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Did Changing Sentiment Drive Vodafone Group's (LON:VOD) Share Price Down By 44%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors define successful investing as beating the market average over the long term. But if you try your hand at stock picking, your risk returning less than the market. We regret to report that long termVodafone Group Plc(LON:VOD) shareholders have had that experience, with the share price dropping 44% in three years, versus a market return of about 29%. And the ride hasn't got any smoother in recent times over the last year, with the price 30% lower in that time. The good news is that the stock is up 1.9% in the last week. See our latest analysis for Vodafone Group While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Vodafone Group moved from a loss to profitability. On the other hand, it reported a trailing twelve months loss, suggesting it isn't reliably profitable. Other metrics might give us a better handle on how its value is changing over time. It's quite likely that the declining dividend has caused some investors to sell their shares, pushing the price lower in the process. In contrast it does not seem particularly likely that the revenue levels are a concern for investors. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out thisfreereport showing consensus forecasts As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Vodafone Group, it has a TSR of -32% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! While the broader market gained around 1.8% in the last year, Vodafone Group shareholders lost 26% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2.9% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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.
Why You Should Like ASML Holding N.V.’s (AMS:ASML) 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'll evaluate ASML Holding N.V. (AMS:ASML) to determine whether it could have potential as an investment idea. 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. Firstly, we'll go over how we calculate ROCE. Then we'll compare its ROCE to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. All else being equal, a better business will have a higher ROCE. 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.' 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 ASML Holding: 0.16 = €2.7b ÷ (€20b - €3.7b) (Based on the trailing twelve months to March 2019.) Therefore,ASML Holding has an ROCE of 16%. View our latest analysis for ASML Holding ROCE can be useful when making comparisons, such as between similar companies. Using our data, we find that ASML Holding's ROCE is meaningfully better than the 9.9% average in the Semiconductor industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Separate from ASML Holding's performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth. You can see in the image below how ASML Holding'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. ROCE is only a point-in-time measure. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for ASML Holding. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they 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 counteract this, we check if a company has high current liabilities, relative to its total assets. ASML Holding has total assets of €20b and current liabilities of €3.7b. As a result, its current liabilities are equal to approximately 18% of its total assets. Low current liabilities are not boosting the ROCE too much. With that in mind, ASML Holding's ROCE appears pretty good. ASML Holding shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth. 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.
Is AST Groupe (EPA:ASP) An Attractive Dividend Stock? 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 AST Groupe (EPA:ASP) 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. 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. With AST Groupe yielding 5.9% 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. 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 typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 40% of AST Groupe's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Unfortunately, while AST Groupe pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. Remember, you can always get a snapshot of AST Groupe'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. For the purpose of this article, we only scrutinise the last decade of AST Groupe's dividend 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 €0.12 in 2009, compared to €0.25 last year. Dividends per share have grown at approximately 7.9% per year over this 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? It's good to see AST Groupe has been growing its earnings per share at 84% 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. 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. Firstly, the company has a conservative payout ratio, although we'd note that its cashflow in the past year was substantially lower than its reported profit. 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, AST Groupe 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. Now, if you want to look closer, it would be worth checking out ourfreeresearch on AST Groupemanagement 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.
How Do Analysts See BioDue S.p.A. (BIT:BIO2) Performing 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! In April 2019, BioDue S.p.A. (BIT:BIO2) announced its latest earnings update, which showed that the business endured a slight headwind with earnings falling from €4.1m to €4.0m, a change of -3.3%. Below is a brief commentary on my key takeaways on how market analysts view BioDue's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for BioDue Market analysts' consensus outlook for the coming year seems optimistic, with earnings growing by a robust 15%. This growth seems to continue into the following year with rates arriving at double digit 40% compared to today’s earnings, and finally hitting €6.7m by 2022. Although it’s useful to understand the rate of growth each year relative to today’s level, it may be more valuable to evaluate the rate at which the earnings are rising or falling on average every year. The benefit of this approach is that we can get a better picture of the direction of BioDue's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 18%. This means, we can assume BioDue will grow its earnings by 18% every year for the next couple of years. For BioDue, I've put together three pertinent 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 BIO2 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 BIO2 is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BIO2? 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.
Trump wants Turkey missile plans resolved without harming ties - Turkish presidency ANKARA, June 29 (Reuters) - U.S. President Donald Trump told his Turkish counterpart Tayyip Erdogan that he wanted the issue over Ankara's procurement of air defence systems to be resolved without damaging bilateral ties, the Turkish presidency said. Turkey and the United States have been at odds over Ankara's purchase of Russian S-400 defence systems, a move Washington has warned would trigger U.S. sanctions. Turkey has so far dismissed the warnings and said it would not turn back from the deal. In a statement following talks between Erdogan and Trump on the sidelines of the G20 summit in Japan, the Turkish presidency said Erdogan had voiced concerns about U.S. actions that may harm the strategic partnership between the two NATO allies. (Reporting by Tuvan Gumrukcu and Orhan Coskun Editing by Edmund Blair)
BioDue S.p.A. (BIT:BIO2): What Does The Future Look Like? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! BioDue S.p.A.'s (BIT:BIO2) most recent earnings update in April 2019 suggested that the company experienced a slight headwind with earnings falling from €4.1m to €4.0m, a change of -3.3%. Below, I've laid out key numbers on how market analysts view BioDue's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for BioDue Analysts' outlook for the coming year seems buoyant, with earnings growing by a robust 15%. This growth seems to continue into the following year with rates arriving at double digit 40% compared to today’s earnings, and finally hitting €6.7m by 2022. While it’s informative knowing the rate of growth each year relative to today’s value, it may be more insightful determining the rate at which the company is rising or falling on average every year. The benefit of this method is that we can get a bigger picture of the direction of BioDue'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 appended 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 18%. This means that, we can anticipate BioDue will grow its earnings by 18% every year for the next few years. For BioDue, I've compiled three key factors you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is BIO2 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 BIO2 is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BIO2? 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.
Here's Why I Think BioGaia (STO:BIOG B) Is An Interesting Stock 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 the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inBioGaia(STO:BIOG B). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath. View our latest analysis for BioGaia 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. We can see that in the last three years BioGaia grew its EPS by 17% per year. That's a pretty good rate, if the company can sustain it. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. On the one hand, BioGaia's EBIT margins fell over the last year, but on the other hand, revenue grew. So if EBIT margins can stabilize, this top-line growth should pay off for shareholders. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. Fortunately, we've got access to analyst forecasts of BioGaia'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting. It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own BioGaia shares worth a considerable sum. Indeed, they hold kr329m worth of its stock. That's a lot of money, and no small incentive to work hard. Despite being just 4.4% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations between kr3.7b and kr15b, like BioGaia, the median CEO pay is around kr5.5m. BioGaia offered total compensation worth kr3.7m to its CEO in the year to December 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. I'd also argue reasonable pay levels attest to good decision making more generally. As I already mentioned, BioGaia is a growing business, which is what I like to see. The fact that EPS is growing is a genuine positive for BioGaia, but the pretty picture gets better than that. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. Now, you could try to make up your mind on BioGaia by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry. Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is BioGaia AB (publ)'s (STO:BIOG B) CEO Overpaid Relative To Its Peers? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Isabelle Valerie Ducellier is the CEO of BioGaia AB (publ) (STO:BIOG B). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels. Check out our latest analysis for BioGaia According to our data, BioGaia AB (publ) has a market capitalization of kr7.4b, and pays its CEO total annual compensation worth kr3.7m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr427k. When we examined a selection of companies with market caps ranging from kr3.7b to kr15b, we found the median CEO total compensation was kr5.5m. Most shareholders would consider it a positive that Isabelle Valerie Ducellier takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see, below, how CEO compensation at BioGaia has changed over time. BioGaia AB (publ) 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). Its revenue is up 20% over last year. This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to checkthis free visual report onanalyst forecastsfor future earnings. I think that the total shareholder return of 98%, over three years, would leave most BioGaia AB (publ) shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size. BioGaia AB (publ) is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Isabelle Valerie Ducellier deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders arealsobuying shares with their own money. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling BioGaia (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.
Straumann Holding AG (VTX:STMN): A Fundamentally Attractive Investment Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! I've been keeping an eye on Straumann Holding AG (VTX:STMN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe STMN has a lot to offer. Basically, it is a financially-healthy company with a strong track record and a buoyant growth outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the fullreport on Straumann Holding here. Investors seeking high cash growth potential should consider STMN, with forecasted operating cash flow growth of 57%. This underlies the notable 24% return on equity over the next few years leading up to 2022. STMN has a strong track record of performance. In the previous year, STMN delivered an impressive double-digit return of 23% Not surprisingly, STMN outperformed its industry which returned 14%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. STMN'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 crucial insight into the health of the company. STMN seems to have put its debt to good use, generating operating cash levels of 1.37x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. For Straumann Holding, there are three important factors you should look at: 1. Valuation: What is STMN 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 STMN is currently mispriced by the market. 2. Dividend Income vs Capital Gains: Does STMN return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from STMN as an investment. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of STMN? 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.
Washington Post Editorial Board To Trump: 'This Is No Time To Joke' With Putin The Washington Post editorial board on Friday used an op-ed to call out President Donald Trump for the jokes he shared with Russian President Vladimir Putin at the G-20 summit in Osaka, Japan. The newspaper board’s article ― titled “ Rather than defend democracy, Trump jokes with Putin ” ― noted how Trump “kissed off the concerns” about Russian interference in American elections as he joked with Putin about meddling. It also described Trump and Putin’s shared attack on the media as “an unctuous display of his personal strongman impulses in front of a Russian president who leads a system that imprisons, persecutes and kills journalists and dissidents who become too curious or critical.” “This is no time to joke,” the board warned. It continued: Today’s generation of autocrats and tyrants cynically uses the trappings of democracy while subverting freedom from within. The U.S. president should stand as a guardian against this threat, but instead Mr. Trump inexplicably cedes the field to Mr. Putin. To conclude, the board said America needs “at this critical juncture” to “lead the world in showing why a free people, a free press, and the freedom to speak, worship, assemble and travel are not and never will be obsolete.” “Mr. Trump is not capable of playing that role,” it added. “But hopefully a new president will be.” Read the full editorial here. Related Coverage 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 Dan Rather Warns Donald Trump Over 'Deeply Strange' Putin Meeting: 'History Is Watching' Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
Why Unilever PLC’s (LON:ULVR) Return On Capital Employed Is Impressive 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 Unilever PLC (LON:ULVR) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. Firstly, 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. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its 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 Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. 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 Unilever: 0.32 = €13b ÷ (€59b - €20b) (Based on the trailing twelve months to December 2018.) So,Unilever has an ROCE of 32%. View our latest analysis for Unilever One way to assess ROCE is to compare similar companies. Using our data, we find that Unilever's ROCE is meaningfully better than the 14% average in the Personal Products industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Regardless of the industry comparison, in absolute terms, Unilever's ROCE currently appears to be excellent. Our data shows that Unilever currently has an ROCE of 32%, compared to its ROCE of 23% 3 years ago. This makes us wonder if the company is improving. You can see in the image below how Unilever's ROCE compares to its industry. Click to see more on past growth. Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Unilever. Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counter this, investors can check if a company has high current liabilities relative to total assets. Unilever has total assets of €59b and current liabilities of €20b. Therefore its current liabilities are equivalent to approximately 33% of its total assets. Unilever's ROCE is boosted somewhat by its middling amount of current liabilities. Even so, it has a great ROCE, and could be an attractive prospect for further research. Unilever looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). 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.
Here's Why We Think Unilever (LON:ULVR) Is Well Worth Watching Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.' In contrast to all that, I prefer to spend time on companies likeUnilever(LON:ULVR), which has not only revenues, but also profits. 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. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour. Check out our latest analysis for Unilever If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Unilever has grown EPS by 27% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Unfortunately, Unilever's revenue dropped 5.1% last year, but the silver lining is that EBIT margins improved from 16% to 25%. That's not ideal. In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image. Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Unilever. We would not expect to see insiders owning a large percentage of a €128b company like Unilever. But we do take comfort from the fact that they are investors in the company. With a whopping €62m worth of shares as a group, insiders have plenty riding on the company's success. This should keep them focused on creating long term value for shareholders. For growth investors like me, Unilever'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. If you think Unilever might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company. You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is BillerudKorsnäs AB (publ)'s (STO:BILL) Balance Sheet Strong Enough To Weather A Storm? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as BillerudKorsnäs AB (publ) (STO:BILL), with a market capitalization of kr26b, rarely draw their attention from the investing community. Surprisingly though, when accounted for risk, mid-caps have delivered better returns compared to the two other categories of stocks. Let’s take a look at BILL’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto BILL here. View our latest analysis for BillerudKorsnäs Over the past year, BILL has ramped up its debt from kr6.4b to kr9.7b , which accounts for long term debt. With this increase in debt, BILL currently has kr687m remaining in cash and short-term investments , ready to be used for running the business. Additionally, BILL has produced cash from operations of kr2.4b during the same period of time, leading to an operating cash to total debt ratio of 25%, indicating that BILL’s current level of operating cash is high enough to cover debt. Looking at BILL’s kr7.4b in current liabilities, the company has been able to meet these commitments with a current assets level of kr8.3b, leading to a 1.13x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Packaging companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments. With a debt-to-equity ratio of 66%, BILL can be considered as an above-average leveraged company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In BILL's case, the ratio of 57.88x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback. BILL’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure BILL has company-specific issues impacting its capital structure decisions. I suggest you continue to research BillerudKorsnäs to get a better picture of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for BILL’s future growth? Take a look at ourfree research report of analyst consensusfor BILL’s outlook. 2. Valuation: What is BILL 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 BILL 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.
These Fundamentals Make Telford Homes Plc (LON:TEF) Truly 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! I've been keeping an eye on Telford Homes Plc (LON:TEF) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TEF has a lot to offer. Basically, it is a notable dividend-paying company that has been able to sustain great financial health over the past. 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 Telford Homes here. TEF's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that TEF has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. TEF appears to have made good use of debt, producing operating cash levels of 0.65x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. TEF is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy. For Telford Homes, I've compiled three essential factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for TEF’s future growth? Take a look at ourfree research report of analyst consensusfor TEF’s outlook. 2. Historical Performance: What has TEF'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 TEF? 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.
Taliban kill 26 government militiamen as talks enter crucial stage By Rupam Jain and Abdul Qadir Sediqi KABUL (Reuters) - Taliban militants killed at least 26 members of a pro-government militia in north Afghanistan on Saturday, officials said, as the Islamists and U.S. negotiators were set to begin a seventh round of peace talks in Qatar. One U.S. official said the meeting was a "make-or-break moment" in efforts to end the 18-year-old war. The talks will be led by Zalmay Khalilzad, the U.S. peace envoy for Afghanistan, who has held six rounds of talks with the Taliban in Doha since October. The efforts to find peace have so far not lessened the fighting between the Taliban and government forces. In the early hours of Saturday, insurgents stormed security posts in the northerly province of Baghlan. A provincial police spokesman said 26 militiamen had been killed. A senior Defence Ministry official in Kabul said the attack indicated that the Taliban wanted to negotiate from a position of strength. Taliban officials said their fighters had killed 28 militiamen and wounded 12. Spokesman Zabihullah Mujahid said there was no connection between military action and peace talks: "We will continue to fight against the foreign and Afghan forces until a peace deal is signed." About 20,000 foreign troops, most of them American, are in Afghanistan as part of a U.S.-led NATO mission to train and assist Afghan forces. Some U.S. forces carry out counter-terrorism operations. The focus of the peace talks has been a Taliban demand that foreign forces leave and a U.S. demand for a guarantee that Afghanistan will not be used as a base for attacks elsewhere. Two other main issues are a ceasefire and talks between the insurgents and the Western-backed government, which the Taliban denounce as a "puppet". A senior U.S. official, who declined to be identified as he is not authorized to speak to media, said before the latest violence was reported that there was "a genuine sense of expectation on both sides ... It's a make-or-break moment." DRAFT AGREEMENT A Taliban leader in Qatar, who also declined to be identified, said the talks would be crucial. Secretary of State Mike Pompeo said on a trip to Kabul this week that the United States was close to finishing a draft agreement with the militants on counter-terrorism assurances, and he hoped a peace pact could be reached by Sept. 1. The Taliban control or are contesting control of half of Afghanistan, more than at any time since they were ousted by U.S.-led forces in late 2001. Afghanistan is due to hold a presidential election this year but the militants dismiss the process and instead want to form an interim government - something that President Ashraf Ghani and opposition political parties reject. Hours before the talks were due to start, Ghani decreed the formation of a ministry for peace to push for direct talks with the Taliban, to be headed by his top aide, Abdul Salam Rahimi, Ghani's spokesman said. Some Afghan officials fear the war-weary United States and the Taliban will strike a deal that allows Washington to end its involvement, leaving government forces to battle on alone. The militia members killed on Saturday were among thousands of locally recruited men who are brought in to hold areas recaptured from the militants, freeing the army for new operations. On Friday, the Defence Ministry said a senior Taliban governor had been killed in an air strike in the easterly province of Logar, and a militant commander had been killed in clashes with Afghan security forces in Balkh province in the north. The Taliban dismissed the reports as propaganda. (Additional reporting by Jibran Ahmed in Peshawar; Editing by Kevin Liffey)
SpaceX plans to launch Starship's first commercial flight in 2021 While we haven't seen theStarshipfly yet -- SpaceX just got done with its test firings and short "hops" back in April -- we might not have to wait that long for its first commercial flight. According to SpaceX VP of commercial sales Jonathan Hofeller, the company is hoping to send it to space for its first commercial mission in 2021. Herevealedat an event in Indonesia that SpaceX is already in discussions with three different customers for that flight, all telecom companies likely looking to send satellites to orbit. SpaceX introduced the launch system as the Big Falcon Rocket or BFR until its upper stage wasrenamedto Starship and its rocket booster to Super Heavy. Two competing builds are currentlyundergoingdevelopment in Texas and in Florida, and it's possible that the final spacecraft will combine the best solutions the two teams can come up with. Although there might be differences between the two builds, both groups are designing a vehicle that can carry 20 metric tons to geostationary orbit and over 100 metric tons to Low Earth Orbit. SpaceX ultimately plans to use the SpaceX-Super Heavy combo to bring payloads to the moon and Mars, though it's also looking to offer quickpoint-to-point tripson Earth aboard the vehicle. Before any of that can happen, SpaceX has to put the launch system through more rigorous testing. Hofeller said it's doing more hop tests in the coming months and that the company's goal is "to get orbital as quickly as possible, potentially even this year, with the full stack operational by the end of next year and then customers in early 2021."
Should Telford Homes Plc's (LON:TEF) Recent Earnings Decline Worry You? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! When Telford Homes Plc (LON:TEF) released its most recent earnings update (31 March 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Telford Homes's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not TEF actually performed well. Below is a quick commentary on how I see TEF has performed. See our latest analysis for Telford Homes TEF's trailing twelve-month earnings (from 31 March 2019) of UK£34m has declined by -10% 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 17%, indicating the rate at which TEF is growing has slowed down. Why is this? Well, let's look at what's going on with margins and if the rest of the industry is feeling the heat. In terms of returns from investment, Telford Homes has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. Furthermore, its return on assets (ROA) of 8.0% is below the GB Consumer Durables industry of 10%, indicating Telford Homes's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Telford Homes’s debt level, has declined over the past 3 years from 18% to 15%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 27% to 42% over the past 5 years. Though Telford Homes's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. I recommend you continue to research Telford Homes to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for TEF’s future growth? Take a look at ourfree research report of analyst consensusfor TEF’s outlook. 2. Financial Health: Are TEF’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 Much Are Biotage AB (STO:BIOT) Insiders Taking Off The Table? 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. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellBiotage AB(STO:BIOT), you may well want to know whether insiders have been buying or selling. Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information. Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for Biotage The , Yvonne Mårtensson, made the biggest insider sale in the last 12 months. That single transaction was for kr1.2m worth of shares at a price of kr121 each. So what is clear is that an insider saw fit to sell at around the current price of kr109. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Happily, we note that in the last year insiders paid kr684k for 6000 shares. On the other hand they divested 22000 shares, for kr2.5m. In total, Biotage insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Biotage shares, worth about kr770m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. The fact that there have been no Biotage insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Biotage insider transactions don't fill us with confidence. 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 course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 Biotage AB's (STO:BIOT) Beta Value Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Biotage AB (STO:BIOT) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. Some stocks 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. 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 Biotage With a beta of 0.95, (which is quite close to 1) the share price of Biotage has historically been about as voltile as the broader market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Biotage's revenue and earnings in the image below. Biotage is a small cap stock with a market capitalisation of kr7.1b. Most companies this size are actively traded. It takes less capital to move the share price of small companies, and they are also more impacted by company specific events, so it's a bit of a surprise that the beta is so close to the overall market. Biotage has a beta value quite close to that of the overall market. That doesn't tell us much on its own, so it is probably worth considering whether the company is growing, if you're looking for stocks that will go up more than the overall market. In order to fully understand whether BIOT is a good investment for you, we also need to consider important company-specific fundamentals such as Biotage’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 BIOT’s future growth? Take a look at ourfree research report of analyst consensusfor BIOT’s outlook. 2. Past Track Record: Has BIOT 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 BIOT's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how BIOT 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.
Rebuked by many, Saudi crown prince feted at G20 summit OSAKA, Japan (AP) — For many he's an international pariah, but you wouldn't know it by the lavish reception Saudi Crown Prince Mohammed bin Salman has received at the G-20 summit this week. He beamed as he stood front and center, sandwiched between President Donald Trump and Japanese Prime Minister Shinzo Abe, for a group photo. He exchanged an impish grin as he sat down next to Russian President Vladimir Putin. He posed with South Korean President Moon Jae-in and a group of flag-waving kids ahead of an earlier signing ceremony for $8 billion in deals. Even as rebukes pile up elsewhere — a U.N. expert has called for an investigation of his alleged role in the killing of a prominent journalist, and a growing number of Americans are questioning their nation's support for his kingdom and its role in the war in Yemen — some leaders in Osaka have gone out of their way to make sure the prince feels comfortable. It's not clear if he was pressed privately over concerns about the killing last October of Saudi writer Jamal Khashoggi, who had criticized the Saudi heir in columns for The Washington Post. But the prince seemed completely at ease in public on Friday and Saturday. These high-profile gatherings can often have a club-like feel to them, with well-dressed leaders standing around and talking — sometimes intensely, sometimes convivially — before and after the photo-ops and public statements. In the absence of many details about what's happening behind closed doors, observers are forced to spend a lot of time parsing body language. And, at least when the cameras were rolling, that language has been overwhelmingly positive for the prince. In addition to standing next to Trump in the center part of the front row for the first group photo, the prince was seated next to the summit's host, Abe, at the official opening ceremony, possibly a reflection of Saudi Arabia's role as host of next year's G-20 gatherings. As the prince — easily one of the tallest leaders, and striking in his flowing, ankle-length robes — strode from meeting to meeting, or wandered among the other leaders before the summit's set-piece ceremonies, he often flashed a broad smile. At Saturday's panel on women's empowerment, for instance, he sat in the front row, chatting amicably with other leaders. Trump, who has long been loath to scold authoritarian leaders for human rights abuses, seemed to go out of his way at times to shepherd Prince Mohammed, at one point patting him on the back as they walked together. As the two sat down over breakfast Saturday, Trump praised his "friend" for taking steps to open up the kingdom and extend freedoms to Saudi women. Story continues Trump initially ignored reporters' questions about the prince's alleged role in Khashoggi's death, but when pressed later at a news conference he called the killing "horrible" while claiming that "nobody so far has pointed directly a finger at the future king of Saudi Arabia." A White House statement said the two leaders discussed "Saudi Arabia's critical role in ensuring stability in the Middle East and global oil markets, the growing threat from Iran, increased trade and investments between the two countries, and the importance of human rights issues." The U.S. president sees a close relationship with Saudi Arabia as a lynchpin to Washington's Middle East strategy to counter Iran. Trump has brushed aside Khashoggi's killing and said it has already been investigated. A Saudi pledge to spend billions of dollars on U.S. military equipment, Trump said, "means something to me." Following a monthslong inquiry, Agnes Callamard, the U.N. special rapporteur on extrajudicial, summary or arbitrary executions, recently said she'd concluded that Khashoggi was a victim of a "deliberate, premeditated execution, an extrajudicial killing for which the state of Saudi Arabia is responsible." Saudi Arabia denies the 33-year-old crown prince had any knowledge of the killing of Khashoggi. The kingdom has put on trial 11 suspects, some of whom worked directly for the prince. But his closest former adviser, Saud al-Qahtani, who was sanctioned by the United States after the killing, is not among those on trial. Business concerns may have colored Prince Mohammed's warm welcome this week. Take South Korea, for instance. In Seoul before the summit, Saudi Arabia and South Korea signed 10 memorandums of understanding and contracts that would be worth $8.3 billion, according to Seoul's presidential office. Moon, the president, hosted a luncheon at his mansion that was attended by some of South Korea's most powerful businessmen. South Korea gets more than 70% of its crude oil from the Middle East. Seoul is the world's fifth largest importer of crude oil and Saudi Arabia has been its biggest supplier. Prince Mohammed, during his meetings with Moon, promised to help with possible fuel shortages in case of supply disruptions caused by Middle East turmoil. Not everyone was happy about his reception. Some South Koreans criticized the country's two major English newspapers — The Korea Herald and The Korea Times — for using their front pages Wednesday to publish identical full-page ads by S-Oil, a South Korean oil refining company that is a subsidiary of the giant Saudi oil company Aramco. The ads printed the national flags of Saudi Arabia and South Korea side by side and contained the message, "We welcome HRH Prince Mohammed bin Salman Al-Saud, Crown Prince, Deputy Prime Minster, Minister of Defense." There was also criticism of a massive photo of the prince unfurled on the Seoul headquarters of S-Oil. The worries about the abuse claims may not resonate in the G-20 meetings. But there's mounting concern about the ties between the kingdom and the many Western nations that have relied on its natural resources and political position. In a recent opinion piece in The New York Times, David Wearing, the author of "AngloArabia: Why Gulf Wealth Matters to Britain," said strategic bonds between Saudi Arabia and the Atlantic powers may survive, "but the existential threats are now plain to see, and if anyone in Riyadh, Washington or London has a serious plan to preserve the status quo, they are keeping it a closely guarded secret." ___ Associated Press writer Kim Tong-hyung in Seoul, South Korea, contributed to this report. View comments
Groupe Guillin S.A. (EPA:ALGIL): 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! Since Groupe Guillin S.A. (EPA:ALGIL) released its earnings in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 17% next year against the past 5-year average growth rate of 10%. With trailing-twelve-month net income at current levels of €36m, we should see this rise to €42m in 2020. Below is a brief commentary around Groupe Guillin's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you canresearch its fundamentals here. Check out our latest analysis for Groupe Guillin Over the next three years, it seems the consensus view of the 3 analysts covering ALGIL is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. From the current net income level of €36m and the final forecast of €48m by 2022, the annual rate of growth for ALGIL’s earnings is 9.1%. EPS reaches €2.57 in the final year of forecast compared to the current €1.95 EPS today. In 2022, ALGIL's profit margin will have expanded from 5.9% to 6.9%. Future outlook is only one aspect when you're building an investment case for a stock. For Groupe Guillin, there are three pertinent factors you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is Groupe Guillin 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 Groupe Guillin is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Groupe Guillin? 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 Does A Bitcoin Crash Look Like From Here? After Bitcoin gets to certain heights, and the natural retracements begin, people often say it’s “crashing.” But the levels they’re talking about it “crashing” to are often higher levels than the price was living at before. You have to wonder whether this is positive or negative for Bitcoin. For the savvy investor, it doesn’t matter what the headlines say. If you’ve got a sell target, you wait for it. Sometimes, you could wait for years. We may yet see people selling off as the price nears the previous all-time high. People who were involuntarily driven to hold the asset may dump it now that they are finally free to do so. But others still will vacuum up it up. Out in the world, there are pockets of people desperately hoping for cryptocurrency to “fail.” Read the full story on CCN.com.
Are Vicat SA's (EPA:VCT) Interest Costs Too High? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Vicat SA (EPA:VCT) with a market-capitalization of €1.9b, rarely draw their attention. While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. Today we will look at VCT’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. Don’t forget that this is a general and concentrated examination of Vicat’s financial health, so you should conduct further analysisinto VCT here. View our latest analysis for Vicat VCT's debt level has been constant at around €1.0b over the previous year including long-term debt. At this constant level of debt, VCT's cash and short-term investments stands at €315m to keep the business going. Additionally, VCT has produced cash from operations of €333m in the last twelve months, leading to an operating cash to total debt ratio of 32%, signalling that VCT’s operating cash is sufficient to cover its debt. Looking at VCT’s €783m in current liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.65x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Basic Materials companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments. VCT is a relatively highly levered company with a debt-to-equity of 41%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In VCT's case, the ratio of 12.16x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback. Although VCT’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around VCT's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure VCT has company-specific issues impacting its capital structure decisions. You should continue to research Vicat to get a more holistic view of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for VCT’s future growth? Take a look at ourfree research report of analyst consensusfor VCT’s outlook. 2. Valuation: What is VCT 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 VCT 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.
Billions to Trillions: Crypto Assets and the Inevitability of Digitization Ami Ben David is founder and CEO of institutional digital securities blockchain Ownera, co-founder of SPiCE VC, previously co-founder of Securitize and investor in security token companies. The following article originally appeared inInstitutional Cryptoby CoinDesk, a free newsletter for the institutional market, with news and views delivered every Tuesday. Sign uphere. Ten years after the invention of bitcoin, the general market is starting to realize – with a big push from Facebook – that digital money using blockchain technology is coming. Related:Long the Bankers! Why Security Tokens Need Trusted Middlemen Behind the scenes, the next market is already kicking into gear as it becomes clear to all major players that not only is digitization of money on the way, but also digitization of ownership of assets, a significantly bigger financial market with massive global social and economic implications. A few weeks ago, Ico-hosted a closed workshopfor London City institutional investors and bankers about digital securities. We split into round tables, and each table was tasked with rating the advantages of digitizing securities by importance: increased liquidity, efficiency, cost, post-trade streamlining, asset prices, fractional ownership, speed, global access, new financial products, business models etc. When it was time to present the results, it became clear there was no consensus. Every table came up with different ordering, and within each table there was little agreement. Following the event, I spoke to participants and realized that every person in the room was thinking about an asset class close to their own heart. Some were rating advantages for public stocks going digital, others were thinking about real estate debt, others thought of private equity. Related:Thailand Green Lights Issuance and Trading of Blockchain Securities In the big picture, the ranking doesn’t matter, because digitization is inevitable. Let’s explain, but first, here is a simplified account of what it means to digitize ownership: Ownership is essentially data. Society agrees that owner X has rights in asset Y and protects these rights with the power of the courts and police. Like any data, ownership can bedigitized. Today, most global assets are private. To trade them, the seller and buyer go through a lengthy and expensive process, involving lawyers, accountants, etc., and then everyone signs documents which detail what rights the buyer gets. The combination of all documents across all ownersisthe ownership. Let’s call these documents “Analog Ownership.” Public markets are more efficient – they have electronic records of ownership, but it is still not a digital item. Trades require multiple entities to settle each transaction across ledgers. Those public platforms are expensive and inefficient, with a very limited launch capacity. Enter security tokens, for which a master set of documents and smart contracts define the rights of any token holder. A blockchain keeps a record of who owns each token, replicated in consensus, so no one entity controls the ledger. You can then hold your tokens (yourself or with a custodian), or trade them (every transaction checked for regulation compliance, using AI). Ownership essentially becomes a digitalvaluewhich can be broken down into smaller parts that can flow instantly all over the world. The main feature of digitization is not that securities are stored in 0s and 1s (that’s “electronic”), it’s that digitized securities canflowinstantly on global networks. Markets that go digital experience four stages. Let’s look at the music industry as an example: Stage 1: Analog Music is recorded on vinyl records. You can only buy the records your local shop gets. The ownership equivalent: Most private transactions are local, require real-world contact. Stage 2: Digital Format Music is recorded on CDs. It’s now more portable, electronic, but not a fundamental change. The ownership equivalent: Excel sheets, cap table management software… Stage 3: Innovation! Hackers discover they can send music files around – underground P2P platforms, illegal file sharing, music execs trying desperately to protect the old order, Napster, legal action… The ownership equivalent: ICOs – just like music sharing 20 years earlier, it was developers who realized the potential of tokens to connect people directly and change the rules of the fund raising game, and also similarly, it only took authorities two years to fight back and enforce regulations. Stage 4: Digital At this final stage, music becomes truly digital and the market embraces the new format with legal and commercial solutions and new business models on a fast network. Applications like Spotify emerge, which allow every user in the world to listen to any song they want (they don’t have to buy a full record), whenever they want to. Even better, algorithms and AI can create combinations and personalized discovery lists, new artists can get to market faster and cheaper, funded by new business models that 20 years ago would have been rejected by every single label executive. The ownership version: Digital securities. Ownership can flow, like songs – think about a Spotify-like app that gives every user access to every single (relevant to them) asset in the global market. When people ask, “Will investors want digital securities?,” the answer is, “Do people still listen to songs?” Once all securities are digital and instantly available (within regulations), it’s all about the asset. The format is instant and transparent. But with that, everything changes – availability, discovery, pricing and business models leading to a new flowing, digital world. Will it happen overnight? Of course not, there are many hurdles to be overcome and solutions to be found, but the drivers are so powerful that digitization is effectively inevitable. Music is a market worth tens of billions of dollars; ownership in general encompasses hundreds of trillions of dollars. In fact, “securities” is an umbrella name for dozens of asset classes, very different from one another. Each of them is typically bigger than the entire music market and targets completely different types of owners, investor pools and application flows. Some are retail-facing, many are mostly institutional with massive financial entities trading through investment banks and major exchanges. However, at the bottom of all these asset classes, one truth remains: ownership is still data and is still about who has rights to what – that can now finally be digitized. Napster imagevia Shutterstock • Security Token Offerings ‘Illegal,’ Says Beijing Financial Watchdog • Bithumb, SeriesOne to Launch Security Token Exchange in the US
Payments veteran enters blockchain space with Nuggets role UK blockchain startup, Nuggets , has brought in ex-Citi, Visa and PayPal exec Eric Warfel as a strategic advisor. On 14th September, new requirements for authenticating online payments will be introduced in Europe as part of the second Payment Services Directive (PSD2). Warfel, who previously served as Senior Director, Token Applications at Visa and more recently in delivering working distributed ledger POCs for Citi Ventures, will provide strategic guidance as Nuggets looks to integrate with the banking and payments sector. “I’m thrilled to have this opportunity to keep innovating in the payments space, and excited to work with such a forward thinking company,” he says. “In many ways, Europe is taking the lead in personal privacy. Nuggets is helping to shape a future where identity and commerce are controlled by the end user, making it a very exciting time to join the company.” “The world hasn’t grasped the democratising implications of the blockchain” The internet has changed the world in more dramatic ways than anyone could have imagined and blockchain technology will produce similar results, Alastair Johnson, Founder and CEO of Nuggets, said in an interview with Coin Rivet last year. “It’s going to give everyone in the world the ability to exchange value without the help of intermediaries. In itself, this is huge. The internet has become incredibly centralised. A few players extract the lion’s share of the value of people’s data. The blockchain could change this status quo. I don’t think the world has grasped the democratising implications of the blockchain – so in many ways we could say it is underhyped,” he commented. There are problems in the blockchain and cryptocurrency space, Johnson admitted. “Many people are investing in companies that clearly don’t have a future. The key is to work out whether a company is actually solving a problem by leveraging blockchain technology.” It’s also worth noting that the web 3.0 era isn’t just about the blockchain, he added. It’s about a number of technologies and trends coming together, from biometrics, to IOT, to AI. “Blockchain-based solutions tend to leverage many different technologies and this is why we’re going to see such exciting progress. Imagine a future where you walk into a coffee shop and facial recognition identifies you, orders your usual coffee and pings you for confirmation, all before you reach the counter. Nowadays we worry about the privacy implications of this type of scenario. But imagine if the biometric information is owned by the individual, and they decide how it can be used – not the retailer.” “What I am particularly excited about in terms of the potential of technologies such as biometrics and blockchain is the opportunity to spur progress and quality of life in the developing world. As a provider of trust, transparency and certainty, the blockchain can help facilitate the distribution of rights and assets in countries that lack robust administrative infrastructures and systems. When we see the potential of solutions like Nuggets realised in those markets, we will have made a huge difference to society and people,” Johnson concluded. The post Payments veteran enters blockchain space with Nuggets role appeared first on Coin Rivet .
Aubay Société Anonyme (EPA:AUB): Poised For Long-Term Success? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The most recent earnings announcement Aubay Société Anonyme's (EPA:AUB) released in April 2019 signalled that the company benefited from a robust tailwind, eventuating to a double-digit earnings growth of 14%. Investors may find it useful to understand how market analysts view Aubay Société Anonyme's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for Aubay Société Anonyme Market analysts' prospects for this coming year seems rather subdued, with earnings climbing by a single digit 3.0%. The growth outlook in the following year seems much more positive with rates reaching double digit 11% compared to today’s earnings, and finally hitting €33m by 2022. While it is informative understanding the rate of growth year by year relative to today’s level, it may be more insightful estimating the rate at which the company is growing on average every year. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of Aubay Société Anonyme's earnings trajectory over time, which may be more relevant for long term investors. To calculate 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 5.9%. This means that, we can assume Aubay Société Anonyme will grow its earnings by 5.9% every year for the next few years. For Aubay Société Anonyme, I've put together three relevant aspects you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is AUB 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 AUB is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AUB? 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.
Here's Why I Think Umicore (EBR:UMI) Might Deserve Your Attention Today Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeUmicore(EBR:UMI). 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 Umicore As one of my mentors once told me, share price follows earnings per share (EPS). That means EPS growth is considered a real positive by most successful long-term investors. It certainly is nice to see that Umicore has managed to grow EPS by 23% per year over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Umicore's EBIT margins were flat over the last year, revenue grew by a solid 15% to €14b. That's progress. In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart. The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future Umicore EPS100% free. Since Umicore has a market capitalization of €6.8b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Given insiders own a small fortune of shares, currently valued at €52m, they have plenty of motivation to push the business to succeed. That's certainly enough to make me think that management will be very focussed on long term growth. For growth investors like me, Umicore's raw rate of earnings growth is a beacon in the night. I think that EPS growth is something to boast of, and it doesn't surprise me that insiders are holding on to a considerable chunk of shares. So this is very likely the kind of business that I like to spend time researching, with a view to discerning its true value. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Umicore is trading on a high P/E or a low P/E, relative to its industry. Although Umicore 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.
How Much Of Umicore SA (EBR:UMI) Do Institutions Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Umicore SA (EBR:UMI) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership. Umicore has a market capitalization of €6.8b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below below, we can see 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 UMI. View our latest analysis for Umicore 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. Umicore already has institutions on the share registry. Indeed, they own 34% of the company. 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. 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 Umicore, (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 Umicore. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that Umicore SA insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around €52m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checkingif those insiders have been buying. The general public, with a 48% 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. It seems that Private Companies own 18%, of the UMI stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It's always worth thinking about the different groups who own shares in a company. But to understand Umicore 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 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.
Trump reveals US companies will be allowed to sell to Huawei as China trade talks get back on track Donald Trump and Xi Jinping have agreed to a new ceasefire in a yearlong trade war between the US and China during their meeting on Saturday at the G20 conference in Japan. Mr Trump said he had agreed with the Chinese president the US would refrain from raising tariffs on Chinas imports for now while Beijing would buy more US agricultural products. Were holding back on tariffs and theyre going to buy farm products, Mr Trump told a news conference at the end of a two-day summit in Osaka, claiming relations were right back on track. Mr Trump also said US companies can again sell products to the Chinese technology giant Huawei after an effective ban introduced in May. We send and we sell to Huawei a tremendous amount of product that goes into the various things they make, he said. I said, Thats OK that we will keep selling that product. Ive agreed to allow them to continue to sell that product so American companies will continue. When asked whether Huawei would be formally removed from a US Commerce Department list of companies considered to undermines US national security, Mr Trump said that it would be discussed at the very end of trade talks. Were not discussing that with President Xi yet, he said. Xinhua, the Chinese state-run news agency, confirmed the leaders had agreed that stalled trade talks would resume and that the US would hold off on threatened additional tariffs on Chinese goods. After posing for photographs with his counterpart at the sidelines of the G20, Mr Xi recounted the era of ping-pong diplomacy that helped jump-start US-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 ... Cooperation and dialogue are better than friction and confrontation. Donald Trump speaks during a news conference in Osaka (AP) The US president had recently threatened to impose tariffs on an additional $300bn (£236bn) in Chinese imports on top of the $250bn in goods he has already taxed extending his import taxes to virtually everything China ships to the US. Story continues He has said the new tariffs, which are paid by US importers and usually passed onto consumers, might start at 10 per cent. Earlier, the administration had said additional tariffs might reach 25 per cent. The two countries have been sparring over the Trump administrations allegations that Beijing steals technology and coerces foreign companies into handing over trade secrets. China denies it engages in such practices. The US has also tried to rally other nations to block Huawei from their upcoming 5G systems, branding the company a national security threat and barring it from buying US technology until Mr Trumps announcement on Saturday. Under the newly agreed ceasefire scenario, existing tariffs and counter-tariffs on many of each others goods would remain in place. But no additional import taxes would take effect. This would buy time for US and Chinese officials to restart talks that stalled last month. Mr Trump said talks with Mr Xi went probably even better than expected and claimed the leaders enjoyed an excellent relationship. Additional reporting by agencies
Should Securitas AB (STO:SECU B) 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! Is Securitas AB (STO:SECU B) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. 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. A slim 2.7% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Securitas could have potential. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Explore this interactive chart for our latest analysis on Securitas! 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. Securitas paid out 52% of its profit as dividends, over the trailing twelve month period. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Securitas paid out 58% of its cash flow as dividends last year, which is within a reasonable range for the average corporation. It's positive to see that Securitas's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. As Securitas has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). With net debt of 2.24 times its EBITDA, Securitas'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. Securitas has EBIT of 10.45 times its interest expense, which we think is adequate. Consider gettingour latest analysis on Securitas's financial position here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Securitas's dividend payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was kr2.90 in 2009, compared to kr4.40 last year. Dividends per share have grown at approximately 4.3% per year over this time. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend. Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's good to see Securitas has been growing its earnings per share at 11% a year over the past 5 years. Earnings per share have been growing rapidly, but given that it is paying out more than half of its earnings as dividends, we wonder how Securitas will keep funding its growth projects in the future. To summarise, shareholders should always check that Securitas'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 think Securitas is paying out an acceptable percentage of its cashflow and profit. Next, growing earnings per share and steady dividend payments is a great combination. Securitas has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look. Earnings growth generally bodes well for the future value of company dividend payments. See if the 16 Securitas 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.
Sarah Huckabee Sanders' Goodbye 'Head Held High' Tweet Blows Up In Her Face Sarah Huckabee Sanders faced backlash on Friday for the way in which she bid farewell to her role as White House press secretary. Sanders tweeted she would “walk out the gates of the White House” with “my head held high.” It prompted many people to point out her well-documented history of lying on behalf of President Donald Trump ’s administration and failure to hold an official press briefing in the last 100-plus days of her job. Today I’ll walk out the gates of the White House for the last time as Press Secretary with my head held high. It’s been the honor and privilege of a lifetime to work with President @realDonaldTrump and his amazing team the last three and a half years. You’re the best...Thank you! pic.twitter.com/6H0uyMRtFX — Sarah Sanders (@PressSec) June 28, 2019 “Do not hold your head high, but hang it in shame,” responded broadcaster Soledad O’Brien. Stephanie Grisham , a spokeswoman for first lady Melania Trump who last year was warned for violating the Hatch Act that bans government employees from political campaigning, replaces Sanders in the role . She will also serve as White House communications director. You admitted to federal prosecutors that you lied to the American people. Do not hold your head high, but hang it in shame. https://t.co/1zmuT4I0BU — Soledad O'Brien (@soledadobrien) June 28, 2019 Head held high? The last press briefing @PressSec #SarahSanders held at the White House was nearly 100 days ago — on March 11 — and lasted just 14 minutes. — Euan Rellie (@euanrellie) June 28, 2019 pic.twitter.com/izVdPt3bAm — Ron Marz (@ronmarz) June 28, 2019 I can't tell if @PressSec Sarah Sanders is lying. Can you? https://t.co/60WTfRbNqR — Ted Lieu (@tedlieu) June 28, 2019 Sarah Huckabee Sanders tweeted that she exits the White House today with her head "held high." Here is another look at her contentious encounters with reporters and the credibility issues she faced while trying to defend Trump's falsehoods https://t.co/1suy69i2BS — daniel macht (@danmacht) June 28, 2019 You can hold your head any way you want, honey. You’ll still be remembered as that “liar with no soul who talked to the media once every 6 months”. — Ida Skibenes ❄️ (@ida_skibenes) June 28, 2019 Good riddance. — David W. Former Trump supporter (@davidmweissman) June 28, 2019 You will be remembered forever for lying relentlessly on behalf of a racist autocrat. But don't worry, that sea of white people around you? They will ensure that you find some cushy lobbying job & live in wealth & comfort, avoiding accountability until the day you die. Congrats. https://t.co/YAVOPT1o3y — David Roberts (@drvox) June 28, 2019 One last lie for the road. — Helen Kennedy (@HelenKennedy) June 28, 2019 One last lie on the way out the door — Robert Lusetich (@RobertLusetich) June 28, 2019 Had you left it at “Today I’ll walk out the gates of the White House for the last time as Press Secretary,” this tweet would have garnered exponentially more “likes.” But you just had to keep writing. — John Olore (@john_olore) June 28, 2019 Yes, no one could have done...checks notes...absolutely nothing resembling the job of Press Secretary quite as well(?) as you. — Richard Jeter (@MilesToGo13) June 28, 2019 I wish for you a life filled with everything you deserve. — shauna (@goldengateblond) June 29, 2019 Best liar ever to hold the job. Even you couldn’t stomach it any longer, huh? — Steve Blum (@blumspew) June 28, 2019 You lied and spread propaganda on a daily basis. You humiliated yourself and stripped your name of any and all credibility. You covered for a corrupt boss. You will be resigned to history as the dishonest, unpatriotic shill you are. We don't want to see you ever again. Be gone. — Mike P Williams (@Mike_P_Williams) June 28, 2019 Your legacy of repeated, abject lies that have irreparably and intentionally harmed millions of people, will rightfully follow you for the rest of your life. https://t.co/yTElf8R0cN — John Pavlovitz (@johnpavlovitz) June 29, 2019 Related Coverage Story continues Ozzy Osbourne Bans Donald Trump From Using His Music With The Snarkiest Song Suggestion Kate McKinnon Totally Nails Impression Of Marianne Williamson Dan Rather Warns Donald Trump Over 'Deeply Strange' Putin Meeting: 'History Is Watching' Washington Post Editorial Board To Donald Trump: 'This Is No Time To Joke' With Vladimir Putin Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
Synergie SE (EPA:SDG): Earnings Growth Remains Elusive Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Looking at Synergie SE's (EPA:SDG) earnings update in December 2018, analyst consensus outlook appear bearish, as a 10.0% fall in profits is expected in the upcoming year against the past 5-year average growth rate of 15%. With trailing-twelve-month net income at current levels of €79m, the consensus growth rate suggests that earnings will decline to €71m by 2020. Below is a brief commentary around Synergie's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you canresearch its fundamentals here. Check out our latest analysis for Synergie The longer term expectations from the 5 analysts of SDG is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of SDG's earnings growth over these next few years. From the current net income level of €79m and the final forecast of €80m by 2022, the annual rate of growth for SDG’s earnings is 0.9%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of €3.24 in the final year of forecast compared to the current €3.31 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 3.1% to 2.8% by the end of 2022. Future outlook is only one aspect when you're building an investment case for a stock. For Synergie, I've compiled three important aspects you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is Synergie 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 Synergie is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Synergie? 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.
Does Systemair (STO:SYSR) Deserve A Spot On Your Watchlist? 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 the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. So if you're like me, you might be more interested in profitable, growing companies, likeSystemair(STO:SYSR). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. View our latest analysis for Systemair The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. It's no surprise, then, that I like to invest in companies with EPS growth. Systemair managed to grow EPS by 16% per year, over three years. That's a pretty good rate, if the company can sustain it. 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. Systemair maintained stable EBIT margins over the last year, all while growing revenue 14% to kr8.3b. That's progress. You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart. The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future Systemair EPS100% free. Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. We haven't seen any insiders selling Systemair shares, in the last year. With that in mind, it's heartening that Kurt Maurer, the VP of Marketing - Products & MD of Systemair GmbH - Germany of the company, paid kr176k for shares at around kr87.94 each. And the insider buying isn't the only sign of alignment between shareholders and the board, since Systemair insiders own more than a third of the company. Actually, with 43% 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. And their holding is extremely valuable at the current share price, totalling kr2.9b. That means they have plenty of their own capital riding on the performance of the business! While insiders are apparently happy to hold and accumulate shares, that is just part of the pretty picture. That's because on our analysis the CEO, Roland Kasper, is paid less than the median for similar sized companies. For companies with market capitalizations between kr3.7b and kr15b, like Systemair, the median CEO pay is around kr5.5m. The Systemair CEO received kr4.2m in compensation for the year ending April 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally. One positive for Systemair is that it is growing EPS. That's nice to see. On top of that, we've seen insiders buying shareseven though they already own plenty. That makes the company a prime candidate for my watchlist - and arguably a research priority. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider thisfreediscounted cashflow valuationof Systemair. There are plenty of other companies that have insiders buying up shares. So if you like the sound of Systemair, you'll probably love thisfreelist of growing companies that insiders are buying. 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.
Are Robert Walters plc’s (LON:RWA) High Returns Really That Great? 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 Robert Walters plc ( LON:RWA ) and reflect on its potential as an investment. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Last but not least, we'll look at what impact its current liabilities have on its ROCE. Understanding Return On Capital Employed (ROCE) 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. Ultimately, it is a useful but imperfect metric. 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'. So, How Do We Calculate ROCE? 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 Robert Walters: 0.32 = UK£50m ÷ (UK£350m - UK£195m) (Based on the trailing twelve months to December 2018.) Therefore, Robert Walters has an ROCE of 32%. View our latest analysis for Robert Walters Does Robert Walters Have A Good ROCE? ROCE can be useful when making comparisons, such as between similar companies. In our analysis, Robert Walters's ROCE is meaningfully higher than the 18% average in the Professional Services industry. I think that's good to see, since it implies the company is better than other companies at making the most of its capital. Regardless of the industry comparison, in absolute terms, Robert Walters's ROCE currently appears to be excellent. Story continues In our analysis, Robert Walters's ROCE appears to be 32%, compared to 3 years ago, when its ROCE was 25%. This makes us think the business might be improving. The image below shows how Robert Walters's ROCE compares to its industry, and you can click it to see more detail on its past growth. LSE:RWA Past Revenue and Net Income, June 29th 2019 When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is only a point-in-time measure. What happens in the future is pretty important for investors, so we have prepared a free report on analyst forecasts for Robert Walters . What Are Current Liabilities, And How Do They Affect Robert Walters's ROCE? Current liabilities are short term bills and invoices that need to be paid in 12 months or less. 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 counteract this, we check if a company has high current liabilities, relative to its total assets. Robert Walters has total liabilities of UK£195m and total assets of UK£350m. As a result, its current liabilities are equal to approximately 56% of its total assets. Robert Walters's high level of current liabilities boost the ROCE - but its ROCE is still impressive. Our Take On Robert Walters's ROCE So to us, the company is potentially worth investigating further. Robert Walters shapes up well under this analysis, but it is far from the only business delivering excellent numbers . You might also want to check this free collection of companies delivering excellent earnings growth. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them). 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.
Vidrala, S.A. (BME:VID): 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 Vidrala, S.A. (BME:VID) released in February 2019 signalled that the company benefited from a strong tailwind, eventuating to a double-digit earnings growth of 30%. Below, I've laid out key growth figures on how market analysts view Vidrala's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Vidrala Analysts' expectations for the coming year seems positive, with earnings increasing by a robust 12%. This growth seems to continue into the following year with rates arriving at double digit 18% compared to today’s earnings, and finally hitting €142m by 2022. Even though it is informative knowing the rate of growth each year relative to today’s value, it may be more valuable gauging the rate at which the earnings are moving on average every year. The pro of this approach is that we can get a bigger picture of the direction of Vidrala's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 7.5%. This means, we can expect Vidrala will grow its earnings by 7.5% every year for the next few years. For Vidrala, I've compiled three key 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 VID 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 VID is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of VID? 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 Investors Know About Vidrala, S.A.'s (BME:VID) Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In December 2018, Vidrala, S.A. (BME:VID) released its earnings update. Generally, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 12% in the upcoming year against the higher past 5-year average growth rate of 17%. By 2020, we can expect Vidrala’s bottom line to reach €130m, a jump from the current trailing-twelve-month of €116m. Below is a brief commentary on the longer term outlook the market has for Vidrala. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here. Check out our latest analysis for Vidrala The 6 analysts covering VID view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for VID, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. This results in an annual growth rate of 7.5% based on the most recent earnings level of €116m to the final forecast of €142m by 2022. This leads to an EPS of €5.55 in the final year of projections relative to the current EPS of €4.47. Margins are currently sitting at 12%, which is expected to expand to 14% by 2022. Future outlook is only one aspect when you're building an investment case for a stock. For Vidrala, I've compiled three essential factors you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is Vidrala 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 Vidrala is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Vidrala? 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.
Should You Be Excited About Axfood AB (publ)'s (STO:AXFO) 53% Return On Equity? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Axfood AB (publ) (STO:AXFO), by way of a worked example. Our data showsAxfood has a return on equity of 53%for the last year. Another way to think of that is that for every SEK1 worth of equity in the company, it was able to earn SEK0.53. View our latest analysis for Axfood Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Axfood: 53% = kr1.6b ÷ kr3.0b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. 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. Clearly, then, one can use ROE to compare different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Axfood has a better ROE than the average (11%) in the Consumer Retailing industry. That's clearly a positive. I usually take a closer look when a company has a better ROE than industry peers. For exampleyou might checkif insiders are buying shares. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. Although Axfood does use debt, its debt to equity ratio of 0.20 is still low. The combination of modest debt and a very impressive ROE does suggest that the business is high quality. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. 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. 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. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Trump says agreed U.S. won't raise tariffs, China will buy U.S. farm goods OSAKA (Reuters) - U.S. President Donald Trump said he and his Chinese counterpart Xi Jinping agreed on Saturday that the United States would refrain from raising levies on Chinese imports for now while China would buy more U.S. agricultural products. "We're holding back on tariffs and they're going to buy farm products," Trump told a news conference after a two-day summit of the Group of 20 in Osaka, western Japan. The day's truce by the world's two biggest economies offered some relief to gathered leaders of the big economies, as the year-long trade war has cost companies billions, snarled global manufacturing and supply chains and worried financial markets. (Reporting by Roberta Rampton and Chris Gallagher; Writing by William Mallard; Editing by Chang-Ran Kim)
Here's What UCB SA's (EBR:UCB) P/E Ratio Is Telling Us 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 introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical, we'll show how UCB SA's (EBR:UCB) P/E ratio could help you assess the value on offer.UCB has a P/E ratio of 17.35, based on the last twelve months. That corresponds to an earnings yield of approximately 5.8%. View our latest analysis for UCB Theformula for P/Eis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for UCB: P/E of 17.35 = €72.92 ÷ €4.2 (Based on the trailing twelve months to December 2018.) A higher P/E ratio means that investors are payinga higher pricefor 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. Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. 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. UCB's earnings per share grew by -5.2% in the last twelve months. And it has bolstered its earnings per share by 56% per year over the last five years. The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that UCB has a lower P/E than the average (22.3) P/E for companies in the pharmaceuticals industry. Its relatively low P/E ratio indicates that UCB shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with UCB, it's quite possible it could surprise on the upside. You 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. 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. UCB's net debt is 1.6% of its market cap. So it doesn't have as many options as it would with net cash, but its debt would not have much of an impact on its P/E ratio. UCB's P/E is 17.4 which is above average (14.3) in the BE market. Given the debt is only modest, and earnings are already moving in the right direction, it's not surprising that the market expects continued improvement. 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 thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. Of courseyou might be able to find a better stock than UCB. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
WRAPUP 6-Trump says China trade talks 'back on track,' new tariffs on hold (Updates to add attribution in paragraph 2.) * Trump says China to buy U.S. farm products * Xi says China is sincere about continuing talks * Some observers worried trade truce may not hold By Roberta Rampton and Michael Martina OSAKA, July 1 (Reuters) - The United States and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing. China agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table, Trump said. No deadline was set for progress on a deal, and the world's two largest economies remain at odds over significant parts of an agreement. The last major round of talks collapsed in May. Financial markets, which have been rattled by the nearly year-long trade war, are likely to cheer the truce. Washington and Beijing have slapped tariffs on billions of dollars of each other's imports, stoking fears of a wider global trade war. Those tariffs remain in place while negotiations resume. "We're right back on track," Trump told reporters after an 80-minute meeting with Chinese President Xi Jinping at a summit of leaders of the Group of 20 (G20) major economies in Osaka, Japan. "We're holding back on tariffs and they're going to buy farm products," Trump said, without giving details about the purchases. Trump tweeted hours later that the meeting with Xi went "far better than expected." "The quality of the transaction is far more important to me than speed," he tweeted. "I am in no hurry, but things look very good!" The U.S. president had threatened to slap new levies on roughly $300 billion of additional Chinese goods, including popular consumer products, if the meeting in Japan proved unsuccessful. Such a move would have extended existing tariffs to almost all Chinese imports into the United States. In a lengthy statement on the two-way talks, China's foreign ministry quoted Xi as telling Trump he hoped the United States could treat Chinese companies fairly. "China is sincere about continuing negotiations with the United States ... but negotiations should be equal and show mutual respect," the foreign ministry quoted Xi as saying. Trump offered an olive branch to Xi on Huawei Technologies Co, the world's biggest telecom network gear maker. The Trump administration has said the Chinese firm is too close to China's government and poses a national security risk, and has lobbied U.S. allies to keep Huawei out of next-generation 5G telecommunications infrastructure. Trump's Commerce Department has put Huawei on its "entity list," effectively banning the company from buying parts and components from U.S. companies without U.S. government approval. But Trump said on Saturday he did not think that was fair to U.S. suppliers, who were upset by the move. "We're allowing that, because that wasn't national security," he said. CHEERS FROM CHIP MAKERS Trump said the U.S. Commerce Department would study in the next few days whether to take Huawei off the list of firms banned from buying components and technology from U.S. companies without government approval. China welcomed the step. "If the U.S. does what it says, then of course, we welcome it," said Wang Xiaolong, the Chinese foreign ministry's envoy for G20 affairs. U.S. microchip makers also applauded the move. "We are encouraged the talks are restarting and additional tariffs are on hold and we look forward to getting more detail on the president's remarks on Huawei," John Neuffer, president of the U.S. Semiconductor Association, said in a statement. Republican U.S. Senator Marco Rubio, however, tweeted that any agreement to reverse the recent U.S. action against Huawei would be a "catastrophic mistake" and that legislation would be needed to put the restrictions back in place if that turned out to be the case. Last month, Rubio and Democratic U.S. Senator Mark Warner urged Trump to not use Huawei as a bargaining chip for trade negotiations. Huawei has come under mounting scrutiny for over a year, led by U.S. allegations that "back doors" in its routers, switches and other gear could allow China to spy on U.S. communications. The company has denied its products pose a security threat. It declined to comment on the developments on Saturday. The problems at Huawei have filtered across to the broader chip industry, with Broadcom Inc warning of a broad slowdown in demand and cutting its revenue forecast. Trump said he and Xi did not discuss the extradition proceedings against Meng Wanzhou, Huawei's chief financial officer, who was arrested in Canada in December on charges alleging she misled global banks about Huawei's relationship with a company in Iran. RELIEF AND SCEPTICISM Scores of Asia specialists, including former U.S. diplomats and military officers, urged Trump to rethink policies that "treat China as an enemy," warning that approach could hurt U.S. interests and the global economy, according to a draft open letter reviewed by Reuters on Saturday. Investors, businesses and financial leaders have for months been warning that an intractable tit-for-tat tariff war between the United States and China could damage global supply chains and push the world economy over a cliff. International Monetary Fund Managing Director Christine Lagarde on Saturday urged G20 policymakers to reduce tariffs and other obstacles to trade, warning that the global economy had hit a "rough patch" due to the trade conflict. Although analysts cheered a resumption of talks between Washington and Beijing, some questioned whether the two sides would be able to build enough momentum to breach the divide and forge a lasting deal. "Translating this truce into a durable easing of trade tensions is far from automatic ... especially as what's in play now extends well beyond economics to include delicate national security issues of both immediate- and longer-term nature," said Mohamed El-Erian, chief economic adviser at Allianz. The United States says China has been stealing American intellectual property for years, forces U.S. firms to share trade secrets as a condition for doing business in China, and subsidizes state-owned firms to dominate industries. China has said the United States is making unreasonable demands and must also make concessions. The negotiations hit an impasse in May after Washington accused Beijing of reneging on reform pledges made during months of talks. Trump raised tariffs to 25% from 10% on $200 billion of Chinese goods, and China retaliated by raising levies on a list of U.S. imports. (Reporting by Roberta Rampton, Michael Martina and Chris Gallagher in Osaka; Additional reporting by Koh Gui Qing in New York, Ben Blanchard in Beijing and Leika Kihara in Osaka and Jennifer Ablan in New York; Writing by Linda Sieg, Malcolm Foster, Jeff Mason and Paul Simao; Editing by Clarence Fernandez, Himani Sarkar)
What Kind Of Investor Owns Most Of u-blox Holding AG (VTX:UBXN)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in u-blox Holding AG (VTX:UBXN) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned. u-blox Holding is a smaller company with a market capitalization of CHF574m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about UBXN. View our latest analysis for u-blox 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 u-blox Holding does have institutional investors; and they hold 43% 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see u-blox Holding's historic earnings and revenue, below, but keep in mind there's always more to the story. We note that hedge funds don't have a meaningful investment in u-blox Holding. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves. 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. I can report that insiders do own shares in u-blox Holding AG. In their own names, insiders own CHF21m worth of stock in the CHF574m company. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling. The general public -- mostly retail investors -- own 53% of u-blox Holding . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio. It's always worth thinking about the different groups who own shares in a company. But to understand u-blox Holding better, we need to consider many other factors. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Russia agrees with Saudi Arabia to extend OPEC+ oil output deal By Katya Golubkova and Alex Lawler OSAKA/VIENNA (Reuters) - Russia has agreed with Saudi Arabia to extend by six to nine months a deal with OPEC on reducing oil output, Russian President Vladimir Putin said, as oil prices come under renewed pressure from rising U.S. supplies and a slowing global economy. Saudi Energy Minister Khalid al-Falih said on Sunday that the deal would most likely be extended by nine months and no deeper reductions were needed. Putin, speaking after talks with Saudi Crown Prince Mohammed bin Salman, told a news conference the deal - which is due to expire on Sunday - would be extended in its current form and with the same volumes. The Organization of the Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC+, meet on July 1-2 to discuss the deal, which involves curbing oil output by 1.2 million barrels per day (bpd). The United States, the world's largest oil producer ahead of Russia and Saudi Arabia, is not participating in the pact. "We will support the extension, both Russia and Saudi Arabia. As far as the length of the extension is concerned, we have yet to decide whether it will be six or nine months. Maybe it will be nine months," said Putin, who met the crown prince on the sidelines of a G20 summit in Japan. Falih, arriving in Vienna for the OPEC+ talks, told reporters when asked about Saudi preferences: “I think most likely a nine-month extension.” Asked about a deeper cut, Falih said: "I don’t think the market needs that." “Demand is softening a little bit but I think it’s still healthy,” the Saudi minister said, adding that he expected the market to balance in the next six to nine months. A nine-month extension would mean the deal runs out in March 2020. Russia's consent means the OPEC+ group may have a smooth meeting if OPEC's third-largest producer Iran also endorses the arrangement. New U.S. sanctions on Iran have reduced its exports to a trickle as Washington seeks to change what it calls a "corrupt" regime in Tehran. Iran has denounced the sanctions as illegal and says the White House is run by "mentally retarded" people. Kirill Dmitriev, chief executive of the Russian Direct Investment Fund who helped design the OPEC-Russia deal, said the pact in place since 2017 had lifted Russian budget revenues by more than 7 trillion rubles ($110 billion). "The strategic partnership within OPEC+ has led to the stabilization of oil markets and allows both to reduce and increase production depending on the market demand conditions, which contributes to the predictability and growth of investments in the industry," Dmitriev said. Benchmark Brent crude has climbed more than 25% since the start of 2019. But prices could stall as a slowing global economy squeezes demand and U.S. oil floods the market, a Reuters poll of analysts found. "WHO NEEDS AN OPEC MEETING?" Falih said the new deal would help reduce global oil stocks, balance the market and spur investments in future energy supplies. "The agreement confirms that the Saudi-Russian partnership paved the way to guarantee the interest of producers and consumers and the continued growth of the global economy," Falih tweeted. That Russia and Saudi Arabia effectively announced the deal before the OPEC gatherings will likely anger smaller members of the organization, who feel sidelined. "Who needs an OPEC meeting?," one delegate said after learning about the headlines from the Russia-Saudi talks. Some delegates said Iran might still put up a fight on Monday. Russia's Energy Minister Alexander Novak said he believed most OPEC members including Iran have already expressed support to extend the output-cutting deal. He said it may be wise to extend the agreement by nine rather than six months to avoid raising output during weak seasonal demand. "It might make sense to keep the deal in place during the winter period," he told reporters. (Reporting by Katya Golubkova and Alex Lawler; Additional reporting by Rania El Gamal; Writing by Dmitry Zhdannikov and Dale Hudson; Editing by Edmund Blair and Hugh Lawson)
Are HMS Networks AB (publ) (STO:HMS) Investors Paying Above The Intrinsic Value? 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 HMS Networks AB (publ) (STO:HMS) 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 foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. View our latest analysis for HMS Networks We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF (SEK, Millions)", "2019": "SEK200.00", "2020": "SEK251.50", "2021": "SEK321.00", "2022": "SEK367.35", "2023": "SEK404.96", "2024": "SEK434.51", "2025": "SEK457.27", "2026": "SEK474.63", "2027": "SEK487.86", "2028": "SEK498.02"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x2", "2022": "Est @ 14.44%", "2023": "Est @ 10.24%", "2024": "Est @ 7.3%", "2025": "Est @ 5.24%", "2026": "Est @ 3.8%", "2027": "Est @ 2.79%", "2028": "Est @ 2.08%"}, {"": "Present Value (SEK, Millions) Discounted @ 7.02%", "2019": "SEK186.89", "2020": "SEK219.60", "2021": "SEK261.91", "2022": "SEK280.07", "2023": "SEK288.50", "2024": "SEK289.25", "2025": "SEK284.45", "2026": "SEK275.89", "2027": "SEK264.98", "2028": "SEK252.77"}] Present Value of 10-year Cash Flow (PVCF)= SEK2.60b "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. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 0.4%. We discount the terminal cash flows to today's value at a cost of equity of 7%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = kr498m × (1 + 0.4%) ÷ (7% – 0.4%) = kr7.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= SEKkr7.6b ÷ ( 1 + 7%)10= SEK3.86b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is SEK6.46b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of SEK138.6. Relative to the current share price of SEK178.2, the company appears slightly overvalued at the time of writing. 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. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. 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 HMS Networks 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 7%, which is based on a levered beta of 1.104. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For HMS Networks, There are three pertinent aspects you should further research: 1. Financial Health: Does HMS have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does HMS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of HMS? 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 SE 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.
Are Insiders Buying Axfood AB (publ) (STO:AXFO) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inAxfood AB (publ)(STO:AXFO). It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information. Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. 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 Axfood While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading. Over the last year, we can see that insiders have bought 3550 shares worth kr621k. While Axfood insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction! 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). Over the last three months, we've seen significant insider buying at Axfood. In total, insiders bought kr621k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence. Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Axfood insiders own about kr350m worth of shares. That equates to 0.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Axfood. That's what I like to see! Of course,the future is what matters most. So if you are interested in Axfood, you should check out thisfreereport on analyst forecasts for the company. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why Bovis Homes Group PLC's (LON:BVS) High P/E Ratio Isn't Necessarily A Bad Thing 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). We'll look at Bovis Homes Group PLC's (LON:BVS) P/E ratio and reflect on what it tells us about the company's share price.Bovis Homes Group has a P/E ratio of 10.16, based on the last twelve months. That means that at current prices, buyers pay £10.16 for every £1 in trailing yearly profits. See our latest analysis for Bovis Homes Group Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Bovis Homes Group: P/E of 10.16 = £10.33 ÷ £1.02 (Based on the trailing twelve months to December 2018.) 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 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. Notably, Bovis Homes Group grew EPS by a whopping 49% in the last year. And its annual EPS growth rate over 5 years is 18%. With that performance, I would expect it to have an above average 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 (9.9) for companies in the consumer durables industry is roughly the same as Bovis Homes Group's P/E. Bovis Homes Group's P/E tells us that market participants think its prospects are roughly in line with its industry. The company could surprise by performing better than average, in the future. I would further inform my view by checkinginsider buying and selling., among other things. Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. Since Bovis Homes Group holds net cash of UK£127m, it can spend on growth, justifying a higher P/E ratio than otherwise. Bovis Homes Group has a P/E of 10.2. That's below the average in the GB market, which is 16.4. The net cash position gives plenty of options to the business, and the recent improvement in EPS is good to see. One might conclude that the market is a bit pessimistic, given the low P/E ratio. Because analysts are predicting more growth in the future, one might have expected to see a higher P/E ratio.You can taker closer look at the fundamentals, here. Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. You might be able to find a better buy than Bovis Homes Group. 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.
How blockchain tech is being used to drive positive social change Today, we live in a world where more than 1.9 billion people, or 26.2% of the world’s population, live on less than £2.52 per day ( La Banque Mondiale ); One out of seven people do not have a legal identity ( The World Bank ); 25 million people are victims of human trafficking ( Human Rights First ); 65 million people are displaced, including 20 million refugees. Some of them spend more than 20 years in a refugee camp ( United Nations High Commissioner for Refugees ). The transparency and immutability inherent to blockchain technology present a solution to entrenched socio-economic issues such as these. So, how can blockchain be employed to tackle some of today’s most pressing social matters? Blockchain technology is capable of incrementally improving existing solutions by bringing efficiency to previously obscure systems. For example, startups like Alice , AidCoin and Helperbit allow for the reliable tracking of donations and accurate impact assessment, introducing much-needed transparency to the charitable sector. However, blockchain also has the potential to make a radical change in situations where, for example, collaborating with traditional systems is not possible. Sometimes, these traditional systems can be the very source of the problem. Below are some examples of the ways the technology is being used to drive radical social change: Identity for the most vulnerable populations Every citizen has a human right to identity and yet, according to the World Bank, 1.1 billion people worldwide don’t have a way to claim ownership over their identity. Burdensome identification paperwork processes, lack of nationality, lack of access, and forced displacement are the roadblocks that keep the vulnerable outside of traditional identification systems. Without possessing physical identities, one cannot enroll in school, apply for jobs, get a passport, or contribute to the global economy. How blockchain can help with identity It is being leveraged to create alternative identity systems. Due to its tamper-proof nature, blockchain can be used as proof of identity in cases where fake documents are used for human rights abuses, or even to allow the collection of certifications to be used in parallel economies created for these populations. Projects leveraging blockchain tech to tackle identity issues include: Blockchain 4 Humanity The United Nations presents a blockchain-based identification system for children in the Republic of Moldova to combat child trafficking. Building Blocks This World Food Program project gives each refugee a digital and biometric identity, which allows for peer-to-peer fund transfers to refugees in Jordan. These funds can be used for life-saving medicines or supermarket purchases. Story continues Enable is a decentralised lending platform that provides stablecoin loans for borderless peer-to-peer credit based on a decentralised identity. The platform creates a borderless credit marketplace using a decentralised identity based on peer reviews and credit scoring system to allow users access to global capital. Users can request crowdfunded stablecoinloans with variable terms, while potential lenders obtain the candidate’s information, and choose to participate or not. Financial inclusion According to the World Bank, globally, 1.7 billion adults remain unbanked, yet two-thirds of them own a mobile phone that could help them access financial services . How blockchain can help with financial inclusion Rural banks can use blockchain technology to connect to eachother, as well as to international commercial banks, and operate autonomously outside of existing payment infrastructures and intermediaries. This connection enables remote banks to integrate with the domestic financial system while also improving banking access for local citizens. Projects leveraging blockchain tech to tackle financial inclusion Project i2i Project i2i is an Enterprise Ethereum payment network driving financial inclusion in the Philippines through cheaper and more efficient domestic transactions. As 70% of Filipinos remain unbanked, Unionbank of the Philippines partnered with seven rural banks located in communities with limited access to financial services. Together they built a decentralised, cost-efficient inter-rural bank payment platform that brings the rural banks into the domestic financial system while increasing inclusion access to the communities in which they operate. Supply chain Supply chain and logistics is another sector that stands to benefit enormously from the transparency provided by blockchain technology. Supply chains are often plagued by contemporary slavery, provenance problems, and economic abuse, particularly in agriculture, fashion, and fishing. Oceana.org reports that seafood is mislabeled up to 87% of the time . How blockchain can help with supply chain management Blockchain entries are immutable and easy to scale by number of participants, which is essential for tracing provenance in supply chain management. By virtue of consensus mechanisms, there are no disputes in the chain regarding transactions, meaning every stakeholder can see the chain of asset ownership. Here are a couple of examples of projects using blockchain to cleanse the supply chain Bait to Plate Bait to Plate is a pilot project from World Wildlife Fund for Nature in conjunction with Treum , a blockchain-based trust platform building the supply chains of the future. The result was an immutable, verifiable proof chain that works to preventillegally caught seafood from entering into the food chain. Project UWIN (Unleash Wealth in Nations) Project UWIN is a commodity market infrastructure aiming to create and grow wealth through open and inclusive access to commodity markets for farmers and producers. Human rights activists Often, human rights activists need to secure evidence and sensitive information and access their funds outside of traditional banking systems to avoid censorship. Blockchain can be employed to cater to both of these needs, by providing an everlasting register of data evidence, and a secure, censorship proof financial system. The Sentry Project , for example, is an air strike alert system for areas in Syria that are subject to indiscriminate violence. The system uses the Ethereum blockchain to prove that the information is not corrupted. In the last three years, this project has reduced the mortality rate of strikes by 27%. Environmental impact 97% of actively publishing climate scientists agree that we are facing the most significant environmental challenge in our lifetimes, yet few organisations have taken steps to combat climate change. Some companies, such as Cryptocorals , are using blockchain to incentivise positive individual behaviour. Cryptocorals is a positive impact blockchain game with a goal of scaling-up coral reef restoration. Similar to Cryptokitties , users adopt a crypto-collectable, Cryptocoral, which sponsors the plantation of a coral in real life. As corals shelter 25% of marine biodiversity, each player that purchases a coral has a positive impact on the planet. Almost 200 corals have been funded so far, and are currently restoring aquatic life in three high-risk plantation sites in Curaçao, Bahamas and Mexico. Blockchain can be used to address countless urgent issues facing modern society. Many projects are already employing the technology to drive positive social change, and this number will only increase as it reaches maturity and the full scope of its use cases becomes clear. The post How blockchain tech is being used to drive positive social change appeared first on Coin Rivet . View comments
Is Bovis Homes Group PLC's (LON:BVS) High P/E Ratio A Problem For Investors? 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 look at Bovis Homes Group PLC's (LON:BVS) P/E ratio and reflect on what it tells us about the company's share price.Bovis Homes Group has a price to earnings ratio of 10.16, based on the last twelve months. That is equivalent to an earnings yield of about 9.8%. Check out our latest analysis for Bovis Homes Group Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Bovis Homes Group: P/E of 10.16 = £10.33 ÷ £1.02 (Based on the trailing twelve months to December 2018.) A higher P/E ratio means that investors are payinga higher pricefor each £1 of company earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Probably the most important factor in determining what P/E a company trades on is the earnings growth. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. And in that case, the P/E ratio itself will drop rather quickly. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. Notably, Bovis Homes Group grew EPS by a whopping 49% in the last year. And earnings per share have improved by 18% annually, over the last five years. I'd therefore be a little surprised if its P/E ratio was not relatively high. The P/E ratio essentially measures market expectations of a company. The image below shows that Bovis Homes Group has a P/E ratio that is roughly in line with the consumer durables industry average (9.9). That indicates that the market expects Bovis Homes Group will perform roughly in line with other companies in its industry. So if Bovis Homes Group actually outperforms its peers going forward, that should be a positive for the share price. I would further inform my view by checkinginsider buying and selling., among other things. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. Bovis Homes Group has net cash of UK£127m. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options. Bovis Homes Group trades on a P/E ratio of 10.2, which is below the GB market average of 16.4. The net cash position gives plenty of options to the business, and the recent improvement in EPS is good to see. The relatively low P/E ratio implies the market is pessimistic. Because analysts are predicting more growth in the future, one might have expected to see a higher P/E ratio.You can taker closer look at the fundamentals, here. Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. But note:Bovis Homes Group may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Pete Souza Hits Trump With 'Stark Reminder' Of How Obama Talked To Putin Obama-era White House photographer Pete Souza delivered a scathing response to President Donald Trump ’s palling around with Russian President Vladimir Putin at the G-20 summit in Osaka, Japan, on Friday. Trump sparked anger after he joked with his Russian counterpart about election meddling and getting “rid” of journalists . Souza showed his displeasure at the exchange on Instagram, where he shared his 2014 picture of former President Barack Obama talking with Putin at the 70th anniversary of the D-Day landings in France. “Given what just transpired between Comrade minus and Vladimir Putin, I thought it would be a stark reminder to post this photograph again,” Souza captioned the image, below: View this post on Instagram A post shared by Pete Souza (@petesouza) on Jun 28, 2019 at 8:55am PDT “ The shot shows the kind of interaction President Obama had with President Putin during his tenure,” Souza told Britain’s Guardian newspaper in February, and was taken during a “particularly tense time between the two countries.” “You can see in the facial expressions and gestures that this was a very serious conversation,” added the photographer, who frequently uses the pictures he took covering Obama’s time in office to take shots at the Trump administration. “There are interpreters stood behind them, but I get the impression from Putin’s face that he understood exactly what was being said in English,” he added. Souza told The Guardian he couldn’t recall “specifically” what was said, but it was about “some of Russia’s actions in the world.” Related Coverage Dan Rather Warns Donald Trump Over 'Deeply Strange' Putin Meeting: 'History Is Watching' Washington Post Editorial Board To Donald Trump: 'This Is No Time To Joke' With Vladimir Putin Sarah Huckabee Sanders' Goodbye 'Head Held High' Tweet Blows Up In Her Face Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
REFILE-UPDATE 3-Putin says Russia will do all it can to improve ties with U.S. (Refiles to remove extraneous word in byline) By Katya Golubkova OSAKA, June 29 (Reuters) - Russia's president said on Saturday that Moscow would do all it could to improve relations with the United States that have been strained by years of diplomatic conflicts over Ukraine and accusations of Russian meddling in U.S. elections. Vladimir Putin was speaking at the G20 summit in Osaka where he met U.S. President Donald Trump to discuss issues ranging from trade to disarmament. He also invited Trump to visit Moscow in May next year. Trump confirmed that Putin had invited him to a ceremony to mark 75 years since Russia's World War Two defeat of the Nazis. "He invited me and I said I would give it very serious consideration," Trump told a news conference after the summit. Putin described the talks in Osaka as a "good meeting, business-like, pragmatic" and said the leaders agreed that two-way economic ties required improvement. "I think we both understand that we need to somehow resolve the current situation," Putin said, adding that the two nations needed to "somehow find the strength to turn the page and move forward." Asked during a news conference at the summit about the probability of more U.S. sanctions against Russia, Putin said it was up to Washington to decide how best to build relations with Moscow. Putin said he and Trump had discussed the election meddling allegations and the situation in Venezuela. But he gave no details. (Reporting by Moscow Newsroom; Additional reporting by Chris Gallagher in Osaka Writing by Olzhas Auyezov; Editing by Alexander Smith)
Megan Rapinoe insists ‘you can’t win the World Cup without gays’ after USWNT beat France Megan Rapinoe maintained her outspoken nature after inspiring the United States past France by insisting: “You can’t win a championship without gays”. The USWNT forward hit a double in the 2-1 victory over the hosts, taking her level with teammate Alex Morgan and England star Ellen White on five as the top scorers in the Women’s World Cup . “Go gays!” Rapinoe remarked after the win, with the tournament coinciding with Pride month, providing her with extra satisfaction after scoring. She said: “You can’t win a championship without gays on your team – it’s never been done before, ever. That’s science, right there! “I’m motivated by people who like me, who are fighting for the same things. “I take more energy from that than from trying to prove anyone wrong. That’s draining on yourself. “But for me, to be gay and fabulous, during Pride month at the World Cup, is nice.” Rapinoe has created headlines in France after her row with President Donald Trump on social media, in which she rejected the possibility of visiting the White House should the invitation arrive. Megan Rapinoe celebrates scoring United States’ first goal (AFP/Getty Images) Trump responded by accusing her of being disrespect and urging her to “win first before she talks”. “We didn’t have the best night on the ball but defensively, the willingness and the discipline to do what we did was impressive,” Rapinoe added when discussing the performance against the French. “We were ruthless in our chances. Moving on to the next round, that’s really all that matters.” View comments
Does This Valuation Of Dechra Pharmaceuticals PLC (LON:DPH) Imply Investors Are Overpaying? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Does the June share price for Dechra Pharmaceuticals PLC (LON:DPH) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's 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. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. View our latest analysis for Dechra Pharmaceuticals 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. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a377.74", "2020": "\u00a3102.95", "2021": "\u00a3115.87", "2022": "\u00a3135.15", "2023": "\u00a3134.30", "2024": "\u00a3134.20", "2025": "\u00a3134.63", "2026": "\u00a3135.42", "2027": "\u00a3136.48", "2028": "\u00a3137.72"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x5", "2020": "Analyst x6", "2021": "Analyst x6", "2022": "Analyst x2", "2023": "Analyst x1", "2024": "Est @ -0.07%", "2025": "Est @ 0.32%", "2026": "Est @ 0.59%", "2027": "Est @ 0.78%", "2028": "Est @ 0.91%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 6.57%", "2019": "\u00a372.95", "2020": "\u00a390.65", "2021": "\u00a395.73", "2022": "\u00a3104.78", "2023": "\u00a397.71", "2024": "\u00a391.62", "2025": "\u00a386.24", "2026": "\u00a381.40", "2027": "\u00a376.98", "2028": "\u00a372.90"}] Present Value of 10-year Cash Flow (PVCF)= £870.95m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.2%. We discount the terminal cash flows to today's value at a cost of equity of 6.6%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£138m × (1 + 1.2%) ÷ (6.6% – 1.2%) = UK£2.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£2.6b ÷ ( 1 + 6.6%)10= £1.38b 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 £2.25b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £21.95. Compared to the current share price of £27.46, the company appears slightly overvalued at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. 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 Dechra Pharmaceuticals as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.6%, which is based on a levered beta of 0.803. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Dechra Pharmaceuticals, I've put together three further factors you should further research: 1. Financial Health: Does DPH have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does DPH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of DPH? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LON every day. If you want to find the calculation for other stocks justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
AngelHub, Hong Kong's first equity crowdfunding platform, shortlists five start-ups for fundraising AngelHub, Hong Kong's first equity crowdfunding platform, has selected five start-ups out of 250 candidates to raise funds just two months after it was licensed by the city's Securities and Futures Commission, its chief executive said last week. Karen Contet Farzam, the company's co-founder and CEO, said AngelHub aimed to help 100 start-ups raise funds over the next three years. While, on average, these deals are expected to raise between US$500,000 to US$2 million, some would also net up to US$5 million, she said in an interview. "The AngelHub team has already done a string of due diligence on these start-ups' business models, fundraising purpose and other issues. The start-ups had to meet and pass through an interview with an investment committee formed with experienced entrepreneurs," Contet Farzam said. "So far, we have selected about five out of 250 start-ups. They can now raise funds from the hundreds of professional investors who have signed up to our platform. The first deal may be reached soon," she said. The start-ups were from industries such as artificial intelligence, financial technology and logistics, and markets as diverse as Singapore, Israel and France. Investing on AngelHub, on the other hand, is restricted to professionals with at least HK$8 million (US$US$1.02 million). Several hundred professional investors, including venture capital funds, family offices and high-net-worth investors, have signed on, the company said. It will charge fees from both sides if a deal is concluded. "Start-up investment is highly risky. Many start-ups will die and not make it. However, that is why they are a high-return investment. They will not be high return if there are no risks. Many professional investors would like to invest in start-ups to find the next unicorn," Contet Farzam said. A former JPMorgan exotic equity derivatives trader in Tokyo, she said she was not worried about starting out amid the uncertainties thrown up by the US-China trade war. "We can turn the economic crisis into opportunities," she said. "After the financial crisis in 2008, many banks could not offer funds to risky start-ups." This led to the set up of many crowdfunding platforms to finance start-ups, she said. AngelHub got the go-ahead in April, the same month Financial Secretary Paul Chan Mo-po said in his blog the city would amend its laws to make it easier for angel funds and start-ups to set up shop in Hong Kong. The government would also consider offering tax and other incentives to attract overseas investors, Chan said. And Contet Farzam said these efforts might pay off. "The Hong Kong Monetary Authority introduced the Faster Payment System last year, and has issued virtual banking licences to eight companies since March. The Insurance Authority issued its first digital insurance licence in December. The SFC has been very helpful to work with," she said. "It is easy for start-ups to set up here. Hong Kong is definitely an ideal location for start-ups to expand into other Asian markets," she added. "The pie will become bigger when Hong Kong integrates with the 'Greater Bay Area', which will provide a bigger market for start-ups." This article originally appeared in theSouth China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore theSCMP appor visit the SCMP'sFacebookandTwitterpages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
Victims of intellectual property theft will be compensated, Xi Jinping tells world leaders Foreign businesses that have fallen victim to intellectual property theft will be compensated and a channel will be set up for them to make complaints, Chinese President Xi Jinping told world leaders in Japan on Friday. Xi's pledge at theGroup of 20summit in Osaka came ahead of a highly anticipated meeting with US President Donald Trump on Saturday, as the bloc faces division at a gathering overshadowed by a year-long trade war between the two countries. In his keynote speech, Xi said China would take "major steps" to further liberalise its economy and reduce market restrictions for foreign investors. "Starting from January 1, we are going to implement a new foreign investment law. We will establish a mechanism to punish those who infringe intellectual property rights as well as to compensate those who have suffered losses," he said. "We will strengthen civil and criminal protection." The Chinese president also said Beijing would give "comprehensive" equal treatment to foreign investors coming to China and put in place a regular channel for them to voice their grievances. Xi has made similar promises before, but the timing of his speech " coming right before his talks with Trump " drew attention. While he did not mention the United States, intellectual property protection and market access are two key demands made by Washington in its trade talks with Beijing. Xi also sought to ease the concerns of other major trade partners, saying China was ready to speed up negotiations with Europe as well as free-trade agreement talks with Japan and South Korea. Chinese President Xi Jinping told German Chancellor Angela Merkel that China's opening up was not an "empty promise". Photo: DPA alt=Chinese President Xi Jinping told German Chancellor Angela Merkel that China's opening up was not an "empty promise". Photo: DPA The Chinese president had a clear message to send the gathering, including at a meeting with German ChancellorAngela Merkelwhen he said China's opening up was not an "empty promise". But Trump was also pushing his trade agenda, saying prospects in the US were improving. Before he met Indian Prime Minister Narendra Modi for talks, Trump said the two nations would announce a "big trade deal". The White House said afterwards the two sides had agreed to work on resolving their trade disputes. The US president also again called for American allies to shut out Chinese telecoms giant Huawei Technologies from their 5G networks over security fears. Escalating tensions between Beijing and Washington have raised concern among G20 members, and on Friday the European Union said the trade war was having a harmful impact on the global economy. Japanese foreign ministry spokesman Takeshi Osuga said that leaders at the summit had noted the risk posed by the conflict. "There was a discussion on the trade issues. Some leaders expressed concerns about the current tension regarding trade. Others expressed concerns about unfair trade practices. Some leaders pointed out the importance of the fight against protectionism," he said. Many leaders also noted the importance of a rules-based multilateral trade system and the urgency of World Trade Organisation reform, as well as the need for the G20 summit to provide a political push in these areas, according to Osuga. He added that although different views were expressed, "there was no finger pointing at any country". In talks with Russian President Vladimir Putin and Modi, Xi said that the three nations should work together to safeguard their interests amid rising protectionism. Earlier, Xi told the leaders of emerging economies Brazil, Russia, India and South Africa that China opposed "long-arm jurisdiction". Beijing sees the arrest of Huawei executive Sabrina Meng Wanzhou in Canada, at the request of the US, as an example of long-arm jurisdiction. Meanwhile, a Chinese foreign ministry official took aim at Trump's protectionism, saying Xi's meeting with several African leaders had "sent a strong new message about upholding multilateralism". "The rise of unilateralism, protectionism and bullying practices poses severe threats to economic globalisation and the international order, and severe challenges to the external environment of developing countries," Dai Bing, director general of the foreign ministry's African affairs department, told a news conference in Osaka. The meeting of the world's 20 major economies wraps up on Saturday, but the Xi-Trump talks are expected to dominate. China's top trade negotiator, Vice-Premier Liu He, met US Trade Representative Robert Lighthizer on Friday to prepare for the meeting. Trump said he expected the talks with Xi would be productive, but denied he had given any assurance that the US would not impose further tariffs on Chinese imports. "It'll be a very exciting day I'm sure ... It's going to come out hopefully well for both countries," he told reporters. Wang Yiwei, a professor of international relations at Renmin University of China, said Xi had sought to remind the US and its allies of Beijing's stance and to build confidence in its economy and policies. "Xi's speech included implicit warnings that you could say were targeted at the US and its partners, such as stressing the importance of managing conflict, and urging countries not to be limited by the short term or 'make historical mistakes'," Wang said. "But the majority of his remarks had a very positive tone. He has attempted to reassure the world economy by laying out China's plan for the future, and again touted policies like the Belt and Road Initiative to show that Beijing wants to continue being part of a multilateral global trade system as well as be involved in reforms of its own economy." Additional reporting by Kinling Lo and Catherine Wong This article originally appeared in theSouth China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore theSCMP appor visit the SCMP'sFacebookandTwitterpages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
Xi Jinping says China, Russia and India should take 'global responsibility' to protect interests Chinese President Xi Jinping on Friday called on the leaders of Russia and India to take "global responsibility" to safeguard the three countries' interests and uphold multilateralism, as Beijing seeks to rally support amid its protracted trade war with Washington. Xi made the remarks during a trilateral meeting with Vladimir Putin and Narendra Modi on the sidelines of the annualGroup of 20summit of world leaders in Osaka, Japan. The trilateral meeting was part of the Chinese leader's efforts to marshal international support ahead of hishigh-stakes meetingwith US President Donald Trump, seeking to reach a truce on the year-long trade conflict between the world's two biggest economies. "The rise of protectionism and unilateralism has severely affected global stability and economic growth, as well as the existing international order which emerging economies and developing countries have relied on," Xi was quoted as saying by state broadcaster CCTV. "China, Russia and India should take on global responsibility to safeguard the fundamental and long-term interests of these three countries and the world," he said. Xi also called for the nations to promote "a more multipolar world and the democratisation of international relations" " meaning with less reliance on a US-led world order. During a meeting with leaders of the other BRICS countries " major emerging economies Brazil, Russia, India, China and South Africa " Xi also said Beijing opposed what it saw as "illegal and unilateral sanctions" and "long-arm jurisdiction". The efforts to forge closer ties between China, Russia and India come as all three nations are locked in their own disputes with the United States. New Delhi, a key strategic ally in Washington's Indo-Pacific policy to contain China's rise, has been upset over tariffs imposed on Indian goods by the Trump administration. Meanwhile, geopolitical rivalry and the Kremlin's alleged meddling in US elections has strained relations between Moscow and Washington. Wu Jianghao, director general of the Chinese foreign ministry's Asian affairs department, said the trilateral meeting laid out a framework for future cooperation. "The three countries have spoken with one voice on some major global issues, helping stability and injecting positive energy to the current international situation " which is filled with instability and uncertainties," Wu said at a press briefing on Friday. Wu said the leaders did not talk about Huawei Technologies or 5G, but the three countries had maintained good communication on telecoms issues and would continue to cooperate. Washington has banned US companies from selling American technology to Huawei and put pressure on its allies to block the Chinese tech firm over security concerns. (From left) US President Donald Trump, Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi pose for a photo before their meeting. Photo: AP alt=(From left) US President Donald Trump, Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi pose for a photo before their meeting. Photo: AP Meanwhile, the United States is also seeking to build ties with India, with Trump holding trilateral talks with Modi and Japanese Prime Minister Shinzo Abe on Friday. Indian Foreign Secretary Vijay Gokhale described the trilateral meeting as "very good", saying it was "short but very productive". "The main topic of discussion was the Indo-Pacific, about how the three countries could work together in terms of connectivity, infrastructure and ensuring that peace and stability is maintained, and working together to build upon this new concept so that it would benefit the region as a whole and the three countries," Gokhale said. On the Modi-Trump bilateral meeting, he said the two leaders had "a very warm discussion". They also briefly discussed 5G, with the focus on business cooperation between the two countries to leverage their technology and the potential of the Indian market, according to Gokhale. He said the discussion of how to develop 5G networks was "in terms of business, not in terms of governments". "It's an exciting new area that India and the US can work together [on]," he said. This article originally appeared in theSouth China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore theSCMP appor visit the SCMP'sFacebookandTwitterpages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
Are Dechra Pharmaceuticals PLC (LON:DPH) Investors Paying Above The Intrinsic Value? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we will run through one way of estimating the intrinsic value of Dechra Pharmaceuticals PLC (LON:DPH) by estimating the company's future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! 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. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. View our latest analysis for Dechra Pharmaceuticals We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a377.74", "2020": "\u00a3102.95", "2021": "\u00a3115.87", "2022": "\u00a3135.15", "2023": "\u00a3134.30", "2024": "\u00a3134.20", "2025": "\u00a3134.63", "2026": "\u00a3135.42", "2027": "\u00a3136.48", "2028": "\u00a3137.72"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x5", "2020": "Analyst x6", "2021": "Analyst x6", "2022": "Analyst x2", "2023": "Analyst x1", "2024": "Est @ -0.07%", "2025": "Est @ 0.32%", "2026": "Est @ 0.59%", "2027": "Est @ 0.78%", "2028": "Est @ 0.91%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 6.57%", "2019": "\u00a372.95", "2020": "\u00a390.65", "2021": "\u00a395.73", "2022": "\u00a3104.78", "2023": "\u00a397.71", "2024": "\u00a391.62", "2025": "\u00a386.24", "2026": "\u00a381.40", "2027": "\u00a376.98", "2028": "\u00a372.90"}] Present Value of 10-year Cash Flow (PVCF)= £870.95m "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 (1.2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.6%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£138m × (1 + 1.2%) ÷ (6.6% – 1.2%) = UK£2.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£2.6b ÷ ( 1 + 6.6%)10= £1.38b 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 £2.25b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of £21.95. Compared to the current share price of £27.46, the company appears slightly overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. 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 Dechra Pharmaceuticals as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.6%, which is based on a levered beta of 0.803. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Dechra Pharmaceuticals, I've compiled three fundamental aspects you should look at: 1. Financial Health: Does DPH have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does DPH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of DPH? 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 GB 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.
UPDATE 1-Putin says Britain's May tough on Skripal poisoning case (Adds quotes, details) OSAKA, June 29 (Reuters) - Russian President Vladimir Putin said on Saturday he wanted to improve ties with Britain after they were strained by the poisoning of a former Russian spy on British soil, but said Prime Minister Theresa May was taking a tough line on the issue. Putin met May at the G20 summit in Osaka on Friday. May's office said she asked Moscow to hand over the Russian suspects Britain blames for poisoning a former double agent and his daughter with a nerve agent in Salisbury, England last year. Russia has repeatedly denied any involvement in the case. Putin confirmed he and May had discussed the issue but provided no details other than denying that Russia has ever had any aggressive intent with regards to anyone. "She expressed her position in a rather tough manner, yes, this is true," Putin said of his meeting with May on the sidelines of the G20 summit, but added that the meeting was "a small, but positive step in the right direction". "I am convinced we need to restore full-scale relationships," Putin told a briefing. (Reporting by Katya Golubkova; Writing by Olzhas Auyezov; Editing by Edmund Blair)
United States remains outlier as G20 split over tackling climate change OSAKA, June 29 (Reuters) - After much wrangling, the Group of 20 major economies on Saturday agreed to disagree on fighting climate change, with the United States dissenting from a commitment to carry out the 2015 Paris climate change agreement. In a communique at the end of a two-day summit in Japan's western city of Osaka, the grouping said "signatories to the Paris Agreement" reaffirmed their commitment to its full implementation, referring to the 19 members aside from the U.S. The United States withdrew from the Paris pact because it "disadvantages American workers and taxpayers," the grouping added in a subsequent section, adopting a two-part approach used at last year's summit in Buenos Aires. The division reflects tussles over global warming that have repeatedly stymied international forums since U.S. President Donald Trump pulled the United States out of the landmark accord to limit the effects of climate change. Even before the summit started, the differences over climate change became apparent when President Emmanuel Macron said France would not accept a final text that omitted the Paris pact. In that accord, 200 nations agreed to limit the global average rise from pre-industrial temperatures to below 2 degrees C (3.6 degrees F). Current policies put the world on track for a rise of at least 3 degrees C by the end of the century, the United Nations said in a 2016 report, however. G20 officials said the negotiations to secure acceptable language on climate change were contentious. The first chunk of text reflecting the majority view said members had "common but differentiated responsibilities and respective capabilities" in implementing the pact. The section on the American stance said the United States employed a "balanced approach to energy and environment" to deliver "affordable, reliable, and secure energy to all its citizens". The U.S. approach uses "all energy sources and technologies, including clean and advanced fossil fuels and technologies, renewables, and civil nuclear power, while also reducing emissions and promoting economic growth," it added. The G20 did manage to agree on tackling plastic trash in the ocean. In the statement the grouping said it adopted an "Osaka Blue Ocean Vision" that aims to stamp out additional pollution by marine plastic litter by 2050. There were no details of how the goal would be met, except that members would adopt "a comprehensive life-cycle approach" by improving waste management and finding innovative solutions while recognising the importance of plastics for society. (Reporting by Malcolm Foster and Chang-Ran Kim in Osaka; Writing by Malcolm Foster in Tokyo; Editing by Clarence Fernandez)
A Look At The Intrinsic Value Of Dignity plc (LON:DTY) 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 do a simple run through of a valuation method used to estimate the attractiveness of Dignity plc (LON:DTY) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. See our latest analysis for Dignity 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. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a317.70", "2020": "\u00a326.55", "2021": "\u00a332.30", "2022": "\u00a336.84", "2023": "\u00a340.60", "2024": "\u00a343.65", "2025": "\u00a346.11", "2026": "\u00a348.09", "2027": "\u00a349.72", "2028": "\u00a351.08"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x2", "2022": "Est @ 14.06%", "2023": "Est @ 10.21%", "2024": "Est @ 7.51%", "2025": "Est @ 5.63%", "2026": "Est @ 4.31%", "2027": "Est @ 3.38%", "2028": "Est @ 2.74%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 11.64%", "2019": "\u00a315.85", "2020": "\u00a321.30", "2021": "\u00a323.21", "2022": "\u00a323.72", "2023": "\u00a323.41", "2024": "\u00a322.55", "2025": "\u00a321.33", "2026": "\u00a319.93", "2027": "\u00a318.46", "2028": "\u00a316.99"}] Present Value of 10-year Cash Flow (PVCF)= £206.76m "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. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.2%. We discount the terminal cash flows to today's value at a cost of equity of 11.6%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£51m × (1 + 1.2%) ÷ (11.6% – 1.2%) = UK£497m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£497m ÷ ( 1 + 11.6%)10= £165.16m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is £371.92m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £7.44. Relative to the current share price of £6.39, the company appears about fair value at a 14% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that 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 Dignity 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 11.6%, which is based on a levered beta of 1.566. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Dignity, There are three fundamental aspects you should look at: 1. Financial Health: Does DTY have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does DTY's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of DTY? 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 GB 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.
Here's 1 Way Apple Could Benefit From the Trade War Apple(NASDAQ: AAPL)is caught in the crossfire of the U.S.-China trade war, with some worrying that tariffs on Chinese goods will hurtApple's marginsand that it may have to move manufacturing. As Fool.com contributor Evan Niurelayed, theNikkei Asian Reviewhas reported that Apple hastold its prominent suppliersto consider moving 15% to 30% of production capacity outside China to countries including India, Mexico, Vietnam, Indonesia, and Malaysia. (The Wall Street Journalreported Friday, however, that Apple is manufacturing its new Mac Pro in China.) There's no doubt that moving a big chunk of operations out of China could hamper the iPhone maker in the short run and result in higher costs. If Apple does decide to move a part of its production, it will have to leave behind a nicely integrated supply chain in China. But moving into a market such as India could be beneficial for Apple from a long-term perspective. Let me explain why. Image source: Getty Images. The global smartphone market fell 6.6% during the first quarter of 2019, according to IDC. Apple was the biggest casualty of this drop: Its shipments plunged a whopping 30% year over year to 36.4 million units. This crash pushed Apple to the third position in global smartphone rankings, behindSamsungand Huawei. But the Indian smartphone market was immune to this drop. IDC estimates that the Indian smartphone market grew 7.1% annually during the first quarter of 2019 as shipments crossed 32 million units. But Apple fell behind in the premium smartphone rankings in the country. IDC points out that Samsung overtook Apple in the premium smartphone segment (phones priced above $500) in India during the quarter, cornering 36% of the market for high-end devices. The South Korean giant was followed by Chinese upstart OnePlus, and Apple slipped to third place. This is bad news for the tech giant because smartphones are driving India's overall device sales. Shipments of feature phones in India dropped over 42% during the first quarter, so the year-over-year increase in shipments wouldn't have been possible without a bump in smartphone shipments. Moreover, smartphones have a lot of room to grow in India as the half of the market still buying features phones could upgrade. But this is not the only reason why India's smartphone market is valuable. Indian buyers are willing to spend more on their devices, according to market researcher techArc. The firm believes that sales of "premium" smartphones in India could jump 19% this year, while more expensive "luxe" devices could witness a 26% increase in sales to 9% of the market. But Apple is missing out on all the fun because of one simple problem: a lack of manufacturing facilities in India. Thus the U.S.-China trade war could be a blessing in disguise for Apple if it elects to move a sizable chunk of its production to India. The company has struggled in this market because ofa flawed policyof manufacturing older model phones and selling them at reduced prices. That strategy hasn't worked, as consumers have preferred to buy the latest devices from Apple's competitors. But things started changing earlier this year when it emerged that Apple couldsoon start producingiPhones on a mass scale in India. Contract manufacturerFoxconnwas reportedly on track to start the trial run of making new iPhone models in India a couple of months ago. This is probably why Foxconn is confident it could shift all iPhone production out of China if need be. The good news for Apple investors is that making iPhones in India would allow it to avoid the 20% import duty that it currently pays on devices it sells in that market. As a result, the company would be able to price its iPhones much more competitively. So if Apple indeed decides to move some of its production to India, it will be in a much better position to carve a bigger share of this market and boost sales. 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 Harsh Chauhanhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy.
3 Cancer-Treatment Stocks to Buy Nearly every American knows someone whose life has been impacted by cancer. While science has made a tremendous amount of progress over the last few decades, there's still plenty of work left to do. So which cancer stocks are the best choice for investors? We asked a team of Motley Fool contributors to weigh in, and they highlightedAmgen(NASDAQ: AMGN),Exelixis(NASDAQ: EXEL), andNovocure(NASDAQ: NVCR). Image source: Getty Images. Chuck Saletta(Amgen):Recent news from Amgenled several stocks in the cancer-treatment sector higher. The news that moved the needle? Amgen had some positive data come out from human trials of a treatment that helped inhibit KRAS -- a protein whose mutations are often linked to aggressive cancers. KRAS mutations have been notoriously hard to treat -- and even Amgen's success only really shrank the tumors for half of the lung cancer patients in its trial. While an impressive result for those it helped, Amgen's treatment is targeted for a specific KRAS mutation that only occurs in around 13% of non-small cell lung cancers and a handful of other cancers. In other words, while the preliminary test looks promising, it doesn't look like it represents a complete cure for even those types of cancers. Still, the news is certainly a hopeful start on the quest to address tumors affected by KRAS mutations. That's a boost for Amgen because among cancer-treatment companies, it looks almost uniquely well positioned to continue to drive that fight for the long term. Amgen generates somewhere in the neighborhood of $2 billion in cash from its operations every quarter -- sometimes less, sometimes more -- giving it plenty of cash to keep up its research program. In addition to that solid cash flow, today's investors get a company trading at around 12 times its anticipated earnings, with those earnings expected to remain stable over the next five years. That's a reasonable price to pay for a company with a solid existing foundation that also happens to be at the vanguard of the attempts to crack one of the toughest cancer codes around. True breakthrough success there could mean substantial progress in the fight against cancer. Sean Williams(Exelixis):WithCelgene(NASDAQ: CELG)set to be gobbled up byBristol-Myers Squibb(NYSE: BMY), the cheapest combination of growth and value among cancer stocks now belongs to Exelixis. The Exelixis growth storypredominantly ties into the success of Cabometyx, the company's presumed blockbuster therapy that could prove foundational in treatment of first- and second-line advanced renal cell carcinoma (RCC) and second-line advanced hepatocellular carcinoma (HCC). Initially approved to treat second-line RCC, Cabometyx entered the indication in the shadows of Bristol-Myers Squibb's immunotherapy blockbuster Opdivo. Nevertheless, it earned valuable market share given that it was the only second-line RCC treatment to this point tohit the trifectaof a statistically significant improvement in objective response rate, progression-free survival, and median overall survival, relative to the placebo. Not long thereafter, Cabometyx beat Opdivo to first-line RCC after dazzling in the midstage Cabosun study and running circles around first-line standard of care Sutent, which was developed byPfizer(NYSE: PFE). In mid-January, Cabometyx received a thumbs up from the Food and Drug Administration to expand its label, once again, to second-line HCC. Between RCC and HCC, Cabometyx may have peak annual sales potential of nearly $2 billion, with RCC providing a slightly higher long-term annual sales potential. But this isn't enough for Exelixis. It's also involved in a partnered late-stage combination study (CheckMate 9ER) with Bristol-Myers' Opdivo in first-line RCC. If this combination is successful, it would be a means of Exelixis securing an even greater piece of the first-line RCC pie. Also, in mid-February, the company announced that it would reignite its internal growth engine with the early-stage clinical development of XL092, an oral tyrosine kinase inhibitor that targets VEGF receptors MET and other kinases associated with cancer growth. Furthermore, Exelixis entered into an option and license agreement recently with private drug developer Iconic Therapeutics. This agreement will see the duo work to develop antibody-drug conjugates that help deliver cancer-killing toxins directly to cancer cells with minimal harm to healthy tissue. What all of this growth and development gets you is a company valued at just 17 times forward earnings, with a PEG ratio of less than 0.5. That's a deep discount for a cancer stock that looks to be on the cutting edge of treatments for kidney and liver cancer. Brian Feroldi(Novocure):Doctors have used three primary tools for decades to fight cancer: surgery, radiation, and chemotherapy. However, an innovative medical device company called Novocure is working hard to give providers a brand-new modality of treatment. Novocure discovered that electric fields can be manipulated to inhibit cell division in cancerous tumors. The company calls this new therapy Tumor Treating Fields (TTFields) and launched a product called Optune a few years ago to bring this new treatment option to market. Providers were very skeptical of the treatment at first, but they've been warming up to it as more clinical and real-world data is produced. That gradual acceptance by the medical community has caused Novocure's revenue -- and stock price -- to soar. NVCRdata byYCharts. Novocure has won the green light to treat brain cancer andmesothelioma, but that could be just the tip of the iceberg. Management believes that TTFields will eventually be used to treat lung cancer, ovarian cancer, breast cancer, brain metastasis, and more. Success in any of those indications would caused the company's total addressable market opportunity to explode. While investors wait for those approvals to come, they can rest easy knowing that Novocure is nearing profitability in just brain cancer and mesothelioma. That helps to substantially lower the company's risk profile. Novocure's stock isn't particularly cheap right now -- shares are trading for more than 20 times sales -- but the opportunity ahead is so massive that I think it makes sense to pay a premium today to become a shareholder. 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 Brian Feroldiowns shares of Celgene and NovoCure.Chuck Salettahas no position in any of the stocks mentioned.Sean Williamsowns shares of Exelixis. The Motley Fool owns shares of and recommends Celgene and Exelixis. The Motley Fool recommends Amgen. The Motley Fool has adisclosure policy.
Should You Use Synthetic Oil in Your Car? Consumer Reports has no financial relationship with advertisers on this site. Consumer Reports has no financial relationship with advertisers on this site. Synthetic oil, once found mostly in high-performance cars, is being used in more mainstream vehicles. Take, for example, the popular Honda Civic. A Honda spokeswoman said the automaker uses a synthetic oil in the Civic for its low viscositymeaning it flows more easily than oils with higher viscositywhich helps to improve the engine's fuel efficiency. The faster the oil flows, the quicker the engine parts can turn. Honda is not alone, says Mel Yu, auto analyst at Consumer Reports. In the 2019 model year, about 70 percent of new cars get either fully synthetic or blended oil. Several brands, including Honda, don't specifically require synthetics for their engines, but the low-viscosity oils that those engines need are offered only in a synthetic format, Yu says. Some brands use synthetic blend oil, which is a combination of conventional and synthetic oils. Blends dont deliver the full benefits of synthetic, but theyre considerably cheaper, he adds. On top of that, many oil-change outlets also offer synthetic oil as an alternative to conventional engine oil. According to Will Hixson, spokesman for the Automotive Oil Change Association, the 2018 National Oil and Lube News annual survey shows that more than half of car owners are choosing synthetics or synthetic blends when they get their oil changed. Type of Oil Percentage of Oil Changes Performed Semi-synthetic (or blend) oil 35 Conventional oil 32 Full synthetic 22 High-mileage oil 6 Diesel 5 Should you use synthetic oil? There are good reasons tobut only if your car has specific needs. Synthetics have some advantages over conventional motor oil. Theyre designed to be more effective at: Resisting oil breakdown, which makes it last longer than conventional oil Withstanding higher temperatures than conventional oil, which helps keep engines running longer Flowing in cold temperatures, thus reducing engine wear during frigid startups. There's a downside: Synthetic motor oil can cost two to four times as much as regular oil. So unless your owner's manual specifies synthetic, you dont need it. But John Ibbotson, Consumer Reports chief mechanic, says there are some situations where synthetic oils resistance to breakdown (the tendency of oil to degrade and lose its viscosity over time) can help prolong the life of an engine: If you make lots of short trips, standard motor oil may never get warm enough to burn off moisture and impurities that can accumulate. That could hasten the breakdown of conventional oil. If you live in a region with very cold winters or very hot summers, or if you use your vehicle for towing or hauling heavy material, synthetic oil helps protect the engine from strain and wont break down as quickly as conventional oil. If you have an older engine thats prone to sludge buildup. This gunky residue forms when oil breaks down, and it can block oil passages and lead to a quick engine death. In the early 2000s, several engines from Chrysler, Toyota, and Volkswagen, among others, were especially prone to sludge buildup. Synthetic oil is less likely to form this troublesome sludge. Story continues Though synthetics generally hold up better for more miles, regular oil changes remain important, and you shouldnt wait beyond the time interval recommended by the manufacturertypically every six months or a year. Using synthetic in these situations will prolong your oil life and require fewer changes. Thats also a major benefit to the environment, as used motor oil is a major source of toxic waste in water. 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. View comments
The History Behind the Royal Family's Connection to Wimbledon It’s no secret that the British royal family loves tennis . Wimbledon , the annual tennis championship that has begun at the All England Lawn Tennis and Croquet Club (better known as the All England Club) in London, is often home to some of Catherine, Duchess of Cambridge and Prince William, Duke of Cambridge’s most fun photo-ops. That was the case on Tuesday when Kate Middleton turned up to soak up the tournament and catch British player Harriet Dart facing off against American Christina McHale. (This time, Middleton opted for a seat in the crowd before heading to the royal box, People reported.) And on fourth of July, Meghan Markle also made her appearance, cheering on her pal Serena Williams . Meghan Markle, Duchess of Sussex watches on during the ladies' Singles Second round match between Serena Williams of The United States and Kaja Juvan of Slovenia during Day four of The Championships - Wimbledon 2019 at All England Lawn Tennis and Croquet Club on July 04, 2019 in London, England. (Photo by Laurence Griffiths/Getty Images) \| Laurence Griffiths&Getty Images Though the tournament began during the 19th century in 1877, it wasn’t until a few decades later that the royals got involved. Wimbledon’s 2019 matches end with the finals on July 14, so we might just see some royals appear in the box. The connection endures today, as members of the royal family are still linked to the tournament in different ways. LONDON, ENGLAND - JULY 02: Catherine, Duchess of Cambridge adjusts her sunglasses as she attends day 2 of the Wimbledon Tennis Championships at the All England Lawn Tennis and Croquet Club on July 02, 2019 in London, England. (Photo by Karwai Tang/Getty Images) \| Karwai Tang—Getty Images Here is everything to know about the British royal family’s connection to Wimbledon. When did the royal family start attending Wimbledon? In 1907, the Prince of Wales and Princess Mary (who would soon become King George V and Queen Mary) attended the Wimbledon Championships. This marked the first time the royal family had a connection with the tournament. George Hillyard, the new secretary for the Wimbledon Club, was the Prince of Wales’ childhood friend, explains Bruce Tarran in the book George Hillyard: The Man Who Moved Wimbledon , an account of the tennis championship’s history. On the day of the tournament, Hillyard asked Prince George to serve as the president of the All England Club and to present the trophy to winners, according to Tarran. Three years later, in 1910, the Prince of Wales became King George V, earning a new role as the Patron of the All England Club — “instituting a tradition maintained by succeeding Monarchs to the present day,” Tarran writes. Members of the royal family have served as Patron of the All England Club ever since. Story continues Did any royals ever compete at Wimbledon? King George V’s son, Prince Albert, Duke of York — the future King George VI , Queen Elizabeth II ‘s father — once tried his hand at tennis in the 1926 championship, but lost “ignominiously in the first round and never entered again,” Tarran writes. The Duke of York (later King George VI) competing in the All-England tennis championships at Wimbledon. \| Hulton Archive—Getty Images Though this was the only time a member of the family tried their hand at competing in the tournament, tennis has been a hallmark of the British royal family’s fun for centuries. What is Kate Middleton’s role at Wimbledon? Kate Middleton is now the Patron of the All England Club. Queen Elizabeth resigned from the post in 2016 after her 90th birthday — she had been the Patron since 1952, according to The Wimbledon Compendium 2019 , an encyclopedia published by the All England Club — handing off the role to her grandson’s wife. The Duchess has served in this role since the 2017 tournament. It’s also part of her official role to represent the royal family at sporting events, especially when the United Kingdom is the host, according to the royal family’s website . In addition to participation in Wimbledon, Kate Middleton makes visits to charities and sports programs supported by Wimbledon throughout the year. Who else in the royal family is involved with Wimbledon today? Queen Elizabeth’s first cousin, Prince Edward, Duke of Kent, has been the president of the All England Club since 1969, the compendium said. (Not to be confused with Prince Edward, Earl of Wessex, the queen’s youngest child.) In this role, the Duke of Kent presents winners of Wimbledon with the trophies at the end of the tournament. Congratulations to the 2016 Wimbledon Champion Andy Murray - an amazing achievement! #Wimbledon pic.twitter.com/NZNwzASihl — The Royal Family (@RoyalFamily) July 10, 2016 Even prior to taking on this role, it was in his blood. The Duke of Kent’s father was the club’s president from 1929 until his death in 1942, passing the torch onto his widow, the Duchess of Kent (the present Duke of Kent’s mother). She held onto the role until her death in 1968, the compendium explains. Does the royal family have its own box at Wimbledon? The royal family has had the Royal Box at the club since 1922, according to the compendium. Members of the family have been enjoying Wimbledon matches from the Royal Box in the century since it came to be — including the late Princess Diana . Diana Princess of Wales watches the action from the Royal Box on Centre Court at Wimbledon with her son Prince William. \| Rebecca Naden—PA Images/Getty Images With the capacity to seat 80 people, the Royal Box has featured guests from the rest of the British royal family, world leaders, royals from other nations, British armed forces and press to friends of the family. Prime Minister Theresa May sat with Prince William and Kate Middleton at the men’s single final of Wimbledon last year. Catherine, Duchess of Cambridge and Prince William, Duke of Cambridge pass British Prime Minister Theresa May and her husband Philip May as they attend the Men's Singles final on day thirteen of the Wimbledon Lawn Tennis Championships at All England Lawn Tennis and Croquet Club on July 15, 2018 in London, England. \| Clive Brunskill—Getty Images Kate Middleton and Meghan, Duchess of Sussex , both tennis fans, watched a match together from the front row of the Royal Box, too, two months after they became sisters-in-law. Meghan Markle is close friends with tennis legend Serena Williams , who has won 23 Grand Slam singles titles . Catherine, Duchess of Cambridge and Meghan, Duchess of Sussex attend day twelve of the Wimbledon Tennis Championships at the All England Lawn Tennis and Croquet Club on July 14, 2018 in London, England. \| Karwai Tang—WireImage/Getty Images Will we see any royals at Wimbledon 2019? As Patron of the club, it’s likely that the Duchess of Cambridge will enjoy some days of the tournament with Prince William. Though the Duchess of Sussex has appeared publicly since royal baby Archie Harrison Mountbatten-Windsor was born on May 6, to celebrate Queen Elizabeth’s birthday parade at the Trooping the Colour , she may or may not attend a Wimbledon match.
Chinese envoy says Syngenta takeover was a bad deal: report ZURICH (Reuters) - Beijing's ambassador to Switzerland said ChemChina's $43 billion takeover of seed and agrochemicals firm Syngenta was a mistake, adding he would have tried to stop the 2017 deal had he been in Bern at the time, a newspaper reported in an interview on Saturday. "If I had been the ambassador a year earlier, the takeover wouldn't have taken place," Gen Wenbin was quoted as telling the Tages-Anzeiger newspaper, without giving specific reasons for his opposition to the deal. "It wasn't a good deal for the Chinese side. It was for Switzerland: It got $40 billion. If Switzerland wants Syngenta back, I would convince ChemChina to sell it. But is there anybody at all in Switzerland who wants Syngenta back?" Basel-based Syngenta was listed on the SIX Swiss Stock exchange when it was bought by ChemChina, so shareholders received the money from the deal that closed in 2017. After the takeover spurred debate over foreign countries expanding in Switzerland, Swiss politicians are debating a measure in parliament that could require government approval of sales of Swiss companies to foreign entities. Other big Chinese investments in Swiss companies include HNA Group's purchase of airline caterer Gategroup and ground services and cargo handling firm Swissport. Gen Wenbin said criticism in Switzerland's media over such transactions had driven potential Chinese investors to look elsewhere. "They're going to Germany," the ambassador told the daily newspaper. Syngenta did not return a phone call and email seeking comment on Saturday. No one could immediately be reached to comment at the Chinese embassy. The former Swiss firm is targeting growth through acquisitions in the $17 billion Chinese seed market, where access is restricted for foreign players, as well as new products and collaborations in technology. (Reporting by John Miller; Editing by Helen Popper)
The Crazy Way Social Security Will Collect Nearly $600 Billion Over the Next Decade For better or worse, Social Security is our country's most important social program. Founded in the mid-1930s and paying out benefits to retired workers since Jan. 1, 1940, it's a program that, today, is leaned on to keep more than 15 million seniors a year out of poverty. It's also an incredibly expensive program to operate. Last year marked the first time in Social Security's history that aggregate expenditures -- benefits paid plus Railroad Retirement exchange transfers and administrative expenses -- topped $1 trillion. Ensuring that the proverbial gerbil remains on its wheel means collecting a lot of money each and every year. Two Social Security cards lying atop fanned piles of cash. Image source: Getty Images. The payroll tax does Social Security's heavy lifting Since 1937, payroll taxes on earned income have been the primary source of funding for Social Security . Last year, $885 billion of the just over $1 trillion in income collected by the program was derived from the 12.4% tax on earned income, which includes salary and wages but not investment income. Keep in mind that this tax comes with a cap of $132,900 in earned income in 2019, albeit this upper limit tends to increase in step with the National Average Wage Index each year, as long as there's a positive cost-of-living adjustment. Social Security's payroll tax is a big reason why the program can never go bankrupt . As long as Congress doesn't change how the program collects money, the fact that Americans continue to work, earn wages, and pay tax on those wages ensures that some amount of income will always be flowing into the Social Security program. It's worth noting that Social Security also gets a pretty decent amount of revenue each year from the interest it earns on its excess cash. By law , the Social Security Administration is required to invest the program's net-cash surpluses in special-issue bonds, which vary in yield and maturity date. With close to $2.9 trillion currently in reserves at an average yield of more than 2.8%, it's no surprise that Social Security is racking up more than $80 billion in interest income a year on Uncle Sam's tab. Last year, the interest income on the program's asset reserves resulted in the collection of $83.1 billion. Story continues A Social Security card wedged between IRS tax forms. Image source: Getty Images. This unpopular revenue source is growing in importance But there's a third means of revenue collection for the Social Security program that typically flies under the radar. It's certainly not popular among the public, but it's on track to generate nearly $600 billion in revenue for Social Security, in aggregate, over the next decade. Let me introduce you to the taxation of Social Security benefits. In 1983, when the last major overhaul of the Social Security program was passed under the Reagan administration, one of the many new amendments to the program included a tax on a portion of an individual's or couple's Social Security benefits if they crossed above select income thresholds . Implemented officially in 1984, it allowed the federal government to impose ordinary income tax rates on up to 50% of benefits paid if a person's modified adjusted gross income (MAGI) plus one-half of benefits exceeded $25,000 (or $32,000 for a couple filing jointly). When implemented, it was only expected to affect roughly 1 out of 10 senior households. But this wasn't the last we'd see of taxing Social Security benefits. In 1993, under the Clinton administration, a second tier of taxation was added that allowed the federal government to tax up to 85% of benefits. Using the same formula noted earlier, an individual or couple whose MAGI plus one-half of benefits exceeds $34,000 or $44,000, respectively, becomes subject to this higher rate of taxation on their Social Security benefits. A visibly surprised senior man tightly clutching a piggy bank as outstretched hands reach for it. Image source: Getty Images. Here's a rundown of what the Social Security Board of Trustees expects in revenue from the taxation of benefits over the next decade: 2019: $36.9 billion 2020: $40.2 billion 2021: $44.1 billion 2022: $48.1 billion 2023: $52.3 billion 2024: $56.9 billion 2025: $62.1 billion 2026: $78.2 billion 2027: $85.0 billion 2028: $92.3 billion If you're wondering, the big jump in projected revenue collection after 2025 has to do with the expected sunset of the individual tax cuts on Dec. 31, 2025, that were implemented as part of the Tax Cuts and Jobs Act. A clearly worried baby boomer with his head resting on his right hand and a stack of bills on the desk in front of him. Image source: Getty Images. Here's why you'll probably be paying this tax when you retire As you can see from the Trustees' projections, the amount being collected by the taxation of benefits is expected to more than double, on an annual basis, over the next decade. But this tax leaves a sour taste in the mouths of most Social Security recipients for two reasons. First of all, a tax on benefits is viewed by many as a form of double taxation . The thesis here is that earned income is subject to the payroll tax, so an additional tax on paid benefits is a form of double taxation. While I can certainly empathize with this gripe, it's not entirely accurate. For starters, not all Social Security income comes from taxation. As noted, $83.1 billion was collected last year from interest earned on the program's asset reserves. Furthermore, the tax dollars you pay into the system aren't the benefit dollars you'll be receiving at a later date. Social Security is predominantly a social investment in our nation's retired workforce and not an investment such as a retirement account. That means what you put into the system could be more or less than what you'll receive in lifetime benefits. However, if you also wind up living in one of the 13 states that taxes Social Security benefits to some varied degree, and you're hit with a state-level tax on your benefits, then that would be a true form of double taxation on your payout. The second gripe is that the aforementioned income thresholds (MAGI plus one-half of benefits) at the 50% and 85% tax tiers have never been adjusted for inflation . Thus, while only expected to impact around 10% of senior households in 1983, the taxation of benefits affects half of all senior households today. Since this tax is becoming an increasingly important source of revenue for Social Security, it's unlikely that lawmakers will update these thresholds for inflation. Or, to put this into context, more and more seniors are going to be exposed to the taxation of Social Security benefits with each passing year. More From The Motley Fool Here's How to Get the Maximum Social Security Benefit The $16,728 Social Security Bonus You Can’t Afford to Miss 5 Top Dividend Kings to Buy and Hold Forever Is Social Security Taxable? The Motley Fool has a disclosure policy .
Abe's G-20 show eclipsed by Trump-China trade talks, tweets OSAKA, Japan (AP) The Group of 20 summit in Osaka ended Saturday with lofty language from powerful world leaders, but it was eclipsed by U.S. President Donald Trump, who agreed to restart trade talks with China and extended a surprise invitation for North Korea's leader to meet him Sunday. Despite the focus on Trump, the summit's host, Japanese Prime Minister Shinzo Abe, declared the gathering a success. "The G-20 nations, as the countries that lead the world economy, have a responsibility to squarely face global problems and to come up with solutions through frank dialogue," Abe said in concluding the meeting. "Now, with this 'Osaka Declaration,' we should try to tenaciously find, not the differences, but common ground among us, and, we hope, to continue our effort to sustain global economic growth," he said. In striving for common ground, however, the summit declaration finessed differences and yielded no major new initiatives. Still, German Chancellor Angela Merkel welcomed the fact that the leaders managed to hold the line on the issue of climate change, with 19 countries committing themselves to the Paris climate accord. Only the United States dissented, reiterating Trump's decision to withdraw from the Paris Agreement "because it disadvantages American workers and taxpayers." Merkel told reporters that "this process cannot be turned around." She said some leaders in Osaka indicated they were willing to up commitments to curb greenhouse gases by aiming for "net zero" emissions by 2050. Merkel also lauded the deal between the EU and the Latin American bloc MERCOSUR also struck on the G-20 sidelines to create the world's largest free trade zone after 20 years of negotiations. The agreement includes a reference to the goals of the Paris accord. Japan had pushed for the Osaka summit to become a landmark for progress on environmental issues, including tackling the global problem of plastic waste and recommitting to efforts to counter climate change. Story continues Leaders said they'd "look into a wide range of clean technologies and approaches, including smart cities, ecosystem and community based approaches." The G-20 leaders have long sought to present a united front in promoting open markets and calling for smart policies to fend off threats to global economic growth. But the schisms over such issues as protectionism and migration are straining efforts to forge the usual consensus on a broad array of policy approaches and geopolitical issues. The summit declaration did not take aim at protectionism but included a call for free, fair, non-discriminatory and open markets. "Weren't we originally seeking agreement on these principles? We need to go back to the original point so that we can remember what it was we were initially seeking," Abe said. "This time, we managed to go back to this original point to come to agreeing on these important principles." Much of the spotlight of the two-day meeting focused on Trump. Using Twitter, he raised a stir by inviting North Korea's Kim Jong Un to shake hands during a visit the he plans to make to the heavily armed Demilitarized Zone between the Koreas on Sunday. "If Chairman Kim of North Korea sees this, I would meet him at the Border/DMZ just to shake his hand and say Hello(?)!" North Korea's First Vice Foreign Minister Choe Son Hui responded by saying it was a "very interesting suggestion," and the meeting, if realized, would serve as "another meaningful occasion in further deepening the personal relations between the two leaders and advancing the bilateral relations." She said North Korea still hadn't received an official proposal for the meeting from the United States. Trump has at times found himself at odds with other leaders in such international events. China, meanwhile, has sought support for defending global trade agreements against Trump's "America First" stance in gatherings like the G-20. At the outset of their meeting, Trump told Xi he wants to "even it up in respect to trade," and that he thought it would be very easy to do. The two sides have levied billions of dollars' worth of tariffs on each other's products, and talks on resolving the longstanding issues had stalled in May. Afterward, Trump said the talks were "back on track." He said he had decided to hold off on imposing more tariffs on Chinese exports, while China planned to buy more American farm products. China's official Xinhua News Agency said Xi and Trump had agreed to restart trade talks "on the basis of equality and mutual respect." It's unclear, however, if they have overcome the obstacles that brought the talks to a halt earlier. "I think that realistically that the two sides, there are substantive issues that remain to be resolved subsidies, state owned enterprise, reform, industrial policy in China that go to the core of China's economic system," said Jacob Parker, vice president of U.S.-China Business Council China Operations. "These are not issues that are going to be resolved quickly or overnight. And I think we have to expect that both sides are going to have to compromise a little bit. They can't let perfect be the enemy of good," Parker said. Holding the summit in Osaka allowed Abe to perhaps raise his popularity among constituents in this manufacturing hub ahead of an election for the upper house of parliament in July. Abe's ruling Liberal Democratic Party has suffered several setbacks in by-elections and his long tenure as prime minister is raising questions about who will succeed him. While he upstaged his host, Trump did make a point of attending meetings like one early Saturday on women's empowerment, where his daughter and adviser Ivanka Trump spoke. She and others noted that the world economy would get a boost of up to $28 trillion by 2025 if women were on an equal economic footing and described improving the status of women as "smart economic and defense policy." The G-20 comprises Argentina, Australia, Brazil, China, Germany, France, Britain, India, Indonesia, Italy, Japan, Canada, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United States and the European Union. Also attending the summit were the Netherlands, Norway, Spain, Guinea, Senegal, Singapore and Vietnam. ___ Associated Press journalists Kaori Hitomi and Yves Dam Van in Osaka and Sam McNeil in Beijing contributed to this report.
Falcon Heavy Flight 3: What Went Wrong and What Went Right It was another one for the record books. In the wee hours of Tuesday morning, SpaceX launched its third-everFalcon Heavy rocket, shooting a payload of 24 separate satellites into a variety of orbits around the Earth. By now this has kind of become old hat for SpaceX, which since January 2017 has completed 47 straight successful launches of its Falcon 9 and Falcon Heavy rockets. In at least one respect, however, Tuesday's launch represented a new "first" for SpaceX: It was the first time that SpaceX captured a piece of its rocket ... in a net. Image source:SpaceX. By now we're all familiar with the concept of "reusable" rockets pioneered by SpaceX. First, the company proved its ability to launch a Falcon 9 rocket, then showed it could land the rocket's first stage back on the ground (or at sea). Still, itwaspretty awesome last year when SpaceX manageda choreographed landingoftworockets simultaneously after its first Falcon Heavy launch. Watching both side boosters land safely back at the spaceport, within microseconds of each other, was just a little bit mind-blowing. And when you consider that each of these boosters costs SpaceX probably$30 millionto build, recovering two of them is obviously a big deal, and a big reason SpaceX is still able to beat its competition on price. (Speaking of which, SpaceX once again landed both of its Falcon Heavy side boosters safely back on earth on Tuesday, for the third time in a row.) Still, one thing SpaceX has struggled to accomplish despite multiple attempts is the recovery of the spaceship "fairing" -- the nosecone that protects the payload when a rocket is, er, rocketing through the atmosphere en route to orbit. According to Elon Musk, each of these fairings costsabout $6 million, and thus represents about 10% of the cost of a Falcon 9 launch, or 7% of a Falcon Heavy mission. As the SpaceX CEOfamously quippeda few years back, "Imagine [each fairing is] a pile of cash that was falling through the atmosphere, and it was going to burn up, and smash into tiny pieces. Would you try to save it? Probably yes." Well, on Tuesday SpaceX successfully held out a net, and "saved" itself $3 million. The tool SpaceX used to accomplish this feat was the recently renamed drone ship Ms. Tree. In contrast to the large floating landing pads that we've taken to calling drone ships and drone barges, where SpaceX rockets sometimes land at sea, "Ms. Tree" is described as a "fast, highly maneuverable vessel" with a big net stretched across its topside. When a fairing splits open to release its cargo, the two fairing halves fall back to Earth, each braked by parachute. What SpaceX tries to do with Ms. Tree is maneuver the boat underneath a piece of fairing and catch it before it splashes into the ocean (which is filled with corrosive saltwater). By salvaging the fairing before it falls into the drink, SpaceX hopes to be able to refurbish and reuse the fairing on future missions. And once it's got this down to a science, the company should theoretically be able to save enough money to lower its launch prices by another 7% to 10% -- or add $6 million to its bottom line -- each time it launches. Tuesday's mission saw Ms. Tree successfully maneuver under and catch one-half of the Falcon Heavy's nosecone. (The other half splashed down nearby.) Now that SpaceX has proved the concept with its first successful catch, though, it's likely the company will charter a second "net boat" to try to catch both fairing halves at once and double the savings. One final point: Important as recovering the fairings will be to SpaceX's bottom line, there remain even more savings to be had from recovering Falcon Heavy center cores. Similar in appearance but still different from the two side boosters that SpaceX landed safely on Tuesday, the even-faster-moving Falcon Heavy center core has proven problematic for recovery at sea. So far three Falcon Heavy launches have yielded two FH center cores missing their target drone ship entirely, and one landing successfully ... only to later topple over and fall into the sea. Once SpaceX getsthiselement of the equation worked out, though, that should yield another $30 million (or so) reduction in launch costs for SpaceX, and make it even harder for anyone else tocompete with SpaceX on price. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market The Motley Fool has adisclosure policy.
Squad Up! Millennial Gamers Will Pave Way to Bitcoin Adoption The link between gaming and crypto is so strong, that were it not for Vitalik Buterin’s encounter with World of Warcraft, the Ethereum creator would never have founded the most well-known alternative to Bitcoin. That’s a link in a chain that has already looped back on itself; more millennials now say they’dinvest in cryptocurrencies like Bitcoin and Ethereumbefore they would traditional stocks. The demographic crossover between crypto and gaming is one that’s not hard to miss – young men; largely millennials, butby no means exclusively. When the World of Warcraft creators released an update that modified the young Vitalik’s cherished warlock’s Siphon Life spell in 2010, it kickstarted his quest to find (or create) a decentralized framework which would make a repeat of such a catastrophe impossible. Ethereum never began with a focus on gaming, but that focus emerged nonetheless – and has already spread to other platforms. Now, there are multiple blockchain projects working on gamifying cryptocurrency and bringing games to the blockchain. All the best aspects of blockchain which stand to clean up the financial system can be applied to gaming. Ownership of in-game items can be made immutable by the strictures of blockchain consensus – eliminating the prospect of another young Vitalik having his character suddenly messed with. And believe it or not, this matters. After all, people are already willing to spendhundreds of thousands of dollarson virtual in-game items. It has become normal for video games to have digital currencies (not cryptocurrencies) integrated as a matter of course. Read the full story on CCN.com.
4 Ways You’re Sabotaging Your Retirement Without Even Realizing It No matter what plans you have for retirement, chances are you're looking forward to that milestone. But if you're not careful, you could end up wrecking your secure retirement and end up struggling financially instead. Here are a few habits that could contribute toward that unhappy, cash-strapped existence. The more time you give your money to grow, the more you stand to retire with -- it's that simple. On the flip side, putting off your nest egg contributions could result in a scenario where you're forced to retire low on cash, as the following table illustrates: [{"27": "32", "$719,000": "$498,000"}, {"27": "37", "$719,000": "$340,000"}, {"27": "42", "$719,000": "$228,000"}, {"27": "47", "$719,000": "$148,000"}, {"27": "52", "$719,000": "$90,000"}] As you can see, if you contribute $300 a month to a retirement plan over a 40-year period, you'll wind up with $719,000 despite having put in only $144,000 of your own money. That's because you'll be able to use the power ofcompoundingto grow your wealth. But if you wait until you're older to start saving that each month, you'll see fewer gains and a less impressive ending balance. Image source: Getty Images. Case in point: Saving $300 a month over 15 years gives you just a $36,000 gain and a total of $90,000 in your nest egg. That $36,000 gain is better than nothing, but it pales in comparison to the $575,000 gain you get when you save that $300 over a 40-year period. The gains we saw in the table above are based on a 7% average annual return, which is more than doable when you invest the bulk of your retirement savings in stocks. But if youinvest too conservatively, you'll limit your savings' growth and wind up with less money to work with once your career ends. Imagine that instead of focusing on stock investments, you play it safe and go heavy on bonds, thereby generating just a 4% return over the course of your savings window. Here's what the above numbers would look like under that scenario: [{"27": "32", "$342,000": "$265,000"}, {"27": "37", "$342,000": "$202,000"}, {"27": "42", "$342,000": "$150,000"}, {"27": "47", "$342,000": "$107,000"}, {"27": "52", "$342,000": "$72,000"}] As you can see, investing too conservatively over a 40-year window could leave you with $342,000 in savings instead of $719,000. And that could seriously restrict your retirement lifestyle. Some people shy away from stocks for fear of losing money, and that's understandable. But investors who hold quality stocks for a long period of time tend to come out ahead despite market fluctuations along the way. Social Securitywill likely be a sizable income source for you in retirement, but it shouldn't be your primary (or only) one. Those benefits will only replace about 40% of your former income if you earned an average wage, and most seniors need roughly double that to live comfortably and pay for expenses outside of basics like housing, transportation, food, and utilities. In fact, the average Social Security beneficiary today only collects $1,461 a month, or $17,532 a year. Neglecting to build savings could therefore force you to live mostly on Social Security, and struggle as a result. Once you retire, there's a good chance you'll spend more on healthcare on an annual basis than you did during your working years. That's because health problems tend to arise as people age, and because Medicare leaves you on the hook for numerous costs, from premium payments to deductibles to co-pays. Fidelity estimatesthat the average 65-year-old couple retiring this year will spend $285,000 on healthcare throughout retirement when we account for the aforementioned costs under Medicare. And that's just one figure. HealthView Services, a provider of cost-projection software, thinks the healthcare tab for the average healthy 65-year-old couple will be almost $364,000 throughout retirement. None of these figures, by the way, includelong-term care, which covers assisted living and nursing homes. The takeaway? Read up on what healthcare might cost in retirement, and pad your savings so you're not left scrambling down the line. A few unfortunate decisions on your part could set the stage for a miserable retirement when you deserve better. Start saving early in your career, invest in a reasonably aggressive fashion, understand how much money Social Security will give you, and recognize how much healthcare might eat away at your income. Doing all of these things will put you in a better position to enjoy a comfortable, dignified lifestyle after retiring. More From The Motley Fool • Everything You Need to Know About Retirement • Don't Retire Early Until You Do This • The $16,728 Social Security Bonus You Can’t Afford to Miss The Motley Fool has adisclosure policy.
Better Marijuana Stock: HEXO vs. MedMen HEXO(NYSEMKT: HEXO)(TSX: HEXO)is three times bigger thanMedMen Enterprises(NASDAQOTH: MMNFF). Its stock is up big so far in 2019 while MedMen's shares are down year to date. And HEXO is more visible to U.S. investors with its stock listed on the NYSE American stock exchange, while MedMen is available only over the counter in the U.S. When it comes to the future prospects for each of these stocks, all of this means... very little. Here's what's really important in deciding whether HEXO or MedMen is the better marijuana stock. Image source: Getty Images. Based on average trading volume, HEXO ranks as theNo. 4 most popular marijuana stock on the marketright now. There are several reasons behind HEXO's popularity among investors. HEXO reigns as the market leader in the adult-use recreational marijuana market in Quebec, Canada's second most populated province. This market dominance stems from the company's huge long-term supply agreement with Quebec signed last year. Although limited production capacityhampered HEXO's sales growth in the last quarter, that shouldn't be a problem for too much longer. HEXO's acquisition of Newstrike Brands, combined with the company's internal expansion efforts, should boost annual production capacity to around 150,000 kilograms in the not-too-distant future. That additional capacity could be needed as HEXO prepares for the launch of the Canadian market for cannabis edibles and other derivative products. Last year, giant beer makerMolson Coors Brewingselected HEXO to form a joint venture targeting this market. HEXO plans to launch a variety of products later this year, including cannabis-infused beverages, gummies, and vapes. HEXO could soon partner with other major companies that operate outside the cannabis industry. CEO Sebastien St.-Louisstated in HEXO's recent quarterly conference callthat HEXO is in discussions with more than 60 large companies about potential partnership deals. He expects HEXO to announce its second big partner later this year with another deal potentially on the way in late 2020. There are also a couple of other noteworthy developments for HEXO that investors can look forward to next year. The company expects to be profitable in 2020. It also plans to enter the U.S. hemp CBD market in partnership with a large U.S.-based company next year. While HEXO is really popular with investors,Wall Street analysts think that MedMen has much greater upside potential. The average analysts' one-year price target for the cannabis retailer represents a premium of around 160% above MedMen's current share price. There's a lot for investors to like about MedMen. The company currently operates 37 cannabis retail stores, with a 7% market share in the biggest prize of all: California. In total, MedMen owns 86 cannabis retail licenses, including some that it will pick up from pending acquisitions. Thisranks MedMen at No. 2 nationallybased on its number of retail licenses. As an early entrant in several core markets, MedMen has been able to secure prime real estate. With many states restricting the number of cannabis retail licenses, the company will face limited competition. Roughly 86% of the U.S. cannabis market isn't penetrated yet. This gives MedMen a huge growth opportunity. The company thinks that it can replicate its successful strategy adopted to become the retail leader in California in other states. But MedMen isn't focused only on the U.S. market. The company teamed up withCronos Groupto launch cannabis retail stores in Canada. The provinces in the country have been slow to finalize regulations for allowing retail stores to open, but Canada should be a big market for MedMen down the road. MedMen isn't likely to be profitable anytime soon. However, that's mainly because the company continues to reinvest heavily in expansion. When it completes its "land grab" phase, though, MedMen could be in a great position to generate solid profits. I wouldn't discount the possibility that MedMen will emerge as a big winner in the cannabis retail industry. However, for now, I think that HEXO is the better pick. My view is that HEXO is positioned to be one of the top players in the Canadian cannabis-infused beverages market. I think that the company is likely to land additional major partners that will help it enter the U.S. hemp CBD market. And my hunch is that HEXO will be able to increase its market share outside of Quebec as its capacity grows. More From The Motley Fool • Beginner's Guide to Investing in Marijuana Stocks • Marijuana Stocks Are Overhyped: 10 Better Buys for You Now • Your 2019 Guide to Investing in Marijuana Stocks Keith Speightshas no position in any of the stocks mentioned. The Motley Fool owns shares of Molson Coors Brewing. The Motley Fool recommends HEXO. The Motley Fool has adisclosure policy.
Better Cannabis Stock: OrganiGram Holdings vs. GW Pharmaceuticals You might think that the fact thatOrganiGram Holdings(NASDAQ: OGI)andGW Pharmaceuticals(NASDAQ: GWPH)are both cannabis stocks is about the only thing the two have in common. OrganiGram is an up-and-coming Canadian cannabis producer while GW is a leading cannabis-focused biotech. But both stocks do have at least one other similarity: They're sizzling hot. OrganiGram and GW Pharmaceuticals shares have skyrocketed more than 70% so far this year. Which of these two cannabis stocks is the better pick going forward? Here's what you need to know. Image source: Getty Images. There are two key things investors look for with any stock they're considering buying. First, they want great growth prospects. Second, they want the company to be in a strong position to capitalize on those growth prospects. OrganiGram looks good on both counts. As for growth prospects, it makes sense to start in OrganiGram's home country of Canada. The Canadian adult-use recreational marijuana market is still just getting cranked up after launching last October. This market could easily top $5 billion by 2022, including the additional opportunity for cannabis edibles and other derivatives that should be available for sale later this year. Even greater opportunities lie outside of Canada. Multiple European countries have legalized cannabidiol (CBD) and/or medical cannabis. Market researcher Brightfield Group projects that theEuropean CBD and medical cannabis market will approach $10 billion by 2023. In addition, other countries across the world have legalized medical cannabis. So, how well is OrganiGram equipped to seize these opportunities? The company is one of onlyfour cannabis producers to secure supply agreements with all 10 Canadian provinces. OrganiGram is focusing on getting cannabis edibles and vape products ready for the Canadian market with several partners. It's also well positioned in Europe. OrganiGram teamed up with Alpha-cannabis to target the important German medical cannabis market. The company partnered withEvianato obtain hemp-derived CBD to supply to key European markets. Of course, to meet the needs for these markets requires significant production capacity. OrganiGram ranks in thetop 10 Canadian cannabis producers based on annual production capacity, with its expansion efforts putting it on track to produce 113,000 kilograms of cannabis per year by the end of 2019. GW Pharmaceuticals' fortunes rest primarily on a single CBD drug -- Epidiolex. The biotech won FDA approval last year for Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS), both of which are rare forms of epilepsy. Epidiolex has proven to be a spectacular commercial success so far. GWreported first-quarter salesof the drug totaling $33.5 million, more than double the amount that analysts expected. The company expects the momentum to continue in the U.S. It also hopes to win regulatory approval in Europe soon. Analysts have differing views on just how high Epidiolex can fly. Bank of America analyst Tazeen Ahmad thinks the drug will reach peak sales of $2.4 billion. Others project peak sales closer to $1 billion. Epidiolex certainly appears to be on track to becoming a blockbuster for GW Pharmaceuticals. The drug's sales could receive a boost if GW wins approvals for additional indications. GW plans to submit for FDA approval in the fourth quarter for Epidiolex in treating seizures associated with tuberous sclerosis complex (TSC). The company also is evaluating Epidiolex in treating Rett syndrome, a disease that causes seizures and can impact coordination and speech. While Epidiolex deservedly gets the greatest amount of attention, GW also has another drug on the market outside of the U.S. Sativex is approved in over 25 countries as a treatment for multiple sclerosis spasticity. GW is moving forward with a late-stage study of the drug in hopes of winning U.S. approval in the indication. In addition, GW Pharmaceuticals' pipeline includes other promising earlier-stage clinical programs. The company is evaluating cannabidivarin (CBDV), another cannabinoid found in the cannabis plant, in treating epilepsy and autism spectrum disorders. GW is also exploring the use of cannabinoids in treating glioblastoma, schizophrenia, and neonatal hypoxic-ischemic encephalopathy (HIE), a brain dysfunction that occurs when the brain doesn't receive enough oxygen. My view is that OrganiGram is a better pick right now. Although I like the prospects for Epidiolex, they're already largely baked into GW Pharmaceuticals' share price. OrganiGram, on the other hand, currently has a market cap below $1 billion. Success in Canada and Europe should provide plenty of room to run for the stock. I also think that OrganiGram has a shot at landing a major partner outside of the cannabis industry. If this happens, OrganiGram's shares would almost certainly soar. More From The Motley Fool • Beginner's Guide to Investing in Marijuana Stocks • Marijuana Stocks Are Overhyped: 10 Better Buys for You Now • Your 2019 Guide to Investing in Marijuana Stocks Keith Speightshas no position in any of the stocks mentioned. The Motley Fool recommends OrganiGram Holdings. The Motley Fool has adisclosure policy.
Long a Plea from Shareholders, Twitter Cracks Down on Abusive Tweets After mounting calls in recent years by shareholders, regulators and users to improve its abuse policies, Twitter announced it will start flagging tweets from the politicians and world leaders who break them. Some context: Big Tech, particularly Facebook, Twitter and Google, has increasingly been scrutinized for its handling of abusive content and misinformation. Recently, Mark Zuckerberg said Facebook should have been quicker to flag a doctored video of Nancy Pelosi, calling it “an execution” mistake. YouTube and Google, despite recent promises to better address hate speech, are facing backlash from employees for not removing anti-LGBTQ videos. Shareholders have been @ing the company: Twitter has been slow to police abusive content and hate speech. Though 44% of shareholders voted down a 2019 proposal from Arjuna Capital and the New York State Common Retirement Fund to produce a report on content policies, a considerable near-30% voted in favor of one. Trump test: @realdonaldtrump loves slamming fellow politicians, the media and people of all stripes on Twitter as much as he loves Diet Coke. What this new policy will look like for his account, as he faces a growing, irksome chorus of one-liners from Democratic Presidential candidates and calls for impeachment, is yet to be seen. Twitter said it will not retroactively label his prior tweets. In short: Whether or not this significantly moves the company's stock price is unclear: Shares dipped slightly Friday. Overall, though, Twitter seems to be taking long-requested steps to improve its user experience and is reaping the benefits. Twitter shares rose 17% in April-—during which the company had its best day in two years—after it reported a significant increase in daily active users. ---Elizabeth Thompson Photo: REUTERS / ANUSHREE FADNAVIS
The British Royal Family's Costs Are Skyrocketing. Here's Why How much does it cost to live like British royalty? At least £67 million ($85.2 million) a year, according to figures released by Buckingham Palace this week. What’s more, it’s becoming more expensive: in the most recent fiscal year, costs jumped by £19.6 million ($25 million), or 44%, on the previous year. So what’s behind the bump? Put it this way: palace renovations don’t come cheap. But first: where does the money come from? The British Royal Family has had a special deal with the U.K. government since King George III agreed to surrender his net income in 1760 in return for a fixed annual payment. This has been amended many times over the generations and was most recently renegotiated in 2011. It works like this: The Royals hand over all of the profits from their vast Crown Estate property portfolio, which is one of the U.K.’s largest, and includes assets such as Windsor Great Park, Ascot racecourse, and a mixture of residential and commercial properties stretching from London to the farthest ends of Scotland and Northern Ireland. The U.K. government then returns to the family a fixed payment of around 15% of this total income through a ‘Sovereign Grant.’ This money, which otherwise would’ve gone to the public, funds the running of the Royal Household: staff payroll, official visits, hospitality and housekeeping, and the upkeep of the various royal palaces. In 2019, Queen Elizabeth II received a Sovereign Grant of £49.3 million ($63 million), plus a special additional grant of £32.9 million ($42 million) towards the extra costs of restoring Buckingham Palace—a total of £82.2 million ($104 million). Of that, the Royal Family spent £67 million. Those sums eclipse the previous year’s: £76.1 million ($96.8 million) in grants, with a net expenditure of £47.4 million ($60.3 million). This year’s largest additional cost is currently fixing up Buckingham Palace. Along with crumbling walls and a leaky roof, a 2016 report from the Royal Trustees—who include the prime minister and chancellor of the Exchequer—found the Palace’s electrical, plumbing and heating systems had not been updated since the 1950s. At a total cost of £47 million ($60 million), that amounts to 57% of the total annual budget. To address the situation, a ten-year renovation plan was mapped out to upgrade the Palace’s infrastructure to 21st century standards and make it more accessible to the disabled through the creation of extra elevators. It’s also getting a new energy system and more office space. This has seen staff, members of the Royal Family, and over 3,000 works of art move out of the Palace’s East Wing, in order to create a vacant space for the renovation work. Another Royal Family money pit: the five-bedroom Frogmore Cottage gifted to Prince Harry and Meghan Markle by the Queen in May 2018. While it sits in an idyllic, secluded corner of the Windsor Estate—and close to a collection of giant redwoods from Markle’s native California—it had one major problem. Since its creation in the mid-1800s, the cottage had been repurposed into five small dormitory-style units, meaning that extensive construction work was needed to turn it into a single, modern home fit for the official residence of the Duke and Duchess of Sussex. These renovations have cost the U.K. taxpayer £2.4 million ($3 million), largely because most of the ceiling beams and floor joists had to be replaced, while heating, water and gas systems also had to be relaid to suit a single home. Despite reports in the U.K. press, the work did not include a yoga studio. The home is now undergoing maintenance on its exterior doors, windows, and walls, and further works on the garden are expected—though the Duke and Duchess of Sussex will pay for those themselves, alongside décor, furniture, and any upgrades considered too expensive for the public purse. So, while the British taxpayer may foot the bill for a cottage that won’t crumble, they won’t be paying the bill for updating the kitchen. Whodoespay for that kitchen? Prince Charles, or at least his estate. The Royal Family don’t have to ask the British taxpayer to sign off on all their income. The Duchy of Cornwall, a private estate held by the heir to the throne, has a vast portfolio of land in southeast England, stretching across farmland and coast, and containing residential and commercial properties. The profits from that land are used to pay the private expenses of the Duke and Duchess, wife Camilla, as well as his children, William and Harry, and their families. If the Queen wants to update her kitchen, she too has a private source of funds: her own portfolio of land under the Duchy of Lancaster, which owns land across Wales, London, and northern England. These are all considered private funds, and while the Queen and Prince Charles voluntarily pay some tax, it still leaves them with a tidy sum to fund their private lives. That means that when it comes to living like a Royal, $85.2 million is likely just a fraction of the bill. —Indian workers on H-1B visascould be casualties of a U.S. trade spat —China iscreating an “entity list”to avenge Huawei and punish foreign firms —4 reasons to beskeptical about Facebook’s Libracryptocurrency —Bernie Sanders wantsemployee ownership—already a trend in the U.K. —Listen to our new audio briefing,Fortune500 Daily Catch up withData Sheet,Fortune‘s daily digest on the business of tech.
JPMorgan Chase CEO Jamie Dimon: ‘Libra poses no threat to us’ JPMorgan Chase CEO Jamie Dimon has weighed in on Facebook’s cryptocurrency Libra . Dimon, a staunch critic of cryptocurrencies but an advocate of blockchain technology , doesn’t see the social media giant as an existential threat to his company, he told Yahoo Finance . “We move $6 trillion a day around the world. It is very cheap, very secure, it works. And the banking system has already built Zelle, real-time P2P and The Clearing House, with the banking system built real-time payments,” he said. The crypto space does, however, provide healthy competition, with Dimon acknowledging that some firms “want to eat our lunch.” JPM Coin JP Morgan is set to begin customer trials of its first native JPM Coin cryptocurrency in conjunction with corporate clients. According to a recent report by Bloomberg Japan , the FI’s Head of Digital Treasury Services and Blockchain, Umar Farooq, has said that customers will soon begin a pilot, with the ultimate aim of speeding up transactions, such as payments between firms and bond transactions. JPM Coin – which was first revealed in February – will initially run on top of Quorum, a private version of Ethereum developed by the bank. The post JPMorgan Chase CEO Jamie Dimon: ‘Libra poses no threat to us’ appeared first on Coin Rivet .
3 Dividend Stocks That Are Perfect for Retirement Let's face it: Retirement is expensive. Many individuals fret over the monumental task of adequately saving for a comfortable life once they stop working. Luckily, there are moves you can make tokeep your retirement on trackand grow your nest egg, including investing in blue chip dividend stocks. That doesn't mean investors can just look for high-yield income stocks and call it a day. It's important to find dividend stocks that are supported by solid businesses capable of producing healthy amounts of cash flow in any market conditions. With that in mind, we asked three contributors at The Motley Fool for their best dividend stocks for retirement. Here's why they choseNutrien(NYSE: NTR),Williams Companies(NYSE: WMB), andHome Depot(NYSE: HD). Image source: Getty Images. Maxx Chatsko(Nutrien):In the early 2000s, fertilizer stocks were some of the best dividend stocks to own. A combination of agricultural overproduction, shifting global trade dynamics, and more frequent climate events in major breadbaskets have made the last decade significantly less favorable to the fertilizer industry as a whole. That said, there are signs of better days ahead, especially for Nutrien. Created from a merger between Agrium and PotashCorp, Nutrien is the world's largest fertilizer company. It sold over 27 million tons of potash, nitrogen, and phosphate in 2018. The business generated $2 billion in free cash flow last year. And after recently raising its dividend payout, the stock now boasts a 3.3% yield. While Nutrien is a fertilizer company at its core, the business is positioning itself to become the agricultural retailer of the future. Retail locations help Nutrien to distribute products ranging from its own fertilizer brands to its quickly expandingdigital agricultural platform. The goal: capture as much as 30% of the $40 billion retail market opportunity in the United States through acquisitions and organic growth. It wields 20% market share today, as well as a growing presence in Canada, Australia, and South America, which offer a combined market opportunity of $37 billion. Strong retail operations will help to offset inevitable weakness in fertilizer markets, protect cash flows (and the dividend) in rough market conditions, and provide better growth opportunities. Nutrien is attempting to grow retail segmentEBITDAfrom less than $1.2 billion in 2017 to at least $1.8 billion by 2023. To put the importance of the retail segment in perspective, the company expects full-year-2019 adjusted EBITDA of at least $4.4 billion across all of its segments. Given a strengthening balance sheet and a string of intelligent acquisitions, retirees looking to own a piece of the future of agriculture -- and to get paid for doing it -- might want to give the stock a closer look. Image source: Getty Images. Matt DiLallo(Williams Companies):Pipeline giant Williams Companies offers retirees the best of both worlds. The company operates a nearly irreplaceable portfolio of pipelines and processing plants that handle 30% of the country's natural gas supplies. These assets provide Williams with predictable cash flow backed almost entirely by long-term, fee-based contracts. Those agreements currently supply the company with enough steady cash flow to cover its dividend -- which yields an above-average 5.5% -- by a comfortable 1.7 times. Williams uses the cash it retains after paying dividends -- which should tally more than $1.25 billion this year -- to invest in expanding its portfolio. The company currently has several growth projects underway that shouldincrease its cash flow by about 8% this year. That will help support its plan to boost its dividend by 10% to 15% above last year's level. Meanwhile, Williams has a large inventory of additional expansion projects in development. The company believes it has the financial flexibility to invest in enough new projects each year to grow earnings at a 5% to 7% annual rate starting in 2020, which should support a similar growth rate in its dividend. These factors make Williams a near-perfect stock for retirement because it offers investors above-average dividend income and low-risk growth. Image source: Getty Images. Demitri Kalogeropoulos(Home Depot):The housing market slump that ended around 2010 provided investors with an unusually clear view into the strength of Home Depot's business under stress. Yes, the home improvement giant's profitability dove as salesshrank to $71 billionin 2009 from $79 billion two years earlier. But the company has rebounded nicely since then to demonstrate just the type of resiliency that's perfect for a retirement portfolio. Sales and profit trends are set to significantly outpace rivalLowe'syet again in 2019, which shows the scope of Home Depot's market share advantage. The chain's operating margin clocked in at almost 15% of sales last year compared to Lowe's 8%. Its smaller peer has tried several initiatives, including price cuts and an inventory refresh, to break Home Depot's momentum. But the market leader just keeps winning share. Income investors might be excited about Home Depot'slong-term outlook, which calls for sales to reach between $115 billion and $120 billion by 2020 -- up from $100 billion in 2017 and $66 billion in 2010. But even if the industry takes a surprise downturn, it's likely that Home Depot, and its quickly growing dividend, will lead home improvement retailing into the next cyclical expansion period. 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 Demitrios Kalogeropoulosowns shares of Home Depot.Matthew DiLalloowns shares of Nutrien Ltd and has the following options: long January 2020 $110 calls on Home Depot and short August 2019 $195 calls on Home Depot.Maxx Chatskohas no position in any of the stocks mentioned. The Motley Fool recommends Home Depot and LOW. The Motley Fool has adisclosure policy.
How to get a good night's sleep during a heatwave Sleeping in the heat is no picnic - Westend61 It will come as little surprise to anybody trying to get to sleep this week that researchers have found sixty two per cent of people struggle to sleep during warmer weather. "The problem with sleeping in the heat is that in order to get a good night's sleep, you need to lose around one degree of body temperature during the night," says sleep expert Neil Stanley, author of How To Sleep Well . "Usually that's not a problem and in regular weather, this happens naturally as we lose heat from our head and face throughout the night. But when the temperature heats up, it's harder for our bodies to shift this heat and so we struggle to fall asleep and stay asleep." Nick Littlehales , a sleep coach to some of the world's biggest sports stars, says another reason we struggle to sleep in the heat is that we're simply not used to it. "The natural circadian rhythms of the day—the sun up and the sun down process—is about moving from a normal body temperature to a cooler environment as the sun disappears", he explains. "When you're exposed to heat throughout the day and into the late evenings, that warm temperature is counter-intuitive to going into sleep." "In the UK, we're always surprised when it snows in winter and when it get hot in the summer," says Neil Stanley. "We're the least prepared country when it comes to dealing with any fluctuations in weather." So what's the solution? Get a fan "Invest in either a tall, floor standing fan, or just use your desk fan," says Neil. "This will get cool air circulating around the room, which will cool you down. Or better still, put a pack of frozen peas in front of the fan so you get icy blast of cold air." "I knew one athlete who would put two litre bottles of water in the freezer, put them in a bowl in front of a fan and let the fan blow over the cold bottles. It seemed to work for him," says Nick. Story continues If you don't have one yet, we recommend referring to our guides to the best fans and portable air conditioners. Avoid alcohol As tempting as it is to cool down with a few cold beers or cocktails after a hot sunny day, limit yourself; "As well as containing a lot of calories which require body heat to burn off, too much alcohol in the evening will leave you dehydrated, hot, bothered and sticky, which isn't conducive to good sleep," says Neil. Too much alcohol will hinder sleep in a heatwave Credit: Getty Keep windows closed "Opening windows just lets hot air in, yet people do it in the mistaken belief it will cool the room down," says Nick. "Instead, you should keep your bedroom curtains and windows closed to keep the hot air and sun out. Make your bedroom as dark as possible." "The other issue with sleeping with your bedroom window open in the heat, is that it increases noise in the bedroom, and it may make you anxious about a burglar coming in," says Neil. "And you need a quiet mind, and to feel safe and secure, to sleep properly. Anxiety is even worse for sleep than heat." Keep your pillow cool "A lot of body temperature comes from head temperature, so a cool pillow can help," says Nick. "Shoving your pillow in the freezer works. Freezer blocks you would use to keep a cooler bag cool during a picnic can be handy too. Put them in a bag and inside the pillowcase, on the underside." Use a hot water bottle (yes, really) "It's not a hot water bottle, it's simply something to hold liquid," says Nick. "Put freezing cold water in your hot water bottle and put it inside your bed." Ditch the duvet "Forget about summer or winter duvets and just ditch your duvet and top sheets altogether," says Neil. "Instead, wear 100% cotton pyjamas, which will wick away sweat during the night and keep you cool." A light dinner will help you sleep in the heat Credit: Getty Have a light dinner "Anything too calorific will need to be burned off by the body, which creates heat and adds to the problem," says Neil. "So go for less calorific meals in the evening and you'll find it easier to fall asleep." "Anything carbohydrate-heavy will continue to be digested by the body, which creates internal temperature," says Nick. "So heavy meals are out; keep it light with salads, fruit and similar foods." Lastly, have a positive attitude "We all know sleeping in the heat can be a bit of a bother, but we seem to manage just fine on holiday, even when we don't have air conditioning," says Neil. "Worrying about getting to sleep is one of the biggest obstacles to good sleep. So enjoy the weather and pretend that busy road outside your house is a lovely Thai beach. You'll be sound asleep in no time..." Purchase How to Sleep Well by Dr. Neil Stanley for £9.99 (rrp£10.99). Alternatively, if you wish to purchase any other books, please visit the online Telegraph Bookshop or call 0844 871 1514
Dell UltraSharp, Samsung SSD, iPad, Echo Dot, and more for June 29 According to The Vision Council, "65 percent of Americans experience digital eye strain symptoms — such as dry, irritated eyes, blurred vision, eye fatigue, and headaches — when using a computer, smartphone, and other digital devices." (Source) If you work long hours at the office, why not upgrade your monitor to thisDell UltraSharp32-inch 4K IPS monitor. Saving you 25 percent off the listed price and it comes with a $100 Dell gift card. What makes this monitor so great is that it comes in a glorious 4K display that has a ComfortView mode. It's designed to reduce the amount of blue light emitted from the monitor to optimize eye comfort.Read more... More aboutTv,Gaming,Smart Home,Consumer Tech, andMashable Shopping IMAGE: DELL $819.99 Dell UltraSharp U3219Q 32-inch 4K IPS LED Monitor with $100 Dell Gift Card -- See Details IMAGE: DELL $699.99 Dell XPS 8930 Intel Core i7 8700 16GB RAM Desktop with code AFF300XPS -- See Details IMAGE: AMAZON $129.99 New Nintendo 2DS XL Handheld Game Console With Mario Kart 7 -- See Details IMAGE: AMAZON $83.98 Samsung T5 500GB Portable USB 3.1 Solid State Drive -- See Details IMAGE: WALMART $449.99 VIZIO 65-inch 4K HDR Smart LED TV (D65x-G4) -- See Details IMAGE: AMAZON $52 Logitech G502 HERO High Performance Gaming Mouse -- See Details IMAGE: WALMART $299 Nintendo Switch with 10000mAh Charger and Docking Station -- See Details IMAGE: WALMART $249 Apple iPad 32GB WiFi Tablet (Latest Model) -- See Details IMAGE: WALMART $39.92 NETGEAR EX6400 WiFi Mesh Range Extender (refurbished) -- See Details IMAGE: RAKUTEN $237.96 Sony WH1000XM3 Bluetooth Wireless Noise Canceling Headphones with code PRO15P -- See Details IMAGE: WALMART $219.99 Sceptre 55-inch 4K LED TV (U550CV-U) -- See Details IMAGE: ADORAMA $269 HiFiMan HE5se Over Ear Planar Magnetic Headphones -- See Details IMAGE: AMAZON $409 Apple Watch Series 4 GPS 44mm -- See Details IMAGE: BUYDIG $599 LG 55-inch 4K HDR Smart LED NanoCell TV with code YBT17 (55SM8600PUA) -- See Details IMAGE: AMAZON $14.99 Echo Input - Prime Exclusive -- See Details IMAGE: AMAZON $24.99 Echo Dot (3rd gen) -- See Details IMAGE: AMAZON $59.99 Corsair K68 Mechanical Gaming Keyboard - Cherry MX Red -- See Details IMAGE: AMAZON $99.98 Chamberlain MYQ Smart WiFi Garage Door Opener with Amazon 1080p Smart Cloud Cam -- See Details
Why Champagne Brands Are Partnering With Art Fairs Upon entrance toThe Armory Showin New York City, an art fair showcasing 20th- and 21st-century works, guests were immediately greeted by a massive bar pouringPommeryBrut Royal Champagne. In the middle of the lounge sat a towering blue sculpture by conceptual artist Ryan Gander, the inaugural winner of the Pommery Prize for large-scale sculpture. Guests could grab a glass and ponder the piece, sit and chat on cozy couches, or wander through the wares of dozens of galleries set up at Manhattan’s Piers 92 and 94 in March of this year. In the VIP lounge, magnums of the brand’s 2002 vintage Champagne were available. Partnering with the fair and establishing an artistic prize was the brainchild of Pommery’s CEO Nathalie Vranken. While Vranken is a personal supporter of the arts, she also wanted to recognize Pommery’s history of collecting art since its inception with Madame Pommery in the 1800s. It’s also convenient that the nearly 65,000 guests to The Armory Show were there to shop. Artworks typically sell for anywhere from $5,000 to several millions. If a consumer has that sort of disposable income, they can likely afford Champagne—especially from a brand with a similar customer base. Luxury retail has long known that a glass of wine elevates the shopping experience—and just may lower inhibitions enough for a guest to drop the credit card. Stop in any shop along New York’s Madison Avenue or Rodeo Drive in Los Angeles and you’ll be greeted with a flute and a smile. Attending an art fair—such as The Armory Show,Art Baselin Switzerland or Miami Beach, orSalone del Mobile.Milanoin Milan—is now no different. Gallerists arrive in hopes of promoting their artists and selling works, and art buyers and collectors clog the room on the hunt for the next addition to their halls. It’s obvious, then, that alcohol would be involved, but the difference is that the galleries aren’t supplying the drinks. Champagne brands are sponsoring these massive events to reach a similar customer demographic: discerning consumers who appreciate the arts, but also have the liquidity to purchase thousands of dollars of art and high-end wine. “Art collectors are passionate about aesthetics and discovering new artworks and artists,” says Fabien Vallerian, the international communications director for ChampagneRuinart. “Their lifestyle is about this curiosity and a real hedonist research. They always want the best experience and the highest quality.” Ruinart started partnering with art fairs 12 years ago, and currently collaborates with more than 30 events around the world, from Miami to Dubai to Hong Kong. Beyond Art Basel, some of the major art-circuit shows the Champagne house sponsors includeFrieze New York,La Biennale Paris,Photo London, and theTokyo International Art Fair. It originally stemmed from the French brand’s nearly 300 years of history in the arts. The Ruinart family collected art but also commissioned pieces, including a historic piece by Alphonse Mucha that ignited the Art Nouveau movement at the turn of the century. Partnering with art organizations in the present day feels like a natural extension of the brand, Vallerian explains, and has allowed the Ruinart team to connect with their consumers in the “right places.” “Many fairgoers look forward to [enjoying] their favorite glass of Ruinart at the fairs,” Vallerian says. “It provides familiarity.” Ruinart typically brings pours of its Blanc de Blancs and Rosé Champagne, available by the glass or the bottle. Beyond reconnecting with loyal customers, it’s also about seeking out new ones. Art Basel in Switzerland, for instance, brought together 95,000 guests over six days for the event last June; the Miami Beach edition had 83,000 people crowd the 500,000 square feet of the Miami Beach Convention Center in December 2018. Beyond the daytime perusing, there are parties, dinner events, and, of course, the Miami nightlife. Though Art Basel doesn’t release its specific demographics, Vallerian notes that guests can range in age from 30 to 60. The common denominator is that the guests all share an interest in culture, which extends to the epicurean world as well. A person with a well-curated eye will likely also have a highly developed sense of taste; the ability to decipher tasting notes is not all that different from turning a critical eye toward a piece of art. “Supporting art fairs is also a way for us to reach a wider audience and tell the story of Ruinart,” says Vallerian. “Champagne offers another look at artistic mastery: developing a cuvée or blending grape varieties is a world of art in and of itself.” The idea is expanding to other wine regions as well.Ca’ del Bosco, a sparkling wine brand from Franciacorta, a region in northern Italy, sponsors the nearby Salone del Mobile.Milano in Milan, as well as the Salone’s editions in Moscow and Shanghai. The brand pours their Franciacorta Cuvée Prestige and Franciacorta Annamaria Clementi. Both wines are made with the same method as Champagne and include the same grapes: Chardonnay and Pinot Noir. Essentially it is Italy’s version of the French sparkling wine. And for an Italian art fair, it’s the perfect accompaniment. And Ca’ del Bosco has personal connections to the arts as well. The winery houses a massive sculptural and photographic collection. In fact, some sculptures even hang from the ceiling above the fermentation tanks. “Through the Salone del Mobile.Milano, we got in contact with an amazing international, high-profile target, which pushes us every year to continue to invest in this sector,” says Maurizio Zanella, chairman of Ca’ del Bosco. “The link between our world and the design world is very close.” Zanella admits that gauging the return on investment can be challenging to put into hard sales numbers, but anecdotally, he knows that customers seek them out each year at the fair. “After six years, we have noticed that loyal clients come back and look for us at our wine bar at the Salone del Mobile.Milano,” says Zanella. “I think those who appreciate Italian design, craftsmanship, and style are naturally and instinctively passionate about the best of Italian bubbles.” It’s a sentiment shared by Vranken, who says that it’s a commitment to be a part of an international art fair. While it may not directly correlate to sales, it does say something about brand loyalty. So much so that it leads to what Vallerian identifies as one of Ruinart’s biggest challenges in sponsoring art fairs: “Ensuring there is enough Champagne for everyone to toast with!” —Alcohol-free barscaught on in the U.S. and U.K. But can they go global? —Gin sales are boomingand it could be thanks to the growing plant craze —Know what to look for tofind a great rosé —The6 most interesting new whiskiesyou should be drinking right now —Listen to our new audio briefing,Fortune500 Daily FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis.
Why Tariffs Aren't the Only Reason for Investors to Worry About China Tariffs, tariffs, tariffs. Now in its second year, the Trump administration's ongoing trade war with China seems no closer to ending than it was in April 2018. With all the focus on tariffs, it's easy for investors to assume that if the trade war were to end, it would be an all-clear signal for U.S. companies doing business in China. But that isn't the case: The Chinese market is much more than a set of trade policies, and there are substantial risks beyond tariffs that would still affect U.S. companies even if the trade war ended tomorrow. Here are threeotherbig problems that U.S. companies are running into in China, and why investors should care. Tariffs are a big problem for companies doing business in China. But they aren't the only problem. Image source: Getty Images. One major news story you probably haven't heard of from China is a major outbreak of African swine fever. Thankfully, the disease doesn't affect humans, but it is wreaking havoc on China's domestic pig population. The epidemic is so widespread, in fact, that it's expected to wipe out one-fifth of China's swine herds. While a 20% reduction in China's swine population might be good news for U.S. pork producers, it's likely to be bad for other U.S. industries. That's because a major ingredient in Chinese swine feed is soybeans. Fewer swine means less global demand for soy, which means that soybean prices are likely to drop. And while the 4.4 billion pounds of annual U.S. pork exports are big business, that business is dwarfed by the 270 billion pounds of soy produced annually in the U.S. U.S. soybean farmers are already reeling from the impact of tariffs on their businesses, and this could compound the problem. After all, why pay more for U.S. soybeans that have tariffs slapped on them when there's a global glut of super cheap soy available from other countries? Even without tariffs, lower soy prices still mean less revenue for soy farmers. This isalready having an impacton farm equipment manufacturerDeere(NYSE: DE), which is seeing slowing sales as cash-crunched farmers put off big equipment purchases. It could also be problematic for companies that sell soybean seeds like DuPont agricultural spinoffCorteva(NYSE: CTVA)orBASF(NASDAQOTH: BASFY), which recently purchased the former Monsanto's seed business fromBayer. Unfortunately, this epidemic is showing no signs of being resolved quickly. China's auto market is in the midst of a slowdown that doesn't seem to be tariff-related, considering that domestic auto sales as well as those from foreign companies outside the U.S. are all experiencing declines. In May the China Association of Auto Manufacturers (CAAM) reported a year-over-year sales decline of 16.4%, a record. The current slump is the first time automotive sales have contracted in China since the 1990s, which has been unnerving manufacturers. A CAAM spokesperson blamed the May decline on some Chinese provinces' implementation of new "China VI" vehicle emission standards well ahead of Beijing's 2020 deadline, a move that caused uncertainty among manufacturers and supply chain disruptions. But the slump was alreadywell under way. In the fourth quarter of 2018,General Motors(NYSE: GM)reported its China sales were off by 25.4%. And it's not just auto brands that have been hit by the slowdown. Electrical component makerLittelfuse(NASDAQ: LFUS)reporteda rare quarterly organic revenue declinein the first quarter of 2019 thanks to the Chinese auto manufacturing slowdown. Unfortunately for the affected companies, there's little they can do but try to ride out the weakness. But there are signs that the weakness may be more than temporary. China is experiencing a broad economic downturn, possibly exacerbated by the ongoing trade war. But there's no guarantee that a swift end to the trade war will end the weakness. And that's having an effect on many U.S. companies that have high sales in China. Considering how large the Chinese economy is, it should come as no surprise that the affected companies are diverse in size and sector. For example, water heater manufacturerA.O. Smith(NYSE: AOS), which counts on China for 34% of its overall revenue, saw Q1 2019 revenue fall 21% year-over-year in its rest-of-world segment,primarily due toweak sales in China. In January,Apple(NASDAQ: AAPL)slashed its revenue forecast thanks to slowing iPhone sales in -- you guessed it -- China. High-end jewelerTiffany & Co.(NYSE: TIF)has blamed recent revenue misses and lowered forecasts on diminished sales to Chinese tourists. Water heaters, iPhones, and jewelry -- not to mention trips to the U.S. to buy said jewelry -- are major purchases, the kind that are likely to be deferred or forgone entirely when times are tight. That bodes poorly for other makers of expensive or luxury goods. That's not to say that an end to the trade war wouldn't be a good thing for many if not most U.S. companies -- it would. But it's far from the only issue facing China and the U.S. companies that do business there. So if a breakthrough in trade talks is announced, markets may react with exuberance, pushing shares higher. Savvy investors, though, should keep in mind that there's a lot more to China than just tariffs, and proceed with caution. 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 John Bromelsowns shares of Apple and Corteva Inc. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends Littelfuse. The Motley Fool has adisclosure policy.
Trump claims border wall would have prevented drowning deaths of father and daughter Donald Trump has suggested that if his border wall had been built along the US-Mexico border, the father and daughter found washed up on a river bed would not have died. Speaking in Osaka at the end of the two-day G20 summit, the US president was asked about the shocking image of Oscar Ramirez , 25, and, Angie Valeria , almost two years old, seen face down in the Rio Grande. The father and the beautiful daughter who drowned ... if they thought it was hard to get in, they wouldnt be coming up, they wouldnt be coming up and so many lives would be saved, Mr Trump told reporters at Saturdays press conference. Discussing the river in which they were found dead, the president added: You know the Rio Grande can be very tough you know that has moments where it can be very common when all of a sudden it becomes totally violent and people get swept away. Mr Trump doubled down on his hard-line immigration rhetoric, describing a federal court decision to block border wall funding a disgrace and migrant crossings from Mexico as very unfair. You have millions of people on line for years to get into a country, he said. They take tests, they study ... and these people have worked hard, theyve been on line for seven, eight, nine years, then someone walks in. Honestly its very unfair. Days after she lost her daughter and husband to the treacherous currents of the Rio Grande, Tania Vanessa Avalos, 23, arrived back in El Salvador to await her familys bodies to be returned in coffins. A photo of the two drowned migrants in the reeds of the rivers shore sparked public outcry. A series of Democratic candidates in the 2020 presidential race have spoken out in response to the photo, with Beto ORourke saying Trump is responsible for these deaths. The Independent has made the decision to publish the image to illustrate the human cost of current US immigration policy and the desperate reality of migrants attempts to enter the country. Story continues Donald Trump speaks during a news conference in Osaka, Japan (AP) On Friday a federal judge blocked the Trump administration from tapping $2.5bn (£2bn) in defence department funding to build segments of the presidents prized border wall in California, Arizona and New Mexico. Judge Haywood S. Gilliam acted in two lawsuits filed by the state of California and by activists who contended that the money transfer was unlawful and that building the wall would pose environmental threats. Responding to the news at the press conference in Osaka, Mr Trump called the decision a disgrace. He added: So were immediately appealing it and we think well win the appeal. There was no reason that that should have happened. And a lot of wall is being built. The fight over the border wall is far from over. The US 9th Circuit Court of Appeals is expected to take up the same issue of using military money next week. At issue is Mr Trumps February declaration of a national emergency so that he could divert $6.7bn (£5.3bn) from military and other sources to begin construction of the wall, which could have begun as early as Monday. The president identified $3.6bn (£2.8bn) from military construction funds, $2.5bn (£2bn) from Defence Department counter-drug activities and $600m (£470m) from the Treasury Departments asset forfeiture fund. Fridays federal court decision did not rule on funding from the military construction and Treasury budgets. Additional reporting by agencies
3 Top Bank Stocks to Buy Right Now Bank stocks have not exactly been a standout of the recent market rally. Over the past month, the financial sector has underperformed theS&P 500by more than a full percentage point, thanks to recession fears and interest rate uncertainty. However, there could be some bank stocks worth a closer look as we head into the second half of the year. Read on to find out why our Fool.com contributors have their eyes onGoldman Sachs(NYSE: GS),JPMorgan Chase(NYSE: JPM), andBank of America(NYSE: BAC). Image source: Getty Images. Matt Frankel, CFP(Goldman Sachs):I've written about Goldman Sachs' long-term potential several times, but after the recent stress test results were released, the bank has jumped to the top of my watch list. After it was announced that regulators had no objection to the bank's capital plan, not only did Goldman Sachs just give shareholders a big dividend raise that boosts the stock's yield to 2.5%, but the bank also announced amassive$7 billion stock buyback over the next 12 months. To put this in perspective, this translates to nearly 10% of all outstanding shares. With Goldman trading for a roughly 5% discount to its book value, I'd say that this should be a pretty effective way to build shareholder value. In addition, the big bank is investing heavily in several key areas of its business. For example, Goldman announced last month that it would acquire United Capital Financial Partners in an effort to grow its already-impressive wealth management business. And don't forget Goldman's consumer banking growth. Not only has the Marcus personal lending and deposit account platform been extremely successful so far, but this could just be the tip of the iceberg when it comes to Goldman's consumer banking ambitions. It's already been reported that Goldman has a "Main Street" investment platform in the works, and the company is about to jump into the credit card game asApple's co-branding partner, with the new Apple Pay card set to be released later this summer. Matthew Cochrane(JPMorgan Chase):JPMorgan is consistently one of themost profitableof the big domestic banks, boasting a 16%return on equityin Q1 2019, well above the 10% threshold that investors generally consider to be good. The bank's first-quarter revenue rose to $29.9 billion, a 5% increase year over year, and earnings per share (EPS) grew 12% to $2.65. Despite the healthy profitability and growth, however, JPMorgan's shares sport a P/E ratio of less than 12. Though the bank recently shuttered Finn, its digital-only bank targeted at millennials, that was apparently due to the massive success of its online and mobile efforts for its flagship brands. Chase now has 49 million active digital users and 33 million active mobile users, more than any other domestic bank, all while growing faster by actual users, too. Using Chase's mobile app, users can move money with Chase QuickDeposit or Zelle, pay bills, set up recurring payments, use autosave functions, set goals, and find tips for better money management. Being such a big entity has advantages, as it gives JPMorgan a large war chest to invest in technology and customer acquisitions. This year, CFO Marianne Lake said the bank expects to spend about $11.5 billion on technology, half of which is earmarked for innovation to "change the bank." Dan Caplinger(Bank of America):The financial industry has had to endure a lot of ups and downs over the past decade. On the whole, though, Bank of America has done a good job of recovering from the worst of times in the late 2000s. By highlighting the importance of continuing to grow but only at a pace that's sustainable over the long run, CEO Brian Moynihan and his team have been able to keepBank of America's core retail banking operationshumming along and producing reliable results. Bank of America has nevertheless had to fight hard in order to keep its competitors at bay, and the recent pause from the Federal Reserve and subsequent inversion of the yield curve has many bank shareholders nervous about the future. Despite those concerns, B of A is innovating to keep up with its peers. Its newErica digital assistanthopes to lure in younger customers who've been least likely to respect Bank of America's legacy reputation in the aftermath of the financial crisis. With more than 7 million users already, Erica is becoming extremely popular, and being a first-mover could help B of A give customers a reason to walk in its doors rather than going to a competitor. Investors currently hope that Bank of America can survive the current yield curve inversion and offer higher dividends in the Fed's annual review of capital plans. Good news could be a catalyst for further gains for B of A. 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 Dan Caplingerowns shares of AAPL.Matthew Cochraneowns shares of JPMorgan Chase.Matthew Frankel, CFPowns shares of AAPL and Bank of America. The Motley Fool owns shares of and recommends AAPL. The Motley Fool has the following options: short January 2020 $155 calls on AAPL and long January 2020 $150 calls on AAPL. The Motley Fool has adisclosure policy.
Match Group Looks to Asia for Growth When it comes to online dating,Match Group(NASDAQ: MTCH)has no equal. The company owns a growing collection of dating apps that span the globe, including Match, Tinder, OkCupid, PlentyOfFish, and Hinge, as well as dozens of others. But make no mistake: Tinder is the biggest contributor to the company's growth and financial success. Tinder subscribers increased by 384,000 during the first quarter, growing its rolls to a whopping 4.7 million, up more than 1.3 million and 36% year over year. However, as Tinder's soaring subscriber growth has begun to diminish in the U.S., Match is looking to Asia to spur the next stage of its growth. Image source: Getty Images. Match recently announced that the company had realigned its management team to focus on opportunities in the Asia Pacific region. In fact, Asia was mentioned 31 times during the company'sfirst-quarter conference call. In recent months, Match has seen success in India, not only by promoting Tinder but also by billing OKCupid as a complementary alternative. That strategy is paying off, as downloads of OKCupid grew 600% year over year in the first quarter, becoming one of the top dating apps in the country with minimal investment. Match CEO Mandy Ginsberg said the company will leverage that successful template in its approach to other Asian markets. Tinder is still the breadwinner, however, as it's one of the top 10 grossing apps across six countries in Southeast Asia. Another strategy the company is employing is to address the issue of mobile data usage, which still comes at a premium in some countries. Match developed an alternate version of its most popular product, dubbed Tinder Lite, which is smaller, easier to download, and less data-intensive than the full-fledged version. Investors may recall that it took some time before Match attempted to monetize Tinder. One of the first big steps the company took on that journey was the introduction of Tinder Gold, the dating app's premium subscription tier that lets users see who has liked them -- without all the swiping. The company continues to roll out new premium features that it believes will give users more reasons to use Tinder and to use it more often. These upgrades were big moneymakers -- Tinder's revenue topped $800 million last year. Match also recently embarked on a comprehensive evaluation of the company's global pricing strategy. Match plans to begin testing price elasticity on a market-by-market basis as Ginsberg believes there's an opportunity to increase the prices, particularly in areas with the highest per-capita income. That's not to say there aren't challenges ahead. Online dating has been growing in popularity in the U.S., and the market is expected to be worth as much as $3.2 billion by 2020, according to MarketResearch.com. That's not necessarily the case in many other countries where online dating still carries a negative stigma. The headway Match has made thus far has been encouraging, and management believes that overall revenue from Asia, which accounted for less than 12% of the total in 2018, can grow to as much as 25% over the coming five years. Sounds like a Match made in heaven. 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 Danny Venaowns shares of Match Group. The Motley Fool recommends Match Group. The Motley Fool has adisclosure policy.
The Latest: Abe, Putin announce initiatives to expand ties OSAKA, Japan (AP) — The Latest on the Group of 20 summit meetings in Osaka, Japan (all times local): 8:30 p.m. Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin have announced new initiatives to further expand economic ties and tourist exchanges between the two nations, but have made no visible progress on a decades-long territorial dispute. The Soviet Union took the four southernmost Kuril Islands in the closing days of World War II. Japan asserts territorial rights to the islands, which it calls the Northern Territories, and the dispute has kept the countries from signing a peace treaty. Abe said Saturday's talks confirmed a shared intention to solve the problem. He said the parties moved closer to reaching agreement on joint economic projects on the disputed islands. He also announced that Japan will offer simpler visa procedures for Russian businessmen and tourists. Putin voiced hope that joint projects will "help create conditions for finding mutually acceptable solutions of the most difficult problems." ___ 7:10 p.m. Canadian Prime Minister Justin Trudeau says he has discussed the arrest of two Canadians in China with Chinese President Xi Jinping. Trudeau refused to give details of his exchanges with Xi. He told reporters Saturday following the summit of the Group of 20 that he believed the face-to-face discussions were important in helping to resolve tensions between the two countries. The strains arose after Canada, at the U.S.'s request, arrested the chief financial officer of China's Huawei Technologies, Meng Wanzhou. China responded by detaining two Canadians and sentenced another to death in an apparent attempt to pressure for Meng's release. The two detained men have been accused of conspiring together to steal state secrets. No evidence has been provided and they have not been allowed access to family members or lawyers while remaining in custody. ___ 5:35 p.m. President Vladimir Putin says claims of Russian meddling in the U.S. election have been on the agenda of his talks with U.S. President Donald Trump. Story continues Asked Saturday whether the issue was discussed during the meeting, Putin said that "we talked about it," but didn't elaborate. He said he believes it's necessary to "turn the page" in relations with the U.S., which have plunged to the lowest level since the Cold War times. He said he and Trump agreed that the nations' top diplomats should continue discussions on a possible extension of the New Start nuclear arms reduction treaty that expires in 2021. They also talked about the need to encourage the development of bilateral economic ties. ___ 5:05 p.m. Russian President Vladimir Putin says his country and Saudi Arabia have reached an agreement on the need for OPEC to continue production cuts. Speaking Saturday after the Group of 20 summit in Osaka, Putin said that he and Saudi Crown Prince Mohammed bin Salman discussed the issue during their bilateral meeting and agreed on the need to continue curbing the oil output. He added that it's yet to be decided whether the cuts will be extended for half a year or, possibly nine months. ___ 5 p.m. German Chancellor Angela Merkel has welcomed the fact that G-20 leaders managed to hold the line on the issue of climate change since the last summit in Argentina, with 19 countries committing themselves to the Paris accord and only the United States dissenting. Merkel told reporters in Japan on Saturday that "this process cannot be turned around," adding that some leaders present in Osaka have already indicated they are willing to increase their commitments to curb greenhouse gases by aiming for "net zero" emissions by 2050. Merkel also lauded the deal between the EU and the Latin American bloc MERCOSUR to create the world's largest free trade zone after 20 years of negotiations, noting that the agreement includes a reference to the goals of the Paris accord and that this was accepted by Brazil. Some fear Brazil's right-wing government could allow large-scale destruction of the Amazon, a major absorber of carbon dioxide from the atmosphere. ___ 4:10 p.m. In the final G-20 communique world leaders are vowing to tackle climate change. They said in the document released at the end of the two-day summit Saturday that they'd try to get lower emissions by working for financing for sustainable development and for better innovation. Japan has pushed for the Osaka summit to become a landmark for progress on environmental issues, including tackling the global problem of plastic waste and recommitting to efforts to counter climate change. Leaders said they'd "look into a wide range of clean technologies and approaches, including smart cities, ecosystem and community based approaches." The United States in the communique reiterated its decision to withdraw from the Paris Agreement on climate change "because it disadvantages American workers and taxpayers." ___ 2 p.m. U.S. President Donald Trump says his meeting with Chinese President Xi Jinping was "very good." Trump told reporters during a meeting Saturday with Turkish President Recep Tayyip Erdogan that trade talks with China were "back on track." The meeting raised hopes for reviving negotiations that stalled in May as both sides raised tariffs in their dispute over trade and technology. China's official Xinhua News Agency said that Xi and Trump had agreed to restart trade talks "on the basis of equality and mutual respect." It said the U.S. side agreed not to add new tariffs on Chinese exports. It said the two sides' trade negotiating teams were to discuss specific issues. ___ 12:30 p.m. Turkish President Recep Tayyip Erdogan says he expects the scheduled delivery of Russian air defense missiles under a contract that has vexed the United States. Erdogan said Saturday at the start of talks with Russian President Vladimir Putin on the sidelines of the G-20 summit in Osaka, Japan, that the deal is a priority and the delivery of the S-400 air defense systems should start without delay. The U.S. has strongly urged NATO member Turkey to pull back from the deal, but Ankara has refused to budge and the first shipments are expected next month. It would mark the first such deal between Russia and a NATO member. Putin hailed growing bilateral trade and a rising flow of Russian tourists to Turkey. Russia and Turkey have closely coordinated their actions in Syria, signing a de-escalation deal for the northwestern province of Idlib, the last major rebel stronghold. That deal has recently been tested by increased fighting, raising the prospect of a government offensive and a major humanitarian crisis. ___ 12:15 p.m. President Donald Trump has sat down for talks with his Chinese counterpart Xi Jinping in Osaka. The two leaders spoke of good intentions as the meeting began Saturday on the sidelines of the Group of 20 summit in Japan. Their discussions are expected to focus at least in part on the bitter dispute over technology and trade that has triggered a tariffs war between the two largest economies. Xi started his comments with a reference to "ping-pong diplomacy" that launched the U.S. normalization of relations with Beijing nearly 50 years ago. He noted that "cooperation and dialogue are better than friction and confrontation." He added that, "Today I'm prepared to exchange views with you concerning the growth of U.S.-China relations so as to set the direction for our relationship." ___ 11:10 a.m. Group of 20 leaders have joined their host Japanese Prime Minister Shinzo Abe in showcasing support for helping women close the gap with men in finance and other forms of economic empowerment. Ivanka Trump, adviser to President Donald Trump, said Saturday that the world economy would get a boost of up to $28 trillion by 2025 if women were on an equal economic footing. She was speaking at a special session on the issue at the G-20 summit in Osaka that included her father. She described improving the status of women as "smart economic and defense policy." Queen Maxima of the Netherlands, the U.N. secretary-general's special advocate for inclusive finance for development, says "it is really necessary to close this gap for women to be economically empowered."
Authpaper Delivery- A Stretch Out to Blockchain based Secure Data Delivery HONG KONG, CHINA / ACCESSWIRE / June 29, 2019 /"Our digital future is about enabling better productivity and decision making to enjoy a better quality of life," said Yacine Baroudi. And so it is, the emergence ofnew technologieshas raised the bar of comfort for everyday users. These technologies ought to offer all the more secure and transparent environment to the users through new technological advancements. The rising idea of decentralization is attracting various disciplines through its disruptive dynamics. May it be a mere healthcare center or a government-run institutional body, blockchain technology has its roots everywhere. In vogue, the only feasible option to exchange a confidential document sized 1.5 TB between two cross border institutional bodies is to store data in a hard disk and send it to the other side via courier service. Surprising isn't it? But this is the only accessible medium to support such high-quality data transfers. In this tech-savvy world, commercial and crucial data transfers are still performed through age-old method of physical mailing which takes a whole lot of time to process. This is because digital data platforms are subject to the risk of data leaking and subsequent data forgery. Due to these fraudulent data practices, there has been a direct loss of billions USD every year. To pace with the current digital delivery platforms, you are required to compromise with privacy and rely on a centralized system. The established online storage providers like Google Drive and Dropbox are even more subject to data breaches referring to the one that happened in 2014 to iCloud. To cater the huge business of mailing which accounts to millions of commercial data deliveries in a day in Hong Kong, Solon, the CEO ofAuthpapercame up with a secure digital platform that makes this process of data transfers, a process to unquestionably rely on. Authpaper delivery is a one-stop platform to deliver encrypted data through an unforgettable delivery pattern. Authpaper has a holistic vision of catalyzing digital delivery system and beat down the delayed and expensive system of physical courier services. The Hong Kong-based startup is a peer-to-peer platform working on electronic data stamping solution. "Authpaper Delivery can send data much faster than any other solutions, and have the same delivery guarantee and unforgeable delivery record on blockchain" - Solon, CEO of Authpaper Limited Offering an edge over other electronic mediums of data delivery such as mails and messengers by end-to-end data encryption, Authpaper delivery is believed to have exposed digital data delivery mechanism to an outstanding amplitude. Having ensured privacy, the platform is an augmented merger of blockchain, BitTorrent, cryptography and other emerging technologies. The delivered data is confidential let alone a group of specified recipients. Data breaches at any level could be easily traced down. Activities on the data are carefully tracked and recorded among the peers so that the delivery histories are public testable yet unforgeable. Encrypted pieces of digital data act as a reward to the peers while maintaining goodwill to the platform. To reward the contributions and raise support, the platform is all set to create an ERC-20 based coin, Authpaper Coin (AUPC) and distribute among the investors and partners. As the platform requires a customized blockchain, the coin cannot be used directly on it. Once the platform is ready, users will be provided an offer to exchange the coins with Authpaper stamp, the currency in the platform, at a certain rate.Token holders can also spend their AUPC for Authpaper online services. You may visit Authpaper Delivery'sofficial websiteto know more. You can also reach out for the token salehere. Media Contact: Name : Solon Li Email Id :hello@authpaper.io Website:https://www.authpaper.io/ SOURCE:Authpaper Coin View source version on accesswire.com:https://www.accesswire.com/550394/Authpaper-Delivery-A-Stretch-Out-to-Blockchain-based-Secure-Data-Delivery
New York Still Has Facebook In Its Crosshairs What do you do when you back a shareholder proposal to break up Mark Zuckerberg’s dual role as Facebook CEO and chair that gets voted down by said CEO and chair? In the case of New York state Comptroller Thomas DiNapoli, who supported the proposal and has been steadfastly critical of the company for its data breaches and Zuckerberg’s power, you handle it how any New Yorker would: by slamming on Facebook’s hood and yelling,“hey, I’m walkin’ here!” Figuratively speaking, of course. NY does not heart Zuck: As a trustee of the New York State Retirement Fund, which holds more than $1 billion in Facebook shares, DiNapoli has written a letter to Zuckerberg calling for the company to replace him as board chair. He threatened to otherwise vote against the nominations of all board members at its 2020 shareholder meeting. Facebook has yet to respond. Why is Facebook being so neutral emoji face about It? Because it can. Facebook, like Google and other tech companies, uses dual-class stock, which means founders and executives have more voting power than equity. (Traditionally, a company's shareholder voting structure is "one share, one vote.") Zuckerberg has 51% of the vote and veto power over the entire company, though he owns 13% of its shares by value. In short: DiNapoli mirrors Wall Street’s growing unease (including the unease of the FTC and lawmakers) with Facebook's governance structure. Earlier this month, the S&P Dow Jones Indices said that, given Facebook’s lack of transparency about how it collects data, it was dropping it from an index that tracks socially responsible companies. ---Elizabeth Thompson Photo: REUTERS / LEAH MILLIS
Binance CSO Confirms ‘Preliminary’ Talks to List Facebook’s Crypto Libra Speakingwith Finance Magnates, Binance strategy officer Gin Chao said the world’s largest cryptocurrency exchange “would probably want to list” Facebook’s Libra coin on its marketplace. Chao said that Binance has been in talks with Facebook about the potential listing. Though he said discussion is, “very much at a preliminary stage.” The revelation is some interesting news out of the FinTech Junction Conference in Tel Aviv, where journalists had a chance to sit down with fintech leaders and discuss the future of the industry. Chao said: “We have had official dialogue with Facebook. With regarding to listings specifically, right now they are going to be on a so-called ‘private chain.’ So that means they won’t be looking for external liquidity.” Libra isconceived by Facebook and its many corporate partners as a so-called “stablecoin” for easy payments among peers, and between consumers and vendors. Whenstablecoinsare traded on exchanges the intrinsic absurdities of the niche altcoin segment become apparent. Take Tether as an example. Tether is supposed to be fixed to the USD at a 1:1 ratio. It spent half of last Octobertrading below$1. For a while it cost only $0.92 in crypto markets globally. Traders could buy it for as little as $0.85 on one cryptocurrency exchange. Read the full story on CCN.com.
The Latest: K-pop band greets Trump during Seoul visit OSAKA, Japan (AP) — The Latest on President Donald Trump's trip to Asia. (all times local): 8:45 p.m. President Donald Trump is being welcomed to South Korea by its president — and one of its biggest K-pop boy bands. Trump's met with President Moon Jae-in (jah-YIHN') at the Blue House, where the South Korean leader has his offices and home. Trump also met EXO, a star pop group whose members gave the president a book. They also chatted with Trump's daughter, Ivanka, and his son-in-law, Jared Kushner. The president isn't saying whether he'll meet North Korea's leader Kim Jong Un (gihm jung oon) on Sunday at the heavily fortified South Korean-North Korean border known as the DMZ. Trump is just saying "it will be very interesting" but he's not giving other details about the surprise trip, which he announced earlier in the day on Twitter. ___ 7:10 p.m. President Donald Trump has landed in South Korea, and a meeting with North Korea's Kim Jong Un (gihm jung oon) may be on his agenda. Trump flew from Osaka, Japan, where he attended a global summit and held numerous meetings with world leaders, including Russia's Vladimir Putin (POO'-tihn) and China's Xi Jinping (shee jihn-peeng). Trump has said he'll visit the heavily-fortified demilitarized zone that separates North and South Korea, and he's invited Kim to join him "just to shake his hand and say Hello(?)!" Trump is also scheduled to meet with South Korean President Moon Jae-in (jah-YIHN') while in Seoul. ___ 5:30 p.m. President Donald Trump is not yet willing to remove the Chinese telecom giant Huawei (WAH'-way) from a trade blacklist. But the president says he will now allow U.S. companies to sell components to Huawei again. The fate of the company had become central in the ongoing US-China trade battle. Trump, attending an international summit in Japan, announced that negotiations between the two nations would resume. Story continues But Trump says the company's future would not be decided until the end of the trade talks. He met with China's President Xi Jinping (shee jihn-peeng) earlier Saturday but said that the topic of Meng Wanzhou, a Huawei executive held in Canada at the request of the United States, was not discussed. ___ 5:15 p.m. President Donald Trump says he did warn Russian President Vladimir Putin (POO'-tihn) about interfering in upcoming U.S. elections. Trump joked with Putin about the matter when they met Friday on the margins of a summit in Japan. Asked Saturday about his demeanor, Trump said to "take a look at the words. I did say it." Trump has been criticized for appearing unserious about Russian meddling in the 2016 election. Federal investigators recently found extensive interference by Russia in the election Trump won. Trump bristles at suggestions that he was elected with foreign help. He previously has accepted Putin's denials of meddling, and noted again Saturday that "he denies it totally." Trump said he's giving "very serious consideration" to visiting Moscow next spring for the 75th anniversary of the Nazi defeat. ___ 4:55 p.m. President Donald Trump is weighing in on Thursday evening's Democratic presidential debate and arguing that California Sen. Kamala (KAH'-mah-lah) Harris has gotten too much credit for a blistering attack on former Vice President Joe Biden. Trump is offering his assessment during a news conference marking the end of the Group of 20 summit in Osaka, Japan. Harris has been widely praised for her move highlighting Biden's opposition to public school busing during the 1970s. But Trump says he thinks she "was given far too much credit for what she did" and says her answer came "right out of a box." Trump also says Biden was no Winston Churchill — a reference to the great orator — but argued his performance wasn't that bad. ___ 4:45 p.m. President Donald Trump is defending his decision not to confront Saudi Arabia's Mohammed Bin Salman over the murder of Washington Post columnist Jamal Khashoggi (jah-MAHL' khahr-SHOHK'-jee). Trump is praising Mohammed as his "friend" as they met on the sidelines of the Group of 20 summit in Osaka, Japan. Trump has ignored reporters' questions about the crown prince's alleged role in the killing last year. Trump is calling the killing "horrible," but says that Saudi Arabia has "been a terrific ally." He's also suggesting he's satisfied with steps the country is taking to prosecute some of those involved, while claiming that "nobody so far has pointed directly a finger at the future king of Saudi Arabia." A U.N. expert has called for an investigation into his alleged involvement in the killing at the Saudi consulate in Turkey last year. U.S. intelligence officials concluded that bin Salman must have at least known of the plot. ___ 4:30 p.m. President Donald Trump says Jimmy Carter is a "nice man" but he was "terrible" as America's president. Trump is hitting back at Carter after he was asked about Carter's comment that Trump is president only because of Russian interference. Carter commented during a human rights discussion in Virginia, but offered no evidence for his statement. Trump says he was elected because he worked "harder and smarter" than his opponent, Democrat Hillary Clinton. ___ 4:25 p.m. President Donald Trump says he'd "feel very comfortable" crossing the border into North Korea if he meets Kim Jong Un (gihm jung oon) at the heavily-fortified Korean Demilitarized Zone separating the North from South Korea. Trump was asked about the prospect during a news conference in Japan marking the end of a Group of 20 summit. Trump earlier Saturday invited Kim by tweet to meet him at the border, "just to shake his hand and say Hello(?)!" It would be their third face-to-face. Trump says he'd "have no problem" becoming the first U.S. president to cross the border while he's there. Trump and Kim last met in Vietnam in February, but that summit collapsed with no progress. ___ 4:20 p.m. President Donald Trump says he's holding off on new China tariffs for the "time being" and the U.S. and China will restart stalled trade talks. Trump made the announcement Saturday in Japan following a lengthy meeting with Chinese President Xi Jinping (shee jihn-peeng). He says U.S. tariffs already in place against Chinese imports will remain, but that new tariffs he's threatened to slap on billions worth of other Chinese goods will not be put in place. Trump says "we're going to work with China where we left off." Talks broke off after several rounds of negotiations after the U.S. accused China of reneging on agreements it had already made. ___ 4:15 p.m. President Donald Trump says he may be meeting with North Korea's Kim Jong Un (gihm jung oon) on Sunday during a visit to the demilitarized zone with South Korea. But he says nothing has been set just yet. Trump offered the update during a news conference as he wrapped up his appearance at the Group of 20 summit in Japan hours after tweeting his invitation. Trump says Kim has responded to the offer and was "very receptive" to the idea. He says: "We may be meeting with Chairman Kim... we'll find out." It's unclear whether Trump was referring to a private communication or public comments from North's First Vice Foreign Minister, Choe Son Hui, who called the prospect of a meeting a "very interesting suggestion."
8 Body-Weight Moves That Will Scorch Every Muscle in Just 8 Minutes Photo credit: Neustockimages - Getty Images From Bicycling Getting a good workout in shouldn’t be inconvenient—you shouldn’t need to buy an entire home gym’s worth of equipment for yourself or struggle to carve out enough time to make it to the gym after work and cook dinner and do laundry all while getting to bed at a normal hour. That’s where body-weight workouts come in handy. You can do them anytime, anywhere—and they don’t even have to take up a large chunk of your time. This eight-move circuit, designed by Barry’s Bootcamp instructor and Brave Body Project cofounder Amber Rees, incorporates exercises that will fire up your entire body—which is great for boosting your overall performance on the bike. [Looking to start cross training but don’t know where to start? The Beginner’s Guide to Strength Training will teach you all the fundamentals to get the most out of your weight session, priming you for stronger miles in the saddle.] How to do it: Perform each exercise for one minute. If you want an extra boost, rest for one minute and do the workout through a second time. Watch the video below to see Rees demonstrate each of the eight moves. 1. Plank to Walking Squat Start in a high plank position. Walk your right foot in so your foot is underneath your shoulder, then walk your other foot in so it’s underneath your shoulder. Lift hands from floor, then perform a squat, then walk each leg back so you’re in high plank position. Repeat. 2. Push-Up Downward Dog Start in high plank position, then perform one push-up. When you return back to high plank position, tilt your pelvis upwards so that you’re in downward dog position. Return back to high plank position. Repeat. 3. Alternating Side Plank Start in a side plank with your left forearm on the floor, your elbow under your shoulder, your feet stacked, and your hips lifted so your body forms one long, straight line. Stretch your right arm up to the ceiling. This is your starting position. Draw your right hand down and reach it below your left underarm as you curl your upper body forward so your shoulders are parallel to the floor. Return to starting position, then switch sides. Continue alternating sides. 4. Push-Up Burpee Start in high-plank position, hands directly under your shoulders with your body forming a straight line from head to toes. Perform one standard pushup, then kick your feet forward so that they land to the outside of your hands. Lift your hands off the floor and jump straight up into the air. Land softly, coming down into a deep squat. Place your hands on the floor and kick you legs back into the plank position. Repeat. Story continues 5. Squat With Alternating Rotation Start by standing with feet shoulder-width apart. Perform one squat, making sure your chest is up and you’re shifting your weight back into your heels and pushing your hips back. Return back to standing position, then rotate your torso to the right while bringing your right knee across your body in a tucked position. Return to standing, then rotate your torso to the left while bringing your left knee across your body in a tucked position. That’s one rep. Repeat. 6. Alternating Single-Leg Deadlift Start standing with feet hip-width apart. Shift weight to your right leg, then keeping your shoulders back and your back straight, hinge at the hips and reach your hands toward the ground as left leg swings back behind you. Return back to starting position and repeat. 7. Jackknife Lay on your back with your arms over your head and your legs extended out in front of you. While keeping your legs straight, lift them up so your feet are pointing to the sky. Lift your head and shoulders off the ground and touch your toes. Return to starting position and repeat. 8. Hollow Hold Start by lying on the floor with your legs extended and your arms reaching above your head —your biceps by your ears. Lift your head, shoulders, and legs off the floor by pushing your lower back into the ground. Brace thighs, glutes , and core. Pull your knees in towards you in a tuck position, then extend them again. Repeat. ('You Might Also Like',) The 26 Best Cycling Movies of All Time The Benno Ballooner 8i Is a Comfortable and Sporty Urban Treat 7 Things You Should Do After Every Rainy Ride View comments
Jony Ives designs made Apple dominant. His departure shows the company is losing its lustre From foundation to brink of bankruptcy and trillion-dollar market capitalisation, a potted history of Apple serves not only as a useful guide to market dynamics, but also teaches us a thing or two about behavioural economics, consumer psychology and the sustainability of the trends shaping the world we live in. The three specific lessons the behemoth has reminded us of this week, are clichéd but true: first, dont put all your eggs in one basket; second, its whats on the inside that counts, and finally, all good things must, indeed, come to an end. On Thursday, Jonathan "Jony" Ive Chingfords greatest export to Silicon Valley announced that he was leaving Apple after almost three decades to start his own company. Though his name may not enjoy the same folkloric connotations as Steve Jobs or Tim Cook, its no exaggeration that Apple simply wouldnt exist as we know it if Ive hadnt, in 1992, swapped the drab climes of London and his Hoxton Square office at a start-up called Tangerine, for the Californian sizzle and the foothills of the Santa Cruz Mountains. Hes credited with designing the iMac, iPod, iPhone, iPad and MacBook. The success of his labour secured him long-term demi-god status across the famously fickle global tech community. In 2013, he received a knighthood from the Queen for services to design and enterprise, and hes thought to hold more than 5,000 patents. Last year he was awarded a Professor Hawking fellowship at Cambridge and his humble side-hustle is the chancellorship of Londons Royal College of Art. The Sunday Times estimates his net worth to be £192m. In large part thanks to Ive, several Apple products have achieved the kind of cult status that most other technology and consumer goods companies wouldnt even dare dream of for one item. If a symbol existed to sum up the young metropolitan professional - style-conscious and well-travelled, liberal and connected, curious and ambitious the iPhone would be it. In October 2018, the twelfth generation of the device was launched. Brilliant. In every way, was the slogan, a motto that could also describe Apples nuanced ability to remain relevant throughout the ages; to walk the tightrope of risk and innovation in a way that others have hitherto failed. But that brilliance is waning and Ives departure, while not exactly a key cause, might be an indicator of its malaise. http://players.brightcove.net/624246174001/default_default/index.html?videoId=5837728067001Support free-thinking journalism and subscribe to Independent Minds Im far from alone in pointing out that Apples prosperity has become inextricably linked to the success of its flagship product, the iPhone. As consumer trends shift, thats emerging to be a serious problem. Smartphone sales across the world have stopped growing and yet more than half of Apples revenue comes directly from iPhone sales. But the likelihood that customers buy Apple apps or accessories is obviously dependent on whether they have an iPhone in the first place, so that statistic doesnt actually sum up the true extent of Apple's dependence on the phone: the number of eggs it has in one basket. Thats the first of the company's problems, but theres another that could prove far more systemic, and this is where the second lesson comes in. The world of tech has demoted the importance of aesthetics. The future of digital is not about sublime symmetry, perfect dimensions and glossy curvatures in just the right places, but about the very things we cannot see. Read more Boris deserved all he got from Stormzys blistering Glastonbury set Pictures of drowned migrants divert focus from those who are to blame Prince Charles mission to save homeopathy is deeply unnerving The industry is migrating from being hardware-centric to software-obsessed and that means Ive, a craftsman of the beautiful, and Apple, an expert in design, while unlikely to fade away any time soon, are losing their lustre. Tomorrow is all about smart homes and artificial intelligence. The less we see of it the more desirable. There will always be a place in the world for those blessed with flawless taste, even in tech, but this next chapter is about the invisible process and not the gadget that can be flaunted in the front row at fashion week. Ives decision to leave will no doubt deal a body blow to Apple. The share price slip in the aftermath of the news is testament to that. But its an inevitable development: technology is moving on and, as hardware takes a backseat, Silicon Valleys cast of protagonists will reshuffle too. Apples proved a survivalist on several occasions in the past. Now its up to us - the consumers - to determine whether it can do so again.
Is United Continental Holdings, Inc.'s (NASDAQ:UAL) CEO Paid Enough Relative To Peers? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Oscar Munoz became the CEO of United Continental Holdings, Inc. (NASDAQ:UAL) in 2015. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels. See our latest analysis for United Continental Holdings According to our data, United Continental Holdings, Inc. has a market capitalization of US$23b, and pays its CEO total annual compensation worth US$10m. (This number is for the twelve months until December 2018). We note that's an increase of 9.8% above last year. While we always look at total compensation first, we note that the salary component is less, at US$1.3m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (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). So Oscar Munoz is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at United Continental Holdings has changed from year to year. United Continental Holdings, Inc. has reduced its earnings per share by an average of 28% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 9.0% over the last year. Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. Most shareholders would probably be pleased with United Continental Holdings, Inc. for providing a total return of 112% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. Remuneration for Oscar Munoz is close enough to the median pay for a CEO of a large company . The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we can't see a reason to suggest the pay is inappropriate. If you think CEO compensation levels are interesting you will probably really likethis free visualization of insider trading at United Continental Holdings. If you want to buy a stock that is better than United Continental Holdings, thisfreelist of high return, low debt companies is a great place to look. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
3 Top Healthcare Stocks to Buy Healthcare companies benefit from predictable demand even in the worst of economic times. That's a big reason why every investor should own at least a few healthcare stocks. So which ones do we like for the long term? We asked a team of Motley Fool contributors to weigh in, and they called outCardinal Health(NYSE: CAH),CannTrust Holdings(NYSE: CTST), andAbiomed(NASDAQ: ABMD). Image source: Getty Images. Chuck Saletta(Cardinal Health):Health services provider Cardinal Health clocked in a lousy 2018, driven in large part by challenges with generic-drug pricing and awrite-off associated with its medical device subsidiary Cordis. Its shares are down over the past year and are much closer to their 52-week lows than their 52-week highs. While that recent stock performance may be ugly, what investors should care about is the potential for a company's future. On that front, Cardinal Health looks to be in better shape for tomorrow than it was for yesterday. First and foremost, its shares are trading at less than nine times its anticipated earnings, a level that generally only makes sense if a company is expected to be static for the long run. With earnings expected to grow a bit over time, that provides room for positive surprises for its shares. Even if that modest growth doesn't materialize, Cardinal Health offers a yield of around 4.5%, which looks well covered by its operating cash flows. In addition, it does not carry excessive leverage on its balance sheet, which gives it the financial flexibility to work through a typical downturn should one temporarily derail its recovery efforts. All told, Cardinal Health's share price currently reflects the difficulties of its recent past better than it projects the potential strength of its near-term future. That makes now a great time to consider investing in its shares. Sean Williams(CannTrust Holdings):Sure, there are plenty of deep-discount healthcare stocks that I could beat the drum on (ahem,CVS Health(NYSE: CVS)), but I can't think of a more attractive high-growth opportunity in the healthcare space in June than...a marijuana stock. More specifically, CannTrust Holdings. Ontario-based CannTrust projects as a top-five cannabis grower, with200,000 kilos to 300,000 kilos in peak annual output. The wide variance in its production estimate ties into its ongoing acquisition of up to 200 acres of land for outdoor growing purposes. While some of this outdoor grow, which'll be capable of 100,000 kilos to 200,000 kilos a year, will wind up in cannabis stores throughout Canada, much of it will be earmarked for extraction purposes to create higher-margin products such as edibles, concentrates, topicals, and so on. In essence, this outdoor grow farm is CannTrust's ticket to better operating margins and a more diversified product portfolio. The remaining 100,000 kilos of production will come predominantly from the 840,000-square-foot Niagara campus, as well as the 60,000-square-foot Vaughan facility. This combined 900,000 square feet of growing spacewill be devoted to hydroponic production(i.e., growing cannabis plants in a nutrient-rich water solvent as opposed to soil). Hydroponics can be extremely effective and inexpensive if a grower has access to a cheap source of water and electricity, which CannTrust does at its flagship Niagara facility. Between its indoor and outdoor grow farms, CannTrust should be "all systems grow" by the midpoint of 2020. There are intangible factors to appreciate as well. CannTrust isone of only four marijuana growersto secure a supply deal with all of Canada's provinces. Although the aggregate value of these supply deals hasn't been divulged by management, simply having them in place is less work CannTrust's marketing team has to do to find a home for its annually produced product. With recurring profitability likely expected by sometime in 2020 and one of the lowest market caps relative to peak production, CannTrust looks like quite the bargain. Brian Feroldi(Abiomed):I've studied a lot of medical device companies over the years, and I must admit that Abiomed is one of my favorites. Abiomed makes a family of miniaturized heart pumps that are used to treat cardiac disease. Called Impella, Abiomed's devices are used in two primary cases: to help patients recover from a heart attack and to make high-risk heart surgeries safer. Abiomed's revenue growth over the last decade has beenjaw droppingas the company produces more clinical data and wins over reluctant healthcare providers. Management has translated the huge sales leverage into even faster growth on the bottom line. Wall Street has applauded the prosperity by bidding up the share price. ABMDdata byYCharts. More recently, Abiomed's stock has come under pressure after the companymissed its quarterly numbers. While the shortfall isn't good news, management explained that a confusing letter was sent to providers by the FDA that made it seem as if its device was being recalled. That wasn't the case at all, but the company couldn't recover from the fallout in time. My view is that the miss was a speed bump and that the long-term case for owning this stock is still intact. The company continues to boastan impressive pipelineand is still in the very early innings of international expansion. Those two opportunities alone position the company for long-term success. While Abiomed's stock still isn't cheap -- shares are trading for 43 times next year's earnings estimates -- I think that this is a best-of-breed medical device company that is worth paying up to own. 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 Brian Feroldiowns shares of Abiomed.Chuck Salettaowns shares of CVS Health.Sean Williamsowns shares of CannTrust Holdings Inc and CVS Health. The Motley Fool owns shares of and recommends Abiomed. The Motley Fool recommends CannTrust Holdings, CannTrust Holdings Inc, and CVS Health. The Motley Fool has adisclosure policy.
I pay my bills on time. Why is my credit score falling? Who would have imagined a day when a credit score could be as mystifying as an SAT or ACT score? But if you're looking for an elite credit card with amazing rewards or the best rate on a mortgage, you're hyper-focused on getting the best credit score. Sort of like trying to get into college. But instead of improving over time, consumer knowledge about credit scores is at the lowest level in eight years, according to the ninth annualcredit score surveyby the Consumer Federation of America and VantageScore Solutions. Only two-thirds of consumers surveyed knew, for example, that keeping a low credit card balance helps raise a low credit score or maintain a high one, according to the survey. That's down from 85% who scored correctly in 2012. The credit score's main purpose: Give lenders a way to measure the risk that an individual consumer will not repay the loan. 'The Good Doctor':TV star Hill Harper in Detroit to help boost your credit score I learned the hard way:How you can avoid my credit card mistakes One reader wrote me the other day perplexed by why his score fell more than 30 points to below 770 – still an above-average credit score – after he took on some "same as cash" offers that need to be paid in full during a certain time frame. "For me, it's a matter of pride," said George Feld of Sterling Heights, Mich., a Detroit suburb. "It bothers me that you don't get credit for managing your money well." He used the financing deals to buy a refrigerator and a dishwasher. He also turned in a leased vehicle and leased a 2019 Lincoln. He plans to pay the financing deals off, and has never missed paying off the balance before the promotion expires. Even so, such plans can be tricky. Some consumers don't understand that they can be charged interest retroactively for the entire deferred interest period if they do not pay off the balance by the end of the period of adeferred interest credit card promotion. Many consumers correctly know that overall missed payments on any credit card can hurt a score. But even then, only 86% of consumers knew that missed payments are used to calculate credit scores, compared with 94% in 2012, according to the latest survey. (You can take the quiz atcreditscorequiz.org.) Credit scores can fall, temporarily at least, when you take on new credit, and taking out more than one new loan would impact a score. The trick here: You need to make a series of on-time payments to recover after taking on new debt. Important points to know: Having a good income and paying off the entire balance on one's credit cards every month aren't factors that are calculated as part of credit scores, said Chi Chi Wu, staff attorney of the National Consumer Law Center in testimony in Boston. "Lenders do consider consumer income, of course, but not as part of the credit score," she said. Many people have room to raise their scores. The average credit score nationwide was 680 as of the second quarter of 2018, based on Experian's VantageScore. In Michigan, the average was 682. On average, Michigan consumers have 2.9 bank-branded credit cards and their average balances on credit cards was $5,730. On average, they're using 29% of their available lines of credit. Michigan consumers have on average 2.7 retail-related credit cards with an average retail debt of $1,805. Their average mortgage debt is $138,050. Here's a look at other credit score puzzles: Everyone has a unique credit file. But one thing many people do not realize is that your score is likely to be hurt if you're charging 40% or 50% or more of your available line of credit. You'd be surprised at what can happen when you charge too much. My score, for example, dropped 5 points recently because I used one bank-issued credit card fairly heavily on vacation and the rest of the month. My previous usage was 12.3% and it went up to 28.28%. I also had opened a new credit card at a store the month before, yes, to get one of those discounts. All this sort of stuff can cause you to scratch your head. It's bad that I'm using my credit card? Or opening a new one to save money? Well, in some cases, yes. It's all relative. If a person has a high score but then uses all of the available credit, the consumer might see a score drop by 40 points to 60 points, according to Jeff Richardson, vice president and group head of marketing and communications for VantageScore Solutions, a credit-scoring system created by the three major credit bureaus, Equifax, Experian and TransUnion. "The exact percentage of impact will vary from one person to the next but keeping credit card utilization lower than 30% is considered a best practice," he said. So if you want to help raise your score, it's a good idea to keep the balance under 25% of the credit limit. It is fine – and a good idea – to pay off that credit card every month. Many consumers wrongly continue to think that they must carry a credit card balance in order toimprove their credit score. "The overarching lesson here is that if you plan on financing a large ticket item (auto, home, large installment loan) don’t ramp up utilization or apply for new credit cards," Richardson said. "That drop could prevent you from either getting approved or getting the best terms." Most people, of course, couldn't tell you what's 25% of their available credit limit. They might know the full limit on a card but not the limit that you shouldn't go above. For many consumers, the logic is counter-intuitive. After all, if you've got a $10,000 credit limit, you might think the lender is fine if you borrow close to that limit. Not so. "In general, the higher the percentage of credit line that is drawn down, the lower one's credit scores," according to a report by the Consumer Federation of America and VantageScore Solutions. "Scores decline after a consumer opens up a new account because, all things being equal, a person seeking credit is slightly more risky than someone not seeking new credit," Richardson said. The initial impact, though, could be minimal. The inquiry by a potential credit card issuer or lender would cause the score to decline by a few points, Richardson said. Then once new account is opened, the score would drop too. All told, Richardson said, that drop shouldn't be more than 20 points to 30 points. A key concern: Is the borrower taking on more debt as part of normal spending? Or are we looking now at someone who is bulking up on credit because he or she is having trouble making ends meet? "By paying on time," Richardson said, "the score will most likely actually rise from where it was originally." Maybe yes, maybe no. Paying all bills on time is clearly important. Yet not all bills are treated equally when it comes to credit scoring. Only 17% of multifamily rental property executives said they report rent payments, according to research by TransUnion, indicating that property managers have been slow to adopt to the process of reporting their data to credit bureaus. Yet, based on a new TransUnion survey, seven out of 10 renters say they would be more likely to pay the rent on time if their payments were reported. The online survey took place in May and included 1,330 responses from renters who are 18 or older. Someone who never had a credit card and doesn't have much of a credit history could even become "scorable" following a year of rent payment reporting, TransUnion said. A consumer who has subprime credit and makes timely rental payments could see their credit score go up as much as 26 points in the same time. TransUnion wants to motivate property managers to implementreporting of rent payments,as a way to attract more reliable renters as well. TransUnion ResidentCredit accepts and discloses both positive and negative data. As a result, landlords could see delinquencies in real time as they screen applicants – not just as collections or public records. So if you're renting, don't just assume that rental payments will be reported to a credit bureau. Ask about the policies before you sign a lease. Contact Susan Tompor:stompor@freepress.comor 313-222-8876. Follow her on Twitter@tompor. Rental strategy:Your landlord could help you add 40 points to your credit score Love is thicker than Venmo:Tips for millennial couples on merging money This article originally appeared on Detroit Free Press:I pay my bills on time. Why is my credit score falling?
Apache Corporation (NYSE:APA) Is Yielding 3.5% - But Is It A Buy? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Apache Corporation (NYSE:APA) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. In this case, Apache likely looks attractive to investors, given its 3.5% dividend yield and a payment history of over ten years. We'd guess that plenty of investors have purchased it for the income. The company also bought back stock equivalent to around 2.8% of market capitalisation this year. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis 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. Although Apache pays a dividend, it was loss-making during the past year. When a company is loss-making, we next need to check to see if its cash flows can support the dividend. Last year, Apache paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. Given Apache is paying a dividend but reported a loss over the past year, we need to check its balance sheet for signs of financial distress. 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. Apache has net debt of 1.78 times its EBITDA, which we think is not too troublesome. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 3.65 times its interest expense, Apache's interest cover is starting to look a bit thin. Remember, you can always get a snapshot of Apache's latest financial position,by checking our visualisation of its financial health. 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. Apache has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was US$0.60 in 2009, compared to US$1.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 5.2% a year over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination. Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's good to see Apache has been growing its earnings per share at 29% a year over the past 5 years. To summarise, shareholders should always check that Apache's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's a concern to see that the company paid a dividend despite reporting a loss, and the dividend was also not well covered by free cash flow. We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Apache out there. Earnings growth generally bodes well for the future value of company dividend payments. See if the 17 Apache analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 New Style of Winemaking Could Take Sherry Mainstream Walking through the imposing, historic bodegas in the Jerez region of southern Spain, with decades-old barrels surrounded by musty walls, it’s hard to imagine new techniques taking root in a place that prides itself so deeply on its traditional style of winemaking. But in recent years, producers are finding a new way to tell the story of sherry wine through theiren ramabottlings. Unlike the low-intervention, almost laissez-faire styles of wine that have captured oenophiles’ attention over the past decade, winemaking in the “Sherry Triangle” of southwestern Spain is a carefully calculated and orchestrated dance. In sherry production, wines move through a system calledsolera, in which several rows of barrels are stacked on top of one another, almost like a pyramid. The youngest wines, after being fortified, enter thesoleraon the top row. As a portion of finished wines are removed for bottling from the bottom, younger wines are fractionally moved down into barrels containing older wines, and a continual blending process occurs. Some styles of sherry are aged—either partially or fully during its time in thesolera—under a blanket of yeast known asflor. This layer protects the sherry from air and oxidation. Wines labeled as “fino” or “manzanilla” (the term for a fino wine specifically from the town of Sanlúcar de Barrameda) spend their time completely underflor—a process known as “biological aging”—for a minimum of two years, but most producers opt for at least four. These are the freshest, most lively styles of sherry and exhibit a salty and nutty quality. Amontillados and palo cortado sherries see bothflorand oxidative aging. Oloroso sherry, on the other hand, is aged completely oxidatively and doesn’t spend time underflor. Also considered to be dry sherries, these last three exhibit varying levels of richness, nuttiness, and complexity. Sweet styles made with Pedro Ximénez wine grapes round out a bodega’s offerings. Sherry’s identity, for the most part, relies heavily on the aging process, unlike most regions where the concept of terroir is the message winemakers want to convey. However,en rama(raw) wines—usually finos and manzanillas that are basically bottled straight from the cask and undergo only the roughest filtration to remove undesirable matter like yeast chunks or dead bugs—are the new storytellers of the region. Bodegas Barbadillo, founded in 1821, was the first to experiment withen ramain the region. Back in the 1990s, the market demanded sherries that were very plain and essentially devoid of color, according to the winery’s director Armando Guerra. Although these heavily filtered styles were in vogue, Barbadillo felt they weren’t the true expression of manzanilla. Using some of the oldest wines in their bodegas, winemaker and director of production Montserrat Molina bottled the firsten ramasherries in 1999 as a way to capture what she considered the truest expression of the wine. The first releases contained a three-month expiration date, as Molina was unsure if they would remain stable. The straight-to-the-bottle approach piqued interest and a few trials locally, but it wasn’t until about a decade ago that the concept ofen ramareally took hold. At González Byass S.A.—a holding company in Spain for some of the most well-known sherry producers—a tasting session between Antonio Flores (master blender at sherry producer González Byass Jerez) and Martin Skelton (managing director at wine distributorGonzález Byass U.K.,a subsidiary of González Byass S.A.)—generated discussion about a new style of fino. “On one of Martin’s many trips to the bodega in Jerez, he and Antonio were sampling Tio Pepe Fino straight from the barrel and lamenting that they couldn’t share this experience with consumers back in the U.K.,” says Mauricio González-Gordon, chairman of González Byass S.A. “The conversation progressed as they questioned what would happen if they took a risk and bottled Tio Pepe without the usual filtration and clarification needed to keep the product fresh and stable on shelf.” Like Barbadillo, they put a three-month expiration date on the first few releases, and like Barbadillo, realized theen ramawines kept evolving and revealing new layers of potential. The year 2019 will mark the 10th bottling of González Byass’s Tio Pepe En Rama, and many other bodegas also now produce anen ramasherry. Each bodega takes a different tact when considering what story they wanten ramawines to convey. González Byass wants drinkers to experience its Tio Pepe Fino in its purest form, “as if they were standing in the bodega tasting it straight from the cask,” describes González-Gordon. Once the summer heat subsides, winemaker Flores earmarks about 200 casks that will potentially be used for theen ramawines. In April, a final tasting session takes place, and the 200 casks are whittled down to approximately 60 of the best, resulting in the final blend. “The annual bottling is in the spring, when theflorgrowth is at its thickest on the barrels of fino, so the wine would be at its most pungent,” González-Gordon says. “This gives the unique intensity to the fresh wine. The ‘best casks’ are those with most even and unbroken veil offlorover the top of the wine in the cask, meaning that they have the most characteristic and intenseflorcharacter.” Barbadillo opts to bottle anen ramafor each season, to showcase how the wines vary throughout the year and the effect of the fluctuations of theflor. Along with this novel approach—a benchmark of the bodega—an entiresolerahas been built exclusively for theen ramawines. Lustau, which owns bodegas in the three sherry towns, is the closet to the traditional idea of terroir. The wine house producesen ramasherry in three separate bottlings, one from each of the cities that make up what is known as the Sherry Triangle: Jerez de la Frontera, Sanlúcar de Barrameda, and El Puerto de Santa María. “We take out about 1,000 liters of wine from each town,” notes Lustau winemaker Sergio Martínez. Quantities are very limited; only about 2,000 bottles of each are produced annually. (By comparison, bottle production for the González Byassen ramain 2018 was 18,000 bottles.) “The popularity of sherry among a younger consumer and their noticeable interest in learning about its complex aging system has most likely sparked curiosity in these wines that are closest to their natural state,” says Martínez. “Upon learning about filtration and how it alters the expressiveness of biologically aged wines, an interest in tasting the ‘raw’ wines has led to a following foren ramas.” González-Gordon says González-Byass’s production has increased 1,400% from its initial public offering of 1,200 bottles in 2010, and today the wine portfolio exports to 18 countries. Today, as more attention is being paid to the unfiltered sherries, bodegas continually think how to keep pushing boundaries. Last year, Barbadillo began releasingen ramawines that illustrated how the effects of the two major winds—theponiente(cool and humid) andlevante(hot and dry)—affect wine development in the cellar. The structures were designed so the winds would blow through and provide stable temperatures, explains Guerra, and depending where a barrel is placed, the wine will emerge with different characteristics. “Enramais the purest essence of sherry wines. It will first surprise and then captivate, an experience like no other in the wine world,” says Martínez. “Despite the fact thesolerasystem provides consistency in personality,en ramawines go beyond, bringing to us a new layer of identity, every year and every season, giving the opportunity to the consumer to enjoy a total new wine.” —Alcohol-free barscaught on in the U.S. and U.K. But can they go global? —Why champagne brands arepartnering with art fairs —Know what to look for tofind a great rosé —The6 most interesting new whiskiesyou should be drinking right now —Listen to our new audio briefing,Fortune500 Daily FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis.
Blockchain in retail: the past week at a glance Bitcoin scammers compromise Tesco Twitter account Tesco was left red faced this week as hackers took over its Twitter account to push a Bitcoin scam. The retailer, which has almost 550,000 Twitter followers, announced it would give away free Bitcoins in return for investments. The hackers used Microsoft founder Bill Gates’s avatar and changed Tesco’s handle to ‘Billgatesmsc.’ “Bitcoin is on the rise again! One day, it will without doubt replace fiat currencies,” one tweet declared. “I’d like to give back to the community, therefore any Bitcoin you send to this address, I will send back double! Comment your BTC address below when done.” The hackers failed to make off with any cash. It remains unclear as to how they managed to compromise the account. Tesco tweeted: “We are aware of some issues with our @Tesco account and are urgently resolving the situation. If you need to contact us in the meantime please visit https://www.tesco.com/help/contact/ for alternative ways to get in touch”. Circle K adds Bitcoin ATMs to 20 convenience stores US-based crypto venture DigitalMint has teamed with convenience store chain, Circle K, installing 20 Bitcoin ATMs across Arizona and Nevada as part of a pilot programme. “We are thrilled to be partnering with a respected organisation like Circle K,” says Marc Grens, President and Co-Founder, DigitalMint. “This opens the door for massive expansion of Bitcoin access to new markets around the globe.” Customers can buy up to $20,000 in Bitcoin per day. DigitalMint charges 12% of a transaction, although rate reductions are available . The Arizona ATMs are located in Phoenix, Mesa, Tempe, Tucson, Flagstaff, Surprise, Maricopa and Nevada ATMs in Las Vegas. DigitalMint says that the partnership makes it the largest Bitcoin ATM and PoS operator in the US. It currently has over 250 locations in 25 states. Joel Konicke, Category Manager, Circle K Stores, comments: “Partnering with DigitalMint allows us to provide our customers with seamless access to Bitcoin, at a very reasonable price.” Story continues Alyx taps blockchain tech for supply chain pilot Alyx – the fashion brand founded by Lady Gaga creative director and Kanye West collaborator Matthew Williams – has launched a blockchain-powered supply chain transparency pilot programme in partnership with Iota, Avery Dennison and Evrythng. Vogue Business reports that some Alyx product hang tags will feature a scannable QR code that showcases the entire supply chain history of the piece it’s attached to. Alyx’s suppliers enter the information, and Evrythng stores and uploads the data to the ledger while Avery Dennison makes tags with digital IDs for each garment. Nine Alyx pieces are included in the pilot, but Williams would ultimately like to include all his products. The barrier to entry was relatively low for Alyx, which is only four years old and produces 80% of its products in Italy with suppliers who take transparency seriously. The next step, meanwhile, might be automating the process so it can be scaled. “The key is identifying the right nodes of the supply chain from where to pull data and then determining how to most efficiently extract that data,” says Michael Colarossi, Avery Dennison’s Vice President of Apparel Innovation, Product Line Management and Sustainability, adding that future integration could mean extracting data directly from manufacturing systems. Walmart taps Vechain Thor blockchain for food safety project Walmart China is tracking food through its supply chain with VeChain’s Thor blockchain. The Walmart China Blockchain Traceability Platform is a joint venture between Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co. and VeChain. The first batch of 23 product lines have been tested and launched on the platform and another 100 are set to follow by the end of the year, covering more than 10 categories including fresh meat product, rice, mushrooms and cooking oil. The aim is for traceable fresh meat to account for 50% of the total sales of packaged fresh meat, traceable vegetables to account for 40% of the total sales of packaged vegetables, and traceable seafood for 12.5% of the total sales of seafood by the end of 2020. “We have always worked to provide reliable products of quality and convenient services to customers, which is our core value proposition,” says Shi Jiaqi, Chief Corporate Affairs Officer of Walmart China. “With this target in mind, Walmart has continuously invested in the whole supply chain, from source procurement and commodity strategy, supply chain construction, to store and e-commerce platform operation management. We use digital methods to improve efficiency and transparency, providing products and services of quality to customers and making life better for busy families in China.” The post Blockchain in retail: the past week at a glance appeared first on Coin Rivet .
Philadelphia refinery will close: Why it matters No one wants a refinery in their backyard; until one goes down in flames and it causes you to pay more at the pump. The recent run oflower gas pricesmay be over as a cog in the U.S. refining system is going out of business. Philadelphia Energy Solutions (PES)is saying it wants to permanently close its oil refinery, one of the oldest and largest refineries on the East Coast, after an explosion and massive fire. The refiner had the capacity to process 335,000 barrels of oil per day or the equivalent of 14 million gallons and is one of the largest suppliers of gasoline on the eastern seaboard. The event caused substantial damage to its building complex and caused the financially struggling refiner to say enough is enough. This is a situation that has already caused gasoline prices to go up in the Northeast and may cause a domino effect across the nation. As of late June, the national average gas price was down 19 cents year-over-year and expected to drop even lower, according to AAA and averaging around $2.70 per gallon. In Pennsylvania, the average is higher around $2.90. Strong U.S. demand, along with this explosion, has rapidly changed the dynamic from falling gasoline prices to prices that are soaring. Since the explosion gasoline futures have rocketed, first on the East Coast but now also in other parts of the country, as other refiners look to replace the lost supply from the East Coast. Consumers will be angry because they will view this as an excuse by oil companies to jack up prices, not realizing that these situations do increase costs. In fact, many people think that owning a refinery is like printing money. If you feel that way, you had better think again. It is a very tough business with periods of high booming profits but at other times very minuscule profits, and even at times having to operate at a loss. Philadelphia Energy Solutions had just recently emerged from bankruptcy and was trying to make a comeback as sub-par refining margins and stricter environmental regulations that have made it very difficult to make money. In fact, the government had to forgive Philadelphia Energy Solutions some relief on some renewable energy credits they were forced to buy, that the company said helped drive them into bankruptcy in the first place. Bad regulations on Renewable Fuel Credits caused the firm to lose millions. The government let them off the hook because they feared that if they lost that refinery, it would drive up gas prices and hurt the consumer. Yet now the company wants to walk away because the cost to rebuild the units that were destroyed is simply not worth it. Yet the company may not have the last say about the refiner’s fate. The United Steel Workers are already complaining about the 1,000 lost jobs and they want the refinery rebuilt. They want to see if there was insurance and instead of the company and investors walking out with the cash, they want to use it to rebuild and keep the jobs there. The Federal Government also has a stake after helping the company out of bankruptcy. They may want to search for a new owner, but after the bad luck the last company had, it might be hard to find a buyer. CLICK HERE TO GET THE FOX BUSINESS APP Regardless of how all that plays out, you will still be paying more for gasoline. Prices have already gone up and this could give us a price spike of at least 10 cents per gallon. The timing, of course, could not be worse. TheFourth of July holidayis right around the corner, and U.S. gasoline demand is already at record highs. Because of this strong demand and other refining issues, supplies are only at average levels. Just when you thought it was safe to go back to the gas pump. Phil Flynn is senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn Learn even more on our website at www.pricegroup.com.@pricegroup.com. Related Articles • Brexit Boosting Cross Border M&A • Oil Drags on Dow, S&P; Nasdaq Boosted by Applied Materials • Here's Where U.S. Oil Exports Are Going
Should You Worry About Health Insurance Innovations, Inc.'s (NASDAQ:HIIQ) CEO Pay? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Gavin Southwell has been the CEO of Health Insurance Innovations, Inc. (NASDAQ:HIIQ) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO. See our latest analysis for Health Insurance Innovations At the time of writing our data says that Health Insurance Innovations, Inc. has a market cap of US$362m, and is paying total annual CEO compensation of US$2.2m. (This figure is for the year to December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$650k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m. So Gavin Southwell receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Health Insurance Innovations has changed over time. On average over the last three years, Health Insurance Innovations, Inc. has grown earnings per share (EPS) by 25% each year (using a line of best fit). Its revenue is up 34% over last year. This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to checkthis free visual report onanalyst forecastsfor future earnings. Most shareholders would probably be pleased with Health Insurance Innovations, Inc. for providing a total return of 492% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. Remuneration for Gavin Southwell is close enough to the median pay for a CEO of a similar sized company . Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Health Insurance Innovations (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.
Deutsche Bank board to meet July 7 to decide on job cuts: sources FRANKFURT (Reuters) - Deutsche Bank's <DBKGn.DE> supervisory board will meet on July 7 to discuss a major restructuring that may result in as many as 20,000 job cuts, four people with knowledge of the matter said. CEO Christian Sewing flagged an extensive overhaul last month when he promised shareholders "tough cutbacks" to the investment bank to turn the lender around after it failed to agree a merger with rival Commerzbank <CBKG.DE>. In addition to the job cuts, Germany's flagship lender is considering trimming its management board, three of the people said. The investment bank would be represented on the board by Sewing rather than having a seat at the table, as is currently the case. Veteran Garth Ritchie has been heading the investment bank, but a plan under discussion is to promote bankers Stefan Hoops and Mark Fedorcik to lead the division as co-heads, two of the people said. They would report to Sewing. One of the people described the plans as fluid, with many aspects still not decided. Deutsche Bank declined to comment on the changes. Ritchie, Hoops and Fedorcik declined through a spokesman to comment. The bank said it was working on measures to accelerate its transformation so as to improve its sustainable profitability. "We will update all stakeholders if and when required," the bank said. Ranked as one of the most important banks in the global financial system, Deutsche has been plagued by ratings downgrades, multi-billion dollar fines and management upheavals, with investment banking often the culprit even though it generates about half of Deutsche Bank's revenue. RETREAT FROM INVESTMENT BANKING After years of failing to keep pace with Wall Street's big hitters such as JP Morgan and Goldman Sachs, Deutsche Bank is being pushed to retreat from riskier investment banking and focus its effort on mainstream markets. Executives and investors hope the overhaul will be radical enough to turn around the bank's fortunes after its shares fell to a record low this month. The Wall Street Journal first reported on Friday that Deutsche was considering cutting between 15,000 and 20,000 jobs. One of the people on Saturday said that the reduction was expected to be closer to 20,000. The bank, which had the equivalent of 91,463 employees at the end of the first quarter, has already announced plans to cut headcount to "well below" 90,000. Among other overhaul measures under discussion is the creation of a so-called bad bank to hold tens of billions of euros of non-core assets, as well as shrinking or shutting equity and rates trading businesses outside Europe, sources have said. It also aims to dispose of up to a quarter of its riskiest assets in the next few years. Taken together, the measures are part of a significant restructuring of the investment bank, which has struggled to generate sustainable profits since the 2008 financial crisis after decades of rapid expansion. (Reporting by John O'Donnell, Hans Seidenstuecker and Tom Sims; Editing by Edmund Blair, Stephen Powell and Kevin Liffey)
Should You Be Excited About Sinclair Broadcast Group, Inc.'s (NASDAQ:SBGI) 21% Return On Equity? 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 Sinclair Broadcast Group, Inc. (NASDAQ:SBGI). Sinclair Broadcast Group has a ROE of 21%, based on the last twelve months. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.21. See our latest analysis for Sinclair Broadcast Group Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sinclair Broadcast Group: 21% = US$320m ÷ US$1.5b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. Clearly, then, one can use ROE to compare different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Sinclair Broadcast Group has a superior ROE than the average (11%) company in the Media industry. That is a good sign. I usually take a closer look when a company has a better ROE than industry peers. For example,I often check if insiders have been buying shares. Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Sinclair Broadcast Group does use a significant amount of debt to increase returns. It has a debt to equity ratio of 2.56. There's no doubt the ROE is respectable, but it's worth keeping in mind that metric is elevated by the use of debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
2 Stocks That Could Be the Next Biotech Buyouts There have been a lot of high-profile acquisitions in the biopharmaceutical space, and it probably isn't going to stop atAbbVie's $63 billion offer forAllergan. These two biotech stocks are widely considered next in line to receive juicy buyout offers from larger drugmakers blessed with profits now, but unlikely to launch enough new blockbuster drugs to keep their bottom line moving in the right direction. [{"Company": "Amarin(NASDAQ: AMRN)", "Lead Asset": "Vascepa", "Indication": "Dyslipidemia", "Market Cap": "$5.9 billion"}, {"Company": "Blueprint Medicines(NASDAQ: BPMC)", "Lead Asset": "avapritinib", "Indication": "Cancer", "Market Cap": "$4.5 billion"}] Data source: Yahoo! Finance, Company releases. Before the end of 2019, these stocks could jump in response to a buyout offer at a premium price. Here's what you need to know about the opportunities and potential challenges facing these takeout targets. Image source: Getty Images. In May, Amarin told investors that the Food and Drug Administration accepted its supplemental new drug application (sNDA) for Vascepa, the company's purified, EPA-only fish oil formulation, and even promised a speedy review of six months or less. You may remember that this stock rocketed 600% higher in 2018 after the company announced surprising results from a long-term outcome study with Vascepa and people who have stubbornly high triglyceride levels despite managing their cholesterol with statin therapy. That was because the group of patients who added Amarin's fish oil to their daily regimen were 26% less likely to suffer a heart attack or stroke. The results received so much attention that annual Vascepa sales soared 27% to $229 million in 2018, and it finished the first quarter on pace to record $300 million in 2019. A big pharmaceutical company with a heavy hand in the cardiovascular space, for example,Novartis, might like to add Vascepa to their lineup. If the FDA expands Vascepa's prescribing label to include statin-using patients with high triglycerides, annual sales could reach $2 billion at their peak. At recent prices, Amarin sports a $6.1 billion market cap, offering a modest premium to recent prices would make it tough to earn a return unless Vascepa exceeds expectations. Image source: Getty Images. Eli Lilly's $8 billion acquisition of Loxo Oncology andPfizer's recent $11.4 billion splurge forArray BioPharma(NASDAQ: ARRY)shined a light on an important industry trend that doesn't get nearly as muchattention as it deserves. Small-molecule drugs performing jobs that are too delicate for huge biologics are some of the most successful new cancer treatment options. Blueprint Medicines is on its way to becoming the next big player in this field now that Array probably isn't taking new customers. For a long time, we've known of different proteins that can go haywire and start promoting tumor growth, but inhibiting their activity has long been considered impossible. For the past several years, Array Biopharma's beenthe place to gofor drug candidates aimed at difficult-to-reach targets, and Blueprint Medicines looks like it's got the secret sauce for developing them, too. Blueprint's lead candidate, avapritinib, shrank tumors or stopped them from growing for 22% people with gastrointestinal stromal tumors (GIST) with a 10.2-month median duration of response. That might not seem too impressive at first, but bear in mind that these were patients who had already failed at least three previous lines of treatment and often more. Image source: Getty Images. A group of first- and second-line GIST patients with tumors that harbor a specific mutation were treated with avapritinib as well. An impressive 86% of this group showed stable disease or tumor shrinkage. Blueprint has submitted an application to the FDA for avapritinib, and we should know by mid-August if the agency will agree to review that application. Since there aren't any effective treatment options for this patient group, a speedy approval seems likely. Blueprint Medicines may need to prove itself successful more than once, and it will have a chance soon. A new drug candidate aimed at lung cancer patients with RET-altered tumors will begin a phase 3 study in the second half of 2019, and the FDA could receive a second application from the company in the first half of 2020. There's a solid chance that both of these biotechs will receive buyout offers. Amarin's chances of attracting a buyer ready to pay a premium to acquire one drug, Vascepa are not great. Although heart disease is still the leading cause of death in the U.S., new cardiovascular drugs have had trouble getting off the ground in recent years. Blueprint doesn't have anything to sell now, which makes it a riskier option. It still has a pretty good shot at receiving an acquisition offer at its lower price. That's because in just four years as a publicly traded company, its pipeline boasts a targeted cancer drug at the gates of commercialization, one in phase 3, plus two more in phase 1 clinical trials. With all the excitement over the kind of drugs that Blueprint seems pretty good at discovering, the phone's probably been ringing off the hook. It will be surprising to see 2019 finish without a juicy buyout offer. Even if it doesn't, Blueprint Medicines looks like a stock worth buying for the long haul. 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 Cory Renauerhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
Did You Manage To Avoid CytomX Therapeutics's (NASDAQ:CTMX) Painful 51% Share Price Drop? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! CytomX Therapeutics, Inc.(NASDAQ:CTMX) shareholders should be happy to see the share price up 13% in the last month. But that's small comfort given the dismal price performance over the last year. Like a receding glacier in a warming world, the share price has melted 51% in that period. The share price recovery is not so impressive when you consider the fall. Of course, it could be that the fall was overdone. View our latest analysis for CytomX Therapeutics CytomX Therapeutics isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit. CytomX Therapeutics grew its revenue by 0.9% over the last year. That's not a very high growth rate considering it doesn't make profits. Without profits, and with revenue growth sluggish, you get a 51% loss for shareholders, over the year. We'd want to see evidence that future revenue growth will be stronger before getting too interested. Of course, the market can be too impatient at times. Why not take a closer look at this one so you're ready to pounce if growth does accelerate. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). CytomX Therapeutics is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for CytomX Therapeutics in thisinteractivegraph of future profit estimates. Over the last year, CytomX Therapeutics shareholders took a loss of 51%. In contrast the market gained about 7.7%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Investors are up over three years, booking 2.7% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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