beijing and Paul Wiseman in Washington contributed to this report. ___ Follow Lemire on Twitter at http://twitter.com/@JonLemire and Miller at http://twitter.com/@zekejmiller
I Ran A Stock Scan For Earnings Growth And Aspocomp Group Oyj (HEL:ACG1V) Passed With Ease Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.' In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeAspocomp Group Oyj(HEL:ACG1V). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath. See our latest analysis for Aspocomp Group Oyj Over the last three years, Aspocomp Group Oyj has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Like the last firework on New Year's Eve accelerating into the sky, Aspocomp Group Oyj's EPS shot from €0.19 to €0.57, over the last year. You don't see 196% year-on-year growth like that, very often. I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Aspocomp Group Oyj shareholders can take confidence from the fact that EBIT margins are up from 3.4% to 11%, and revenue is growing. Ticking those two boxes is a good sign of growth, in my book. In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image. Since Aspocomp Group Oyj is no giant, with a market capitalization of €34m, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects. Personally, I like to see high insider ownership of a company, since it suggests that it will be managed in the interests of shareholders. So as you can imagine, the fact that Aspocomp Group Oyj insiders own a significant number of shares certainly appeals to me. Actually, with 40% of the company to their names, insiders are profoundly invested in the business. I'm always comforted by solid insider ownership like this, as it implies that those running the business are genuinely motivated to create shareholder value. In terms of absolute value, insiders have €14m invested in the business, using the current share price. That should be more than enough to keep them focussed on creating shareholder value! Aspocomp Group Oyj's earnings per share growth has been so hot recently that thinking about it is making me blush. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. At times fast EPS growth is a sign the business has reached an inflection point; and I do like those. So yes, on this short analysis I do think it's worth considering Aspocomp Group Oyj for a spot on your watchlist. Once you've identified a business you like, the next step is to consider what you think it's worth. And right now is your chance to view our exclusivediscounted cashflow valuationof Aspocomp Group Oyj. You might benefit from giving it a glance today. Although Aspocomp Group Oyj certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Rocket Lab launches seven small satellites from New Zealand for Seattle’s Spaceflight Rocket Lab’s Electron launch vehicle rises from the company’s launch pad on New Zealand’s Mahia Peninsula. (Rocket Lab via YouTube) Rocket Lab executed a picture-perfect first launch for Seattle’s Spaceflight Inc. , putting BlackSky’s Global-3 Earth-observing satellite and six other small spacecraft into orbit from its New Zealand launch pad. The Los Angeles-based launch company nicknamed today’s mission “Make It Rain,” in honor of Spaceflight and its allegedly drizzly home base. In contrast to the nickname, the weather was crystal-clear and sunny for liftoff at 4:30 p.m. June 29 New Zealand time (9:30 p.m. PT June 28) from Rocket Lab’s Launch Complex 1 on New Zealand’s Mahia Peninsula. The launch had been delayed twice this week, just to make sure all systems were go, but today’s countdown was trouble-free. The ascent of Rocket Lab’s Electron rocket looked trouble-free as well. After the first two stages did their job, the rocket’s kick stage entered what Rocket Lab CEO Peter Beck called a “perfect transfer orbit” in preparation for satellite deployment. Less than an hour later, Beck said all of the payloads had been deployed. “Perfect flight,” he said in a tweet . Spaceflight concurred: “Everything looks great,” the company tweeted in reply . Global-3 is the biggest satellite on the manifest. It’s the third satellite in a constellation that’s being put into orbit for BlackSky — which, like Spaceflight, is a subsidiary of Seattle-based Spaceflight Industries . BlackSky focuses on Earth observation and geospatial intelligence, while Spaceflight deals with launch logistics. Today’s launch represented the first result of a three-rocket rideshare deal that Spaceflight struck with Rocket Lab a year ago. In addition to Global-3, the payloads included two Prometheus satellites , built by Los Alamos National Laboratory for the U.S. Special Operations Command. The demonstration satellites are about the size of a loaf of bread and are designed to transfer data in a store-and-forward mode as they circle the planet. Story continues Two of Swarm Technologies’ SpaceBEE communication satellites were also on board. Swarm got into trouble last year for deploying cracker-sized satellites in orbit without the required go-ahead from the Federal Communications Commission, but these satellites posed no such problem. The sixth satellite is ACRUX-1 , an experimental spacecraft built by students in Australia’s Melbourne Space Program. The identity of the seventh satellite has not been disclosed. BlackSky is aiming to add at least five more satellites to its Global constellation by the end of this year, and plans to double its tally to at least 16 by the end of 2020. The Global satellites are being built in Tukwila, Wash., by LeoStella , a joint venture between Spaceflight Industries and Thales Alenia Space. Earlier this month, BlackSky announced a partnership with the National Reconnaissance Office to provide satellite imagery to the defense and intelligence communities. BlackSky is also offering commercial Earth imagery, with a business plan that focuses on providing time-sensitive satellite data at relatively low cost with low latency. Today marked the third launch of the year for Rocket Lab, and the seventh launch overall. Last year the company reported a $140 million investment round and began work on its second launch complex , located at the Mid-Atlantic Regional Spaceport on Virginia’s Wallops Island. A glimpse of payload deployment from the Kick Stage for today's #MakeItRain mission for @SpaceflightInc . 🛰️ pic.twitter.com/Gp6DtkWuRa — Rocket Lab (@RocketLab) June 29, 2019 More from GeekWire: Spaceflight strikes deal with Rocket Lab for three satellite launch extravaganzas Rocket Lab’s low-cost Electron launcher puts satellites in orbit from New Zealand Rocket Lab reports $140M in fresh funding, cementing space unicorn status Rocket Lab picks Virginia’s Wallops Island for U.S. launch site, adding to N.Z. pad
Why We’re Not Impressed By Altice Europe N.V.’s (AMS:ATC) 2.1% ROCE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Altice Europe N.V. (AMS:ATC) to see whether it might be an attractive investment prospect. 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. Firstly, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Overall, it is a valuable metric that has its flaws. 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 Altice Europe: 0.021 = €864m ÷ (€51b - €11b) (Based on the trailing twelve months to March 2019.) So,Altice Europe has an ROCE of 2.1%. Check out our latest analysis for Altice Europe ROCE is commonly used for comparing the performance of similar businesses. In this analysis, Altice Europe's ROCE appears meaningfully below the 9.8% average reported by the Media industry. This performance is not ideal, as it suggests the company may not be deploying its capital as effectively as some competitors. Regardless of how Altice Europe stacks up against its industry, its ROCE in absolute terms is quite low (especially compared to a bank account). Readers may wish to look for more rewarding investments. Altice Europe's current ROCE of 2.1% is lower than its ROCE in the past, which was 3.1%, 3 years ago. Therefore we wonder if the company is facing new headwinds. You can see in the image below how Altice Europe's ROCE compares to its industry. Click to see more on 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. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counter this, investors can check if a company has high current liabilities relative to total assets. Altice Europe has total assets of €51b and current liabilities of €11b. As a result, its current liabilities are equal to approximately 21% of its total assets. With a very reasonable level of current liabilities, so the impact on ROCE is fairly minimal. That's not a bad thing, however Altice Europe has a weak ROCE and may not be an attractive investment. Of course,you might also be able to find a better stock than Altice Europe. 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Altice Europe N.V. (AMS:ATC): What Does Its Beta Value Mean For Your Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching Altice Europe N.V. (AMS:ATC) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one. Check out our latest analysis for Altice Europe Given that it has a beta of 1.36, we can surmise that the Altice Europe share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that Altice Europe are likely to rise strongly in times of greed, but sell off in times of fear. 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 Altice Europe's revenue and earnings in the image below. Altice Europe is a fairly large company. It has a market capitalisation of €3.8b, which means it is probably on the radar of most investors. It has a relatively high beta, suggesting it may be somehow leveraged to macroeconomic conditions. For example, it might be a high growth stock with lots of investors trading the shares. It's notable when large companies to have high beta values, because it usually takes substantial capital flows to move their share prices. Since Altice Europe has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether ATC is a good investment for you, we also need to consider important company-specific fundamentals such as Altice Europe’s financial health and performance track record. I urge you to continue your research by taking a look at the following: 1. Future Outlook: What are well-informed industry analysts predicting for ATC’s future growth? Take a look at ourfree research report of analyst consensusfor ATC’s outlook. 2. Past Track Record: Has ATC 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 ATC's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how ATC measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does The AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) Share Price Tend To Follow The Market? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you're interested in AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS), 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 type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. See our latest analysis for AT & S Austria Technologie & Systemtechnik Zooming in on AT & S Austria Technologie & Systemtechnik, we see it has a five year beta of 1.47. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, AT & S Austria Technologie & Systemtechnik shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how AT & S Austria Technologie & Systemtechnik fares in that regard, below. AT & S Austria Technologie & Systemtechnik is a small cap stock with a market capitalisation of €618m. Most companies this size are actively traded. It has a relatively high beta, which is not unusual among small-cap stocks. Because it takes less capital to move the share price of a smaller company, actively traded small-cap stocks often have a higher beta that a similar large-cap stock. Beta only tells us that the AT & S Austria Technologie & Systemtechnik share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether ATS is a good investment for you, we also need to consider important company-specific fundamentals such as AT & S Austria Technologie & Systemtechnik’s financial health and performance track record. I urge you to continue your research by taking a look at the following: 1. Future Outlook: What are well-informed industry analysts predicting for ATS’s future growth? Take a look at ourfree research report of analyst consensusfor ATS’s outlook. 2. Past Track Record: Has ATS 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 ATS's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how ATS measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Japan Abe says G20 leaders confirm need for free, fair trade By Leika Kihara OSAKA (Reuters) - Group of 20 leaders have clearly confirmed the need for a free, fair and non-discriminatory trade policy, Japanese Prime Minister Shinzo Abe said on Saturday, suggesting that members have agreed to the wording to be included in their communique. Speaking after chairing the two-day G20 summit in Osaka, western Japan, Abe said the leaders also found common ground on climate change despite "big differences" in the members' views. "The global economy continues to face downside risks as trade tensions persist," Abe told a news conference. "The G20 leaders agreed on the need for member countries to spearhead strong global economic growth", while standing ready to take further action if needed, he said. Abe also said he had told U.S. President Donald Trump and Chinese President Xi Jinping that it was extremely important to engage in constructive discussion to solve their trade tensions. The United States and China have agreed to restart trade talks and Washington will not level new tariffs on Chinese exports, China's official Xinhua news agency reported, as Trump said the talks were "back on track". "The G20 agreed on fundamental principles backing a free trade system, which is to ensure free, fair, non-discriminatory trade," as well as open markets and a level playing field for all nations, Abe said. (Reporting by Leika Kihara; Editing by Himani Sarkar)
Is Christian Dior SE (EPA:CDI) Excessively Paying Its CEO? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Sidney Toledano has been the CEO of Christian Dior SE (EPA:CDI) since 2016. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid. View our latest analysis for Christian Dior At the time of writing our data says that Christian Dior SE has a market cap of €83b, and is paying total annual CEO compensation of €13m. (This number is for the twelve months until December 2018). That's a modest increase of 3.0% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.4m. When we examined a group of companies with market caps over €7.0b, we found that their median CEO total compensation was €3.4m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others). It would therefore appear that Christian Dior SE pays Sidney Toledano more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see a visual representation of the CEO compensation at Christian Dior, below. Christian Dior SE has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.2% over the last year. This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to checkthis free visual report onanalyst forecastsfor future earnings. I think that the total shareholder return of 233%, over three years, would leave most Christian Dior SE shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size. We examined the amount Christian Dior SE pays its CEO, and compared it to the amount paid by other large companies. As discussed above, we discovered that the company pays more than the median of that group. However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Christian Dior shares (free trial). Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What You Must Know About Christian Dior SE's (EPA:CDI) Financial Health Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Investors looking for stocks with high market liquidity and little debt on the balance sheet should consider Christian Dior SE (EPA:CDI). With a market valuation of €83b, CDI is a safe haven in times of market uncertainty due to its strong balance sheet. These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates. Today I will analyse the latest financial data for CDI to determine is solvency and liquidity and whether the stock is a sound investment. View our latest analysis for Christian Dior CDI has sustained its debt level by about €12b over the last 12 months which accounts for long term debt. At this constant level of debt, CDI's cash and short-term investments stands at €11b to keep the business going. Additionally, CDI has generated cash from operations of €8.4b during the same period of time, leading to an operating cash to total debt ratio of 71%, indicating that CDI’s operating cash is sufficient to cover its debt. At the current liabilities level of €17b, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.7x. The current ratio is calculated by dividing current assets by current liabilities. For Luxury companies, this ratio is within a sensible range as there's enough of a cash buffer without holding too much capital in low return investments. With a debt-to-equity ratio of 33%, CDI's debt level may be seen as prudent. CDI is not taking on too much debt commitment, which can be restrictive and risky for equity-holders. We can test if CDI’s debt levels are sustainable by measuring interest payments against earnings of a company. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In CDI's case, the ratio of 86.66x suggests that interest is comfortably covered. High interest coverage is seen as a responsible and safe practice, which highlights why most investors believe large-caps such as CDI is a safe investment. CDI’s debt level is appropriate for a company its size, and it is also able to generate sufficient cash flow coverage, meaning it has been able to put its debt in good use. Furthermore, the company exhibits an ability to meet its near-term obligations, which isn't a big surprise for a large-cap. Keep in mind I haven't considered other factors such as how CDI has been performing in the past. You should continue to research Christian Dior to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for CDI’s future growth? Take a look at ourfree research report of analyst consensusfor CDI’s outlook. 2. Valuation: What is CDI 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 CDI is currently mispriced by the market. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Strabag SE (VIE:STR) Is Yielding 4.3% - But Is It A Buy? 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 Strabag SE ( VIE:STR ) 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. With Strabag yielding 4.3% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis WBAG:STR Historical Dividend Yield, June 29th 2019 Payout ratios 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. 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. Strabag paid out 38% of its profit as dividends, over the trailing twelve month period. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. 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. Strabag paid out 121% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Strabag paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Strabag's ability to maintain its dividend. Story continues With a strong net cash balance, Strabag investors may not have much to worry about in the near term from a dividend perspective. Consider getting our latest analysis on Strabag's financial position here. 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. Strabag has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was €0.55 in 2009, compared to €1.30 last year. This works out to be a compound annual growth rate (CAGR) of approximately 9.0% a year over that time. Strabag's dividend payments have fluctuated, so it hasn't grown 9.0% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. Strabag might have put its house in order since then, but we remain cautious. Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. It's good to see Strabag has been growing its earnings per share at 26% a year over the past 5 years. Earnings per share have rocketed in recent times, and we like that the company is retaining more than half of its earnings to reinvest. However, always remember that very few companies can grow at double digit rates forever. Conclusion To summarise, shareholders should always check that Strabag's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Strabag has a low payout ratio, which we like, although it paid out virtually all of its generated cash. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. Ultimately, Strabag comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 Strabag analysts we track are forecasting continued growth with our free report on analyst estimates for the company . We have also put together a list 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Does Strabag SE (VIE:STR) Fare As A Dividend Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Strabag SE (VIE:STR) 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 the income from dividends, it's important to be a lot more stringent with your investments than the average punter. A high yield and a long history of paying dividends is an appealing combination for Strabag. We'd guess that plenty of investors have purchased it for the income. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Explore this interactive chart for our latest analysis on Strabag! 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 38% of Strabag'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. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Strabag paid out 121% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Strabag paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Strabag's ability to maintain its dividend. With a strong net cash balance, Strabag investors may not have much to worry about in the near term from a dividend perspective. We update our data on Strabag 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. Strabag has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. Its dividend payments have fallen by 20% or more on at least one occasion over the past ten years. During the past ten-year period, the first annual payment was €0.55 in 2009, compared to €1.30 last year. Dividends per share have grown at approximately 9.0% per year over this time. The dividends haven't grown at precisely 9.0% every year, but this is a useful way to average out the historical rate of growth. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Strabag has grown its earnings per share at 26% per annum over the past five 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. To summarise, shareholders should always check that Strabag's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we like Strabag's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Ultimately, Strabag comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 Strabag analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. 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 ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Do Insiders Own Shares In BELIMO Holding AG (VTX:BEAN)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of BELIMO Holding AG (VTX:BEAN) 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. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. BELIMO Holding is a pretty big company. It has a market capitalization of CHF3.7b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about BEAN. Check out our latest analysis for BELIMO Holding Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that BELIMO Holding does have institutional investors; and they hold 50% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at BELIMO Holding's earnings history, below. Of course, the future is what really matters. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. BELIMO Holding is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can see that insiders own shares in BELIMO Holding AG. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CHF330m worth of shares (at current prices). If you would like to explore the question of insider alignment, you canclick here to see if insiders have been buying or selling. With a 41% ownership, the general public have some degree of sway over BEAN. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. 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 findhistoric revenue and earnings in thisdetailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Hannover Rück SE (FRA:HNR1): Has Recent Earnings Growth Beaten Long-Term Trend? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Analyzing Hannover Rück SE's (FRA:HNR1) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess HNR1's recent performance announced on 31 March 2019 and compare these figures to its long-term trend and industry movements. View our latest analysis for Hannover Rück HNR1's trailing twelve-month earnings (from 31 March 2019) of €1.1b has jumped 12% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.6%, indicating the rate at which HNR1 is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely because of industry tailwinds, or if Hannover Rück has seen some company-specific growth. In terms of returns from investment, Hannover Rück has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 1.9% exceeds the DE Insurance industry of 0.9%, indicating Hannover Rück has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Hannover Rück’s debt level, has declined over the past 3 years from 3.0% to 2.8%. Though Hannover Rück's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Hannover Rück gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Hannover Rück to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for HNR1’s future growth? Take a look at ourfree research report of analyst consensusfor HNR1’s outlook. 2. Financial Health: Are HNR1’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 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. NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
With 12% Earnings Growth, Did Hannover Rück SE (FRA:HNR1) Outperform The Industry? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! When Hannover Rück SE ( FRA:HNR1 ) announced its most recent earnings (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Hannover Rück has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see HNR1 has performed. Check out our latest analysis for Hannover Rück Could HNR1 beat the long-term trend and outperform its industry? HNR1's trailing twelve-month earnings (from 31 March 2019) of €1.1b has jumped 12% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.6%, indicating the rate at which HNR1 is growing has accelerated. What's enabled this growth? Let's see whether it is merely a result of industry tailwinds, or if Hannover Rück has experienced some company-specific growth. DB:HNR1 Income Statement, June 29th 2019 In terms of returns from investment, Hannover Rück has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 1.9% exceeds the DE Insurance industry of 0.9%, indicating Hannover Rück has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Hannover Rück’s debt level, has declined over the past 3 years from 3.0% to 2.8%. What does this mean? While past data is useful, it doesn’t tell the whole story. While Hannover Rück has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Hannover Rück to get a better picture of the stock by looking at: Future Outlook : What are well-informed industry analysts predicting for HNR1’s future growth? Take a look at our free research report of analyst consensus for HNR1’s outlook. Financial Health : Are HNR1’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here . Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here . NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. View comments
Centrica plc (LON:CNA): Time For A Financial Health Check Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Centrica plc (LON:CNA), with a market cap of UK£5.1b, often get neglected by retail investors. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. Today we will look at CNA’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto CNA here. See our latest analysis for Centrica CNA's debt levels have fallen from UK£6.3b to UK£4.8b over the last 12 months – this includes long-term debt. With this debt repayment, CNA's cash and short-term investments stands at UK£1.3b , ready to be used for running the business. Moreover, CNA has produced UK£1.9b in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 41%, meaning that CNA’s debt is appropriately covered by operating cash. At the current liabilities level of UK£8.4b, the company has been able to meet these commitments with a current assets level of UK£8.7b, leading to a 1.03x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Integrated Utilities companies, this is a suitable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment. CNA is a highly-leveraged company with debt exceeding equity by over 100%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can check to see whether CNA is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In CNA's, case, the ratio of 5.61x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as CNA’s high interest coverage is seen as responsible and safe practice. Although CNA’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for CNA's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Centrica to get a more holistic view of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for CNA’s future growth? Take a look at ourfree research report of analyst consensusfor CNA’s outlook. 2. Valuation: What is CNA 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 CNA is currently mispriced by the market. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Dan Rather Warns Trump Over 'Deeply Strange' Putin Chat: 'History Is Watching' Veteran journalist Dan Rather on Friday lamented how American foreign policy has, under President Donald Trump, “become incoherent and amateurish.” The former CBS news anchor told CNN’s Anderson Cooper that Trump’s conduct while meeting with Russian President Vladimir Putin at the G-20 Summit in Osaka, Japan, was “deeply strange, at least borderline bizarre.” Trump joked with Putin about election meddling and getting “rid” of journalists. Rather also criticized Trump’s praise at the summit of Saudi Crown Prince Mohammed bin Salman for doing a “spectacular job” and his tweeted offer to meet North Korean dictator Kim Jong Un at the Korean Peninsula’s demilitarized zone for a handshake. “History is watching through all this,” Rather warned, later adding: “The president is praising almost any autocrat he can find.” Check out the clip here: “History is watching through all this,” @DanRather says after President Trump praised Saudi Crown Prince bin Salman after cozying up to Putin and saying he’d meet Kim Jong Un. “The President is praising almost any autocrat he can find.” https://t.co/jEcW69fVBd pic.twitter.com/xdRpFgzSnt — Anderson Cooper 360° (@AC360) June 29, 2019 Related Coverage Donald Trump Throws Twitter Tantrum Over 2020 Debate Consensus On Immigrant Health Care Fox News Hosts Freak Out Over 2020 Debates; Sean Hannity Declares Donald Trump Winner Chris Christie Inadvertently Gives Democrats The Key To Beating Donald Trump In A Debate Ozzy Osbourne Bans Donald Trump From Using His Music With The Snarkiest Song Suggestion Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
How Financially Strong Is Centrica plc (LON:CNA)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Centrica plc (LON:CNA), with a market cap of UK£5.1b, are often out of the spotlight. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. Let’s take a look at CNA’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto CNA here. View our latest analysis for Centrica CNA's debt levels have fallen from UK£6.3b to UK£4.8b over the last 12 months – this includes long-term debt. With this debt payback, the current cash and short-term investment levels stands at UK£1.3b to keep the business going. On top of this, CNA has generated UK£1.9b in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 41%, signalling that CNA’s operating cash is sufficient to cover its debt. Looking at CNA’s UK£8.4b in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of UK£8.7b, leading to a 1.03x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Integrated Utilities companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments. Since total debt growth have outpaced equity growth, CNA is a highly leveraged company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. We can check to see whether CNA is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In CNA's, case, the ratio of 5.61x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving CNA ample headroom to grow its debt facilities. Although CNA’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 CNA has company-specific issues impacting its capital structure decisions. I suggest you continue to research Centrica to get a more holistic view of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for CNA’s future growth? Take a look at ourfree research report of analyst consensusfor CNA’s outlook. 2. Valuation: What is CNA 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 CNA is currently mispriced by the market. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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