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Megan Rapinoe's World Cup Goal Celebration Is Now A Trump-Trolling Meme Soccer star Megan Rapinoe ’s World Cup goal celebration has been transformed into a meme that pokes fun at President Donald Trump. The co-captain of the U.S. women’s national soccer team celebrated the first of two goals she netted in Friday’s 2-1 quarterfinals defeat of hosts France, which set up a semifinals clash against England on Tuesday, with some style: We're only 20 minutes in and this match is everything we expected and more. The hype is fully justified. 🔥 #FRAUSA 🇫🇷🇺🇸 pic.twitter.com/bI0LkydiE5 — FIFA Women's World Cup (@FIFAWWC) June 28, 2019 Rapinoe, who is gay, began taking a knee during the national anthem before games in 2016 in solidarity with former NFL star Colin Kaepernick’s protest against police brutality and racial injustice. A U.S. Soccer Federation rule change later forced all players to “stand respectfully” during the anthem. So, at the World Cup, Rapinoe has refused to sing along or put her hand on her heart. Last month, she told Yahoo Sports she was now “ a walking protest when it comes to the Trump administration ” because “of everything I stand for.” Rapinoe’s “Player of the Match”-winning performance against France came the same week that Trump taunted the 33-year-old midfielder on Twitter for saying she would not visit “ the fucking White House ” if the team won the tournament. “I am a big fan of the American Team, and Women’s Soccer, but Megan should WIN first before she TALKS!” Trump wrote Wednesday. “Finish the job! We haven’t yet invited Megan or the team, but I am now inviting the TEAM, win or lose.” Women’s soccer player, @mPinoe , just stated that she is “not going to the F...ing White House if we win.” Other than the NBA, which now refuses to call owners, owners (please explain that I just got Criminal Justice Reform passed, Black unemployment is at the lowest level... — Donald J. Trump (@realDonaldTrump) June 26, 2019 ....in our Country’s history, and the poverty index is also best number EVER), leagues and teams love coming to the White House. I am a big fan of the American Team, and Women’s Soccer, but Megan should WIN first before she TALKS! Finish the job! We haven’t yet.... — Donald J. Trump (@realDonaldTrump) June 26, 2019 ....invited Megan or the team, but I am now inviting the TEAM, win or lose. Megan should never disrespect our Country, the White House, or our Flag, especially since so much has been done for her & the team. Be proud of the Flag that you wear. The USA is doing GREAT! — Donald J. Trump (@realDonaldTrump) June 26, 2019 Tweeters suggested Rapinoe’s celebration was the perfect clapback at the president: Story continues “How much do you hate the current president” Megan Rapinoe: “This much” pic.twitter.com/MhXMWUyD0w — Sean Yoo (@SeanYoo) June 28, 2019 BUILD A GOLDEN STATUE TO MEGAN RAPINOE AND PUT IT IN FRONT OF THE WHITE HOUSE YOU FOOLS — Clint Smith (@ClintSmithIII) June 28, 2019 TEAR DOWN THE CONFEDERATE MONUMENTS AND PUT UP MEGAN RAPINOE MONUMENTS ITS THE ONLY WAY TO HEAL AMERICA — Clint Smith (@ClintSmithIII) June 28, 2019 pic.twitter.com/8TDDJOuWCg — Parker Molloy (@ParkerMolloy) June 28, 2019 USA up 1-0 at the half thanks to Megan Rapinoe's goal #USAvsFRA pic.twitter.com/zhFTJTjYM3 — Marie Connor (@thistallawkgirl) June 28, 2019 pic.twitter.com/ytIruZV8xU — ElElegante101 (@skolanach) June 29, 2019 Megan Rapinoe about to parachute into the Democratic primary, start with a solid 20% — Allahpundit (@allahpundit) June 28, 2019 pic.twitter.com/u6YM69xBra — Schooley (@Rschooley) June 29, 2019 @mPinoe ... pic.twitter.com/mYxMKPSBww — 𝕁𝕒𝕞𝕖𝕤 𝔹𝔸$𝕃𝟛ℝ (@basattak) June 28, 2019 If Megan Rapinoe scores a third goal, reaches down into her sock and pulls out even a basic outline of a health care plan she becomes the Democratic frontrunner — Steven Hale (@iamstevenhale) June 28, 2019 Only facts. 🇺🇸 @mPinoe pic.twitter.com/vxj6GIPpVT — Complex Sports (@ComplexSports) June 28, 2019 Rapinoe scoring that second goal like: #FRAUSA #USAvsFRA pic.twitter.com/ZTWFo5sVkm — DrXtinaLane (@XtinaLane) June 28, 2019 When you show the haters #Rapinoe pic.twitter.com/GDjb9yGuUP — Marcie Bianco (@MarcieBianco) June 28, 2019 The day Megan Rapinoe became President pic.twitter.com/8JcGKYueh6 — Reese Waters (@reesewaters) June 28, 2019 Megan Rapinoe is the president now those are the rules — radical centrist (@yeahjusteli) June 28, 2019 pic.twitter.com/UEnLi0YeQZ — 𝙹𝚞𝚕𝚒𝚎 (@resisterhood) June 28, 2019 Donald Trump: "You have to win before you come to the White House." Megan Rapinoe: "HOLD MY BEER, DARLING." #USAvFRA #FIFAWWC pic.twitter.com/6a5MFdLqjP — Haley Oxley (@_HaleyOx) June 28, 2019 OMFG someone edited Megan Rapinoe’s wiki page and I’m DYING AHAHHAHA YES #MyPresident pic.twitter.com/kEgyLNtKEh — maddie (@madunderwood394) June 28, 2019 pic.twitter.com/2ifflnEV4h — Eric Bunson (@Bunson8r) June 28, 2019 The single most insipiring athlete in America this week: Megan Rapinoe Rapinoe’s week: 1) Scored both goals against Spain 2) Told Trump to eff off 3) Scored both goals against France #TeamRapinoe pic.twitter.com/MnNTGtkm1j — The Hoarse Whisperer (@HoarseWisperer) June 28, 2019 pic.twitter.com/h50OFx19pr — Matt Haughey (@mathowie) June 28, 2019 pic.twitter.com/YrRduOXHNF — Santa Claus, CEO (@SantaInc) June 28, 2019 This article has been updated to clarify Rapinoe’s reasons for protesting. Love HuffPost? Become a founding member of HuffPost Plus today. Related Coverage Dan Rather Warns Donald Trump Over 'Deeply Strange' Putin Meeting: 'History Is Watching' Sarah Huckabee Sanders' Goodbye 'Head Held High' Tweet Blows Up In Her Face Pete Souza Hits Donald Trump With 'Stark Reminder' Of How Barack Obama Talked To Vladimir Putin Donald Trump Fires Back At Jimmy Carter Over Illegitimate President Suggestion Also on HuffPost This article originally appeared on HuffPost . View comments
Loss-Making Vericel Corporation (NASDAQ:VCEL) Expected To Breakeven Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Vericel Corporation's (NASDAQ:VCEL): Vericel Corporation, a commercial-stage biopharmaceutical company, researches, develops, manufactures, and distributes cellular therapies for sports medicine and severe burn care markets. The US$829m market-cap company’s loss lessens since it announced a -US$8.1m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$3.3m, as it approaches breakeven. Many investors are wondering the rate at which VCEL will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for VCEL’s growth and when analysts expect the company to become profitable. See our latest analysis for Vericel VCEL is bordering on breakeven, according to the 5 Biotechs analysts. They expect the company to post a final loss in 2019, before turning a profit of US$17m in 2020. So, VCEL is predicted to breakeven approximately a couple of months from now! What rate will VCEL have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 63%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected. I’m not going to go through company-specific developments for VCEL given that this is a high-level summary, but, take into account that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period. One thing I’d like to point out is that VCEL has managed its capital judiciously, with debt making up 0.2% of equity. This means that VCEL has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company. There are too many aspects of VCEL to cover in one brief article, but the key fundamentals for the company can all be found in one place –VCEL’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should further research: 1. Valuation: What is VCEL worth today? Has the future growth potential already been factored into the price? Theintrinsic value infographic in our free research reporthelps visualize whether VCEL is currently mispriced by the market. 2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look atwho sits on Vericel’s board and the CEO’s back ground. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Introducing Vericel (NASDAQ:VCEL), The Stock That Soared 736% In The Last Three Years Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. You won't get it right every time, but when you do, the returns can be truly splendid. One bright shining star stock has beenVericel Corporation(NASDAQ:VCEL), which is 736% higher than three years ago. It's also up 19% in about a month. It really delights us to see such great share price performance for investors. See our latest analysis for Vericel Given that Vericel didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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. In the last 3 years Vericel saw its revenue grow at 22% per year. That's well above most pre-profit companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 103% per year, over the same period. Despite the strong run, top performers like Vericel have been known to go on winning for decades. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). If you are thinking of buying or selling Vericel stock, you should check out thisFREEdetailed report on its balance sheet. It's nice to see that Vericel shareholders have received a total shareholder return of 95% over the last year. That gain is better than the annual TSR over five years, which is 36%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 Take a Pay Cut to Work From Home? These days, a growing number of companies are adopting work-from-home policies to grant workers more flexibility. And in many cases, employees aren't suffering financially because of it. Much of the time, workers who do their jobs remotely earn the same salary as in-office employees,according to FlexJobs, and in some cases, work-from-homers even earn more. But what if your company is only willing to let you work from home in exchange for a pay cut? Is that option worth the cost? Ideally, you won't land in a scenario where you're forced to choose between keeping your salary or getting moreflexibilityby working from home. But if your employer is compelling you to make that choice, you'll need to weigh the income hit against the added perks. IMAGE SOURCE: GETTY IMAGES. First, assess the pay cut in question. Is it substantial? A modest reduction in salary may not be all that bad when you consider the savings you stand to reap by not having to go into the office all the time. Imagine you're looking at a $3,000 reduction in salary in exchange for being allowed to do your job from home. If you currently spend $250 a month on a train or bus pass tocommuteto your job, or a similar amount in fuel, then you're effectively breaking even. Working from home might also help you save money in other ways. For example, if you have kids, you might manage to shave off some child care expenses, thereby saving hundreds or even thousands over the course of a year. You might also be far less tempted to buy lunch daily, since you'll have access to your kitchen. And if you're in the habit of blowing $10 a day on store-bought sandwiches, there are additional savings right there. But monetary savings aside, there are benefits to being able to work remotely, like the time savings you'll reap by not having to travel to and from an office. This is especially valuable if you have a longer commute. Furthermore, when you work from home, you get the option to tend to household tasks in between work tasks so they're not all left waiting for you late in the evening. That, in turn, could help you enjoy your nights more and even snag added hours ofsleep. Therefore, when you contemplate a salary cut in exchange for working from home, ask yourself what your personal time and sanity are worth. A modest income hit could be well worth the sacrifice if it results in a better work-life balance. Of course, you don't want to taketoolarge a salary cut for the privilege of doing your job from home. If your earnings go down to the point where you might struggle to pay your bills, then perhaps that flexibility isn't worth it, since the stress that might ensue could wipe out any benefits you stand to reap. But if you're looking at a small hit in income for working remotely, it may be a worthwhile trade-off. 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.
Pierre Omidyars First Look Media Shuts Down Topic Magazine, Ends Funding for The Nib Political Cartooning Site Click here to read the full article. In a pair of cost-cutting moves, Pierre Omidyars First Look Media is shuttering the Topic Magazine digital publication dedicated to nonfiction storytelling and is dropping its funding for political cartoon site The Nib. Topic Magazine, launched two years ago, is ceasing publication as First Look plans to put more resources toward Topic.coms original video content production. The magazine staff will be let go at the end of July, First Look Media CEO Michael Bloom wrote in a memo to employees Friday. Related stories Topic Hires Viceland's Gena Konstantinakos as VP, Development and Video Programming Topic Studios Hires HBO Veteran Maria Zuckerman Cineflix Alum Launches New Banner Fugitive, Tees Up Alex Gibney, Yolanda Ramke Shows The magazines small, hard-working team has produced 24 powerful issues exploring love, anger, fear, music, rites of passage, identity and so much more, Bloom wrote. [W]e learned a lot about the audience, what resonated, and how to best move forward. The magazine has been led by SVP of editorial Anna Holmes, who previously founded Gawkers Jezebel. First Look Media also is parting ways with The Nib, Bloom said in the memo, without explaining why. The cutbacks by FLM were first reported by Study Hall , a Patreon-supported media newsletter. FLM announced its backing of The Nib in 2016 and relaunched the site that July, timed with the 2016 Democratic National Convention. Matt Bors, editor of The Nib, said in a message to readers Friday that he will continue the site independently. He said the fourth issue of the print magazine will ship in early July. The Nibs fifth issue is in the works and Bors will be publishing it independently. Our only funds going forward will be those our members have pledged each month to support us, he wrote. The publications signup page for members is at membership.thenib.com . Story continues New York-based First Look Media launched Topic.com in June 2017 as a home for original video, podcasts, photography, illustration and long-form journalism. As it ends Topic Magazine, another casualty of the monetization challenges faced by digital-media outfits, FLM has upped the investment in Topics video business. In May, the company announced the hire of 20-year HBO veteran Maria Zuckerman as EVP of Topic Studios to lead overall strategy. In addition, First Look recently hired Gena Konstantinakos , formerly a producer at Viceland, as VP of development and video programming for Topic. Topics film and video projects have included documentary shorts and series including The Loving Generation; Black 14; Edith+Eddie; Shes the Ticket; and aka Wyatt Cenac. Current and upcoming projects include those from filmmakers Darius Clark Monroe, Nathan Silver, Jia Li, Yvonne Michelle Shirley and Charlie Tyrell. Last fall Topic Studios also announced a first-look deal with Mermade , the digital-focused division of Sharon Horgan and Clelia Mountfords Merman production company. Omidyar, the billionaire founder of eBay, founded First Look Media in 2013 and the companys first feature film, Spotlight, won the 2016 Academy Award for best picture. According to the company, the entertainment business supports the work of our nonprofit side, which includes investigative journalism site The Intercept; documentary unit Field of Vision; and the Press Freedom Defense Fund. Sign up for Varietys Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Did Weyerhaeuser Company (NYSE:WY) Insiders Buy Up More Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It is not uncommon to see companies perform well in the years after insiders buy shares. 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 inWeyerhaeuser Company(NYSE:WY). Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information. We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Weyerhaeuser President Devin Stockfish made the biggest insider purchase in the last 12 months. That single transaction was for US$751k worth of shares at a price of US$26.93 each. That means that even when the share price was higher than US$26.34 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Devin Stockfish was the only individual insider to buy shares in the last twelve months. Devin Stockfish bought a total of 33085 shares over the year at an average price of US$26.32. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them). I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.3% of Weyerhaeuser shares, worth about US$55m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Weyerhaeuser we think they are probably pretty confident of a bright future. 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. If you would prefer to 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. 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.
Investors Who Bought Weyerhaeuser (NYSE:WY) Shares A Year Ago Are Now Down 28% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Weyerhaeuser Company(NYSE:WY) shareholders should be happy to see the share price up 17% in the last month. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 28% in the last year, well below the market return. See our latest analysis for Weyerhaeuser To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One 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. Unfortunately Weyerhaeuser reported an EPS drop of 73% for the last year. This fall in the EPS is significantly worse than the 28% the share price fall. It may have been that the weak EPS was not as bad as some had feared. With a P/E ratio of 104.25, it's fair to say the market sees an EPS rebound on the cards. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Weyerhaeuser'searnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Weyerhaeuser the TSR over the last year was -24%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Weyerhaeuser shareholders are down 24% for the year (even including dividends), but the market itself is up 7.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.6% over the last half decade. 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. Weyerhaeuser is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider 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.
If You Like EPS Growth Then Check Out Vishay Intertechnology (NYSE:VSH) Before It's Too Late 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, likeVishay Intertechnology(NYSE:VSH). 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. Check out our latest analysis for Vishay Intertechnology In business, though not in life, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS). So like the hint of a smile on a face that I love, growing EPS generally makes me look twice. You can imagine, then, that it almost knocked my socks off when I realized that Vishay Intertechnology grew its EPS from US$0.035 to US$2.48, in one short year. Even though that growth rate is unlikely to be repeated, that looks like a breakout improvement. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that Vishay Intertechnology is growing revenues, and EBIT margins improved by 2.3 percentage points to 15%, over the last year. That's great to see, on both counts. In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image. 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 Vishay Intertechnology EPS100% free. I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. As a result, I'm encouraged by the fact that insiders own Vishay Intertechnology shares worth a considerable sum. To be specific, they have US$25m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Even though that's only about 1.0% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders. Vishay Intertechnology's earnings per share growth has been so hot recently that thinking about it is making me blush. That EPS growth certainly has my attention, and the large insider ownership only serves to further stoke my interest. At times fast EPS growth is a sign the business has reached an inflection point; and I do like those. So yes, on this short analysis I do think it's worth considering Vishay Intertechnology for a spot on your watchlist. Of course, just because Vishay Intertechnology is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry. 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.
The Week Ahead In Biotech: Pending Clinical Readouts In Focus Biotech stocks headed south last week, reversing decent gains made in the previous week. Unfavorable FDA decisions,botched trialsand weaker broader market sentiment all weighed down on the sector. Here are the key catalysts of the unfolding week. Conferences • European Cardiology Congress - July 1-2, in Prague, Czech Republic • 11th International Virology Summit - July 1-2, in Valencia, Spain • ESMO 21st World Congress on Gastrointestinal Cancer – July 3-6, in Barcelona, Spain • 12th World Congress on Diabetes & Endocrinology - July 5-6, in Columbus, Ohio • 27th Congress of the International Society of Thrombosis and Haemostasis – July 6-10, in Melbourne, Australia PDUFA Dates Retrophin Inc(NASDAQ:RTRX) awaits FDA decision for a new formulation of Thiola in cystinuria on Sunday, June 30. The FDA is set to rule onKaryopharm Therapeutics Inc(NASDAQ:KPTI)'s NDA forselinexorin combination with dexamethasone for treating patients with relapsed refractory multiple myeloma who have received at least three prior therapies and whose disease is refractory to at least one proteasome inhibitor, one immunomodulatory agent, and one anti-CD38 monoclonal antibody. The PDUFA date is scheduled for Saturday, July 6. Clinical Trial Readouts CELYAD SA/ADR(NASDAQ:CYAD) will present at the ESMO conference Phase 1 data for its CYAD-1 and FOLFOX in colorectal cancer Uniqure NV(NASDAQ:QURE) is due to present at the ISTH conference July 5 nine-month data from the Phase 2b study of AMT-061 in hemophilia B Sangamo Therapeutics Inc(NASDAQ:SGMO) is scheduled to present at the ISTH conference July 5 initial Phase 1/2 data for SB-525 in hemophilia A. Catalyst Biosciences Inc(NASDAQ:CBIO) will release at the ISTH conference final Phase 2 data for marzeptaacog alfa in hemophilia. Related Link:FDA Type A Meetings: What You Need To Know Pending Data Releases (expected in Q2 or the first half of 2019) Novo Nordisk A/S(NYSE:NVO) – Phase 2 data for anti-interlukin 21 monoclonal antibody glucagon-like peptide-1 receptor (Type 1 diabetes) Reata Pharmaceuticals Inc(NASDAQ:RETA) – initial Phase 1 data from healthy volunteers for RTA 1701 (autoimmune and inflammatory disorders) Vertex Pharmaceuticals Incorporated(NASDAQ:VRTX) – Phase 2b data for VX-150 (acute pain following bunionectomy surgery) Bellicum Pharmaceuticals Inc(NASDAQ:BLCM) – Phase 2 pediatric top-line data for BPX-501 (adjunct T-cell therapy administered after allogeneic hematopoietic stem cell transplantation) Gilead Sciences, Inc.(NASDAQ:GILD) – Phase 2 data for GS-9688 (hepatitis B virus) Jaguar Health Inc(NASDAQ:JAGX) andRoche Holdings AG Basel ADR(OTC:RHHBY) – interim Phase 2 data for Mytesi (cancer-related diarrhoea) TRACON Pharmaceuticals Inc(NASDAQ:TCON) – Phase 1 data for TRC253 (prostate cancer) FibroGen Inc(NASDAQ:FGEN) – initial Phase 2 data for FG-3019 in Duchenne muscular dystrophy ASLAN PHARMACEU/ADR(NASDAQ:ASLN) – Part 1 data from the Phase 1 study of ASLAN003 in acute myeloid leukemia Obseva SA(NASDAQ:OBSV) – interim analysis of Part B data from a Phase 2a trial of OBE022 in pre-term labor Sorrento Therapeutics Inc(NASDAQ:SRNE) - Phase 2 repeat dose data from a Phase 2/3 study of SP-102 (lumbosacral radicular pain) See more from Benzinga • The Daily Biotech Pulse: Chiasma To Join R3K Index, EU Rejects Amgen's Osteoporosis Drug Application, Karuna IPO • The Daily Biotech Pulse: Verrica Rallies, Aclaris Flunked Hair Loss Study, 3 Biotechs To IPO • The Daily Biotech Pulse: Decision Day For Regeneron-Sanofi, Vermillion Offering, PDL BioPharma CFO to Depart © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Should Vishay Intertechnology, Inc. (NYSE:VSH) Be Your Next Stock Pick? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Vishay Intertechnology, Inc. (NYSE:VSH), it is a financially-robust company with a a strong track record of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Vishay Intertechnology here. Over the past few years, VSH has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 25%, which is what investors like to see! VSH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. VSH appears to have made good use of debt, producing operating cash levels of 0.59x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. VSH is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of VSH's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the electronic industry, VSH is also trading below its peers, relative to earnings generated. This further reaffirms that VSH is potentially undervalued. For Vishay Intertechnology, I've compiled three relevant aspects you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for VSH’s future growth? Take a look at ourfree research report of analyst consensusfor VSH’s outlook. 2. Dividend Income vs Capital Gains: Does VSH 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 VSH as an investment. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of VSH? 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.
3 Signs You Could Really Use a Financial Advisor Financial advisors can help you better manage your money, grow your investments more quickly, and put you on track to achieve your long-term financial goals. But they're an underutilized resource: Only 38% of Americans currently work with a financial advisor, according to a recent Transamerica Institute survey. You may think you don't need one because you simply don't have that much money to manage. You may also be concerned that you can't afford one. But there are circumstances when forgoing that professional assistance could cost you far more than paying for it. Here are three signs you should consider seeking help from a financial advisor. Image source: Getty Images. Marriages, divorces, births, deaths, job changes, and job losses often have huge impacts on your finances. You may have less money coming in than you're used to -- or you may have significantly more. You may have racked up heavier debt than you usually carry. And those life changes may have brought with them new financial goals, likesaving for a child's college education. If you've never dealt with the monetary issues surrounding these situations before, you might not know where to begin. That's where a financial advisor comes in. They handle these matters for a living, and they will be familiar with the best strategies to help you reach your goals. They may be able to come up with a plan to grow your money faster that you never would have thought of on your own. Saving for retirement or a child's higher education would be virtually impossible if the only tool you were using was a savings account. That's why you invest -- so that ideally, your portfolio will gain value significantly over time, sparing you the difficulty of saving the entire sum you need. But sometimes things don't go according to plan, and your investments lose money. And if that happens too widely within your portfolio, it could put your long-term financial security at risk -- especially if it's your retirement nest egg that is shrinking. It takes time to learn how to invest wisely, but financial advisors have spent that time. They can assess your risk tolerance and help you choose the right investments for you. Not only can this help you increase your net worth, but it can also save you a lot of stress, possibly preventing you from making some emotional investing mistakes. Not everyone has the desire to learn all the ins and outs of finance and investing, and some who might like to lack the time to do so. But that doesn't mean they should give up altogether on having a financial plan, or leave all their money in savings accounts where inflation can slowly erode its value. If becoming an expert yourself is not on your agenda, turn your money over to someone who has the time and the expertise to manage it the right way. Yes, it will cost you a bit up front, but it could also help you grow your net worth more effectively, and it can give you peace of mind knowing that you're on track to hit your financial goals. When choosing a financial advisor, make sure you're working with a reputable company or individual. Research financial advisors in your area, and check out their reputation and credentials. You can also search for advisors certified by theNational Association of Personal Financial Advisors. Try asking your friends and family for recommendations as well. It can't hurt to meet with a few different financial advisors at first to see who you like best. Talk to them about how they intend to invest your money, and what qualifications they have. Ask whether or not they're afiduciary-- someone required by law to act in the best interests of their clients, and to put those interests ahead of their own. Don't settle for complex answers you don't fully understand. A good financial advisor should be able to explain everything to you in layman's terms. Make sure the one you choose will be available for you to speak with any time you run into questions. Set up a plan for how often they'll regularly check in with you, so you know what to expect. Ask for a copy of the advisor'sfee scheduleas well. Your best bet will be to work with a fee-only financial advisor, not a fee-based financial advisor. Those descriptors may sound similar, but the difference is major. A fee-only advisor gets paid solely by their clients. They may charge you an annual amount that's a percentage of the assets they manage for you, or a flat fee, or you might simply pay them by the hour -- or some combination of those methods. Fee-based advisors, by contrast, can also earn commissions for selling you certain investment products -- so it's in their interest to convince you to buy products that will pay them a better commission. And they arenotfiduciaries, so the standards for their behavior are less restrictive: The financial products that they sell you only have to be "suitable" for you. So, pick a fee-only advisor, and then you won't have to worry about conflicts of interest. It can take time and effort to find the right financial advisor for you, but it will probably pay off in the long run, both by improving your financial health, and by reducing the stress and uncertainty that comes with trying to manage your investments all on your 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 The Motley Fool has adisclosure policy.
Prepackaged Sangria Is Having a Moment This Summer Capriccio is a wine brand that became cool only when it turned into sangria. It had been a dusty brand that was sold in Puerto Rico, not registering much in the way of buzz or sales. But Capriccio’s owner, Florida Caribbean Distillers, took a look at the wine category to see which trends were taking off. It noticed that sparkling wines and sangria were far outpacing the rest. So the company mixed the two to create a new Capriccio, which debuted in the U.S. in 2015. “We realized no one had put the two together in a single-serve bottle,” says Dave Steiner, national sales director at Florida Caribbean Distillers. It proved to be a savvy new twist on sangria. After selling fewer than 20,000 cases in 2015, mostly in the Southeastern United States, Capriccio has enjoyed explosive growth and now sells north of 1.2 million cases annually across the country. The brand got a big boost as it became a viral social media darling—albeit it was a mixed blessing, as consumers were talking up how quickly they were getting drunk on the sangria andcomparing it to Four Loko. Still, Capriccio has become the largest and fastest-growing single-serve sangria in the U.S. After an initial introduction of a four-pack in glass, the brand launched cans in new flavors including watermelon and rosé. A passion fruit Capriccio is next, and international expansion is also planned. “Our thought was, approach the sangria business like you would a beer or a soft drink,” says Steiner. “Create a package that’s on trend and has a great value, and be the first to market.” Prepackaged sangria sales are exploding, climbing 15% in 2018 from the prior year, according to data from industry tracker IWSR. By comparison, the total wine category’svolume was flat. What has helped sangria is a move away from the traditional base of red wine toward more trendy offerings, including rosé and Prosecco, and launching brands in more easy-to-drink, convenient packages like cans and single-serve bottles. “When you think about it, sangria has fruit, which is natural. It has some sweetness and is right from a pricing standpoint—it fits all the right boxes,” says Rob McMillan, executive vice president and founder of Silicon Valley Bank’s wine division. And while the sugar content can be a tad high in sangria, if done right—with a classic wine and fresh fruit—all sugar found in the drink would be naturally occurring and not incorporate artificial sugars. Max Heinemann, client manager of wine and spirits at Nielsen, says versatility is one major tailwind helping propel sangria. “Sangria can be easily manipulated into different recipes thanks to the varying combinations of wine and fruits,” says Heinemann. And though the industry can’t exactly track how much sangria is made at home or sold at restaurants, wine insiders say that if sangria is selling well at retail stores, it is likely seeing steady growth in those other channels. Sangria debuted as a trendy drink in America in 1964, when it was served at the Spanish Pavilion at the New York World’s Fair. In subsequent decades, sangria has enjoyed a mix of highs and lows depending on the prevailing food and alcohol trends at the time. But by the late 1990s, sangria had some perception problems. It was almost always made with cheaper red wine and often overly sweetened. Consumers ditched the drink. In recent years, sales have been on the rise as new ready-to-drink flavors and formats hit shelves. Tequila maker Jose Cuervo sells a white sangria that blends the classic lime margarita with red wine, citrus, and apple. It also sells a red sangria margarita mix with red wine, apple, and pomegranate. Some of those flavors are more favored during the fall, as Jose Cuervo is angling to encourage consumption during colder months. The Wine Group’s Beso Del Sol brand features apink sangriato target the rosé crowd and offers diverse packaging in the form of glass bottles, boxes, and portable Tetra Paks. “With nine products now in our lineup across three separate packages and three types of sangria, we are approaching 2019 as a major growth year,” says Collin Cooney, director of marketing for Beso Del Sol. He adds that because sangria is growing, the company will continue to explore more trends. Brandy Rand, chief operating officer for the Americas for IWSR, says retailers are also giving sangria more love because it is hitting on major trends, like portability, which has also helped boost demand for alcoholic seltzers and canned premixed cocktails. “As we have seen more wine on tap and wine in cocktails, the younger generation is less fussy about wine,” says Rand. “That gives suppliers more freedom and opportunity to pursue alternative packaging.” To be sure, sangria remains a relatively small category. Only 3.25 million nine-liter cases were sold last year, IWSR data shows. And regionally, growth has generally been stronger in warmer months and in Southern states with warmer climates. “To a certain extent, I feel that [sangria] is one of those drinks that will always be in the background, kind of like an old friend you can rely on because there is always something new coming out,” Heinemann says. “There will be moments when more people will find it interesting and moments when it will lull again.” —Alcohol-free barscaught on in the U.S. and U.K. But can they go global? —Why champagne brands arepartnering with art fairs —Anew style of winemakingcould take sherry mainstream —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.
Who Has Been Selling Zynex, Inc. (NASDAQ:ZYXI) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellZynex, Inc.(NASDAQ:ZYXI), you may well want to know whether insiders have been buying or selling. It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market. We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. View our latest analysis for Zynex Over the last year, we can see that the biggest insider sale was by the Founder, Thomas Sandgaard, for US$1.8m worth of shares, at about US$8.57 per share. That means that even when the share price was below the current price of US$8.99, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 1.3% of Thomas Sandgaard's holding. In total, Zynex insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! I will like Zynex better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. The last quarter saw substantial insider selling of Zynex shares. Specifically, insiders ditched US$2.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all. Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Zynex insiders own 52% of the company, worth about US$150m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. Insiders haven't bought Zynex stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Zynex is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. But note:Zynex may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 Does Aqua America, Inc. (NYSE:WTR) Fare As A Dividend Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could Aqua America, Inc. (NYSE:WTR) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. A 2.1% yield is nothing to get excited about, but investors probably think the long payment history suggests Aqua America has some staying power. Some simple research can reduce the risk of buying Aqua America for its dividend - read on to learn more. Click the interactive chart for our full dividend analysis Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 97% of Aqua America's profits were paid out as dividends in the last 12 months. This is quite a high payout ratio that suggests the dividend is not well covered by earnings. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Unfortunately, while Aqua America pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. As Aqua America's dividend was not well covered by earnings, 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. Aqua America has net debt of 5.76 times its EBITDA, which implies meaningful risk if interest rates rise of earnings decline. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 1.63 times its interest expense, Aqua America's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them, and we're reluctant to rely on the dividend of companies with these traits. Remember, you can always get a snapshot of Aqua America'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. Aqua America 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$0.43 in 2009, compared to US$0.88 last year. This works out to be a compound annual growth rate (CAGR) of approximately 7.3% a year over that time. Businesses that can grow their dividends at a decent rate and maintain a stable payout can generate substantial wealth for shareholders over the long term. While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's not great to see that Aqua America's have fallen at approximately 5.1% over the past five years. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. To summarise, shareholders should always check that Aqua America's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're a bit uncomfortable with Aqua America paying out a high percentage of both its cashflow and earnings. It's not great to see earnings per share shrinking. The dividends have been relatively consistent, but we wonder for how much longer this will be true. There are a few too many issues for us to get comfortable with Aqua America from a dividend perspective. Businesses can change, but we would struggle to identify why an investor should rely on this stock for their income. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. Very few businesses see earnings consistently shrink year after year in perpetuity though, and so it might be worth seeing what the 5analysts we track are forecasting for the future. 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.
With the launching of the Testnet, the performance of YottaChain is over 10,000 times higher than that of Internet giants NEW YORK, NY / ACCESSWIRE /June29, 2019 /ETH Technology and Application Conference was held in The Great Wall Hotel Beijing on June 29, 2019, and attended by Vitalik Buterin, the founder of ETH, alongwith blockchain technical experts, community leaders,influencers in blockchain industryat home and abroad and theYottaChain project team. Wang Donglin, founder of YottaChain and one of the Top 10 Young Scientists in China, has been devoted to researching on cryptography for over 20 years and on distributed storage for a decade. The new amazing generation of YottaChain Public Blockchain developed by him and his elite team made a debut in this conference, receiving a great amount of attention throughout the industry. During this conference, Wang gave a keynote speech themed on "Blockchain Ushers in a New Era to meet Internet Giants Head-on" and explained how YottaChain outweighed Google, AWS, Alibaba Cloud and other Internet behemoths in terms of core indicators and cost. Meanwhile, witnessed by Vitalik Buterin, Wang announced the launching of the YottaChain Testnet. Wang also mentioned that "We launch the beta network not only to keep the promise of becoming the first storage public chain launched, but also meet the Internet giants head-on in blockchain industry to display the substantial progress of real economy transformation by blockchain. From the perspective of core technical indicators, YottaChain gives a dimension-reducing blow to Internet giants like AWS, Google, Microsoft and Alibaba Cloud in data reliability and security, service availability, disaster resilience and anti-DDoS abilities, greatly outweighing them in the aforesaid aspects." In March, 2019, the user data of Alibaba Cloud in North China were lost due to storage failure and 94 games were disconnected as a result of cuts of optical fiber of Shanghai computer room of Tencent Cloud. Plus, at the beginning of June, AWS and Google Cloud suffered from massive failure, severely influencing a large number of clients. Puzzled by this situation, people cannot help but question why a series of problems continuously occurred in those largest IT giants even with devoted global IT elites, over a decade of rich experience, and market cap of hundreds of billions of US dollars? According to Wang, the major reasons were that the reliability of centralized storage already got close to the limit. It is quite difficult for even the most talented team with the largest technology input to further enhance the reliability because many factors which influence storage reliability are unrelated to code. Instead, only decentralized storage can meet the storage demand of big data era. Wang Donglin held that storage would be the optimal feasible application scenario of blockchain and explained the following points: First, storage is the real economy in the digital form and its on-chain process can be totally controlled by code. Second, storage has its own decentralized demand characterized by naturally remote disaster resilience, anti-DDoS, network acceleration, enhanced data reliability and availability. Third and most importantly, the unique "TruPrivacy" technology of YottaChain determines that as the number of storage users gradually increases, data deduplication reduces storage cost to 1/10 to 1/5. YottaChain is the most professional storage public blockchain amid its obvious advantages in four elements--technology, business model, economic model and governance structure, which are the foundation to measure a public blockchain. From the perspective of technology, Wang Donglin expressed that "in several known storage public blockchains, only YottaChain is designed with data protection mechanism to guarantee data security and core technology of 'encryption and deduplication'. In theory, it has the best performance of I/O. Besides, YottaChain's data have a strong self-healing capability, thus, they cannot be destroyed even by atomic bombs. Their reliability is at least over 10,000 times higher than that of the best centralized storage around the world". YottaChain has TruPrivacy's technology of "encryption and deduplication". It has broken the "common knowledge" in its industry and realized the zero-knowledge encryption and the elimination of repeated cross-users. In the context of ensuring users' data sovereignty, the storage cost will be reduced to 1/10 to 1/5, which was awarded a global invention patent. In DefCon, the world's largest hacking conference, TruPrivacy's server has been opened for hackers to attract with high-value cash rewards, to publicly verify its security, but nobody succeeded. This is enough to illustrate the excellence of this technology. From the perspective of business and economic models, there is a large imaginary space for the future blockchain's storage market, including various value-added services, such as a persistent storage market with ten billions of dollars, CDN network acceleration market with billions of dollars, big data analysis of disaster resilience, etc., and an incremental market that is spurred by high-quality, low-cost infrastructure with an unlimited-capacity storage. Thanks to a naturally remote disaster resilience, YottaChain's decentralized storage can provide storage of standard objects and end-to-end seamless connectivity solutions enabling existing centralized storage applications to be seamlessly transferred to YottaChain storage of reliable, low-cost, anti-DDoS abilities and disaster resilience services. It's the first blockchain application comparable to Internet giants' object-based storage services, such as AWS, Google, Azure, Alibaba Cloud, Tencent Cloud. In terms of governance structure, Wang Donglin said that YottaChain would be more determined to take the decentralized governance strategy, let community lead the development of projects and contribute to the practice of the blockchain spirit. By testing and launching all outstanding technical indicators via YottaChain, Testnet will be far ahead of peers in the same industry, which undoubtedly further deepens the consensus that "blockchain storage is YottaChain". As YottaChain enters the beta stage, the public can directly see the transformations of real economy by blockchain and compare and test them with the main services provided by the world's largest companies to experience its superiority and practical value. This is not only an important milestone in blockchain storage, but also a great leap in the development history of the entire blockchain industry. info@globalnews.com SOURCE:YottaChain View source version on accesswire.com:https://www.accesswire.com/550395/With-the-launching-of-the-Testnet-the-performance-of-YottaChain-is-over-10000-times-higher-than-that-of-Internet-giants
Here's What You Should Know About Albemarle Corporation's (NYSE:ALB) 2.1% Dividend Yield Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Albemarle Corporation (NYSE:ALB) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A slim 2.1% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Albemarle could have potential. The company also bought back stock equivalent to around 6.8% of market capitalisation this year. Some simple analysis can reduce the risk of holding Albemarle for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on Albemarle! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Albemarle paid out 21% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Last year, Albemarle paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. Remember, you can always get a snapshot of Albemarle'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. Albemarle 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$0.48 in 2009, compared to US$1.47 last year. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. It's rare to find a company that has grown its dividends rapidly over ten years and not had any notable cuts, but Albemarle has done it, which we really like. 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. Earnings have grown at around 5.9% a year for the past five years, which is better than seeing them shrink! A low payout ratio and strong historical earnings growth suggests Albemarle has been effectively reinvesting in its business. We think this generally bodes well for its dividend prospects. To summarise, shareholders should always check that Albemarle's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we like Albemarle's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. Second, earnings growth has been mediocre, but at least the dividends have been relatively stable. Ultimately, Albemarle comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Earnings growth generally bodes well for the future value of company dividend payments. See if the 21 Albemarle 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.
Will Autohome Inc.'s (NYSE:ATHM) Earnings Grow Over The Next Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Based on Autohome Inc.'s (NYSE:ATHM) earnings update in March 2019, analysts seem cautiously optimistic, as a 22% increase in profits is expected in the upcoming year, though this is noticeably lower than the past 5-year average earnings growth of 33%. Currently with trailing-twelve-month earnings of CN¥2.9b, we can expect this to reach CN¥3.5b by 2020. Below is a brief commentary on the longer term outlook the market has for Autohome. For those interested in more of an analysis of the company, you canresearch its fundamentals here. Check out our latest analysis for Autohome The longer term view from the 12 analysts covering ATHM is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 CN¥2.9b and the final forecast of CN¥4.9b by 2022, the annual rate of growth for ATHM’s earnings is 15%. This leads to an EPS of CN¥42.83 in the final year of projections relative to the current EPS of CN¥24.4. Margins are currently sitting at 40%, approximately the same as previous years. With analysts forecasting revenue growth of 0.68891 and ATHM's net income growth expected to roughly track that, this company may add value for shareholders over time. Future outlook is only one aspect when you're building an investment case for a stock. For Autohome, I've put together 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 Autohome 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 Autohome is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Autohome? 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.
A Look At Autohome Inc.'s (NYSE:ATHM) Exceptional Fundamentals Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Autohome Inc. (NYSE:ATHM) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ATHM, it is a financially-sound company with a strong history and a excellent future outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on Autohome here. ATHM’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 55% in the upcoming year. This is expected to flow down into an impressive return on equity of 24% over the next couple of years. Over the past year, ATHM has grown its earnings by 41%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 26%. which is what investors like to see! ATHM's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ATHM has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ATHM currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$10b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. For Autohome, I've put together three key factors you should look at: 1. Valuation: What is ATHM 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 ATHM is currently mispriced by the market. 2. Dividend Income vs Capital Gains: Does ATHM 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 ATHM as an investment. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of ATHM? 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.
Know This Before Buying Aqua America, Inc. (NYSE:WTR) For Its Dividend Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Aqua America, Inc. (NYSE:WTR) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. A slim 2.1% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Aqua America could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Aqua America paid out 97% of its profit as dividends, over the trailing twelve month period. Its payout ratio is quite high, and the dividend is not well covered by earnings. If earnings are growing or the company has a large cash balance, this might be sustainable - still, we think it is a concern. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Last year, Aqua America paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. As Aqua America's dividend was not well covered by earnings, 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. Aqua America has net debt of 5.76 times its EBITDA, which implies meaningful risk if interest rates rise of earnings decline. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of 1.63 times its interest expense is starting to become a concern for Aqua America, and be aware that lenders may place additional restrictions on the company as well. High debt and weak interest cover are not a great combo, and we would be cautious of relying on this company's dividend while these metrics persist. Remember, you can always get a snapshot of Aqua America's latest financial position,by checking our visualisation of its financial health. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of Aqua America'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 US$0.43 in 2009, compared to US$0.88 last year. This works out to be a compound annual growth rate (CAGR) of approximately 7.3% a year over that time. Companies like this, growing their dividend at a decent rate, can be very valuable over the long term, if the rate of growth can be maintained. While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's not great to see that Aqua America's have fallen at approximately 5.1% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. To summarise, shareholders should always check that Aqua America's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're a bit uncomfortable with Aqua America paying out a high percentage of both its cashflow and earnings. Second, earnings per share have actually shrunk, but at least the dividends have been relatively stable. There are a few too many issues for us to get comfortable with Aqua America from a dividend perspective. Businesses can change, but we would struggle to identify why an investor should rely on this stock for their income. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. Businesses can change though, and we think it would make sense to see whatanalysts are forecasting for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 Bows to Xi Jinping's Huawei Demands at G20 REUTERS The United States will resume sales of products to Huawei Technologies , the Chinese telecom equipment manufacturer, President Donald Trump said in his post-G20 press conference Saturday in Osaka. The action appears to be a surrender to publicly issued Chinese demands. Effective May 16, the U.S. Commerce Department added Huawei, the world’s largest telecom-equipment manufacturer, to its Entity List . As a result, no American company, without prior approval from the Bureau of Industry and Security, may sell or license to Huawei products and technology covered by the U.S. Export Administration Regulations. Trump Smirked as He Surrendered Western Values to Putin at the G-20 Summit in Osaka In recent weeks, Beijing had demanded the Trump administration withdraw the designation. On Thursday, for instance, the Wall Street Journal reported that Huawei’s removal was one of China’s three main preconditions to a trade deal. The other two demands were the lifting of tariffs Trump had imposed under Section 301 of the Trade Act of 1974 and the end to Washington’s efforts to get China to buy U.S. goods in excess of what was agreed in December 2018. American companies had begun complying with the Entity List prohibition, but Intel, Qualcomm, and other chip suppliers have lobbied the Trump administration to ease the ban on Huawei, which American officials believe poses a threat to American national security. Washington, to inhibit Chinese spying, is trying to persuade American allies to not install Huawei equipment in soon-to-be-built 5G telecommunications networks. Trump, however, undercut these efforts Saturday by making it appear that his Huawei campaign was merely a tactic to gain an advantage in the so-called “trade war” with China . Trump, in response to a reporter’s question at the Osaka press conference, refused to confirm he would be taking Huawei off the Entity List, and he did mention there would be a meeting Sunday or Tuesday on the topic. Nonetheless, the president’s initial words made it clear that his administration would resume the flow of high-tech American products to the embattled Chinese company. Story continues Trump’s just-announced concession on Huawei mirrors his reprieve last May of ZTE , another large Chinese telecom-equipment maker. Trump, in what he described as a “personal favor” to Chinese ruler Xi Jinping, removed ZTE from the Entity List. Trump, in his initial comments at the press conference in Osaka, said that Huawei matters would be decided at the end of the trade talks. Presumably this is a reference to efforts of his administration last month to prevent the company from selling telecommunications equipment to American network operators—Trump last month issued an executive order on the subject—and perhaps a reference to the Justice Department’s criminal prosecutions of Huawei and its chief financial officer, Meng Wanzhou. The U.S. has filed an extradition request for Meng, currently held in Vancouver. Trump also mentioned at the press conference that he would not be imposing any additional tariffs on Chinese goods. Previously, he had threatened to tariff an additional $325 billion of such products. In other comments, Trump said trade talks would resume and that China had agreed to start buying American farm products. Is a Trump-Kim DMZ Photo-Op in the Works? In short, Trump’s actions, as he detailed them at the Osaka press conference, were nothing short of extraordinary, apparently dropping actions to further American national security in order to obtain China’s purchase of primary products. The American president may eventually say he did not do that, but it is clear that Xi Jinping has just shown the world who’s boss by forcing his American counterpart to accede to his widely publicized demands. It looks like Trump just surrendered to China. Read more at The Daily Beast. Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.
Before You Buy The Timken Company (NYSE:TKR), Consider Its Volatility Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you're interested in The Timken Company (NYSE:TKR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price. Check out our latest analysis for Timken Zooming in on Timken, we see it has a five year beta of 1.8. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, Timken shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it's also important to consider whether Timken is growing earnings and revenue. You can take a look for yourself, below. With a market capitalisation of US$3.9b, Timken is a pretty big company, even by global standards. It is quite likely well known to very many investors. It takes deep pocketed investors to influence the share price of a large company, so it's a little unusual to see companies this size with high beta values. It may be that that this company is more heavily impacted by broader economic factors than most. Since Timken has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Timken’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 TKR’s future growth? Take a look at ourfree research report of analyst consensusfor TKR’s outlook. 2. Past Track Record: Has TKR 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 TKR's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how TKR 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.
Bullish Billionaire Investor Regrets Not Selling Bitcoin at $13,800 On June 27, billionaire investor and Galaxy Digital CEO Mike Novogratz said in an interview with CNBC that he wished he had sold more when thebitcoin priceachieved a new 2019 high at $13,800. After reaching its yearly high, the bitcoin price dropped by around 30 percent against the U.S. dollar, experiencing an expected pullback subsequent to a 230 percent year-to-date gain. On social media, Novogratz explained that reports about him hoping to have sold more when bitcoin spiked to its yearly high were taken out of context. On CNBC, Novogratz said that he wished to have sold more of his bitcoin holdings before the asset dropped 30 percent overnight but emphasized that on a macro scale, he remains optimistic on the medium to long term trend of the dominant crypto asset. Read the full story on CCN.com.
When Should You Buy Delta Air Lines, Inc. (NYSE:DAL)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Let's talk about the popular Delta Air Lines, Inc. (NYSE:DAL). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Delta Air Lines’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Delta Air Lines The stock seems fairly valued at the moment according to my valuation model. It’s trading around 14% below my intrinsic value, which means if you buy Delta Air Lines today, you’d be paying a fair price for it. And if you believe that the stock is really worth $66.04, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Delta Air Lines’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Delta Air Lines’s earnings over the next few years are expected to increase by 27%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder?DAL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor?If you’ve been keeping tabs on DAL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Delta Air Lines. You can find everything you need to know about Delta Air Lines inthe latest infographic research report. If you are no longer interested in Delta Air Lines, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 Now An Opportune Moment To Examine Delta Air Lines, Inc. (NYSE:DAL)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we're going to take a look at the well-established Delta Air Lines, Inc. (NYSE:DAL). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Delta Air Lines’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Delta Air Lines According to my valuation model, Delta Air Lines seems to be fairly priced at around 14% below my intrinsic value, which means if you buy Delta Air Lines today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $66.04, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Delta Air Lines’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 27% over the next couple of years, the future seems bright for Delta Air Lines. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder?It seems like the market has already priced in DAL’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor?If you’ve been keeping tabs on DAL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Delta Air Lines. You can find everything you need to know about Delta Air Lines inthe latest infographic research report. If you are no longer interested in Delta Air Lines, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 RCM Technologies, Inc. (NASDAQ:RCMT) Trading At A 47% Discount? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we will run through one way of estimating the intrinsic value of RCM Technologies, Inc. (NASDAQ:RCMT) by estimating the company's future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. See our latest analysis for RCM Technologies We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF ($, Millions)", "2019": "$6.46", "2020": "$6.98", "2021": "$7.41", "2022": "$7.79", "2023": "$8.14", "2024": "$8.46", "2025": "$8.76", "2026": "$9.05", "2027": "$9.33", "2028": "$9.61"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Est @ 6.19%", "2022": "Est @ 5.15%", "2023": "Est @ 4.43%", "2024": "Est @ 3.92%", "2025": "Est @ 3.56%", "2026": "Est @ 3.31%", "2027": "Est @ 3.14%", "2028": "Est @ 3.02%"}, {"": "Present Value ($, Millions) Discounted @ 10.3%", "2019": "$5.86", "2020": "$5.74", "2021": "$5.52", "2022": "$5.26", "2023": "$4.98", "2024": "$4.70", "2025": "$4.41", "2026": "$4.13", "2027": "$3.86", "2028": "$3.61"}] Present Value of 10-year Cash Flow (PVCF)= $48.07m "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 (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.3%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$9.6m × (1 + 2.7%) ÷ (10.3% – 2.7%) = US$130m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$130m ÷ ( 1 + 10.3%)10= $48.92m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $96.99m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $7.6. Compared to the current share price of $4, the company appears quite good value at a 47% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at RCM Technologies 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 10.3%, which is based on a levered beta of 1.271. 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. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For RCM Technologies, I've put together three relevant factors you should further examine: 1. Financial Health: Does RCMT 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 RCMT'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 RCMT? 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 NASDAQ 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.
Read This Before You Buy Steelcase Inc. (NYSE:SCS) Because Of Its P/E Ratio Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it practical, we'll show how Steelcase Inc.'s (NYSE:SCS) P/E ratio could help you assess the value on offer. Based on the last twelve months,Steelcase's P/E ratio is 16.09. In other words, at today's prices, investors are paying $16.09 for every $1 in prior year profit. View our latest analysis for Steelcase Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Steelcase: P/E of 16.09 = $17.1 ÷ $1.06 (Based on the year to May 2019.) 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. If earnings fall then in the future the 'E' will be lower. That means unless the share price falls, the P/E will increase in a few years. So while a stock may look cheap based on past earnings, it could be expensive based on future earnings. In the last year, Steelcase grew EPS like Taylor Swift grew her fan base back in 2010; the 59% gain was both fast and well deserved. Unfortunately, earnings per share are down 8.2% a year, over 3 years. One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. If you look at the image below, you can see Steelcase has a lower P/E than the average (22.9) in the commercial services industry classification. Steelcase's P/E tells us that market participants think it will not fare as well as its peers in the same industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling. The 'Price' in P/E reflects the market capitalization of the company. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash). Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof). Steelcase's net debt is 17% of its market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt. Steelcase has a P/E of 16.1. That's below the average in the US market, which is 18.1. The company hasn't stretched its balance sheet, and earnings growth was good last year. If the company can continue to grow earnings, then the current P/E may be unjustifiably low. Given analysts are expecting further growth, one might have expected a higher P/E ratio.That may be worth further research. When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. But note:Steelcase 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.
Better Buy: Facebook vs. Twitter Facebook(NASDAQ: FB)andTwitter(NYSE: TWTR)have defined the social media sector since its early days. The two companies together pioneered many of the social media concepts that have become part of the mainstream lexicon, including trending topics, the news feed, and even "liking" something. Both companies are also among the biggest and most important intermediaries in the world as they serve as a source of news and information for billions of people as well as a medium of communication between friends, family, and colleagues. However, while Facebook and Twitter have much in common as social media companies, the two stocks couldn't be more different. Facebook started out relatively flat for the first 15 months following its 2012 IPO, but then enjoyed a five-year, roughly 800% stock price surge. It's become one of the world's most valuable companies as it built a near-monopoly in social media with the help of Instagram and WhatsApp, which it acquired in 2012 and 2014, respectively. Twitter, on the other hand, enjoyed a 66% surge in the first few months following its 2013 IPO but has mostly floundered since then as a publicly traded company. It's had numerous issues finding a reliable business model and growing its user base. The chart below shows how the two companies' paths have diverged over the past 5 years. FBdata byYCharts. Facebook has been no stranger to trouble over the last two years as it has dealt with a series of scandals, while Twitter has shown some signs of progress in its turnaround efforts. Let's take a look at where each company stands today to see which is the better buy. Facebook's business has size, reach, and profitability that's essentially unrivaled in the world. As of its most recent quarter, the social network had 2.38 million monthly active users (MAUs) and its family of apps -- including Instagram, WhatsApp, and Messenger -- had 2.7 billion MAUs. The advertising business built on its social network is also incredibly profitable with an adjusted operating margin of 42% in the first quarter and 45% last year. Numbers like those illustrate Facebook's dominance and help explain why it's market cap is nearly $550 billion. That same dominance, however, has led to a slew of challenges. Image source: Getty Images. The company is under scrutiny following a series of scandals related to the 2016 presidential election, and critics have attacked it for undermining democracy, facilitating hate speech, and even contributing to the genocide of Rohingya Muslims in Myanmar. As a result, #DeleteFacebook campaigns have spread across social media, amplified by celebrities like actor Jim Carrey. Many have called for increased regulation and corporate oversight of the company and of founder Mark Zuckerberg, who controls a majority of the company's voting rights. Some want him to relinquish either his CEO or Chairman role. Presidential candidate Sen. Elizabeth Warren, D-Massachusetts, has even called for Facebook to be broken up, along with other big tech companies likeAmazonandAlphabet. The threat of a breakup seemed to increase in early June when the Federal Trade Commission said it would open anantitrust probe against Facebook, which follows Facebook's setting aside $3 billion to pay an expected FTC fine that could reach $5 billion. Zuckerberg has repeatedly pushed back against claims that the company is a monopoly, telling Congress "it certainly doesn't feel like that to me" in 2018 testimony. In response to the privacy and security-related criticisms, Facebook has ramped up hiring in an effort to make its site less vulnerable to Russian manipulation in the next presidential election and to prevent data misuse like that which occurred in the Cambridge Analytica incident. Those efforts have been costly, however, and the company expects profitability to decline as it implements new safety and security protocols. Later in June, Facebook reminded the market of its power to make an impact when it announced a newdigital cryptocurrency called Librathat marked a major foray into digital payments. That, along with initiatives likeInstagram e-commerce, show that the company has plenty of options to add new business lines. Just a couple of years ago, Twitter looked like it could drift into irrelevance. The company had seen rapid turnover among its executive ranks. When CEO Jack Dorsey returned to the executive chair in 2015, revenue was declining and the company's user growth had flatlined. Meanwhile, investor attention moved to Snapchat-parentSnapand Instagram, as young people seemed to be turning their attention to photo-based social media apps. However, Twitter has steadily made improvements to its platform, making efforts to eject bad actors off the site and tame hate speech. It has also benefited from things outside of its control, like President Trump's embrace of the site to announce news and policy and Facebook's challenges. Twitter has taken advantage of the situation to return to growth. In the company's first quarter of 2019, revenue grew 18%, a sign of Twitter's improving advertising business, and monetizable daily active usage (mDAU) increased by 11%. Revenue in the U.S. was up 25%, demonstrating the company's ability to extract greater income from a user segment that was thought by some to have reached maturity. Twitter has also become solidly profitable, posting a profit on a generally accepted accounting principles (GAAP) basis of $190.8 million, or $0.37 per share on a non-GAAP (adjusted) basis. Its market cap stands around $26.6 billion. As a result of those investments and commitments to improve the health of the business and focus on its core user base, Twitter now appears to be on more solid ground than it has been in a long time. The company will never be the behemoth that Facebook is, but the site is a valuable tool for those who depend on it, and management is clearly doing a better job these days of unlocking value. Twitter deserves credit for its recent turnaround, but it's hard to match Facebook's set of competitive advantages, which have made life difficult at times for its smaller rival. Size matters in social media, as advertisers are usually interested in reach and audience, giving an advantage to Facebook. In addition to being much larger than Twitter, Facebook is also growing faster, with revenue up 26% in its most recent quarter compared to 18% for Twitter. On the other hand, Twitter is the cheaper of the two stocks at the moment with a price-to-earnings ratio of 20 compared to Facebook at 28.5. While Twitter looks like a much healthier business than it was a few years ago, Facebook's network of competitive advantages, profitability, and ability to launch new businesses make it the better buy today. 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 Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.Jeremy Bowmanowns shares of Amazon and Facebook. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Twitter. The Motley Fool has adisclosure policy.
Virtual influencers gain real followers — and here's why some find it 'scary' Miquela Sousa, aka‘Lil Miquela’, is not real — but she has 1.6M followers on Instagram (FB). With the rise of social media and artificial intelligence, virtual “influencers” are becoming more of a mainstay trend for big-name brands, despite the potential problems they create. “It’s getting kind of scary,” Bryan Gold, CEO of creator media platform#Paid, toldYahoo Financein a recent interview. He said one potential risk is the character’s power to condition consumers and influence purchasing behavior. “This poses a challenge when brands are partnering with virtual influencers who don’t have any defined values or belief systems,” Gold explained. “What’s missing is authenticity. Does this virtual influencer actually care about the product that it’s promoting? And if consumers aren’t able to see that it might backfire,” he added. Most recently, Calvin Klein (PHV) came under scrutiny after releasing acontroversial adwith supermodel Bella Hadid and computer-generated Miquela. Viewers quickly accused the ad of “queerbaiting” after the pair shared a kiss — prompting anapologyfrom the fashion brand, which said the intention was “to explore the blurred lines between reality and imagination.” And the lines are more blurred than ever, as Lil Miquela is one of many virtual beings claiming a stake in the real world. Lucy, a cartoonish charactercreated by AI-based virtual beings company Fable Studio is able to read and respond to viewers’ reactions in real time. “It’s about the personalization of entertainment and bonding to a character,” Fable Studio Co-Founder Pete Billinger explained to Yahoo Finance, adding that “we really think” this is the future of social media. And virtual characters may even come replace digital home assistants like Amazon Alexa (AMZN) & Google Home (GOOGL), according to Billinger. “We’re really interested in seeing how all of this is going to transcend the ‘assistant role’ in terms of the way we interact with these technologies currently,” Billinger said. Alexa and Home are “sort of treated as our slaves, and we want to explore what it means to have a more meaningful relationship with them,” he said. “It’s a two-way street,” he added. “What can we learn from [these virtual beings] and what can we help teach them on our own?” Alexandra Canal is a Producer at Yahoo Finance. Follow her on Twitter:@alliecanal8193 Read more: • Instagram grapples with 'fake news' problem as phony accounts proliferate • Bluemercury will explore CBD line 'in next 24 months', says co-founder • Why Blade's CEO is ‘excited’ about competition from Uber Copter • KFC to explore plant-based alternatives as Beyond Meat booms Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Cooking (and Shrinking) the Modern Combat Ration Photo credit: U.S. Army From Popular Mechanics The entrance to the U.S. Army Natick Soldier Systems Center is busy and confusing. Based on how much the soldier at the gate my Uber driver and I pulled up to was shouting at us, we were not doing a great job of navigating that entrance. But after a few phone calls and with the help of our escort for the day, I was finally on my way down the long path to the correct building. Natick is an Army base where the military scientists at the forefront of the development of food systems for all of the armed forces (as well as NASA!) are developing new technologies like sonic agglomeration, vacuum microwave drying, and sonic swab technology. The part of Natick I wanted to visit is a warehouse full of super-cool machines that will potentially help our soldiers be able to do their jobs better, by feeding them foods that are packed with calories, nutrients, and flavor, but without weighing a ton or taking up much space. And they’re doing all of this while maintaining vitamin integrity so that soldiers and even astronauts can eat that food, be full, and also be healthy. As a chef, I spend all of my time trying to make food delicious, comforting, and entertaining, while keeping the process simple enough for my cooks to be able to complete orders in a timely fashion. I wanted to find out how the scientists and engineers at Natick do all of those things, only with an added priority: making the food last for three years without refrigeration. I was led into a large open room full of machinery and equipment that looks intense, but on closer inspection is a lot like regular, though super-large, kitchen equipment. And it smelled good in there. Like they were baking cinnamon buns and casseroles and... Anyway, let’s talk about science! Much of my day was spent learning about the Close Combat Assault Ration. Soldiers have always needed portable rations because, well, humans eat food, and they’re not always camped out at a base with a mess tent and a cook. Those rations need to be nonperishable, lightweight, and small enough that a soldier can carry enough food for a mission that could last several days. But no matter how small and light field rations get, they can always be smaller and lighter. Story continues Freeze-drying technology, which has been used in large-scale production since 1940, was once the common process for reducing the weight of meals. But now, as senior food technologist Dr. Tom Yang shows me, vacuum-microwave drying has supplemented it, further reducing the weight of rations. Here’s how it works. Photo credit: David J Kamm Take a banana: It’s placed into a rotating drum or on a tray, which is then placed inside a large washing machine–like rig outfitted with a powerful pump that creates a vacuum, which lowers the boiling point of water inside of the machine to a mere 68 degrees Fahrenheit. (Water normally boils at 212 degrees Fahrenheit.) The banana can now be microwaved at the temperature of a pleasant spring day. After an hour of gentle tumbling, about half of the water has been vaporized. The banana now weighs about half as much as it did when it started, but it still tastes like a banana. By virtue of the way that the banana is dried, it’s more pliable than a freeze-dried banana. So you can compress it into a dense, chewy, and tiny banana (or cheeseburger or slice of New York–style cheesecake). It can be eaten as is or rehydrated with water. But it can still get smaller. Senior food engineer Ann Barrett, PhD., showed me a technique called sonic agglomeration. After a food has been dried in the VMD, it’s placed in an “ultrasonic welder,” where it is pressed into a small mold that has a diameter a little bit larger than a golf ball. Through a combination of pressure and sonic vibration, the food particles’ edges begin to weld, causing all of the various particles of whatever ingredients were put in the mold to fuse together. You’re left with a tiny, dense disc of food that fits easily in the palm of your hand, but also contains hundreds of calories. A soldier can now eat it on the go or rehydrate it to make something like a paste or soup. The whole process takes about an hour. Freeze-drying may have taken two days. Photo credit: U.S. Army The Natick crew has been experimenting with different ways to encapsulate nutrients in the discs for longevity. They’ve had the best results by encapsulating the vitamins in fat for placement in lower-fat foods and encapsulating them in starch for higher-fat foods. And while this is useful in military circumstances, the real benefit will be to astronauts. In extremely long missions to space, traditionally dried and packaged foods may not be able to maintain much vitamin content because of cosmic radiation and the passage of time. Current Natick tests show significant vitamin integrity—for as long as five years, which is plenty of time to get people to Mars. Without scurvy. Next I got to see something called a sonic swab, essentially an electric toothbrush with a fancy Q-tip on the end. That Q-tip agitates the surface of a food preparation area—or say, a machine in a factory—getting at any bacteria hidden in microscopic crevices. With the exception of the guard who yelled at me, the people at Natick are improving lives. They’re trying to give our military food that lasts and takes up minimal space, and that’s hard enough. To make it delicious is nearly impossible. As a final test, I took a few of the Natick meals home with me. One night, I ate a Natick-made pepperoni pizza with my daughter while watching Moana . And while it was objectively not that great (the pizza, that is; Moana is amazing), it was really not that bad. If you toast it, it’s almost good! But this food is for soldiers. Not for a New York City chef with regular access to caviar, lobsters, and the best pizza in the world. In the middle of a mission, these MREs could save lives, or remind the enlisted men and women eating them of what home tastes like. That’s all much more important than what I think of vacuum-microwaved cheesecake. (Incidentally, it was pretty delicious.) This article appeared in the July/August 2019 issue of Popular Mechanics. You can subscribe here . ('You Might Also Like',) This Device Can Send Messages Without Cell Service The Best Portable BBQ Grills for Cooking Anywhere The Best Video Game the Year You Were Born
How Millennials' Wine Preferences Differ From Boomers Carlo Rossi jugs of wine have always been a hit with boomers but dismissed bymillennials. So E. & J. Gallo did something about it. Late in 2017, the world’s largest family-owned winery debuted Carlo Rossi in 750-milliliter bottles—the first time it ever sold the brand in that format—because low-priced bulk wine didn’t resonate with millennials. E. & J. Gallo also shifted the styles of wine toward trendier Pink Moscato Sangria and Fiesta Sangria and away from Old World wines like Burgundy and Chianti. “The next generation wants flavorful wine,” says Stephanie Gallo, E. & J. Gallo’s chief marketing officer. “We are evolving our brand to appeal to them.” Americans between the ages of 21 and 34—a group that includes some Generation Z but is mostly millennial—purchase only 10% of wine sold at retail stores but account for 17% of the buying population, Nielsen data shows. “This is an issue for the wine category,” says Danny Brager, senior vice president of Nielsen’s beverage alcohol practice. “The heartland of wine is boomers and seniors.” Boomers are responsible for thelargest growth periodin wine sales in U.S. history. As they aged into adulthood, wine seemed fancy, especially compared with low-calorie beers and the cheap stuff liquor makers were selling. This demographic also benefited from a healthy economy, giving them the purchasing power to buy expensive wines. But cost-conscious millennials are still bruised from the 2008 financial crisis and are delayingbuying homes,getting married, and, yes, even the leap to buying fine wines. On a per-serving basis, wine is more expensive than beer and spirits. That makes it tough for millennials to stomach a $30 bottle of wine with roughly five servings (and oxidizes), while a similarly priced bottle of Maker’s Mark serves 25 and has a long shelf life. Lately, wine has been hurt by stiffer competition from craft brewers and new threats like cannabis and nonalcoholic beverages. But the biggest problem is the resurgent liquor industry. Beer’s market share in the U.S. total beverage alcohol market has ebbed from 56% in 1999 to 45.5% last year, according todatafrom spirits industry advocate the Distilled Spirits Council. Liquor makers have captured 9.1 percentage points of beer’s share losses, versus just 1.4 for wine. “Spirits have done a pretty good job of pivoting and watching trends,” Brager says. Among styles, millennials favor Pinot Noir, Moscato, sparking wines, and of course,rosé. But they are shunning Chardonnay, White Zinfandel, and well, pretty much everything else. Winemakers need a quick turnaround because by 2027, millennials are projected to surpass Gen X as the largest fine-wine-consuming demographic. “What I love about millennials is they don’t view wine as a formal beverage but as a casual social beverage,” Gallo says. Gallo wants winemakers to move away from elitist wine marketing. She also believes the industry could do a better job marketing and making wines for a more diverse population. E. & J. Gallo has made some strides with millennials, scoring a notable hit with the red blend Apothic. It also sells three brands in cans: Apothic, Dark Horse, and Barefoot Spritzers. That has opened upnew distributionopportunities, ascanned winescan be more easily sold at sports stadiums, outdoor concert venues, and beach parties. Of course, millennials aren’t just old enough to be drinking wine—they make it too. “Wine can be intimidating,” says Colleen Hardy, who cofounded Living Roots Wine & Co. with her Australian husband, Sebastian, both millennials. “But I do think our generation is curious, and we want to try new things and know about the people behind our products.” Living Roots is an “urban winery.” It takes grapes grown in the Finger Lakes region to a warehouse in Rochester, N.Y., where they are pressed in a winery within city limits. Though missing the sweeping vineyard views, Living Roots has atasting roomthat is more accessible to urban millennials who have moved back into the city. And while wine remains the core focus, Living Roots collaborates with other local alcoholic beverage companies to generate buzz. The winery worked with Fifth Frame Brewing on a New England IPA brewed with the winery’s Pinot Gris juice. Down the road, it hopes to work with Black Button Distilling on a brandy. Hampton Water, like most rosés, targets millennials. The brand’s name evokes the Hamptons lifestyle, but at $25 per bottle, it is cheaper than jetting off to the trendy New York beaches. “If you are 25 and walk into a liquor store and you are going to spend $80 on wine, you better know you will like it,” says Hampton Water founder Jesse Bongiovi. “I think that’s where the rosé category has set itself apart. You can get a really good bottle for about $20.” Both Hardy and Bongiovi say social media is key to developing loyalty for their brands. Living Roots claims 61% of their Instagram followers are under the age of 35. Hampton Water uses social media, especially Instagram Stories, to engage with fans and showcase the people behind the brand. (It may help that Bongiovi is the son of legendary rocker Jon Bon Jovi.) “Wine has got all the attributes that a millennial wants: They want craft, they want clarity of ingredients,” says Rob McMillan, executive vice president and founder of Silicon Valley Bank Wine Division. “It is on the table if we start to market it.” —Alcohol-free barscaught on in the U.S. and U.K. But can they go global? —Why champagne brands arepartnering with art fairs —Anew style of winemakingcould take sherry mainstream —Prepackaged sangriais having a moment this summer —Listen to our new audio briefing,Fortune500 Daily FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis.
Bitcoin is going mainstream Stateside, Coinbase report claims US crypto exchange Coinbase has released a report looking at the growing interest in cryptocurrencies on the part of Americans, on a state-by-state level. The research, which involved 2,000 participants, found that 58% of Americans have heard of Bitcoin. Over the past year, more people searched on Google for Bitcoin than the royal wedding or election results. To date, more than 70% of US states have enacted legislation that addresses cryptocurrency or blockchain. Whilst the top 10 US states for percentage of the population that owns crypto are: California, New Jersey, Washington, New York, Colorado, Utah, Florida, Alaska, Nevada, and Massachusetts. The most appealing thing about crypto and Bitcoin to me is the idea of a worldwide currency , that it can cross borders without having to factor in exchange rates or high transfer fees or long delays, says Christopher, a 26-year-old small business owner in New Jersey. Say I want to move to another country someday? My cryptocurrency would automatically come with me. My whole journey is not a get-rich idea. I just really believe in crypto and want the technology to succeed. For people in my generation, I think it makes a lot more sense than stocks, bonds, inflated real estate, or other depreciating assets, adds Harrison, a 30-year-old systems manager in Washington State. I have no plans to trade or sell right now , there are price points where I might sell some, to pay off debt or pay off my condo. But the goal is to try to get actual economic freedom. Another participant comments: A lot of the best opportunities in the stock market are only available to accredited investors, which is a tiny part of the American population. Cryptocurrency is available to everyone. The post Bitcoin is going mainstream Stateside, Coinbase report claims appeared first on Coin Rivet .
Does The Shoe Carnival, Inc. (NASDAQ:SCVL) Share Price Fall With The Market? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Shoe Carnival, Inc. (NASDAQ:SCVL) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know 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. Check out our latest analysis for Shoe Carnival As it happens, Shoe Carnival has a five year beta of 1.03. This is fairly close to 1, so the stock has historically shown a somewhat similar level of volatility as the market. Using history as a guide, we might surmise that the share price is likely to be influenced by market voltility going forward but it probably won't be particularly sensitive to it. Beta is worth considering, but it's also important to consider whether Shoe Carnival is growing earnings and revenue. You can take a look for yourself, below. Shoe Carnival is a rather small company. It has a market capitalisation of US$405m, which means it is probably under the radar of most investors. It doesn't take much money to really move the share price of a company as small as this one. That makes it somewhat unusual that it has a beta value so close to the overall market. Since Shoe Carnival has a beta close to one, it will probably show a positive return when the market is moving up, based on history. If you're trying to generate better returns than the market, it would be worth thinking about other metrics such as cashflows, dividends and revenue growth might be a more useful guide to the future. In order to fully understand whether SCVL is a good investment for you, we also need to consider important company-specific fundamentals such as Shoe Carnival’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Future Outlook: What are well-informed industry analysts predicting for SCVL’s future growth? Take a look at ourfree research report of analyst consensusfor SCVL’s outlook. 2. Past Track Record: Has SCVL 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 SCVL's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how SCVL 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.
At US$27.60, Is It Time To Put Shoe Carnival, Inc. (NASDAQ:SCVL) On Your Watch List? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Shoe Carnival, Inc. (NASDAQ:SCVL), which is in the specialty retail business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Shoe Carnival’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Shoe Carnival According to my valuation model, Shoe Carnival seems to be fairly priced at around 4.54% above my intrinsic value, which means if you buy Shoe Carnival today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $26.4, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Shoe Carnival’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Shoe Carnival, it is expected to deliver a relatively unexciting earnings growth of 9.9%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term. Are you a shareholder?It seems like the market has already priced in SCVL’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor?If you’ve been keeping an eye on SCVL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Shoe Carnival. You can find everything you need to know about Shoe Carnival inthe latest infographic research report. If you are no longer interested in Shoe Carnival, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Canadian Marijuana Sales Hit an All-Time High in April (but Still Disappoint) A decade or two from now, we may look back upon legal cannabis as the greatest growth story of our generation. Having recorded $10.9 billion in worldwide revenue last year, the legal weed industry is on track for a compound annual growth rate of more than 24% through 2024, according to Arcview Market Research and BDS Analytics. For those of you keeping score at home, we're talking about$40.6 billion in global annual sales by 2024just in licensed stores. This doesn't even factor in the pharmaceutical cannabinoid revenue and general-store sales of cannabidiol products that could push this sales total even higher. Suffice it to say, marijuana is sort of a big deal on Wall Street, and the huge returns in pot stocks since the beginning of 2016 prove that point. Image source: Getty Images. Unfortunately, the launch of legal cannabis in Canada hasn't quite been what Wall Street, investors, or Canadian pot stocks had in mind. Each month, Statistics Canada releases retail data for a variety of Canadian industries, which now includes cannabis stores. Since cannabis is a highly regulated market, the revenue data reported to Statistics Canada is considered to be extremely high quality and very accurate. Here's a rundown of total licensed pot sales in Canada since recreational sales began on Oct. 17, 2018 (all figures reported in Canadian dollars, with U.S. dollar equivalency in parentheses): • October 2018:CA$53.68 million ($40.67 million) • November 2018:CA$53.73 million ($40.71 million) • December 2018:CA$57.34 million ($43.44 million) • January 2019:CA$54.88 million ($41.58 million) • February 2019:CA$51.66 million ($39.14 million) • March 2019:CA$60.94 million (S46.17 million) • April 2019:CA$74.67 million ($56.57 million) As you can see, sequential monthly sales growth hit almost 23% in April, and it was by far the best single month of marijuana sales to date in Canada. Still, these figuresgave way to disappointment. Even with pot revenue at an all-time high in April, aggregate revenue over the first 6.5 months of sales is just $308.28 million, which is well off of the $5 billion that the Canadian pot industry is aiming for in annual sales just a few years after launch. Image source: Getty Images. Why have things been such a mess? First, you can go ahead and give Health Canada a finger-wag. Health Canada, the agency responsible for overseeing the legal weed industry, has been absolutely inundated with cultivation, processing, and sales license applications. As of January, Health Canada was contending with abacklog of nearly 840 licensing applications, many of which were for cultivation, after having approved fewer than 200 applications since 2013. It takes many months, if not years, to review cultivation and sales license applications, and as a result, a number of cannabis producers have been penalized by having to wait patiently for the go-ahead to grow, harvest, and sell their marijuana. For what it's worth, Health Canadadoes have a plan to work through this backlog. In May, the agency announced that cultivation license applications would only be considered if a grow farm was complete. This should help to eliminate underfunded grow sites and expedite the review of the nation's larger producers that can make a real dent in the current cannabis shortage. Another problem has been compliant packaging shortages. With Health Canada laying out a host of guidelines that growers and retailers would need to follow in order to get marijuana products onto retail shelf space, there simply haven't been enough compliant packaging solutions in the early going. Instead, unfinished cannabis has been left waiting on the sidelines for processing until there are sufficient packaging solutions in place. Lastly, the marijuana growers themselvesdeserve some of the blame. Pot growers in Canada were unwilling to invest a lot of money in capacity expansion until they were absolutely certain that the Cannabis Act would become law. This certainty wasn't in place until less than a year before recreational weed sales commenced. Therefore, many pot stocks are still in the process of building out capacity and are nowhere near able to meet domestic demand. Image source: Getty Images. Even though it's pretty evident that the legal marijuana industry has a solid future, that optimism should be tempered for the time being. It's unlikely that Health Canada's fix for the license application backlog will be resolved anytime soon, and it could be another year before major growers are operating at or near full capacity. What's more, Health Canada announced a little over two weeks ago that the launch of derivative products (e.g., edibles, concentrates, vapes, topicals, and nonalcoholic infused beverages)would be late. Although new regulations governing derivative products would, indeed, begin on the one-year anniversary of adult-use marijuana's launch in Canada (Oct. 17), derivative products would be rolled out slowly and are unlikely to make it onto dispensary store shelves before mid-December 2019 at the earliest. This all means one thing: Pot stock sales and profit projectionsare coming down. For example, profit projections for the three most popular cannabis stocks in the world --Aurora Cannabis(NYSE: ACB),Canopy Growth(NYSE: CGC), andCronos Group(NASDAQ: CRON)-- have been falling precipitously for months. As recently as February, Wall Street's consensus was for Canopy Growth to earn CA$0.08 per share in fiscal 2020. That's now turned into a consensuslossof CA$0.42 per share for Canopy, which may grow even wider after the company reported abloated net loss of CA$670 million for fiscal 2019. Canopy Growth may very well be the last of the major growers to push into recurring profitability. Likewise, Aurora Cannabis was fitted for a CA$0.12 per-share profit in fiscal 2020 by Wall Street as of February. However, Aurora's acquisition-heavy strategy and the newly announced delays to the launch of high-margin derivative products (a problem given that Aurora focuses on the medical marijuana market) have pushed its 2020 consensus on Wall Street toa loss of CA$0.06 per share. As for Cronos Group, Wall Street was looking for a CA$0.15 per share full-year profit for 2020. But given the company's very slow rollout of product and now the delay in launching vapes, those estimates have fallen by two-thirds on Wall Street to a profit of only CA$0.05 per share in 2020. Long story short, marijuana stocks can be winners over the long run, but a smooth launch and hyperbolic ascent aren't going to happen. Adjust your expectations accordingly. 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 Sean Williamshas 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.
Want To Invest In Sun Life Financial Inc. (TSE:SLF)? Here's How It Performed Lately Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Sun Life Financial Inc.'s (TSE:SLF) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Sun Life Financial SLF's trailing twelve-month earnings (from 31 March 2019) of CA$2.5b has increased by 9.2% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.9%, indicating the rate at which SLF is growing has accelerated. What's the driver of this growth? Let's take a look at if it is solely due to industry tailwinds, or if Sun Life Financial has experienced some company-specific growth. In terms of returns from investment, Sun Life Financial has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. Furthermore, its return on assets (ROA) of 1.0% is below the CA Insurance industry of 1.0%, indicating Sun Life Financial's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Sun Life Financial’s debt level, has declined over the past 3 years from 1.4% to 1.2%. Sun Life Financial's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Sun Life Financial has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Sun Life Financial to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for SLF’s future growth? Take a look at ourfree research report of analyst consensusfor SLF’s outlook. 2. Financial Health: Are SLF’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.
Women's World Cup: USWNT's source of strength PARIS — First name: United. Last name: Team. For the United States women's national team, that identity never appears to waver, not in the most pressured moments of this World Cup, not when it's under assault on the field or off, not when individual players are forced into uncomfortable or unfamiliar assignments, including even support roles from the bench. There was a thought that when Megan Rapinoe got into a political dust-up with Donald Trump , unleashing Trump supporters against the American team, that fissures might show or the team's focus might waver. Nothing close occurred in Friday's 2-1 semifinal victory over France , that sets up a 3 p.m. ET Tuesday clash with England in the semifinals. "It's just noise," forward Alex Morgan said. "That's how we approach it." If anything, they were more unified. It was no different than asking Crystal Dunn, a natural attacking forward, to handle the toughest defensive assignments, or Carli Lloyd, the hero of the 2015 World Cup, to become a late-game reserve, or a stout defense to sacrifice themselves black and blue blocking shots. This is a team of immense talent, no question. This is also a team that's first, last and always. "We have such a tight group. It's really incredible," Rapinoe said. "It's cliche to say ... but we just have a group that wants to win." Indeed, it can be cliche. But it's also quite common for national teams — essentially all-star teams — in any sport to suffer from a lack of togetherness. There's big egos. The stakes are high. There are new roles. And the spotlight is bright, which, for the United States, includes championship-or-bust expectations and, this week, featured Rapinoe sparring with Trump — a story that spun the outside narrative of the club in an unexpected direction. United States' Megan Rapinoe, third right, reacts with teammate Julie Ertz during the Women's World Cup quarterfinal soccer match between France and the United States at Parc des Princes in Paris, France, Friday, June 28, 2019. (AP Photo/Alessandra Tarantino) Yet the team appeared unfazed, rallying around its teammate and, according to the players, mostly just putting it all out of mind. "It's not even on our radar," midfielder Rose Lavelle said. Story continues If something doesn't involve winning the World Cup, they don't have much care or time for it. And if some Trump fans were now vowing to root against the Americans, oh well. It wouldn't impact the scoreboard. "We take care of ourselves, we take care of each other," said defender Kelley O'Hara. "We keep a very tight-knit group. We kind of call it, 'the bubble.' Listen, regardless of what is happening outside, we always have each other's backs inside this team, inside the lines, outside the lines. It's not about all of that. When we step on the field we have each other 100 percent, 90-plus minutes." Rapinoe was just one part of it. She delivered two goals and a number of brilliant plays, but so did nearly the entire roster. Consider Dunn, a 5-foot-1 speedster and former MVP of the National Women's Soccer League thanks to her tremendous finishing instincts and ability. Yet on a loaded roster, her route to the field is playing defense, becoming an outside back and chasing down some of the most skilled players in the world. On Friday it was France's Kadidiatou Diani, who can make even the most experienced defender look foolish. Yet Dunn has accepted her role and spent countless hours studying film to learn her new position. She came up huge on Friday. "Dunny was just on point," coach Jill Ellis said. "She was as good as I've seen her defending." Dunn was part of an entire backline that sold out for victory. France attempted 20 shots in the game, but only five made it on goal, with many blocked by U.S. defenders willing to take a beating. O'Hara took one to the stomach. Abby Dahlkemper, Becky Sauerbrunn and Samantha Mewis stepped into everything. Julie Ertz was everywhere. "The grit and heart and focus and tenacity it takes to do that is just tremendous," Rapinoe marveled. Even Alex Morgan, the center forward, took a ball unexpectedly off her head while defending. She needed a moment to recover but then played with the same relentless spirit . "Regardless, if you block a shot, intercept a pass, get a body on someone — we kind of brought that," said Morgan, who didn't score for the fourth consecutive game but played well. "In a World Cup you need to be able to win pretty and win dirty," Sauerbrunn said. "Sometimes you just have to put in a hard shift and tonight you put in a hard shift. … I am just super proud of the team for gutting this out." The team runs a legit 17 to 18 position players deep, but only 10 can be on the field at once and only 14 total players can play at all in a game. That's led to tough choices by Ellis, but also acceptance by the players. Lloyd, for instance, has settled into a late-game substitute role, despite her previous heroics, and even scored three goals earlier in this tournament. Lindsey Horan is one of the finest players in the world, yet Ellis feels Mewis is in better form. Horan, instead, is contributing where she can. Mallory Pugh may be the Americans’ future go-to goal scorer, and she certainly came to France hoping this would be a breakout tournament for her. She hasn't gotten off the bench in a couple games, but teammates say her attitude in training, like everyone else’s, has been stellar. "Our bench is huge every night," Rapinoe said. "All the players who didn't get to play, and there are some players who might not get to play for the rest of the tournament, they are just as important as everyone else. They're in it. That helps a lot … they are screaming at you and encouraging you." It's easy for teams like this to splinter, for hard feelings to fester, for distractions to divide. The World Cup is a long grind, seven games, five weeks, and that doesn't account for the camps and pre-tournament tour, the sacrifice and the physical and mental expenditures. This is a diverse group of women — racially, politically, geographically. All religions and personalities, all perspectives and personalities. Everyone thinks they should play, star, score. It's why squads with the best players often fall short. This one still has two games to go to capture consecutive World Cups. It won't be easy. It isn't supposed to be. Nothing is guaranteed. Except it appears they'll do it together, though, win or lose. United. Team. 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Anti-Theft Devices Will Help You Get Cheaper Car Insurance LOS ANGELES, CA / ACCESSWIRE / June 29, 2019 /Compare-autoinsurance.org has launched a new blog post that explains what anti-theft devices can help drivers pay less on theircar insurance rates. For more info and free quotes, please visithttps://compare-autoinsurance.org/how-anti-theft-devices-can-lower-your-car-insurance-rates/. Anti-theft devices will not only protect a vehicle from thieves, but it will also help the car owner pay less on his car insurance. Every year, hundreds of thousands of vehicles are stolen. The financial losses supported by the insurance companies are enormous. For that reason, the insurance companies will provide generous discounts to those drivers that are willing to make their cars safer by installing anti-theft devices. The following anti-theft devices can help drivers pay less on their premiums: • Steering wheel lock. This device goes over the steering of the vehicle and locks it into one place so that no one that doesn't have the key can drive it. They are physically effective and act as a visual deterrent for most thieves. • Kill switches. A kill switch disrupts the flow of electricity at the battery or ignition switch or disables the fuel pump. Any of these devices will quickly frustrate any potential thief. Also, they are cheap to purchase. • Electronic sound alarm systems. These systems will blast the horn and flash the vehicle lights when someone touches the vehicle or if he gets too close. These systems are very annoying, but very efficient when it comes to deterring thieves. • VIN etching. Drivers that etched their vehicle's 17-digit identification number onto the windshield and all window glass like the rear window, sunroof, moonroof, and door glass of their vehicle will have their comprehensive coverage costs lowered with up to 15%. VIN etching will allow authorities to quickly recover a stolen vehicle. • Vehicle tracking system. There are several types of vehicle tracking systems available on the market. Some will constantly monitor the vehicle's location in real time, while others are activated to pinpoint a driver's vehicle location when it has been reported stolen. Both types of tracking systems will help the authorities to recover the stolen vehicle in a fast manner. • Armored collars. These devices wrap around the steering column and prevent car thieves from hot-wiring a vehicle by securing the wiring in the steering column. Some are permanent, while others are electronic. For additional info, money-saving tips and free car insurance quotes, visithttps://compare-autoinsurance.org/ Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Anti-theft devices will help drivers make their carssafer and pay less on their insurance premiums," saidRussell Rabichev, Marketing Director of Internet Marketing Company. Contact:cgurgu@internetmarketingcompany.biz SOURCE:Internet Marketing Company View source version on accesswire.com:https://www.accesswire.com/550390/Anti-Theft-Devices-Will-Help-You-Get-Cheaper-Car-Insurance
Are Insiders Selling Hess Corporation (NYSE:HES) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inHess Corporation(NYSE:HES). It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information. We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. See our latest analysis for Hess Over the last year, we can see that the biggest insider sale was by the Senior Vice President of Technology & Services, Richard Lynch, for US$964k worth of shares, at about US$54.14 per share. That means that even when the share price was below the current price of US$63.57, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 57.4% of Richard Lynch's stake. Over the last year, we can see that insiders have bought 4420 shares worth US$251k. On the other hand they divested 130k shares, for US$7.4m. Over the last year we saw more insider selling of Hess shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below! For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Over the last three months, we've seen significant insider selling at Hess. In total, Senior Vice President of Human Resources Andrew Slentz sold US$130k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap. For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hess insiders own about US$1.9b worth of shares (which is 9.6% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. An insider hasn't bought Hess stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. Of course,the future is what matters most. So if you are interested in Hess, you should check out thisfreereport on analyst forecasts for the company. Of courseHess may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Craig Wright tells federal court he is unable to access $10 billion bitcoin fortune Craig Wright, the leading proponent of Bitcoin SV who says he is the creator of Bitcoin, claimed in Florida federal court on Friday that he is unable to easily access the $10 billion bitcoin fortune or even produce the addresses at which the coins are stored. Wright is in court to defend himself against the estate of his former business partner Dave Kleiman, which claims he stole bitcoin belonging to Kleiman. Wright claimed that Kleiman was responsible for hiding the bitcoin jointly owned by the two men in order to protect Wright's identity as the pseudonymous creator of Bitcoin, Satoshi Nakamoto. According to Wright, "I brought in Dave because he was a friend and he knew who I was and he was a forensic expert, and I wanted to wipe everything I had to do with Bitcoin from the public record." Kleiman's estate is highly motivated to retrieve the bitcoin, while Wright claims that his family has "enough now" and the missing bitcoin would be "too much money." The estate claims that Wright forged a significant number of documents following Kleiman's death in 2013 in order to transfer to himself all of the jointly owned bitcoin. Wright reportedly became emotional in the courtroom, which was cleared of any electronic devices, and lamented that his purported monetary creation was used for illicit activities on Silk Road and elsewhere. As a result, Wright says he stopped mining and working on Bitcoin in 2010. If Wright and Kleiman's estate really do own the bitcoin they're claiming, both have much at stake in the proceedings, as the value of bitcoin owned by the elusive creator of the cryptocurrency is now worth well over $10 billion. And with Wright currently leading Bitcoin SV, valued at nearly $4 billion, he can ill afford to have his reputation sullied at trial. During the hearing, Wright turned combative on a number of occasions, throwing a document and using profane language. This caused the judge to warn Wright that he would be "in handcuffs" if he did not get himself under control. The hearing concluded with the matter far from settled. It will reportedly be continued later this summer .
Is Sun Life Financial Inc. (TSE:SLF) Potentially Underrated? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Sun Life Financial Inc. (TSE:SLF) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SLF, it is a highly-regarded 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 Sun Life Financial here. SLF is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that SLF manages its cash and cost levels well, which is a crucial insight into the health of the company. SLF seems to have put its debt to good use, generating operating cash levels of 0.48x 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. SLF 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 Sun Life Financial, I've put together three pertinent aspects you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for SLF’s future growth? Take a look at ourfree research report of analyst consensusfor SLF’s outlook. 2. Historical Performance: What has SLF'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 SLF? 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.
What Does P.A.M. Transportation Services, Inc.'s (NASDAQ:PTSI) Share Price Indicate? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! P.A.M. Transportation Services, Inc. (NASDAQ:PTSI), which is in the transportation business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NASDAQGM. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine P.A.M. Transportation Services’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for P.A.M. Transportation Services According to my valuation model, P.A.M. Transportation Services seems to be fairly priced at around 20% below my intrinsic value, which means if you buy P.A.M. Transportation Services today, you’d be paying a fair price for it. And if you believe the company’s true value is $77.45, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since P.A.M. Transportation Services’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of P.A.M. Transportation Services, it is expected to deliver a relatively unexciting earnings growth of 5.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for P.A.M. Transportation Services, at least in the near term. Are you a shareholder?It seems like the market has already priced in PTSI’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor?If you’ve been keeping tabs on PTSI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on P.A.M. Transportation Services. You can find everything you need to know about P.A.M. Transportation Services inthe latest infographic research report. If you are no longer interested in P.A.M. Transportation Services, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Podcaster Wondery Banks $10 Million, Taps NatGeo Vet Declan Moore for International Push Click here to read the full article. Wondery , the three-year-old podcast publisher headed by former Fox International Channels chief Hernan Lopez, this week announced the closing of $10 million in Series B financing. With the funding, the company plans to expand internationally and has hired Declan Moore , most recently CEO of National Geographic Partners, the joint venture between National Geographic Society and 21st Century Fox, to head up international operations. Moore, who is based in London, worked with Wondery CEO Lopez at 21CF. Related stories Elizabeth Banks to Develop Series Based on Podcast 'Over My Dead Body' for WarnerMedia Streaming Service (EXCLUSIVE) Podcast Network Wondery Hires Jen Sargent, Former Uproxx and HitFix Boss, as COO Podcast Startup Wondery Raises $5 Million From Investors Including Shari Redstone's Advancit Capital Wondery’s Series B funding was led by new investor Waverley Capital, the venture-capital firm formed by Edgar Bronfman Jr. and Luminari Capital’s Daniel Leff . Others participating in the round were existing investors Lerer Hippeau, Greycroft, BDMI, Advancit Capital and Water Tower Ventures, as well as new backer Powerhouse Ventures. The funding brings L.A.-based startup to $15 million raised. Wondery said it will use the funding to development new programming, acquire content, and invest in technology and global growth. The company, founded by Lopez in 2016 with backing from Fox , has produced a string of popular podcast series including “Dr. Death,” “The Shrink Next Door” and “Business Wars.” It has a burgeoning TV licensing business as well: Its series “Dirty John” was adapted into a TV series for Bravo and Netflix, and five other Wondery series have been optioned for TV by Universal Content Productions, FX and WarnerMedia. Elizabeth Banks is on board to direct and produce an adaptation of Wondery’s “Over My Dead Body,” a drama about the breakup of a seemingly “perfect” couple, for WarnerMedia’s forthcoming streaming service. Story continues “Waverley Capital invests in category-defining media companies, and there is no better example in the audio space than Wondery,” Waverley Capital’s Bronfman Jr. and Leff said in a joint statement. Moore led National Geographic Partners from its formation in 2015 before exiting in early 2018. Prior to the formation of NGP, Moore was a 20-year veteran at National Geographic, serving in leadership roles including as chief media officer and EVP at National Geographic Society where he was responsible for all media, consumer products and licensing. Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Calculating The Fair Value Of P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In this article we are going to estimate the intrinsic value of P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. Check out our latest analysis for P.A.M. Transportation Services We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF ($, Millions)", "2019": "$31.70", "2020": "$34.10", "2021": "$36.12", "2022": "$37.91", "2023": "$39.53", "2024": "$41.05", "2025": "$42.48", "2026": "$43.87", "2027": "$45.23", "2028": "$46.58"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Est @ 5.91%", "2022": "Est @ 4.96%", "2023": "Est @ 4.29%", "2024": "Est @ 3.82%", "2025": "Est @ 3.49%", "2026": "Est @ 3.27%", "2027": "Est @ 3.1%", "2028": "Est @ 2.99%"}, {"": "Present Value ($, Millions) Discounted @ 10.47%", "2019": "$28.70", "2020": "$27.94", "2021": "$26.79", "2022": "$25.46", "2023": "$24.03", "2024": "$22.59", "2025": "$21.16", "2026": "$19.78", "2027": "$18.47", "2028": "$17.22"}] Present Value of 10-year Cash Flow (PVCF)= $232.15m "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 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 10.5%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$47m × (1 + 2.7%) ÷ (10.5% – 2.7%) = US$619m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$619m ÷ ( 1 + 10.5%)10= $228.65m 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 $460.80m. 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 $77.45. Relative to the current share price of $62, the company appears about fair value at a 20% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at P.A.M. Transportation Services 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 10.5%, which is based on a levered beta of 1.298. 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. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For P.A.M. Transportation Services, There are three pertinent factors you should look at: 1. Financial Health: Does PTSI 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 PTSI'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 PTSI? 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 NASDAQ 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.
Ball in Europe's court on nuclear deal's future - Iranian state TV DUBAI, June 29 (Reuters) - The ball is in Europe's court to shield Iran from U.S. sanctions and prevent it from further scaling back compliance with its nuclear agreement with world powers, Iranian state TV said on Saturday, with days remaining on Tehran's ultimatum. Iran's envoy to a meeting of the remaining signatories to the 2015 nuclear accord said on Friday that European countries had offered too little at last-ditch talks to persuade Tehran to back off from its plans to breach limits imposed by the deal. Iran stopped complying on May 8 with some commitments in the nuclear deal after the United States unilaterally withdrew from the accord in 2018 and re-imposed sanctions. Tehran said it would suspend further obligations under the deal after 60 days. "The ball is in Europe's court. Are Paris, London and Berlin going to again waste a chance under the influence of (U.S. President Donald) Trump, or use the remaining opportunity to fulfill their promises and act on their commitments under the (nuclear deal)," Iranian state TV said in a commentary. Iran has repeatedly criticised delays in European countries setting up a trading mechanism that aims to circumvent U.S. economic sanctions. On Friday, Britain, France and Germany said the trade channel, INSTEX, was finally up and running. Meanwhile, the United States deployed F-22 stealth fighters to Qatar, as tensions mounted after Iran shot down a U.S. drone. Tehran said the unmanned U.S. aircraft was in its air space, which Washington denied. "These aircraft (F-22 Raptors) are deployed to Qatar for the first time in order to defend American forces and interests," the U.S. Air Force said on its regional website. Separately, the Iranian foreign minister said Iran would resist any U.S. sanctions, just as it persevered during the 1980s Iran-Iraq war when the forces of then-Iraqi leader Saddam Hussein launched chemical attacks, including on an Iranian town. "We persevered then, and will now," Mohammad Javad Zarif tweeted on the anniversary of the 1987 chemical bombing of the border town of Sardasht, which killed at least 130 people. "We'll never forget that Western world supported & armed Saddam ... Security Council never condemned his gassing of our people," Zarif wrote. (Reporting by Dubai newsroom; Editing by Kevin Liffey)
Is Simulations Plus, Inc. (NASDAQ:SLP) A High Quality Stock To Own? 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). To keep the lesson grounded in practicality, we'll use ROE to better understand Simulations Plus, Inc. (NASDAQ:SLP). Our data showsSimulations Plus has a return on equity of 22%for the last year. That means that for every $1 worth of shareholders' equity, it generated $0.22 in profit. View our latest analysis for Simulations Plus Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Simulations Plus: 22% = US$7.4m ÷ US$34m (Based on the trailing twelve months to February 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is the capital paid in by shareholders, plus any retained earnings. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. 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. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Simulations Plus has a better ROE than the average (9.0%) in the Healthcare Services industry. That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently. Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. One positive for shareholders is that Simulations Plus does not have any net debt! Its ROE already suggests it is a good business, but the fact it has achieved this -- and doesn't borrowings -- makes it worthy of further consideration, in my view. After all, with cash on the balance sheet, a company has a lot more optionality in good times and bad. Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company. But note:Simulations Plus may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Boasting A 19% Return On Equity, Is AAON, Inc. (NASDAQ:AAON) A Top Quality Stock? 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). We'll use ROE to examine AAON, Inc. (NASDAQ:AAON), by way of a worked example. AAON has a ROE of 19%, 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 $0.19. See our latest analysis for AAON Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for AAON: 19% = US$49m ÷ US$259m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. That means ROE can be used to compare two businesses. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. Pleasingly, AAON has a superior ROE than the average (14%) company in the Building industry. That's clearly a positive. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently. 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 case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. AAON is free of net debt, which is a positive for shareholders. Its solid ROE indicates a good business, especially when you consider it is not using leverage. At the end of the day, when a company has zero debt, it is in a better position to take future growth opportunities. Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So 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.
Trump and Xi Agree to Truce in US-China Trade War President Donald Trump and China’s Xi Jinping agreed to a cease-fire Saturday in their nations’ yearlong trade war, averting for nowan escalation feared by financial markets, businesses and farmers. Trump said U.S. tariffs will remain in place against Chinese imports while negotiations continue. Additional trade penalties he has threatened against billions worth of other Chinese goods will not take effect for the “time being,” he said, and the economic powers will restart stalled talks that have already gone 11 rounds. “We’re going to work with China where we left off,” Trump said after a lengthy meeting with Xi while the leaders attended the Group of 20 summit in Osaka. While Trump said relations with China were “right back on track,” doubts persist about the two nations’ willingness to compromise on a long-term solution. Among the sticking points: The U.S. contends that Beijing steals technology and coerces foreign companies into handing over trade secrets; China denies it engages in such practices. The apparent truce continues a pattern for Trump and Xi, who have professed their friendship and paused protectionist measures, only to see negotiations later break down. The United States has imposed 25% import taxes on $250 billion in Chinese products and is threatening to target an additional $300 billion, extending the tariffs to virtually everything China ships to America. China has countered with tariffs on $110 billion in American goods, focusing on agricultural products in a direct and painful shot at Trump supporters in the U.S. farm belt. Some progress seemed to be made in a dispute involving the Chinese telecommunications company Huawei, which the Trump administration has branded a national security threat and barred it from buying American technology. Trump said Saturday he would allow U.S. companies to sell their products to Huawei, but he was not yet willing to remove the company from a trade blacklist. The U.S. has tried to rally other nations to block Huawei from their upcoming 5G systems. The Trump-Xi meeting between the two leaders was the centerpiece of four days of diplomacy in Asia for Trump, whose re-election chances have been put at risk by the trade dispute that has hurt American farmers and battered global markets. Tensions rose after negotiations collapsed last month. Trump said the talks with Xi went “probably even better than expected.” Both men struck a cautiously optimistic tone after they posed for photographs. “We’ve had an excellent relationship,” Trump told Xi as the meeting opened, “but we want to do something that will even it up with respect to trade.” Xi recounted the era of “pingpong diplomacy” that helped jump-start U.S.-China relations two generations ago. Since then, he said, “one basic fact remains unchanged: China and the United States both benefit from cooperation and lose in confrontation.” “Cooperation and dialogue are better than friction and confrontation,” he added. The meeting with Xi was one of three that Trump held Saturday with world leaders who display authoritarian tendencies. Trump had his first face-to-face discussion with Saudi Arabia’s Mohammed bin Salman since U.S. intelligence agencies concluded that the crown prince directed the murder of Washington Post columnist and American resident Jamal Khashoggi last year. Trump, who referred to the Saudi royal as his “friend,” has long tried to minimize the prince’s role in the murder and has been reluctant to criticize the killing of the Saudi critic at the kingdom’s consulate in Istanbul last year. Trump views Saudi Arabia as the lynchpin of U.S.’ Middle East strategy to counter Iran. At a news conference after the summit, Trump said Khashoggi’s killing was “horrible,” but that Saudi Arabia had “been a terrific ally.” Trump suggested he was satisfied with steps that the kingdom was taking to prosecute some of those involved, while he claimed that “nobody so far has pointed directly a finger” at Saudi Arabia’s future king. U.S. intelligence officials have concluded that bin Salman must have at least known of the plot. The summit came a week after Trump pulled back from ordering a military strike on Iran for downing an American unmanned spy plane. Iran now stands on the threshold of breaching uranium enrichment thresholds set in a 2015 nuclear deal from which Trump withdrew. Trump said he would not preview his response should Iran top that limit, but said, “We cannot let Iran have a nuclear weapon.” Trump also met with Turkey’s president, Recep Tayyip Erdogan, an ostensible NATO ally whom the U.S. sees as drifting dangerously toward Russia’s sphere of influence. Trump said the two will “look at different solutions” to Turkey’s planned purchase of the Russian-made S-400 surface-to-air missile system. U.S. officials have threatened to halt the sale of U.S.-made F-35 Joint Strike Fighter to Turkey if the Russian purchase goes through; Erdogan has called it a done deal. “Turkey has been a friend of ours,” Trump said. He blamed the Obama administration for not agreeing to sell U.S.-made Patriot missile batteries to Turkey, calling the situation a “mess” and “not really Erdogan’s fault.” A day earlier, Trump met with Russia’s Vladimir Putin and, with a smirk and a finger point, jokingly told him, “Don’t meddle with the election.” It was their first meeting since special counsel Robert Mueller concluded that Russia extensively interfered with the 2016 campaign. Pressed whether he pushed the issue more seriously in private, Trump said he had raised it with Putin, adding, “You know he denies it, totally. How many times can you get someone to deny something?” Putin told reporters that “we talked about it,” but he did not 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. — A fear at the G20 summit: that theU.S.-China trade warturns into a currency conflict —Trade war be damned,Apple is moving its Mac Pro production to China —What the2020 Democratic candidates didn’t sayduring the second debate —Harris has a strong showing, stuns Biden on night 2 of Democratic debate —Fact-checkingclaims from night 1 of the Democratic debate —Fact-checkingclaims from night 2 of the Democratic debate
Ball in Europe's court on nuclear deal's future: Iranian state TV DUBAI (Reuters) - It is up to Europe to shield Iran from U.S. sanctions and prevent it from further scaling back its compliance with its 2015 nuclear agreement with world powers, Iranian state TV said on Saturday, with only days left on Tehran's ultimatum. Iran's envoy to a meeting of the remaining signatories to the nuclear accord said on Friday that European countries had offered too little at last-ditch talks to persuade Tehran to drop its plan to breach limits imposed by the deal. The United States unilaterally withdrew from the accord in 2018 and has re-imposed sanctions on Iran. Tehran then stopped complying on May 8 with some of its commitments under the nuclear deal. It said it would suspend further obligations after another 60 days, meaning in early July. "The ball is in Europe's court. Are Paris, London and Berlin going to again waste a chance under the influence of (U.S. President Donald) Trump, or use the remaining opportunity to fulfill their promises and act on their commitments under the (nuclear deal)?," Iranian state TV said in a commentary. Iran will soon exceed an enriched uranium limit set under its nuclear deal after its remaining pact partners fell short of Tehran's demands to be shielded from U.S. sanctions, the semi-official Fars news agency on Saturday cited an "informed source" as saying. "As the commission meeting in Vienna could not satisfy Iran's just demands ... Iran is determined to cut it commitments to the deal, and the 300 kg enriched uranium limit will be soon breached," Fars quoted the source as telling the daily Khorasan. On June 17, Iran said it would break through the limit on the size of its stockpile of low-enriched uranium in 10 days. Iran has repeatedly criticized delays in European countries setting up a trading mechanism that aims to circumvent U.S. economic sanctions. On Friday, Britain, France and Germany said the trade channel, INSTEX, was finally up and running. Story continues Meanwhile, the United States deployed F-22 stealth fighters to the Gulf state of Qatar, as tensions mounted after Iran shot down a U.S. drone. Tehran said the unmanned U.S. aircraft was in its air space, which Washington denied. "These aircraft (F-22 Raptors) are deployed to Qatar for the first time in order to defend American forces and interests," the U.S. Air Force said on its regional website. Iran's army chief said any attack was unlikely because of the country's strong military capability. "We are ready (even) for night-time attacks, and the enemy is closely monitored, but our intelligence does not point to war," General Abdolrahim Mousavi was quoted as saying by Fars. Separately, the Iranian foreign minister said Iran would resist any U.S. sanctions, just as it persevered during the 1980s Iran-Iraq war when the forces of then-Iraqi leader Saddam Hussein launched chemical attacks, including on an Iranian town. "We persevered then, and will now," Mohammad Javad Zarif tweeted on the anniversary of the 1987 chemical bombing of the border town of Sardasht, which killed at least 130 people, mostly civilians, and injured thousands. "We'll never forget that the Western world supported & armed Saddam ... Security Council never condemned his gassing of our people," Zarif wrote. (Reporting by Dubai newsroom; Editing by Kevin Liffey and Hugh Lawson)
Don't Sell AAON, Inc. (NASDAQ:AAON) Before You Read This Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at AAON, Inc.'s (NASDAQ:AAON) P/E ratio and reflect on what it tells us about the company's share price. Based on the last twelve months,AAON's P/E ratio is 53.19. That is equivalent to an earnings yield of about 1.9%. View our latest analysis for AAON Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for AAON: P/E of 53.19 = $50.17 ÷ $0.94 (Based on the trailing twelve months to March 2019.) A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future. 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. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. Then, a lower P/E should attract more buyers, pushing the share price up. AAON's earnings per share grew by -2.1% in the last twelve months. And its annual EPS growth rate over 5 years is 5.3%. The P/E ratio essentially measures market expectations of a company. The image below shows that AAON has a higher P/E than the average (18.5) P/E for companies in the building industry. That means that the market expects AAON will outperform other companies in its industry. Shareholders are clearly optimistic, but the future is always uncertain. So investors should delve deeper. I like to checkif company insiders have been buying or selling. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. So it won't reflect the advantage of cash, or disadvantage of debt. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. Such 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. AAON has net cash of US$7.1m. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options. AAON's P/E is 53.2 which is above average (18.1) in the US market. Recent earnings growth wasn't bad. And the net cash position provides the company with multiple options. The high P/E suggests the market thinks further growth will come. Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. You might be able to find a better buy than AAON. 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.
Why Is VMware (VMW) Down 12.5% Since Last Earnings Report? It has been about a month since the last earnings report for VMware (VMW). Shares have lost about 12.5% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is VMware due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. VMware Q1 Earnings Beat Estimates, Revenues Up Y/YVMware reported first-quarter fiscal 2020 non-GAAP earnings of $1.32 per share, which beat the Zacks Consensus Estimate by a nickel and increased 4.8% from the year-ago quarter.Revenues of $2.27 billion also surpassed the consensus mark of $2.24 billion and improved 12.8% on a year-over-year basis. Strong top-line growth was primarily driven by robust performance from NSX, VeloCloud and vSAN product lines. VMware stated that it inked 16 deals in the quarter that were worth more than $10 million.Region wise, U.S. revenues (46.5% of revenues) increased 12.3%, while International revenues (53.5% of revenues) grew 13.4% from the year-ago quarter. The strong International growth was driven by robust performance from EMEA and Asia Pacific.Services revenues (61.7% of total revenues) increased 13.2% to $1.40 billion. License revenues (38.3% of total revenues) grew 12.3% year over year to $869 million.Hybrid Cloud and SaaS accounted for more than 12% of total revenues. More than 50% of EUC product bookings are now sold as SaaS.Additionally, VMware acquired Bitnami, a leader in application packaging solutions providing the largest catalog of click-to-deploy applications and development stacks for major cloud and Kubernetes environments. The company also completed the acquisition of AetherPal.Robust BookingsNSX adoption was impressive as license bookings increased more than 40% year over year. All top 10 deals in the quarter included NSX.Furthermore, vSAN license bookings grew 50% year over year. The product was included in eight of the top 10 deals. Notably, customer count has exceeded 20K.EUC license bookings were up low teens on a year-over-year basis and included in nine of the top 10 deals.Core SDDC license bookings grew low teens on a year-over-year basis. Total core SDDC bookings were up low-double digits year over year. For cloud management, both license and total bookings recorded double-digit growth in the reported quarter.Compute licensed bookings grew mid-single digits and total compute bookings increased high-single digits on a year-over-year basis.Portfolio & Partnership ExpansionsVMware and Amazon Web Services (AWS) expanded their partnership that now enables the latter to resell VMware Cloud on the platform. The service is now available in 14 regions globally, including Canada, Mumbai, Paris and Singapore.Dell, Microsoft and VMware recently expanded their partnership, per which Microsoft will deliver a fully native, supported and certified VMware cloud infrastructure on Microsoft Azure, called Azure VMware Solutions.Moreover, VMware Workspace ONE will be able to manage Office 365 across devices through cloud-based integration with Microsoft Intune and Azure Active Directory. Additionally, the extension of VMware Horizon Cloud on Azure will include Microsoft Windows Virtual Desktop.Microsoft and VMware are also exploring initiatives to drive further integration between VMware infrastructure and Azure. The companies intend to integrate VMware NSX with Azure Networking and integration of specific Azure services with VMware management solutions. They will also be exploring bringing specific Azure services to the VMware on-premises customers.During the reported quarter, the company introduced VMware Cloud on Dell EMC. The company also updated VMware NSX-T Data Center 2.4 and NSX Cloud. It also introduced the VMware Service-defined Firewall.Operating DetailsNon-GAAP gross margin contracted 80 basis points (bps) on a year-over-year basis to 86.6%. License gross margin stayed flat. However, services gross margin contracted 120 bps in the reported quarter.Research & development (R&D) expenses as percentage of revenues expanded 100 bps to 19.3%. Sales & marketing (S&M) and general & administrative (G&A) expenses as percentage of revenues shrunk 100 bps and 40 bps to 31.4% and 6.4%, respectively.Non-GAAP operating expenses as percentage of revenues decreased 40 bps to 57.1%.Non-GAAP operating margin contracted 30 bps to 29.4% in the reported quarter.Balance Sheet & Cash FlowAt the end of first-quarter fiscal 2020, cash & cash equivalents were $3.31 billion compared with $2.83 billion at the end of fourth-quarter fiscal 2019.Operating cash flow was $1.27 billion in the quarter, while free cash flow was $946 million. In the previous quarter, operating cash flow was $1.01 billion and free cash flow was $946 million.In the reported quarter, VMware bought back shares worth $42 million. The company has approximately $834 million remaining under its current share repurchase authorization, which extends through the end of August 2019.GuidanceFor fiscal 2020, VMware expects revenues of $10.03 billion, up 11.8% year over year. License revenues are expected to increase 12.8% to $4.275 billion.Non-GAAP operating margin for the year is anticipated to be 33%. Non-GAAP earnings are expected to be $6.49 per share.Cash flow from operations is expected to be $3.950 billion. Free cash flow is anticipated to be $3.630 billion.For second-quarter fiscal 2020, total revenues are expected to be $2.425 billion, up 11.5% year over year. License revenues are anticipated to be $1 billion, indicating an increase of 11.1% year over year.Non-GAAP operating margin is anticipated to be 32.6%. Non-GAAP earnings are expected to be of $1.55 per share. How Have Estimates Been Moving Since Then? Fresh estimates followed a downward path over the past two months. VGM Scores At this time, VMware has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook VMware has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportVMware, Inc. (VMW) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is Cooper Cos. (COO) Up 17.6% Since Last Earnings Report? A month has gone by since the last earnings report for Cooper Cos. (COO). Shares have added about 17.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Cooper Cos. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Cooper Companies Q2 Earnings & Revenues Top Estimates The Cooper Companies, Inc. reported second-quarter fiscal 2019 adjusted earnings of $2.94 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 6.5%. The bottom line also increased 2.8% on a year-over-year basis. Revenues came in at $654.3 million, outpacing the Zacks Consensus Estimate of $653.3 million by 0.2%. On a year-over-year basis, the top line improved 3.6%. This California-based specialty medical device company currently carries a Zacks Rank #3 (Hold). Q2 Segment Details CooperVision (CVI) This segment’s revenues totaled $484.2 million, up 8% on a pro-forma basis and 4% on a reported basis. Per management, the segment saw a noticeable uptick in the Single-use sphere lenses (28% of CVI), reflecting pro-forma growth of 14%, driven by accelerating growth in both Clariti and MyDay. Single-use sphere lenses revenues totaled $135.3 million. Toric (32% of CVI) revenues totaled $155.3 million, up 7% on a pro-forma basis. Multifocal (10% of CVI) generated revenues of $49.7 million, up 6% at pro forma and 1% year over year. Non single-use sphere (30% of CVI) revenues came in at $143.9 million, up 4% at pro forma and 1% from the year-ago quarter. Geographically, the segment witnessed an improvement in revenues in the Americas (40% of CVI), up 5% at pro forma and 5% year over year to $193.4 million. EMEA revenues (37% of CVI) totaled $181.1 million, up 8% at pro forma but down 1% from the prior-year quarter. Asia Pacific sales (23% of CVI) rose 14% at pro forma and 9% year over year to $109.7 million. CooperSurgical (CSI) This segment posted revenues of $170.1 million, up 6% at pro forma and 4% year over year. Sub-segment Office and Surgical products (62% of CSI) accounted for $105.7 million revenues, up 7% at pro forma and 8% on a year-over-year basis. Fertility (38% of CSI) revenues were $64.4 million, down 2% year over year but up 5% at pro forma. Margin Analysis In the fiscal second quarter, gross profit was $432.6 million, up 6.9% year over year. Gross margin was 66% of net revenues, up 200 basis points (bps) year over year. On an adjusted basis, gross margin was 67%, down 100 bps year over year. The gross margin contraction was due to currency headwinds. Operating income in the quarter was $146.9 million, up a whopping 96.7% year over year. Operating margin was 22.5%, up 1070 bps from the prior-year quarter. FY19 Guidance Revised Cooper Companies updated its fiscal 2019 guidance. The company expects adjusted revenues in the $2.63-$2.67 billion band compared with $2.63-$2.68 billion projected earlier. The mid-point of the current range of $2.65 billion is below the current Zacks Consensus Estimate of $2.66 billion. Cooper Companies expects adjusted earnings per share in the $12.15-$12.35 band compared with the previous guidance of $11.85-$12.15. The mid-point of $12.25 is higher than the current Zacks Consensus Estimate of $12.01. Notably, revenues from CVI are expected between $1,964 and $1,985 million, lower than $1,968 million and $1,995 million anticipated earlier. Revenues from CSI are anticipated within $669-$682 million, up from the previous guidance of $663-$681 million. Story continues How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. VGM Scores Currently, Cooper Cos. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Cooper Cos. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Why Is Burlington Stores (BURL) Up 9.1% Since Last Earnings Report? It has been about a month since the last earnings report for Burlington Stores (BURL). Shares have added about 9.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Burlington Stores due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Burlington Stores Q1 Earnings Meet, Sales Top Estimates Burlington Stores, Inc. delivered first-quarter fiscal 2019 results, wherein the bottom line met the Zacks Consensus Estimate and was flat year over year. Meanwhile, the top line beat the consensus mark and grew year over year. We note that while comparable store sales were nearer to the low end of the previously provided guidance of 0-0.5%, cost containment efforts helped the bottom line surpass management’s view of $1.21-$1.25. Let’s Introspect The company delivered adjusted earnings of $1.26 per share that met the Zacks Consensus Estimate as well as the prior-year quarter figure. Net sales advanced 7.3% year over year to $1,628.5 million and marginally beat the consensus estimate of $1,622.8 million, following a miss in the preceding quarter. New and non-comparable stores contributed $121 million to sales. Other revenues came in at $5.6 million, down 9.8% year over year. The company witnessed strength across Children’s Apparel, Baby Depot and Home businesses and remains committed toward improving the performance of Ladies Apparel business. Meanwhile, comparable store sales rose 0.1% in the reported quarter compared with an increase of 4.8% in the year-ago period and 1.3% in the preceding quarter. Although comparable store sales growth rate decelerated on a sequential basis, it is likely to accelerate in the second quarter, as evident from management’s forecast of 1-2% growth. However, we note that in second-quarter fiscal 2018, the company recorded comparable store sales growth of 2.9%. Gross margin contracted 20 basis points (bps) to 41%. We note that an increase of 10 bps in merchandise margins was more than offset by deleverage of 30 bps in freight costs. Management expects freight costs to increase 20 bps, while merchandise margins are projected to increase approximately 40 bps in fiscal 2019. Adjusted SG&A expenses, as a percentage of sales, rose 20 bps to 26.3% due to deleverage in occupancy and store payroll expenses. This was partly offset by lower marketing and utilities expense rates. Adjusted operating income fell 1.9% to $117.4 million, while adjusted operating margin contracted about 65 bps owing to higher freight expenses and depreciation charges. Store Update During the reported quarter, Burlington Stores opened 17 gross new stores, comprising six relocations, and closed two outlets. The company concluded the quarter with a store count of 684. In fiscal 2019, the company plans to introduce 75 gross stores, and relocate or shutter about 25, thereby projecting 50 net new stores for the fiscal. The company plans to remodel 28 stores during the fiscal year. Other Financial Aspects Burlington Stores ended the reported quarter with cash and cash equivalents of $105 million, long-term debt of $1,133.4 million and shareholders’ equity of $278.5 million. Net capital expenditures incurred during the quarter were $72 million. For fiscal 2019, the company projects net capital expenditures of roughly $310 million. During the quarter, the company bought back 841,460 shares for $123 million. At the end of the reported quarter, the company had $176 million remaining under its share buyback program. Outlook Based on the quarterly performance, Burlington Stores now envisions fiscal 2019 adjusted earnings per share in the range of $6.93-$7.01. The mid-point of $6.97 suggests an improvement over $6.44 reported in the prior year. For fiscal 2019, management expects total sales growth of 8.5-9.2% with comparable store sales projected to improve 1.3-2.1%. The company registered comparable store sales growth of 3.2% in fiscal 2018. Management anticipates adjusted operating margin to be flat year over year. Further, Burlington Stores projects interest expenses of approximately $53 million for the fiscal year. The company estimates second-quarter fiscal 2019 sales growth of 8-9%. Adjusted earnings per share are expected to be $1.11-$1.15, the mid-point of which is lower than the prior-year quarter reported figure of $1.15. How Have Estimates Been Moving Since Then? Fresh estimates followed a downward path over the past two months. VGM Scores At this time, Burlington Stores has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Burlington Stores has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBurlington Stores, Inc. (BURL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Sanderson Farms (SAFM) Down 4.7% Since Last Earnings Report: Can It Rebound? It has been about a month since the last earnings report for Sanderson Farms (SAFM). Shares have lost about 4.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Sanderson Farms due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Sanderson Farms Q2 Earnings Top EstimatesSanderson Farms posted mixed second-quarter fiscal 2019 results, as the top line missed the Zacks Consensus Estimate, while the bottom line surpassed the same. However, sales grew year over year but earnings dipped marginally.Results were affected by increased feed costs per pound, though solid poultry products demand from retail grocery customers and a conducive export landscape benefited performance. However, sales were somewhat hampered by reduced volumes of fresh and frozen chicken processed and sold. Market prices of boneless breast remained at low levels, but they improved considerably on a sequential basis. Market prices of jumbo wings indicated robust seasonal demand, and average sales price of fresh and frozen poultry (per pound) grew 3.5%.Q2 in DetailThe company reported earnings of $1.82 per share, which surpassed the Zacks Consensus Estimate of $1.77. However, the bottom line dipped 0.5% year over year.Net sales came in at $845.1 million, which fell short of the Zacks Consensus Estimate of $850 million. Nevertheless, the top line advanced 3.9% year over year.Costs/MarginsCost of sales escalated 5.3% to $740.8 million. Average feed costs per pound for poultry products rose 3%. Costs of soybean meal went down 11.6% and prices of corn rose 4.9%. Soybean meal and corn are part of the company’s primary feed ingredients.SG&A expenses fell 10.6% to $49.2 million. The company expects SG&A expenses to be $50 million in the third quarter of fiscal 2019 and $52 million in the fourth quarter.Balance Sheet/Cash FlowSanderson Farms ended the quarter with cash and cash equivalents of $96.9 million, long-term debt of $100 million and total shareholders’ equity of $1,400.7 million.OutlookThe company continues to anticipate prices paid for grain in the second half of fiscal 2019 to be lower than that of fiscal 2018. A soft start to the 2019 U.S. planting season for soybeans and corn (due to cold and wet spring in the U.S. grain belt) has further increased market prices of the same.Per the current USDA projections, the U.S. broiler production in calendar year 2019 is expected to rise nearly 0.9% from full-year 2018. Further, production in the third and fourth quarters of fiscal 2019 is anticipated to increase 6% and 7.5%, respectively.Additionally, the company anticipates $255 million of capital expenditure for fiscal 2019. How Have Estimates Been Moving Since Then? Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 18.33% due to these changes. VGM Scores Currently, Sanderson Farms has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Sanderson Farms has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportSanderson Farms, Inc. (SAFM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Nutanix (NTNX) Down 20.6% Since Last Earnings Report: Can It Rebound? A month has gone by since the last earnings report for Nutanix (NTNX). Shares have lost about 20.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Nutanix due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Nutanix Q3 Earnings Top, Revenues Miss EstimatesNutanix incurred third-quarter fiscal 2019 loss of 56 cents per share, narrower than the Zacks Consensus Estimate of 60 cents. However, the figure was wider than the year-ago quarter’s loss of 21 cents.Revenues decreased 0.6% from the year-earlier quarter to $287.6 million, and also missed the consensus estimate of $296 million.Transition from device-based to a subscription-based business model led to compression in the top line. However, continued deal wins and increased adoption of AHV hypervisor were positives.Quarter DetailsProduct revenues fell 16.4% year over year to $184.8 million. Support, entitlements & other services revenues soared 50.5% to $102.8 million.Total software and support revenues climbed17% from the year-ago quarter to $266 million.Billings were down 1% year over year to $346 million. Software and Support billings rose 11% to $324 million.Subscription billings accounted for 65% of total billings, up from 57% in the previous quarter.New customer bookings represented 25% of total bookings compared with 29% a year ago. Software-related bookings from the company’s international regions were 45% of the total software and support bookings,flat year over year.The bill to revenue ratio was 1.2, slightly lower sequentially.During the fiscal third quarter, Nutanix sealed several large deals on the back of its consistent execution in product, customer support and enterprise selling, which also led to a deeper penetration into existing customers. It signed 50 deals worth more than $1 million including eight deals worth above $3 million.Nutanix now has 18 customers with a lifetime spend of more than $15 million, and about 850 customers with a lifetime investment exceeding $1 million.The company’s hypervisor, AHV, experienced 42% increase in adoption on a rolling four quarter basis.Continued shift to a recurring revenue business model resulted in 65% of billings coming from subscriptions, up from 41% a year ago. Subscription revenues represented 59% of total revenues in the fiscal third quarter, up from 28%.Nutanix clinched a $6 million deal with a Global 2000 French multinational hospitality company that has a lifetime spend more than $7 million. This company spent about $4 million on new term-based subscription licenses in the quarter. Under the new agreement, this customer will replace its existing traditional infrastructure with Nutanix’s enterprise cloud platform.During the quarter, a deal worth more than $1 million was signed with media, marketing and publishing company Meredith Corp. (MDP).Also, Nutanix partnered with Hewlett Packard (HPE) to enable channel partners to directly sell fully integrated HPE servers combined with Nutanix’s enterprise cloud OS software.The company continued to witness a strong adoption of its products, including a $3-million plus deal with the U.S. Department of Defense.However, selling impact due to the ongoing transition slowed down and extended the sales cycles. The company expects this headwind to gradually dissolve as customers get used to the new term- based subscription offerings.MarginIn the fiscal third quarter, the company delivered non-GAAP gross profit of $725.4 million, significantly up from $197.8 million. Non-GAAP gross margin of 77.1% was higher than 68.4% in the year-ago quarter.Operating expenses rose substantially from $232.4 million in the prior-year quarter to $895.1 million.Operating loss widened to $169.7 million from a loss of $34.6million in the year-ago quarter.Balance Sheet & Cash FlowAs of Apr 30, 2019, cash and cash equivalents plus short-term investments were $941 million, down $25 million sequentially.Cash outflow from operations was $36 million against inflow of $46.4 million in the previous quarter. A $17 million ESPP outflow resulted in this unfavorable comparison.Free cash outflow was $59 million against inflow of $32.4 million in the prior quarter.Deferred revenues jumped 7.5% sequentially to $838.3 million in third-quarter fiscal 2019.GuidanceFor the fourth quarter of fiscal 2019, revenues are projected between $280 million and $310 million.Nutanix anticipates billings to be in the range of $350-$380 million.Non-GAAP gross margin is predicted to be around 77%. Moreover, management forecasts operating expenses in the $340-$350 million band.Nutanix estimates non-GAAP loss per share to be 65 cents.Leadership changes, which impacted the fiscal third quarter, are expected to affect the fiscal fourth quarter as well.Nutanix expects an impact on fourth-quarter fiscal 2019 results from imbalance and lead generation spending, coupled with a slower-than-expected sales hiring. The company also expects extended sales cycles due to the transition, to be an overhang on the top line.Moreover, during the fiscal third quarter, Nutanix ramped lead generation, and thus improved sales execution. These efforts are expected to take a couple of quarters to reflect in its top-line performance.However, the company remains positive about its transition to software-based revenues as the same is likely to expand its margins significantly, going forward.A healthy pipeline of big deals is anticipated to be a tailwind for the top line in the fiscal fourth quarter. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -24.52% due to these changes. VGM Scores Currently, Nutanix has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Nutanix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportNutanix Inc. (NTNX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is Canadian Solar (CSIQ) Up 12.5% Since Last Earnings Report? It has been about a month since the last earnings report for Canadian Solar (CSIQ). Shares have added about 12.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Canadian Solar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Canadian Solar Q1 Earnings Top Estimates, Revenues Fall Y/YCanadian Solar Inc. reported adjusted first-quarter 2019 loss of 29 cents per share, narrower than the Zacks Consensus Estimates of a loss of 44 cents. However, the company’s adjusted first-quarter 2018 earnings were 72 cents per share.Total RevenuesIn the reported quarter, total revenues of this solar cell manufacturer came in at $484.7 million, beating the Zacks Consensus Estimate of $471 million by 2.9%. However, the top line declined 66% from $1,425 million reported in first-quarter 2018.Operational UpdateSolar module shipments in the quarter totaled 1,575 megawatts (MW), down 19.3% from fourth-quarter’s shipment of 1,951 MW. However, the figure exceeded management’s first-quarter 2019 guidance of 1.30-1.40 gigawatt (GW).Gross profit was $107.4 million, down 25.4% from the year-ago quarter’s level of $143.9 million. Gross margin was 22.2% in the quarter (excluding the CVD reversal benefits). Including the benefits, gross margin was 30.1% compared with 10.1% in the first quarter of 2018, the year-over-year increase was driven by a lower blended module manufacturing cost compared to its previous forecast.Total operating expenses amounted to $100.8 million, up 53.4% year over year. Selling expenses totaled $37.9 million, down 10.4% year over year. General and administrative expenses were $51.4 million, up 5.3% year over year. Research and development expenses were $13.2 million compared with $9.5 million in the year-ago period.Interest expenses were $21.7 million, down from $29.6 million recorded in the year-ago period.Financial UpdateAs of Mar 31, 2019, cash and cash equivalents were $370.2 million, down from $444.3 million as of Dec 31, 2018.Long-term debt as of Mar 31, 2019, was $433.5 million, up from $393.6 million as of Dec 31, 2018.Q2 2019 GuidanceFor second-quarter 2019, Canadian Solar expects shipments in the range of 1.95-2.05 GW. This new guidance includes approximately 50 MW of shipments to its utility-scale solar power projects that may not be recognized as revenues in the second quarter 2019.Total revenues are projected to be $970-$1,010 million, while gross margin is expected to be 13-15%, reflecting the inclusion of the Mustang project sale. Excluding the Mustang project sale, gross margin for the second quarter is expected to be between 16% and 18% How Have Estimates Been Moving Since Then? Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -49.63% due to these changes. VGM Scores Currently, Canadian Solar has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Canadian Solar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCanadian Solar Inc. (CSIQ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is Dollar General (DG) Up 6.4% Since Last Earnings Report? It has been about a month since the last earnings report for Dollar General (DG). Shares have added about 6.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Dollar General due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Dollar General Q1 Earnings & Sales Beat EstimatesDollar General Corporation reported better-than-expected first-quarter fiscal 2019 results, wherein both the top and bottom line grew year over year. Also, the company witnessed sturdy same-store sales performance.Looking ahead, the company retained its fiscal 2019 view. Management informed that the guidance “includes the anticipated impact of increased tariff rates on certain products imported from China, which became effective on May 10, 2019.”Let’s Delve DeepThe quarterly earnings came in at $1.48 per share that surpassed the Zacks Consensus Estimate of $1.39 and increased 8.8% from the prior-year period. The year-over-year increase in the bottom line can be attributed to higher net sales, cost containment efforts, lower effective income tax rate and share repurchase activity.Net sales of $6,623.2 million improved 8.3% from the prior-year period and came ahead of the Zacks Consensus Estimate of $6,566 million for the fourth quarter in row. Contribution from new outlets and same-store sales growth favorably impacted the top line.Dollar General’s same-store sales increased 3.8% year over year primarily owing to rise in average transaction amount and customer traffic. Consumables, Seasonal and Home categories favorably impacted the metric, while Apparel category had a negative impact on the same.Sales in the Consumables category increased 9.2% to $5,213.2 million, while the same in Seasonal category witnessed a rise of 6.6% to $737 million. Home Products sales rose 5.9% to $375.7 million, while Apparel category sales grew 0.3% to $297.3 million.Gross profit advanced 7.5% to $2,002.3 million, however, gross margin contracted 23 basis points (bps) to 30.2% owing to sales of products carrying lower margin and higher distribution and transportation costs. A higher proportion of sales came from Consumables. These were partly offset by higher initial markups on inventory purchases. Meanwhile, operating income rose 4.5% to $512.2 million, however, operating margin shriveled 29 basis points to 7.7%.Store UpdateDuring the quarter, the company opened 240 new outlets, remodeled 330 stores and relocated 27 stores. In fiscal 2019, the company plans to open about 975 new stores, remodel 1,000 stores and relocate 100 stores.Other Financial DetailsDollar General ended the quarter with cash and cash equivalents of $271.1 million, long-term obligations of $2,732.1 million and shareholders’ equity of $6,572.7 million. The company incurred capital expenditures of $145 million during the first quarter of fiscal 2019. For fiscal 2019, it continues to anticipate capital expenditures in the range of $775-$825 million.The company bought back 1.7 million shares for $200 million during the quarter under review. At the end of the quarter, it has an outstanding authorization of nearly $1.1 billion. The company intends to buyback shares worth $1 billion during fiscal 2019.OutlookManagement continues to envision fiscal 2019 earnings in the band of $6.30-$6.50 per share. We note that the company’s projection is above fiscal 2018 reported earnings of $5.97 per share.Dollar General reiterated fiscal 2019 net sales growth projection of 7% with same-store sales expected to increase approximately 2.5%. The company envisions operating profit growth of approximately 4-6%. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. VGM Scores Currently, Dollar General has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Dollar General has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportDollar General Corporation (DG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is Marvell (MRVL) Up 7.6% Since Last Earnings Report? A month has gone by since the last earnings report for Marvell Technology (MRVL). Shares have added about 7.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Marvell due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Marvell Reports Q1 Results Marvell reported first-quarter fiscal 2020 non-GAAP earnings of 16 cents, which beat the Zacks Consensus Estimate of 15 cents. However, it declined 50% from the year-ago quarter. Marvell’s revenues increased 9.6% year over year to $662.5 million, and surpassed the consensus estimate of $650 million. Strong growth in networking business led to the top-line improvement. However, due to the export restriction, which was implemented early in the quarter, both networking and revenues were affected. The company also recently announced the acquisitions of Avera and Aquantia, which will be highly complementary to its Ethernet (particularly automotive) and PHY businesses. Further, Marvell announced the divestment of its Wi-Fi business to NXP Semiconductors (NXPI) for $1.76 billion. The proceeds from this transaction will be used to pay for the aforementioned acquisitions. Quarter Details In the end markets, storage revenues (42% of total revenues) dropped 12% year over year to $278.7 million. Seasonality and excess inventory in supply chains of storage controller customers affected revenues from this segment. Within the segment, revenues from the fiber channel business came in below expectations due to softness in server market. However, revenues from storage controllers were higher than expected. Weakness in compute demand in cloud and beyond was a dampener. The networking business (52%) jumped a whopping 40% year over year to $341.3 million, driven by solid performance in Marvell’s OCTEON suite of high-end embedded processors and high demand for its Ethernet switch and PHY products. However, the segment declined 12% sequentially as a result of seasonality, high inventory control at key customers and weak demand from Chinese customers. Other product (6%) revenues during the fiscal first quarter declined 2% on a year-over-year basis to $42.4 million. During the quarter, the company successfully integrated Marvell and the Cavium ERP systems. Marvell expects to achieve its OpEx synergy goal from the Cavium acquisition in the fiscal second quarter. Margins Marvell’s non-GAAP gross profit came in at $424.7 million, up 12.5% on a year-over-year basis. Non-GAAP gross margin expanded 160 basis points (bps) to 64.1%, Non-GAAP operating expenses rose 39.2% year over year to $294.8 million. Non-GAAP operating margin contracted 780 bps to 19.6%. Balance Sheet Marvell exited the quarter with cash, cash equivalents of $571.9 million compared with $582.4 million in the previous quarter. The company paid $50 million of its long-term debt, which now totals $1.7 billion. Cash from operating activities amounted to $165.8 million compared with $299.4 million in the prior quarter. During the quarter, Marvell paid dividend of around $39 million to shareholders and bought back $50 million of its shares. Guidance Marvell projects second-quarter fiscal 2020 revenues of $650 million, up or down up to 3%. In the second quarter of fiscal 2020, demand for Marvell Storage Controllers is expected to remain soft due to continued weak macroeconomic conditions. Impact of the export restrictions and accounting for the customer factory transition is expected to lead to an approximate mid-single digit sequential decline in storage revenues. Revenues from networking are expected to decline slightly sequentially in the fiscal second quarter due to the export restriction. Management expects non-GAAP gross margin to be between 63% and 64%, reflecting a weaker product mix due to impact of export restriction and low storage revenues. Non-GAAP operating expenses are estimated to be within $285-$290 million. The company anticipates non-GAAP earnings per share in the band of 13-17 cents. Story continues How Have Estimates Been Moving Since Then? Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -56.59% due to these changes. VGM Scores Currently, Marvell has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Marvell has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology Group Ltd. (MRVL) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Why Is Ulta (ULTA) Up 5.6% Since Last Earnings Report? It has been about a month since the last earnings report for Ulta Beauty (ULTA). Shares have added about 5.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Ulta due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Ulta Beauty's Q1 Earnings Beat Estimates, Improve Y/YUlta Beauty reported first-quarter fiscal 2019 results, wherein earnings outpaced the Zacks Consensus Estimate while sales matched the same. Both the top and the bottom line improved on a year-over-year basis.Notably, robust traffic and ticket growth along with double-digit comparable sales (comps) increase in mass cosmetics, skin care and fragrance aided the company’s quarterly performance. Moreover, management decided to make Ulta Beauty a strong global brand. To this end, the company will launch operations in Canada.Q1 NumbersUlta Beauty’s adjusted earnings grew 17.1% to $3.08 per share and also outpaced the Zacks Consensus Estimate of $3.06. Including tax gains of about 18 cents, the company’s earnings rose 20.7% to $3.26.Net sales of this cosmetics retailer grew 12.9% year over year to $1,743 million and came almost in line with the Zacks Consensus Estimate. Comps — including stores and e-commerce — climbed 7%, down from 8.1% growth recorded in the prior-year quarter. Increase in traffic and ticket along with higher store productivity led to comps growth. During the fiscal first quarter, the company registered a transaction increase of 4.3% while average ticket was up 2.7%.Further, retail comps were balanced between transaction and ticket improvement. Meanwhile, e-commerce growth was fueled by traffic growth and came in line with the company’s expectations.Gross profit increased nearly 15% year over year to $644.8 million, with gross margin expansion of 70 basis points (bps) to 37%. Gross margin expansion was mainly backed by higher merchandise margins stemming from impressive marketing and merchandising strategies as well as leveraged fixed store expenses. The improvement was somewhat offset by deleveraging owing to investments in salon services and supply chain.Further, operating income increased 13.2% year over year to $237.5 million. However, operating margin remained flat at 13.6% as higher gross margin was offset by a 70 bps rise in SG&A expenses (as a percentage of sales). Pre-opening expenses declined 19.2% to $4.2 million.Other FinancialsUlta Beauty ended the quarter with cash and cash equivalents, and short-term investments of $521.8 million, and total stockholders’ equity of $1,941.6 million. Merchandise inventories, net, summed $1,250 million as of May 4, 2019, marking an increase of almost 10% from the year-ago period. Also, average inventory per store grew 1.8% year over year.Net cash provided by operating activities was roughly $271.7 million at the end of first-quarter fiscal 2019. Management bought back 318,431 shares for $107.4 million in the reported quarter. With this, the company had nearly $788.2 million outstanding as of May 4, 2019, under its $875-million share repurchase plan announced in March 2019.Store UpdatesIn the fiscal first quarter, Ulta Beauty opened 22 stores while shuttered none. As of May 4, 2019, it operated 1,196 stores, increasing its total square footage by 8% year over year. In fiscal 2019, the company plans to open nearly 80 stores as well as remodel 12 and relocate 8 outlets. Also, it intends to complete roughly 270 store refreshes.GuidanceFor fiscal 2019, management projects total sales to grow in the low double-digits percentage range. Comps are expected to increase nearly 6-7%, down from 8.1% growth registered in fiscal 2018. Comps growth guidance includes e-commerce improvement of 20-30%.Further, the company expects operating margin leverage of 10-20 bps for fiscal 2019. Earnings per share are now envisioned to be $12.83-$13.03. Earlier, the company projected earnings in a range of $12.65-$12.85, inclusive of tax gains of 18 cents in the reported quarter. In fiscal 2018, the company recorded adjusted earnings of $10.85.Markedly, Ulta Beauty’s earnings guidance includes the impact of share repurchases worth roughly $700 million and an effective tax rate of 24%. Excluding the tax gains in first-quarter fiscal 2019, Ulta Beauty expects earnings per share growth in low teens and modest deleverage in the operating margin for the first half of the fiscal year. Further, it anticipates earnings to improve in high teens and modest leverage in the operating margin during the second half of the year.The company plans to spend about $380-$400 million as capital expenditures in fiscal 2019 compared with $319 million incurred last year. Also, it expects to incur depreciation and amortization charges of $315 million. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. VGM Scores Currently, Ulta has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ulta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportUlta Beauty Inc. (ULTA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Red Robin (RRGB) Down 1% Since Last Earnings Report: Can It Rebound? A month has gone by since the last earnings report for Red Robin (RRGB). Shares have lost about 1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Red Robin due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Red Robin's Q1 Earnings Lag Estimates Red Robin reported first-quarter 2019 results, wherein earnings missed the Zacks Consensus Estimate but revenues came almost in line with the same. However, both the metrics declined on a year-over-year basis. Notably, the quarterly results were hurt by declining traffic numbers. Earnings & Revenue Discussion Red Robin’s adjusted earnings of 19 cents per share missed the consensus estimate of 48 cents. The bottom line also declined 72.5% from the year-ago quarter number. Revenues came in at $409.87 million, almost in line with the consensus mark of $409.9 million but declined 2.8% from the prior-year quarter. The downside can be primarily attributed to soft comparable restaurant revenues due to decline in dine-in traffic. Additionally, comparable restaurant revenues decreased 3.3% year over year due to a 5.5% decline in guest count, which overshadowed a 2.2% gain in average check. The increase in average guest check was on account of a 0.3% rise in menu mix and 1.9% hike in pricing. Operating Results Restaurant-level operating profit margin contracted 170 basis points (bps) to 18.3%. The decline was due to a 60-bps rise in other restaurant operating expenses and 30-bps increase in occupancy costs. However, cost of sales margin declined 40 bps due to decrease in waste and lower Tavern mix. Also, labor costs margin increased 120 basis points due to higher average wage rates and sales deleverage. Adjusted earnings before interest, taxes, and amortization (EBITDA) decreased to $34.3 million from $42.4 million a year ago. Financial Highlights As of Apr 21, 2019, Red Robin had cash and cash equivalents of $23 million compared with $18.6 million as of Dec 30, 2018. The company’s long-term debt amounted to $183.4 million as of Apr 21, 2019, compared with $193.4 million as of Dec 30, 2018. As of Apr 21, 2019, Red Robin had outstanding borrowings under its credit facility of $182.5 million in addition to amounts issued under letters of credit of $7.4 million. Guidance For 2019, Red Robin expects earnings of $1.14-$1.77 per share compared with $1.30-$1.70 projected earlier. The Zacks Consensus Estimate for the same is currently pegged at $1.23. Comparable restaurant revenue growth is expected to be down 1% to up 1% compared with prior guided range of flat to up 1%. How Have Estimates Been Moving Since Then? Fresh estimates followed an upward path over the past two months. VGM Scores Currently, Red Robin has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Red Robin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportRed Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is Tech Data (TECD) Up 7.7% Since Last Earnings Report? A month has gone by since the last earnings report for Tech Data (TECD). Shares have added about 7.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Tech Data due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Tech Data Q1 Earnings Beat Estimates, Increase Y/YTech Data posted first-quarter fiscal 2020 results, which marked the third straight quarter of earnings beat. The company’s bottom line also registered double-digit growth year over year despite a decline in the top line. This increase can be attributed to lower costs of products sold and reduced operating expenses.Moreover, management now envisions earnings of $2.15-$2.45 per share for second-quarter fiscal 2020. The midpoint of $2.30 indicates a sharp improvement from $2.01 reported in the year-ago period.We also noticed that while Americas and Asia Pacific regions witnessed net sales growth, Europe encountered soft sales. This led to a year-over-year decline in the overall net sales that also fell short of the Zacks Consensus Estimate.Q1 DetailsThe company reported adjusted earnings of $2.04 per share in the reported quarter. The figure not only surpassed the Zacks Consensus Estimate of $1.98 but also increased 11% on a year-over-year basis.However, net sales of $8,406.4 million decreased 2% year over year. Also, the figure lagged the consensus mark of $8,453 million. Net sales rose 3% on a constant-currency (cc) basis.Net sales from the Americas (45.1% of global net sales) rose 5% to $3,789.2 million. Sales from Europe (51.3% of global net sales) declined 8% to $4,309.5 million. Sales from Asia-Pacific (3.6% of global net sales) increased 15% to $307.7 million.MarginsThe company’s gross profit fell 2.6% to $509.4 million in the reported quarter. Gross margin shrunk 6 bps to 6.1%. Adjusted selling, general & administrative (SG&A) expenses declined 3.6% to $384.6 million in the quarter under review. Adjusted selling, general & administrative expenses as percentage of revenues contracted 9 bps to 4.6%.Adjusted operating income came in at $124.8 million, up 0.6% from $124.1 million in the year-ago quarter. Adjusted operating margin expanded 3 bps to 1.5%. Segment wise, operating margin contracted 14 bps to 2.2% for the Americas, while the metric expanded 12 bps to 1.1% for Europe and 51 bps to 0.9% for Asia Pacific.Balance Sheet and Cash FlowAs of Apr 30, 2019, Tech Data had cash and cash equivalents of approximately $797.5 million, long-term debt of $1,297.9 million and total stockholders’ equity of $2,915.9 million.During the quarter, the company bought back 346,000 shares worth $36 million. Tech Data generated cash from operations of $63.2 million.OutlookTech Data issued second-quarter fiscal 2020 view, wherein the company anticipates sales to be $8.6-$8.9 billion. Although growth in IT market has slowed down, going ahead management sees robust demand for its products. How Have Estimates Been Moving Since Then? Fresh estimates followed a flat path over the past two months. VGM Scores At this time, Tech Data has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Tech Data has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportTech Data Corporation (TECD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Why Is Gap (GPS) Down 12.8% Since Last Earnings Report? A month has gone by since the last earnings report for Gap (GPS). Shares have lost about 12.8% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Gap due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Gap Q1 Earnings & Sales Miss, FY19 View CutGap reported dismal first-quarter fiscal 2019 results, wherein earnings and sales missed the Zacks Consensus Estimate and declined year over year. The dismal results mainly reflected soft top-line growth and comparable sales (comps) as well as lower margins. Furthermore, management lowered its earnings outlook for fiscal 2019.The company also noted that the Trump administration’s recently announced intent to impose tariffs on clothing goods produced in China may impact results going forward. Gap stated that its current guidance incorporates impacts from List 3 goods but does not include any potential tariff impacts from List 4 goods.Q1 HighlightsIn the fiscal first quarter, Gap’s earnings of 24 cents per share missed the Zacks Consensus Estimate of 31 cents. The bottom line also declined nearly 42.9% from 42 cents registered a year ago. Quarterly earnings included currency tailwinds of 1 cent per share.Net sales declined 2% year over year to $3,706 million and also lagged the Zacks Consensus Estimate of $3,756.2 million. Foreign currency translations negatively impacted revenues by $34 million. Total comparable sales (comps) were down 4% compared to 1% increase in the year-ago period. The decline is attributed to soft comps performance across all brands.Like most in the industry, Gap witnessed soft top line and comps due to extremely cold and wet weather that resulted in a slow start to business in February. Although traffic and business picked momentum in March and April, it was difficult to overcome the softness encountered in February. Additionally, late spring breaks, a shift in Easter as well as a delayed and lower tax refunds impacted the top line.Notably, comps declined 1% at Old Navy versus 3% improvement in the prior-year quarter. At the Banana Republic and Gap brands, comps declined 3% and 10%, respectively. In the year-ago quarter, comps rose 3% at Banana Republic and declined 4% at the company’s namesake brand.MarginsWhile gross profit fell 6% to $1,344 million, gross margin declined 140 basis points (bps) to 36.3%. Gross margin contraction can be attributed to a 120 bps decline in merchandise margin coupled with a 20 bps rent and occupancy deleverage owing to lower sales.Adjusted operating income declined 43.2% to $130 million, while adjusted operating margin contracted 260 bps to 3.5%.FinancialsGap ended the quarter with cash and cash equivalents of $941 million, long-term debt of $1,249 million, and total stockholders’ equity of $3,571 million.In the fiscal first quarter, the company generated net cash flow from operations of $29 million and incurred capital expenditures of $165 million. Gap had negative free cash flow of $136 million as of May 4, 2019.Coming to Gap’s shareholder-friendly moves, the company bought back 1.9 million shares for approximately $50 million and paid a dividend of 24.25 cents per share in the fiscal first quarter. Furthermore, the company announced a dividend of 24.25 cents per share for second-quarter fiscal 2019.For fiscal 2019, management now projects capital expenditures of roughly $675 million that comprises $100 million of expansion charges associated with one of its headquarters buildings as well as the development of the Ohio distribution facility. Earlier, the company had anticipated capital expenditure of $750 million for the fiscal year.In fiscal 2019, management anticipates spending $200 million for share buybacks, with about $50 million buybacks every quarter.Store UpdatesGap opened 37 company-operated and 46 franchise stores, while closed 36 company-operated and four franchise stores in the quarter under review. Additionally, the company acquired 140 stores from Gymboree, Inc. related to Janie and Jack on Mar 4. Net of the company’s store openings and closings as well as the assets acquired from Gymboree, Gap ended the fiscal first quarter with 3,849 outlets in 43 countries, of which 3,335 were company-operated and 514 were franchise stores.In fiscal 2019, Gap now anticipates to shut down nearly 30 company-operated stores, net of openings and repositions. This revised projection comprises about 10 additional store opening for both Old Navy and Athleta. The guidance also includes closing 130 stores related to the restructuring of the Gap brand fleet. However, most of these stores are expected to be closed in fourth-quarter fiscal 2019. Simultaneously, it expects store openings to be more focused on Athleta, Old Navy and Gap China locations.OutlookFollowing Gap’s soft first-quarter results, management lowered its earnings and comps guidance for fiscal 2019. The company anticipates comps to be down low single digits compared with the prior projection of flat to up slightly. Moreover, it estimates effective tax rate of roughly 27%. Excluding certain non-cash tax impacts related to expected restructuring charges, the company predicts adjusted effective tax rate to be about 26%.Consequently, Gap now envisions earnings per share of $2.04-$2.14 for the fiscal year compared with $2.11-$2.26 expected earlier. Adjusted earnings are estimated to come in at $2.05-$2.15 versus the prior projection of $2.40-$2.55. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -20.71% due to these changes. VGM Scores Currently, Gap has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Gap has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Gap, Inc. (GPS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Why Is Williams-Sonoma (WSM) Up 26% Since Last Earnings Report? It has been about a month since the last earnings report for Williams-Sonoma (WSM). Shares have added about 26% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Williams-Sonoma due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Williams-Sonoma (WSM) Q1 Earnings & Revenues Beat EstimatesWilliams-Sonoma Inc. reported better-than-expected results in first-quarter fiscal 2019. Non-GAAP earnings of 81 cents per share surpassed the Zacks Consensus Estimate of 68 cents by 19.1%. The figure also grew 21% year over year.Moreover, revenues of $1,241.1 million beat the consensus mark of $1,222 million by 1.6% and grew 3.2% year over year.Comps increased 3.5% in the fiscal first quarter compared with 2.4% growth in fourth-quarter fiscal 2018. Yet, the reported figure was down from 5.5% in the year-ago quarter.The company’s West Elm brand’s comps grew 11.8% compared with 9% growth in the prior-year quarter. Pottery Barn and Pottery Barn Kids and Teen grew 1.5% and 1.2% versus 2.7% and 5.3% in the prior-year quarter, respectively. However, the Williams Sonoma brand’s comps declined 1.6% in the quarter compared with 5.6% comps growth registered in the year-ago period.Operating HighlightsNon-GAAP gross margin was 35.9%, down 10 basis points (bps) from first-quarter fiscal 2018. The downside was mainly due to higher shipping costs, primarily driven by a greater mix of furniture sales. This was partly offset by benefits from product margin expansion and strong occupancy leverage.Non-GAAP selling, general and administrative (SG&A) expenses accounted for 28.9% of net revenues compared with 29.7% in the year-ago quarter, reflecting a decrease of 80 bps owing to leverage across advertising, employment and general expenses, thanks to benefits from cost-savings initiatives.Non-GAAP operating margin was 7% in the quarter, up 70 bps year over year.FinancialsWilliams-Sonoma reported cash and cash equivalents of $107.7 million as of May 5, 2019 compared with $339 million on Feb 3, 2019.During the fiscal first quarter, the company invested $36 million and returned more than $70 million to stockholders through dividends and share repurchases, comprising $37 million in dividends and $34 million in share repurchases.Fiscal 2019 Guidance LiftedGiven solid fiscal first quarter and the growth trend witnessed by Williams-Sonoma in early second quarter, the company now expects non-GAAP earnings per share in the band of $4.55-$4.75, up from the prior expectation of $4.50-$4.70.Net revenues are projected in the range of $5.670-$5.840 billion. Comps are likely to grow 2-5% year over year. Non-GAAP operating margin is expected to be in line with the fiscal 2018 level.It expects an incremental buyback of shares under a repurchase authorization of approximately $678 million.The company expects to close 30 stores during the year, bringing down the total store count to 595 by the end of the year.Long-Term View ReaffirmedTotal net revenues are expected to grow in mid-to-high single digits. Non-GAAP operating income is likely to be in line with revenue growth, thereby driving operating margin stability. The company expects above-industry average ROIC in the long term. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed an upward trend in fresh estimates. VGM Scores At this time, Williams-Sonoma has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Williams-Sonoma has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportWilliams-Sonoma, Inc. (WSM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Why Is Costco (COST) Up 9.4% Since Last Earnings Report? A month has gone by since the last earnings report for Costco (COST). Shares have added about 9.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Costco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Costco’s Earnings Top Estimates in Q3, Increase Y/YCostco Wholesale Corporation recorded the second straight quarter of positive earnings surprise, when it reported third-quarter fiscal 2019 results. However, total revenues fell short of the Zacks Consensus Estimate for the second quarter in a row. Notably, both the top and bottom line maintained year-over-year improvement. The company also delivered comparable sales growth across all regions. E-commerce sales during the period were sturdy as well.Certainly, strength in comparable sales, healthy membership trends, increasing penetration of e-commerce business and other growth-oriented efforts bode well.Q3 Earnings & Sales PictureThis Issaquah, WA-based company reported adjusted quarterly earnings of $1.89 per share that beat the Zacks Consensus Estimate of $1.83. Earnings improved 11.2% from the year-ago quarter’s $1.70.Total revenues, which include net sales and membership fees, came in at $34,740 million, up 7.4% from the prior-year quarter’s figure. The figure, however, lagged the consensus estimate of $34,865.1 million.In the reported quarter, the company’s e-commerce comparable sales rose 22% year over year. Excluding the effect of gasoline prices, foreign exchange and accounting change concerning revenue recognition (ASC 606), the same exhibited a rise of 19.5% year over year. This reflects the company’s efforts to drive online sales.Delving DeeperNet sales rose 7.4% to $33,964 million, while membership fee increased 5.3% to $776 million. Categories that performed well include electronics, health and beauty aids, furniture, small appliances, automotive, and optical.Costco’s comparable sales in the reported quarter grew 5.5%, reflecting an increase of 7%, 1.3% and 1.7% in the United States, Canada and Other International locations, respectively.Excluding the impact of foreign currency fluctuations, gasoline prices and accounting change concerning revenue recognition (ASC 606), the company witnessed comparable sales growth of 5.6% during the quarter. Notably, the United States, Canada and Other International locations registered comparable sales growth of 5.5%, 5.1% and 6.9%, respectively.Traffic or shopping frequency rose 3.7% globally and 3.4% in the United States. Average front-end transaction jumped 1.8% on a year-over-year basis. Excluding the impact of foreign exchange, inflation and revenue recognition, the company’s average ticket rose about 1.9%.Operating income in the quarter increased 5.2% year over year to $1,122 million, while operating margin (as a percentage of total revenues) contracted 10 bps to 3.2%.Store UpdateCostco currently operates 773 warehouses, comprising 536 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain, one each in Iceland and France.During the quarter under review, the company opened three new warehouses, one each in the United States, Korea and Australia. The company plans to open 13 units, including two relocations, in the fourth quarter. This will take the total net new openings for the fiscal year to 21.Financial AspectsCostco ended the reported quarter with cash and cash equivalents of $7,013 million and long-term debt (excluding current portion) of $4,799 million. The company’s shareholders’ equity was $14,486 million, excluding non-controlling interests of $334 million. During the quarter, the company bought back shares worth $44 million. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed an upward trend in fresh estimates. VGM Scores Currently, Costco has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Costco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCostco Wholesale Corporation (COST) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
Jony Ive's Departure Means Big Changes Are Coming to Apple Shockwaves ran through Apple’s universe this week after the company’s iconic design guru, Jony Ive, announced his departure. Ive told theFinancialTimeson Thursday that he plans to start a new design firm, LoveFrom, after he leavesApplelater this year. He’ll run it alongside longtime Apple industrial designer Marc Newson, who is also leaving Apple. Together, they’ll tackle product designs for Apple, as well as any other client that comes knocking. Needless to say, Ive’s pending departure is big news. Some industry watchers questioned what Apple’s product designs will be like without Ive’s leadership and whether they’ll be as good as before. This comes even though Ive had been easing his way out of Apple over the past few years. He started to move out of day-to-day operations a couple years ago, and was only working at Apple’s headquarters a couple times a week, according toa Bloomberg report. But as big as Ive’s departure may be, it wasn’t the only topic that mattered this week. Apple also confirmed that it bought autonomous car startup Drive.ai while also dominating the smartwatch market. Meanwhile, Apple executive Eddy Cue confirmed that Apple Music now has 60 million users, reflecting strong growth from 50 million users in January. Read on for more on those and other Apple headlines from the past week: Jony Ive is leaving Apple later this yearto start a new design company with fellow Apple industrial designer Marc Newson. Apple will be the firm’s first client, though LoveFrom will work with other, unidentified companies. In an interview with theFinancial Times, Ives called it a “natural and gentle time to make this change.” Apple COO will take on additional responsibilities in design after Ive’s departure. It’s a major loss for Apple, which has relied on Ive to design everything from the iPhone to the iPad, and several Macs. But could it be an opportunity for other tech companies that could hire Ives for their own projects? If Ive signed a non-compete with Apple, not likely. Apple confirmed this week that it hasacquired autonomous vehicle startup Drive.aifor an undisclosed amount. It was a somewhat surprising acquisition for many industry watchers who thoughtApple’s self-driving car ambitions had been shelved. Now, it appears those efforts are in full swing and Drive.ai will play a role in Apple’s efforts. But considering Drive.ai focused on autonomous van technology, it’s unclear what its staff will do at Apple. Apple Watch shipments rose 22% year-over-year in 2018, helping Apple secure a 37% global market share in smartwatches, Counterpoint Research said this week. Apple’s closest competitor, China-based smartwatch maker iMoo, was far behind with a 10% share. Samsung took the third spot with 9%. So, why is Apple so dominant in smartwatches? I explored that question after talking to some analysts this week.You can read about it here. Apple has moved its new Mac Pro manufacturing to China,The Wall Street Journalreported this week. The previous Mac Pro, which was released in 2013, was manufactured in the U.S., but Apple apparently needs to keep its costs down on the new, $6,000 machine and decided to move its manufacturing to China. The move comes amidtrade tensions between the U.S. and Chinaand runs counter to Apple’s reported desire to move at least some of its manufacturing out of China. Apple this week released its iOS 13 beta, allowing users who don’t mind some bugs and quirks in their mobile operating systems the opportunity to try it out. You can download the software for free after signing up for the test on the company’s website. But before you do, check out my colleague Xavier Harding’s look athow iOS 13 beta can improve privacy. Inan interviewwith French publicationNumeramathis week, Apple senior vice president of services Eddy Cue said thatApple Music now has 60 million subscribers,up from 50 million in January. That’s solid growth, but the service remains behind Spotify’s 100 million paid subscribers. Apple Music’s individual plans cost $9.99 monthly while family memberships cost $14.99 for up to six people. Apple has agreed to invest $100 million in Japan Displayto help the screen manufacturer in its restructuring, according to a report by Japanese news publicationAsahi. The news followed reports thatJapan Display is having financial troublesand was seeking investment from Apple to stay afloat. In addition to the cash infusion, Apple will move more of its display work from manufacturers in China to Japan Display. Looking for more insight into theDemocratic candidates vying to take on President Donald Trumpin the 2020 presidential election? Apple News has releaseda new candidate guidewithin the Apple News app that provides information about each candidate and the latest news.
One of Mexico City’s Hottest Restaurant Groups Fuses Mexican and Japanese Influences Seats at the sushi bar ofMisaki, newly opened in Los Cabos, look out from just high enough of an angle that the blond wood of the window frames only the ombré of blues, from endless sea meeting clear blue sky. Looking down at the table, a sampler of tuna sashimi echoes the coastal ombré—this time in shades of pink, presenting the jewel-tonedakami,the slightly fattier cut ofchutoro,and the pale pink of the meltingly tender and much-coveted belly calledtoro. The food—and the service and setting inside—evoke that of the highest-end sushi restaurants around the world. But most of the seafood and the views of the Pacific Ocean feature the best of Mexico. The enmeshing of Japanese culinary traditions withMexican ingredientsbrought restaurateur Edo López acclaim inMexico City, where he all but owns a corner of Cuauhtémoc now known as Little Tokyo. López’s restaurant group, Edo Kobayashi, is named after his mother’s maiden name; his grandfather fled to Mexico during World War II. Thus, the Tijuana native marries his Japanese heritage with his native country’s ingredients, starting with his first restaurant, Rokai, which serves a sushi menu and omakase, similar to what Misaki offers. But there’s also theJapanese whiskybar (Tokyo Music Bar), a natural wine and bar-food stand-up-only spot (Le Tachinomi Desu), and more—including ramen, yakitori, coffee, pizza, and other assorted partnerships—that bring López’s Japanese-Mexican influence to San Diego, Miami, and New York City. Now, López brings his expertise to the Pacific coast, installing a restaurant mere feet from the ocean, in a place where seafood has always held court as king, but sushi has not. López’s restaurants are as sharp and precise as the knives Kazuki Takubo, Misaki’s chef, uses to slice fish. That remains true here, at his latest, perched atop the Solaz resort complex. “We bring the most Japanese experience we can,” explains a server. “The same glasses, plates, and techniques if you went to Japan.” But there are slight differences in the ingredients, and those are the places where Misaki becomes most poignant on the drinks menu: in the coriander and nopal (cactus paddle) cocktail with gin, tonic, and cilantro; and in the Mexican sake, which comes from a company just across the Gulf of California in the state of Sinaloa that also brews the rice lager beer Haiku. Much of the fish comes from Ensenada, up north on the Baja Peninsula, and just south of López’s hometown: It arrives unmarred, immaculate, and fresh, ready to be coddled by the chefs. At the sushi bar and tables in the main room, the à la carte menu offers classic izakaya-style starters like gyoza, Japanese fried chicken, and tempura. The difference is in the ingredients and execution: The Pacific shrimp encased in the tempura remain ebullient with brightness through the frying; and the fresh baby corn—a far cry from the canned version seen in the U.S.—alludes to Mexico’s most sacred ingredient.Donburi,or rice bowls, are the most affordable options, starting at about $17 for a tempura bowl, with achirashi(assorted fish over rice) coming in at about $30. Though the restaurant’s prices reflect the care put into the meal, the skill of the chefs, and the luxury resort location, they still fall somewhat below what you’d see at comparable New York City or Los Angeles restaurants. Rolls start at $3,nigiriat $5. But the true treat comes from indulging in the luxury of the full omakase menu, available only in the six-seat back room. Running from $120 to $150 per person, depending on what the chef’s whims are that night and which fish is fresh, it sticks close to the classicedo-style of sushi, offering a parade of unique, pristine pieces ofnigiri,subtly nudged with flavor and handed directly over the counter by the chef. Behind the sushi bar, the chef uses circular motions to grate sushi’s own sacred ingredient: wasabi. The traditional sharkskin grater makes quick work of the Japanese root—the result milder, sweeter, and more complex than the paste seen at lesser shops; there’s no burning or nostril-clearing feeling. Served alongside sea bass withyuzu kosho(a mix of Japanese citrus and peppers) or accompanying a bit ofakamibrushed with a soy-sauce-ginger-garlic mix, it provides a tiny boost of heat. The fish served are mostly familiar to sushi fanatics, with a few exceptions, most notably totoaba. After it was nearly fished into extinction in the late 20th century (prized in Mexico for the flavor of its meat and in China for its swim bladder), the large drum fish endemic to the region has since been successfully farmed. Served with a touch of white soy sauce and salt, it is vaguely reminiscent of the sea bass served just before it, but is more tender, subtle, and complex—a treat for seasoned sushi eaters looking for a new taste. Even familiar fish come in intriguing and innovative ways—like thekampachitopped with a pesto of spring onion and ginger. The omakase is a meandering, captivating exploration of Baja seafood through Japanese culinary eyes, with just a few deviations (the salmon, for example, comes from New Zealand). And while the grand finale might not have as much to do with the greater location of Baja, nothing screams indulgent sushi meal at a luxury resort in quite the same fashion as an eel and foie gras hand roll topped with shaved truffles. —Big Gay Ice Cream cofounderon growing a small business from coast to coast —Israeli pastries get a New York City makeoverat this six-seat bakery —To combat food waste, these Brooklyn businesses teamed up to brewbagel beer —Here’s how toget a degree in gelato —Listen to our new audio briefing,Fortune500 Daily FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis.
Jamie Dimon backs path to citizenship for immigrant 'Dreamers' JPMorgan Chase (JPM) CEO Jamie Dimon told Yahoo Finance this week that he supports a path to citizenship for law-abiding, undocumented immigrants. Deferred Action for Childhood Arrivals (DACA), is a controversial program implemented by former President Barack Obama that allowed children who were brought to the United States to apply for permits to stay in the country and work legally. President Donald Trump has attempted to end DACA, but the move has beenrestrained by the courtsand resistance in Congress. Dimon, who has worked with Trump on various issues and backed him on tax reform, said that he can also criticize Trump when necessary. “We can tell him exactly what we want about immigration,” Dimon told Yahoo Finance Editor-in-Chief Andy Serwer, in an interview that aired on Yahoo Finance in an episode of “Influencers with Andy Serwer,” a weekly series with leaders in business, politics, and entertainment. Business leaders “want a path to citizenship for law-abiding, undocumented [immigrants]. We want DACA to stay… You know, kids from overseas get educated here and have to leave.” The Trump administration attempted to fast-track an appeal, but wasdeniedin June. Just days ago, the Supreme Court said it wouldhear a bid to end DACAon next year’s docket, scheduling the charged case to be decided in the heat of the 2020 election cycle. Dimon, however, believes immigration reform can bolster the economy. “If we do these policies right, America will be growing a lot faster,” Dimon said. Calder McHugh is an Associate Editor at Yahoo Finance. Follow him on Twitter:@Calder_McHugh. The jobs report is even worse than it looks in these six sectors These US industries could take the heaviest hit from new tariffs There's a gap between jobs and job-seekers, and a housing crisis is making it worse Streaming boom becomes 'holy grail' for resurgent music industry Trump's tariffs hit Texas manufacturers, spark fears for the future: Survey Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Should You Be Adding FTI Consulting (NYSE:FCN) To Your Watchlist Today? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Peter Lynch said in One Up On Wall Street , 'Long shots almost never pay off.' If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in FTI Consulting ( NYSE:FCN ). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing. See our latest analysis for FTI Consulting How Quickly Is FTI Consulting Increasing Earnings Per Share? If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That makes EPS growth an attractive quality for any company. Who among us would not applaud FTI Consulting's stratospheric annual EPS growth of 38%, compound, over the last three years? That sort of growth never lasts long, but like a shooting star it is well worth watching when it happens. 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. FTI Consulting shareholders can take confidence from the fact that EBIT margins are up from 10% to 12%, and revenue is growing. Ticking those two boxes is a good sign of growth, in my book. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. NYSE:FCN Income Statement, June 29th 2019 You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for FTI Consulting's future profits . Story continues Are FTI Consulting Insiders Aligned With All Shareholders? It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. So it is good to see that FTI Consulting insiders have a significant amount of capital invested in the stock. Given insiders own a small fortune of shares, currently valued at US$54m, 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. Should You Add FTI Consulting To Your Watchlist? FTI Consulting's earnings per share growth has been so hot recently that thinking about it is making me blush. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So to my mind FTI Consulting is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. If you think FTI Consulting might suit your style as an investor, you could go straight to its annual report, or you could first check our discounted cash flow (DCF) valuation for the company . Although FTI Consulting 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 this free list 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 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.
Have Insiders Been Buying Callaway Golf Company (NYSE:ELY) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inCallaway Golf Company(NYSE:ELY). It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information. We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for Callaway Golf James Lillie made the biggest insider purchase in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$14.91 each. So it's clear an insider wanted to buy, at around the current price, which is US$17.16. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Callaway Golf share holders is that insiders were buying at near the current price. In the last twelve months insiders paid US$4.4m for 290k shares purchased. Callaway Golf may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! 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 Callaway Golf. Not only was there no selling that we can see, but they collectively bought US$4.3m worth of shares. This makes one think the business has some good points. Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Callaway Golf insiders own 2.1% of the company, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Callaway Golf insiders are well aligned, and that they may think the share price is too low. 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.
The Sierra Metals (TSE:SMT) Share Price Is Down 47% So Some Shareholders Are Getting Worried Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. Unfortunately theSierra Metals Inc.(TSE:SMT) share price slid 47% over twelve months. That falls noticeably short of the market return of around 1.0%. On the other hand, the stock is actuallyup39% over three years. The falls have accelerated recently, with the share price down 16% in the last three months. See our latest analysis for Sierra Metals There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Sierra Metals stole the show with its EPS rocketing, in the last year. While the business is unlikely to sustain such a high growth rate for long, it's great to see. So we are surprised the share price is down. Some different data might shed some more light on the situation. Sierra Metals managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). It is of course excellent to see how Sierra Metals has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic. While the broader market gained around 1.0% in the last year, Sierra Metals shareholders lost 47%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.9% over the last half decade. 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. 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 CA 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.
Is First Foundation Inc.'s (NASDAQ:FFWM) CEO Pay Justified? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Scott Kavanaugh has been the CEO of First Foundation Inc. (NASDAQ:FFWM) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO. See our latest analysis for First Foundation At the time of writing our data says that First Foundation Inc. has a market cap of US$600m, and is paying total annual CEO compensation of US$1.6m. (This figure is for the year to December 2018). That's a modest increase of 3.0% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$706k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m. So Scott Kavanaugh receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at First Foundation has changed over time. First Foundation Inc. has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). It achieved revenue growth of 24% over the last year. Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to checkthis free visual report onanalyst forecastsfor future earnings. First Foundation Inc. has served shareholders reasonably well, with a total return of 27% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size. Scott Kavanaugh is paid around the same as most CEOs of similar size companies. Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling First Foundation (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.
Ben Shephard walks away from 'experience of a lifetime' to spend more time with his sons LONDON, UNITED KINGDOM - SEPTEMBER 06: Ben Shepherd attends the all new Range Rover unveiling on September 6, 2012 in London, England. (Photo by Simon Burchell/Getty Images) Ben Shephard must be one of the hardest working men in television. Between Good Morning Britain , Tipping Point and Goals on Sunday , the TV presenter can be found on our tellies almost every day of the week. But after this Sunday that will change. Shephard is giving up his Sunday morning football presenter role to spend more time with his family. With the final show going out this weekend, the native Londoner took to social media to thank the show’s fans, his co-presenter Chris Kamara and Sky Sports for the fun he’s had over the nine years Goals on Sunday’ s been on the box. “It’s been the experience of a lifetime working with the legend that is @chris_kammy , who I’m delighted to say isn’t just a colleague but a great friend that has taught me so much - both professionally and personally (not least in the bar!) Thank you to all our viewers, the guests and especially @SkySports for trusting me with two of the gems in their line up - Kammy and Goals on Sunday!! View this post on Instagram A post shared by Ben Shephard (@benshephardofficial) on Jun 29, 2019 at 2:13am PDT He explained his reasons for leaving the sports show to the Mirror . "My boys are at an age when they need me around, perhaps even more now than when they were younger. “Now they're teenagers, Sam is taller than me and Jack is not far behind, which I'm trying to come to terms with. They're consumed by schoolwork all week, the weekend is the only time I can spend with them.” The tipping point came with one of his sons recently. "Jack got upset, because I haven't been able to go to his cricket matches. We had conversations and I reassured him it would soon be over.” "Both have football and rugby on Sunday mornings, which I've never been able to go to because of work." "So Saturday is the only day I get to spend with the boys and because I'm tired it's often a washout. "Doing Goals on Sunday has been amazing, but I can see that not only will we all benefit as a family, but I'll benefit too from being more involved in their weekend life. If there are things we can share, football, cricket, golf, these are days that I will be able to cherish for a long, long time." Story continues Read more: Ben Shephard shares rare picture of his wife Annie alongside gushing post Shephard’s co-presenter football pundit Chris Kamara replied to his friend’s Tweet. Simply saying, “Will miss you Shep.” Will miss you Shep 😢 https://t.co/SdbCWzjXxm — Chris Kamara (@chris_kammy) June 29, 2019 Read more: Football pundit Chris Kamara hangs out with Hollywood star Channing Tatum It was a sentiment shared by many of the shows fans who also commented on the post. But Shephard seemed to suggest his partnership with Sky wasn’t over just yet. He ended his message by saying, “I’m really looking forward to working with Sky Sports in the future and I know Kammy and I will have more adventures to come. #GOS #easylikeasundaymorning .”
Palestinian Authority arrests businessman who attended Bahrain conference - Haaretz JERUSALEM, June 29 (Reuters) - The Palestinian Authority has arrested a Palestinian businessman who attended the U.S.-led economic conference in Bahrain this week, Israel's Haaretz newspaper and Kan public broadcaster reported on Saturday. The businessman was identified as Salah Abu Miala from the Palestinian city of Hebron, in the occupied West Bank. Kan and Haaretz said he was arrested overnight between Friday and Saturday. "Salah attended a wedding party for a family member yesterday and then he disappeared. We haven't seen him since,” the man's brother, who asked not to be identified, told Reuters. He said that police forces had not shown up at Abu Miala's home. The Palestinian Authority's security service did not respond to requests for comment, but Palestinian businessman Ashraf Jabari, who attended the conference in Manama, said by phone: "Salah's son spoke to me by phone and he told me his father was arrested." A phone call from Reuters to Abu Miala's mobile phone was answered by the same son, who said his father could not come to the phone. A spokesman for Palestinian President Mahmoud Abbas could not be reached for comment. The handful of Palestinian businessmen who attended the Bahrain workshop have been branded as "collaborators" by some in the Palestinian leadership, which boycotted the conference. A spokeswoman for the U.S. embassy in Israel did not immediately respond to a request for comment. Haaretz and Kan said that another Palestinian businessman who had attended Manama managed to evade arrest. Abbas's Palestinian Authority and the Palestine Liberation Organization (PLO) have refused to deal with the Trump administration for 18 months, accusing it of bias towards Israel. Trump's team, headed by his senior adviser and son-in-law Jared Kushner, launched its $50 billion economic outline for Israeli-Palestinian peace on Tuesday in Bahrain, saying the investment programme for the Palestinians would be followed by a political plan to end the decades-old conflict. But their peace bid has been met with broad rejection among the Palestinians and the Arab world, mainly because Trump has so far not embraced the Palestinian quest for statehood. Egypt and Jordan, the only two Arab states that have peace agreements with Israel, attended the conference. The United Arab Emirates and Saudi Arabia, who also attended, said they would not endorse a plan that fails to meet Palestinian core demands. (Reporting by Ali Sawafta, Maayan Lubell and Nidal al-Mughrabi; Editing by Stephen Farrell and Hugh Lawson)
Trump, Xi reach plan to resume trade talks, tariffs on hold for now President Trump and Chinese President Xi Jinping agreed to restart trade talks after meeting at the G20 summit in Osaka, Japan, on Friday night, easing tensions that have spurred concerns about a global growth slowdown. “We discussed a lot of things, and we’re right back on track,” Trump said about the meeting. “We had a very, very good meeting with China.” The two leaders have agreed to a new cease-fire in the more than year long trade war. Part of the resolution includes the U.S. holding off on threatened additional tariffs on Chinese goods, according to Chinese state-run news agency Xinhua. Trump has threatened to impose tariffs on an additional $300 billion in Chinese imports — on top of the $250 billion in goods he's already taxed — extending his import taxes to virtually everything China ships to the United States. China retaliated by increasing tariffs on $60 billion worth of American products. Trump said in exchange for the tariff hold, China has agreed to purchase a “tremendous amount” of American agricultural products. “We will give them a list of things we want them to buy,” Trump said, according to The New York Times. The president announced in May the administration will provide $16 billion in aid to help American farms hurt by the trade war between the U.S. and China. Trump also declared Saturday that U.S. suppliers will be allowed to sell components toHuawei. “U.S. companies can sell their equipment to Huawei,” Trump said at a news conference. “We’re talking about equipment where there’s no great national security problem with it.” CLICK HERE TO GET THE FOX BUSINESS APP Relations between the U.S. and China soured at the beginning of May when a near-deal crumbled after Washington officials accused China of reneging on some of its promises. Negotiations have not continued, and Trump and Xi have not met face-to-face since December. The U.S. already imposes a tariff on $250 billion worth of Chinese goods; however, Trump said he would consider lowering the tax rate to 10 percent from the proposed 25 percent during “phase two.” Last month Chinese tech giant Huawei was placed on a blacklist that effectively bars U.S. companies from supplying it with computer chips, software and other components without government approval. Several firms, including Facebook, Google and Panasonic, have since cut business ties with Huawei. The Trump administration has previously said Huawei is a national security issue, not a trade problem. The Associated Press contributed to this report. Related Articles • Fmr. Notre Dame Coach Lou Holtz Predictions for Trump vs. Media • Trump May Have Dropped Another Clinton Bombshell • Carson: Trump Could Destroy Obama's Legacy
I Ran A Stock Scan For Earnings Growth And Semtech (NASDAQ:SMTC) Passed With Ease Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy. In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeSemtech(NASDAQ:SMTC). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing. See our latest analysis for Semtech 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). It's no surprise, then, that I like to invest in companies with EPS growth. I, for one, am blown away by the fact that Semtech has grown EPS by 51% per year, over the last three years. That sort of growth never lasts long, but like a shooting star it is well worth watching when it happens. 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. Semtech shareholders can take confidence from the fact that EBIT margins are up from 10% to 15%, and revenue is growing. That's great to see, on both counts. In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers. Fortunately, we've got access to analyst forecasts of Semtech'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting. I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. As a result, I'm encouraged by the fact that insiders own Semtech shares worth a considerable sum. With a whopping US$58m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth. Semtech's earnings have taken off like any random crypto-currency did, back in 2017. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So yes, on this short analysis I do think it's worth considering Semtech for a spot on your watchlist. 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 Semtech. 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.
Investing In Property Through PotlatchDeltic Corporation (NASDAQ:PCH) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! PotlatchDeltic Corporation is a US$2.6b mid-cap, real estate investment trust (REIT) based in Spokane, United States. REITs own and operate income-generating property and adhere to a different set of regulations. This impacts how PCH’s business operates and also how we should analyse its stock. In this commentary, I'll take you through some of the things I look at when assessing PCH. View our latest analysis for PotlatchDeltic REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. FFO is a higher quality measure of earnings because it takes out the impact of non-recurring sales and non-cash items such as depreciation. These items can distort the bottom line and not necessarily reflective of PCH’s daily operations. For PCH, its FFO of US$179m makes up 67% of its gross profit, which means the majority of its earnings are high-quality and recurring. Robust financial health can be measured using a common metric in the REIT investing world, FFO-to-debt. The calculation roughly estimates how long it will take for PCH to repay debt on its balance sheet, which gives us insight into how much risk is associated with having that level of debt on its books. With a ratio of 24%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take PCH 4.24 years to pay off using operating income alone. Given that long-term debt is a multi-year commitment this is not unusual, however, the longer it takes for a company to pay back debt, the higher the risk associated with that company. I also look at PCH's interest coverage ratio, which demonstrates how many times its earnings can cover its yearly interest expense. This is similar to the concept above, but looks at the upcoming obligations. The ratio is typically calculated using EBIT, but for a REIT stock, it's better to use FFO divided by net interest. With an interest coverage ratio of 5.08x, it’s safe to say PCH is generating an appropriate amount of cash from its borrowings. I also use FFO to look at PCH's valuation relative to other REITs in United States by using the price-to-FFO metric. This is conceptually the same as the price-to-earnings (PE) ratio, but as previously mentioned, FFO is more suitable. In PCH’s case its P/FFO is 14.73x, compared to the long-term industry average of 16.5x, meaning that it is slightly undervalued. PotlatchDeltic can bring diversification into your portfolio due to its unique REIT characteristics. Before you make a decision on the stock today, keep in mind I've only covered one metric in this article, the FFO, which is by no means comprehensive. I'd strongly recommend continuing your research on the following areas I believe are key fundamentals for PCH: 1. Future Outlook: What are well-informed industry analysts predicting for PCH’s future growth? Take a look at ourfree research report of analyst consensusfor PCH’s outlook. 2. Valuation: What is PCH 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 PCH 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.
Popular $28 bathing suit on Amazon 'hits the trifecta' Summer is officially here, and with the new season comes a fashion trend powered by Amazon (AMZN). First there was the $140 Amazonwinter coatthat rivaled Canada Goose, followed by the top-ratedrain jacketjust in time for spring. Now, Amazon’s latest piece of clothing to rack up thousands of positive reviews is a $28 swimsuit. Thebathing suit, designed by the brand Tempt Me, “hits the trifecta,” according to Good Housekeeping Style Director Lori Bergamatto. “It’s affordable, it’s slimming... And it’s super comfortable,” Bergamatto said on YFi AM (video above). The one-piece swimsuit comes in 20 different colors and has more than 16,000 five star reviews. Good Housekeeping Institute textile labs tested the swimsuit for different criteria: style, if it bleeds when washed, and if the color remains. Despite the cheap price tag, the Good Housekeeping panel said that the swimsuit checked off all of the boxes. The swimsuit is yet another piece of third party clothing apparel to make waves on the site. The winter coat was made by Chinese retailer Orolay, and the raincoat was made by Charles River. “We can’t deny the power of Amazon, the convenience of it,” Bergamotto said. “Just looking at it and being like ‘I’m going to try this on and if I don’t like it, I’m going to return it.’ They make it really easy.” The swimwear industry has been on the rise in recent years. In 2017, the bathing suit market was valued at $18.45 million and is expected to grow to more than $28 million by 2024. And the consumer experience has changed recently with demise of Victoria’s Secret’s (LB) bathing suit line and the increase of smaller brands popping up on Amazon. “Shopping for women’s bathing suits is a very specific experience,” she added. “The beauty of this, is you can return it. You can read the reviews. And the reviews really do help inform your decision.” Jennifer is a Production Assistant for Yahoo Finance. Follow her on Twitter@shankerjennifer READ MORE: • Victoria's Secret won't make it unless it reinvents itself: expert • The most attractive employers in 2019, according to current college students • Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Your Old Baseball Cards Are a Better Store of Value Than Bitcoin One of the primary arguments in favor ofbitcoinis that it is a “store of value.” It makes sense on the surface, but when one digs into the meat of this claim, it comes up with less beef than a Beyond Meat burger. The category of “investment commodity” refers to things that people buy that represent a store of value because of their end use,aesthetic, historical, and/or emotional value. Baseball cards, and other collectibles like art and rare coins, are such examples. People are willing to pay for these items for these reasons. So what makes bitcoin different? Todd J. Zywicki is aSenior Scholar of the Mercatus Center at George Mason University. He points out: Read the full story on CCN.com.
Does Stifel Financial Corp. (NYSE:SF) Have A Volatile Share Price? 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 Stifel Financial Corp. (NYSE:SF) 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 type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market. Some stocks are more sensitive to general market forces than others. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one. Check out our latest analysis for Stifel Financial Zooming in on Stifel Financial, we see it has a five year beta of 1.86. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If the past is any guide, we would expect that Stifel Financial shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. 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 Stifel Financial's revenue and earnings in the image below. With a market capitalisation of US$4.2b, Stifel Financial is a pretty big company, even by global standards. It is quite likely well known to very many investors. It has a relatively high beta, suggesting it may be somehow leveraged to macroeconomic conditions. For example, it might be a high growth stock with lots of investors trading the shares. It's notable when large companies to have high beta values, because it usually takes substantial capital flows to move their share prices. Beta only tells us that the Stifel Financial share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Stifel Financial’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 SF’s future growth? Take a look at ourfree research report of analyst consensusfor SF’s outlook. 2. Past Track Record: Has SF 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 SF's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how SF 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.
I Ran A Stock Scan For Earnings Growth And Stifel Financial (NYSE:SF) Passed With Ease Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inStifel Financial(NYSE:SF). 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. View our latest analysis for Stifel Financial Over the last three years, Stifel Financial has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Like the last firework on New Year's Eve accelerating into the sky, Stifel Financial's EPS shot from US$2.83 to US$5.51, over the last year. Year on year growth of 94% is certainly a sight to behold. 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. I note that Stifel Financial's revenuefrom operationswas lower than its revenue in the last twelve months, so that could distort my analysis of its margins. It seems Stifel Financial is pretty stable, since revenue and EBIT margins are pretty flat year on year. That's not bad, but it doesn't point to ongoing future growth, either. In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image. 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 Stifel Financial EPS100% free. I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. As a result, I'm encouraged by the fact that insiders own Stifel Financial shares worth a considerable sum. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$158m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock. Stifel Financial's earnings have taken off like any random crypto-currency did, back in 2017. That EPS growth certainly has my attention, and the large insider ownership only serves to further stoke my interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So yes, on this short analysis I do think it's worth considering Stifel Financial for a spot on your watchlist. Now, you could try to make up your mind on Stifel Financial 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.
Need To Know: PotlatchDeltic Corporation (NASDAQ:PCH) Insiders Have Been Selling Shares Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inPotlatchDeltic Corporation(NASDAQ:PCH). It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market. We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for PotlatchDeltic In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Michael Covey, sold US$1.4m worth of shares at a price of US$35.01 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$38.98. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 16.3% of Michael Covey's holding. In the last twelve months insiders netted US$2.8m for 79028 shares sold. In the last year PotlatchDeltic insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! I will like PotlatchDeltic better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. The last three months saw significant insider selling at PotlatchDeltic. In total, Vice Chairman & Lead Director John Moody sold US$60k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain. I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PotlatchDeltic insiders own about US$79m worth of shares. That equates to 3.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd think twice before buying! 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. But note:PotlatchDeltic may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The Morning After: SIM-swap cell phone hacking horror stories Hey, good morning! You look fabulous. Welcome to your weekend. If you don't know what SIM swapping is and whether or not it could be used to attack your email or bank account, thenwe know which article you should read next. Beyond that, we'll recap some highlights from the last week, and further consider the impact of Jony Ive leaving Apple. Ready for a horror story?How a trivial cell phone hack is ruining lives Violet Blue explains how SIM-swap attacks have been used to steal online accounts and even as much as $100,000 from a victim's bank account. In these attacks, someone uses pieces of personal information to convince your cell service provider to transfer (port) your number and associated phone account to a device in the attacker's possession.If you use accounts that verify identity with a text message, then you could be vulnerable to them too. One man who lost $25k, his Gmail and his Twitter got his phone number back only to see T-Mobile give it over to a hacker again. Now what?Reactions to Jony Ive's departure from Apple Now that we've had some time to think about the news that Apple's design chief Jony Ive -- the man behind iconic products like the iPod, iPhone and more -- is leaving, what does it mean?Nicole Lee considers Ive's legacyand how he helped make the company what it is today, noting that "Ive was inextricably tied to Jobs' and Apple's comeback, and therefore to the company's meteoric rise to where it is today."Meanwhile,Daniel Cooper focuses on Apple's shift from hardware to services. For the devices we'll see in the future, he wonders if Ive's successors "loosen up on some of his more famous hangups" in favor of bigger batteries or a more functional keyboard. Hands-on with iOS 13's tablet-focused version.iPadOS makes Apple's tablets feel like a priority again After using the tablet edition of iOS 13 for a few days, Chris Velazco says he's "already impressed with the changes Apple has made... Apple addressed many of the criticisms that prevented the iPad Pro from being the do-it-all computer it aspires to be. As for everyone else, they'll benefit from subtle performance improvements and some extra polish." Microsoft's attempts to win at mobile were unremarkable.Bill Gates says his 'greatest mistake' was not beating Android The founder of Microsoft recently admitted in an interview at venture-capital firm Village Global that his biggest mistake was not making what Android came to be. Gates admitted that the company struggled to adjust to mobile, as both the iPhone and Google's Android swept up customers in the smartphone revolution. If you don't remember Windows Mobile, well, let's just say you're not missing out on much. It also packs better Bluetooth and USB connectivity.The new Raspberry Pi 4 is ready for 4K video The newly released Raspberry Pi 4 Model B combines familiar tiny computer-on-a-board design with some major boosts to performance, particularly for media. With a more potent 1.5GHz quad-core Broadcom processor with H.265 decoding, two micro-HDMI ports and up to 4GB of LPDDR4 RAM, the Pi 4 can output 4K video at 60 fps. It could well be your next, slightly more future-proofed DIY media hub. Someone has to push the envelope.Valve Index review: Next-level VR Priced at $1,000, Devindra Hardawar notes that the Valve Index is "not even vaguely affordable" compared to other VR options. Still, this "aspirational" piece of gear impresses, with a comfortable headset, slick finger-tracking controllers and excellent image quality. Take a look and see why the Index "has almost everything we want in a next-generation PC VR headset." • The best 2-in-1 tablets for 2019 • The Elizabeth Holmes Theranos trial will start next summer • SpaceX plans to launch Starship's first commercial flight in 2021 • NVIDIA 'Super' GPU leaks hint at not-so-super speed boosts • Scientists think some supermassive black holes didn't start as stars • FAA discovers another potential risk with the Boeing 737 Max • Oppo's under-screen camera is real and taking photos in Shanghai • SpaceX's 'challenging' Falcon Heavy mission launch goes 2/3 on booster landings • Amazon's Prime Day will be two days this year The Morning After is a new daily newsletter from Engadget designed to help you fight off FOMO. Who knows what you'll miss if you don'tSubscribe. Craving even more?Like us on FacebookorFollow us on Twitter. Have a suggestion on how we can improve The Morning After?Send us a note.
What Eva Amurri Martino learned from Oscar-winning mom Susan Sarandon Eva Amurri Martino was just 10 years old when her mother, Susan Sarandon, won an Academy Award for her starring role in the film ‘Dead Man Walking’. Rather than being daunted by her mom’s success, Martino took it as inspiration. “I think the biggest lesson there was just the permission to want a lot for yourself, career-wise, as a woman. I think that was extremely valuable to me,” she told Yahoo Finance’s Jen Rogers during an interview for the seriesMy Three Cents. “I think (my mother) really unapologetically ... went after what she needed to be fulfilled. So it was nice to just have that example.” In the years since, Martino has followed in her mother’s footsteps and pursued her own career passions: first in acting and now as a blogger and creator of the lifestyle brand, ‘Happily Eva After.’ “When I met my husband, I made sure that he understood there is never a world in which I am a stay-at-home mom,” she said. “I'm always going to be working. I'm always going to have a career.” But while Martino may have learned a lot from her mother about the rewards of hard work, she says there were very few lessons about how to handle finances. “I came into the picture when my mom was pretty well established in her career. And at that point, she had a business manager. She had people dealing with a lot of these things that she wasn't doing herself,” she recalled. “I think there wasn't a lot of financial fluency in our home anyway. I think it's just not what's on my parents' radar really. And so we never got an education in it, really at all.” So, like most people, Martino has learned the basics of money management by doing. “It was something that I really had to be self taught with,” she admitted. “And once you learn as an adult, it's way more overwhelming. So my advice is, learn young and teach your children.” My Three Centsis a weekly interview series that explores celebrities’ history with — and relationship to — money. Find it exclusively onYahoo Finance. Read more: • Samantha Bee and Jason Jones: The case for mixing business with pleasure • What ‘This is Us’ star Chrissy Metz learned working at McDonald’s • 'Unbreakable Kimmy Schmidt' star Ellie Kemper explains why it's okay to be a quitter
3 Reasons Realty Income Corp.'s Dividend Is Safe Realty Income's(NYSE: O)dividend currently yields 3.8% -- which is nearly double the S&P 500's current 2% -- but the real test of a dividend is how effectively a company is able to sustain it. The dividend currently eats up about 82% of 2019's projected adjustedfunds from operations-- a non-GAAP measure that backs out depreciation and amortization that real estate investment trusts often use instead of earnings per share. That's considered pretty reasonable for a REIT, given how much cash they're required to return to shareholders, but the real test of a dividend's strength is the power of the underlying business. And when you peel back the layers, it becomes steadily more evident that Realty Income's dividend is quite safe. Here are three key reasons why. Image source: Getty Images. Rent is the lifeblood of REITs like Realty Income. Empty buildings cost money that could otherwise be plowed into portfolio expansion and dividends for shareholders. When the U.S. economy is in growth mode, it's relatively easy to find tenants and get spaces occupied. But it's when things get rough that quality properties -- and quality companies -- distinguish themselves. And that's where Realty Income really shines. Since 1996, its occupancy hasneverdeclined below 96.6%, which happened in 2010. And even during its worst year, its peer group of S&P 500 REITs notched 91.2% occupancy -- overfive percentage points worse. And keep in mind, since they're all S&P 500 components, these are the big, successful REITs. High occupancy thanks to attractive properties means the landlord can be choosy about which tenants it accepts -- so it's probably no surprise that Realty Income also has... Tenant quality can be measured in a variety of ways -- and by almost any metric, Realty Income's look great. First, let's start with a simple smell test. Look at Realty Income's top 20 tenants, and you'll immediately notice lots of highly recognizable companies -- likeFedEx,Walgreens, 7-Eleven,Regal Entertainment Group, andKroger. But recognizing a company's name isn't the same as believing it to be a safe tenant -- after all, most of us have heard of now-bankrupt Toys R Us. Fortunately, the credit rating agencies assign scores to companies to assess whether they're safe to lend to. And a whopping 51% of Realty Income's rental revenue comes from so-called "investment-grade" tenants -- that is, big stable companies that the credit agencies view to be fairly low risk from a debt perspective. Of course, creditworthiness is important, but it doesn't capture the whole picture. It's also important to understand these companies' positions and their ability to prosper regardless of fickle consumer preferences. And if there's anything we've learned fromBerkshire Hathaway's Geico, it's that being the low-cost provider of a particular good or service can be an incredible advantage. That's why it's great to see that so many of Realty Income's top 20 tenants have well-deserved reputations for being low-cost competitors -- companies such asWal-Mart,Dollar General,BJ's,Dollar Tree, and Sam's Club. Fortunately, these are just a few of Realty Income's tenants, because the company has... Like tenant quality, there are a variety of ways to measure tenant diversity. The simplest is to consider Realty Income's exposure to any one company. Its largest tenant is Walgreens, which represents only 6.1% of annualized portfolio revenue. In fact, Realty Income derives just 54% of its total annualized rental revenue from its top 20 tenants combined. Nor is Realty Income Group heavily reliant on a particular industry. Its largest exposure is to convenience stores, which represent 12.2% of annualized rent, followed by drugstores at 9.8%. And let's face it -- convenience and drug stores are probably going to be around for a long time. This powerful business has helped Realty Income triple its dividend since it went public in 1994. And Realty Income has increased the dividend in each of the past 86 quarters. That speaks to management's dedication to regularly returning income to shareholders -- as does the fact that Realty Income's dividend is paid monthly. With its dividend backed by a strong business with plenty of optionality, there's every reason to think Realty Income will keep paying, and growing, its dividend, to the delight of income investors everywhere. More From The Motley Fool • 10 Best Stocks to Buy Today Michael Douglassowns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and FedEx. The Motley Fool has adisclosure policy.
3 Under-the-Radar Stories in the Stock Market This Week By definition, if you're trying to beat the market, you need to develop a variant perception. In order to do this, you need to focus on situations or information that the consensus view is under-weighting or ignoring altogether. This week, we highlight a weakness inAmazon.com's(NASDAQ: AMZN)formidable economic moat; the economics of the handheld calculator industry; and how familiarity bias can create opportunity in the shares of business-to-business technology companies, including those of recently listedSlack Technologies(NYSE: WORK). Image source: Getty Images. The market's consensus view appears to be that Amazon is an unstoppable juggernaut: With shares sold short representing fewer than 1% of the equity float, Amazon's short interest ranks among the bottom 20 stocks in theS&P 500, according to data from Bloomberg. But while its commitment to customer satisfaction and its command of logistics and technology in pursuit of that goal are awe-inspiring, Amazon has developed some cracks in its much-admired "user experience." Have you ever been discouraged (or defeated) by the infinite, chaotic assemblage of product/seller choices when you search for a specific product? I certainly have -- Amazon's Marketplace is more of a souk sometimes. And when I went shopping for batteries and electronics accessories on Amazon, it quickly became evident that a significant proportion of third-party sellers on the site are trying tofob customers with counterfeit merchandise. (I gave up on the batteries.) Which brings me to a fantastic in-depth article, in whichTheNew York Timesasks, "What happens after Amazon's domination is complete?" and looks for clues in Amazon's original business, selling books online. The result isn't always pretty, with examples of fraud, counterfeits, and intellectual property theft that are each one more outrageous (or absurd) than the last: Those who write a popular book open themselves up to being "summarized" on Amazon. At least eight books purport to summarize "Bad Blood," John Carreyrou's best-selling account of fraud in Silicon Valley. The popular novel "Where the Crawdads Sing" has at least seven summaries. "Discover a beautiful coming-of-age story without all of the unnecessary information included in the actual novel!" says one that has 19 five-star reviews, all of which read as if they were fake. Unfortunately, Amazon's response "has been reactive rather than proactive in dealing with the issue." Given Amazon's market position, that leaves some sellers with little choice other than to integrate more closely with the behemoth in order to address the problem. What does this all mean for investors? In the short term, counterfeit products are third-party sellers' problem -- Amazon takes its percentage from every purchase, regardless of whether the product is legitimate or not (though the company does provide for customer refunds under its "A-to-Z Guarantee"). Ultimately, however, the proliferation of counterfeit items degrades the customer experience, and that's a very real problem for Amazon, which set itself an early goal of "build the world's most customer-centric company." The first step in addressing a problem is recognizing you have a problem, so it's encouraging to see that Amazon added the selling of counterfeit goods (and other illicit acts) as a risk factor to the "Risk Factors" section of its annual report for the first time this year. But while it appears to emphasize the potential cost of refunds, it alludes only grudgingly to what I consider to be the greater risk: "[T]o the extent any [unlawful activities perpetrated by sellers] occurs, it could harm our business or damage our reputation..." I think Amazon is an outstanding company; my Prime membership just renewed this month and I was happy to pony up the subscription fee -- the program offers superb value. But I don't think the company is somehow invulnerable or infallible. Or as CEO Jeff Bezos himself warned his employees last November: "Amazon is not too big to fail; in fact, I predict one day Amazon will fail. Amazon will go bankrupt. If you look at large companies, their life spans tend to be 30-plus years, not a hundred-plus years." Image source: Texas Instruments Incorporated. The Wall Street Journal's daily "Markets" email pointed me to a bit of business trivia: Tuesday was the 45th anniversary ofTexas Instruments'(NASDAQ: TXN)receipt of a patent for its "miniature electronic calculator" (you'll find a picture of the prototypehere).The history of TI's calculators illustrates some useful lessons in business, economics, and investing. The company's first consumer handheld calculator, theTI-2500 Datamath, was launched in September 1972 at a price of $119.95 (equivalent to $730 today). Today I found a Texas Instruments scientific calculator that retails at Best Buy for $15.99. In other words, the price of an entry-level TI calculator has fallen by 87% since it was first introduced -- an annualizeddeflationrate of more than 4%! (Not to mention that the original TI calculator could perform only four operations: addition, subtraction, multiplication, and division.) In an economy in which the long-term trend for the general price level increases relentlessly, TI sold and continues to sell a product, the price of which fell dramatically. That decline caused a brutal shakeout during the mid-1970s, whittling down the number of calculator manufacturers from two to three hundred to only a handful and greatly improving the economics of what ultimately became a nicely profitable industry. Incidentally, Texas Instruments, which designs and manufactures semiconductors, turned into asuperblong-term investment: Over the 30-year period ending May 31, the stock has produced roughly a 65-fold total return against just 14-fold for the S&P 500 (or 15.2% versus 9.5%, on an annualized basis), according to data from Bloomberg. Image Source: Slack Technologies Inc. Last Thursday, business collaboration software providerSlack Technologies(NYSE: WORK)completed its share offering in a successful debut that saw the stock jump 49%, adding supporting evidence to a trend that theWall Street Journalhighlighted the following day[subscription required]: Even as consumer-facing companies [form] a mixed group of IPOs ... [i]t's a simpler story for so-called enterprise technology companies like Slack ... Investors and analysts say one of the draws for Slack ... and other enterprise technology companies is recurring revenues. That enables Wall Street to forecast future profits more accurately and reduces the cost of customer acquisition and increases their staying power. Regarding the cost of customer acquisition, advisory firm Theta Equity Partners estimates that Slack spends an average of $7,700 to acquire each new customer. Divide that by an estimatedcustomer lifetime valueof $99,000 and the company is earning a phenomenalmarketing return on investmentof more than 1,200%! The equivalent figure for ridesharing platformLyftis just below 60%. The stability and "staying power" (read: competitive advantage) theJournalrefers to is the reason leveraged buyout firms are happy to make large acquisitions in the information technology/business services industries, while generally steering well clear of consumer technology companies. But not all investors are aware of these characteristics, which creates the potential for a systematic mis-pricing in the stock market. Indeed,everyoneand their uncle has -- and is quick to share -- an opinion onApple, both the business and the stock. But ask them instead what they think ofCisco SystemsorOracleand your interlocutor is likely to turn mute, despite the fact that these are (roughly) $200 billion companies. The reason isn't mysterious: The latter two companies cater to other businesses rather than consumers such that the vast majority of people don't know the first thing about their products. By contrast, most everyone has had firsthand experience with an iPhone -- literally. Slack Technologies is an example of a situation in which investors appear not to fully appreciate the attractiveness of the unit economics, and, as such, it'snot too late to buy the stock, even after its "pop." More From The Motley Fool • 10 Best Stocks to Buy Today John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.Alex Dumortier, CFAhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Apple. The Motley Fool owns shares of Texas Instruments and 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.
Here's Why I Think Textron (NYSE:TXT) 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. 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 inTextron(NYSE:TXT). 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. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing. View our latest analysis for Textron 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). That means EPS growth is considered a real positive by most successful long-term investors. Impressively, Textron has grown EPS by 24% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners. 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. Textron's EBIT margins are flat but, of some concern, its revenue is actually down. Suffice it to say that is not a great sign of growth. 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 Textron'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting. We would not expect to see insiders owning a large percentage of a US$12b company like Textron. But we do take comfort from the fact that they are investors in the company. Indeed, they hold US$50m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. Despite being just 0.4% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. For growth investors like me, Textron'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. 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 Textron. 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.
Trump, Xi agree to restart trade negotiations after G20 meeting President Trumpand Chinese President Xi Jinping agreed to restart trade talks after meeting at the G20 summit in Osaka, Japan on Friday night, easing tensions that have spurred concerns about a global growth slowdown. The president declared that relations between the two nations were “right back on track” after the meeting. He also lifted restrictions on U.S. companies, allowing suppliers to sell components to Chinese telecom firm Huawei. Both sides also confirmed that they do not plan to impose additional sanctions on either side at this time. “I said that’s O.K., that we will keep selling that product, these are American companies that make these products. That’s very complex, by the way,” Trump said, according to Bloomberg. “I’ve agreed to allow them to continue to sell that product so that American companies will continue.” All eyes were on Osaka this weekend after Trump teased the possibility of warmer negotiations with Beijing on Wednesday, suggesting it was possible to strike a trade deal with Xi during their meeting; however, he warned that he was prepared to impose a U.S. tariff on all remaining Chinese imports if talks go poorly. Relations between the U.S. and China soured at the beginning of May when a near-deal crumbled after Washington officials accused China of reneging on some of its promises. Negotiations have not continued, and Trump and Xi have not met face-to-face since December. CLICK HERE TO GET THE FOX BUSINESS APP The U.S. already imposes a tariff on $250 billion worth of Chinese goods; however, Trump said he would consider lowering the tax rate to 10 percent from the proposed 25 percent during “phase two.” Related Articles • Fmr. Notre Dame Coach Lou Holtz Predictions for Trump vs. Media • Trump May Have Dropped Another Clinton Bombshell • Carson: Trump Could Destroy Obama's Legacy
2 Dividend Stocks to Buy in July Following a sharp pullback in stocks in the fourth quarter of 2018 and another dip in May, some investors may be getting weary of the market's volatility. While there's no way to totally avoid these ups and downs, investors can smooth things out a bit by buying and holding quality dividend stocks. While their share prices may not be exempt from the market's swings, good dividend stocks importantly provide investors with regular and predictable income in any market. Two great examples of companies whose dividends are likely to persist (and potentially even grow) through all market conditions in the coming years areApple(NASDAQ: AAPL)andSouthwest Airlines(NYSE: LUV). Here's why these two dividend stocks look like attractive bets today for investors who want to boost their portfolios' income. Image source: Getty Images. Since reinitiating its dividend in 2012, Apple has arguably morphed into one of the market's best dividend stocks. Sure, investors buying Apple aren't going to get the meaty 3% yield you might find from manyDividend Aristocrats, but a healthy underlying business, strong dividend growth, and promising potential for more dividend growth combine to make Apple a compelling income investment. Today, Apple has a dividend yield of 1.6%. When compared to other large and established companies, this is modest -- the average dividend yield of stocks in the S&P 500 is 1.9%. But investors should note that Apple's dividend has been growing rapidly, more than doubling since 2012. Looking ahead, Apple will likely continue increasing its dividend every year as it has done since reinitiating its dividend in 2012. The iPhone maker is currently paying out only 27% of its earnings, leaving plenty of room for further increases. It's no secret that Southwest is facing headwinds fromBoeing'sgrounded 737 MAX. But investors should note that the MAX aircraft accounted for under 5% of all daily flights. Given how profitable Southwest is, the company can easily handle this temporary setback. In addition, Southwest looks poised to be able to keep growing its dividend. Southwest generated $3.3 billion in trailing-12-month free cash flow on just $22.2 billion of revenue. Of this free cash flow, Southwest only paid out $362 million in dividends, highlighting how much breathing room the company's dividend has. Today, Southwest has a dividend yield of 1.4%. But this dividend is growing rapidly, increasing by an average of 22% annually over the last three years. In the coming years, Southwest will likely keep serving investors more 10%-plus annual dividend increases. More From The Motley Fool • 10 Best Stocks to Buy Today Daniel Sparkshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple and Southwest Airlines. 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.
People's United Financial, Inc. (NASDAQ:PBCT) Has Got What It Takes To Be 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! Could People's United Financial, Inc. (NASDAQ:PBCT) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A high yield and a long history of paying dividends is an appealing combination for People's United Financial. We'd guess that plenty of investors have purchased it for the income. 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 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. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. People's United Financial paid out 54% 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. We update our data on People's United Financial every 24 hours, so you can always getour latest analysis of its financial health, here. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. People's United Financial 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$0.71 last year. This works out to be a compound annual growth rate (CAGR) of approximately 1.7% a year over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think is seriously impressive. 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. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see People's United Financial has grown its earnings per share at 12% per annum over the past five 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 People's United Financial will keep funding its growth projects in the future. 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. People's United Financial's payout ratio is within normal bounds. That said, we were glad to see it growing earnings and paying a fairly consistent dividend. People's United Financial has a number of positive attributes, but falls short of our ideal dividend company. It may be worth a look at the right price, though. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 9 analysts we track are forecasting for People's United Financialfor freewith publicanalyst 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.
Is Columbia Sportswear Company (NASDAQ:COLM) A Smart Choice For Dividend Investors? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Columbia Sportswear Company (NASDAQ:COLM) 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. While Columbia Sportswear's 1.0% dividend yield is not the highest, we think its lengthy payment history is quite interesting. The company also bought back stock equivalent to around 2.8% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Explore this interactive chart for our latest analysis on Columbia Sportswear! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Columbia Sportswear paid out 21% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Of the free cash flow it generated last year, Columbia Sportswear paid out 33% as dividends, suggesting the dividend is affordable. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Consider gettingour latest analysis on Columbia Sportswear'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. Columbia Sportswear has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was US$0.32 in 2009, compared to US$0.96 last year. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. With rapid dividend growth and no notable cuts to the dividend over a lengthy period of time, we think this company has a lot going for it. 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. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Columbia Sportswear has grown its earnings per share at 26% per annum over the past five years. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. First, we like that the company's dividend payments appear well covered, although the retained capital also needs to be effectively reinvested. We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments. Columbia Sportswear has met all of our criteria, including having strong cash flow that covers the dividend. We definitely think it would be worthwhile looking closer. Earnings growth generally bodes well for the future value of company dividend payments. See if the 14 Columbia Sportswear 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.
Disney Is Dominating the 2019 Box Office In recent years,The Walt Disney Company(NYSE: DIS)has been the undisputed king of the U.S. box office. Disney has beaten No. 2 studio Warner Brothers -- now part ofAT&T-- for three consecutive years, twice topping it by more than $1 billion. Last year, Disney brought in domestic box-office receipts of $3.1 billion, including $136 million from holdovers released in 2017, giving it 26% market share. Warner Brothers took second place with less than $2 billion. Disney's recentacquisition of Fox's entertainment assetswill tighten the company's stranglehold on the box office. But even excluding Fox, Disney is on track for an even more dominant box-office performance in 2019. Let's take a look. Of course, Disney's main box-office hit this year wasAvengers: Endgame. The culmination of "Phase 3" of the Marvel Cinematic Universe took the U.S. (and most of the rest of the world) by storm in late April with a record domestic opening-weekend gross of $357 million. Avengers: Endgameis still in theaters and had grossed more than $835 million in the U.S. as of Wednesday -- good for No. 2 all time behindStar Wars: The Force Awakens. Arerelease this weekendfeaturing some new post-credits material will likely drive a modest rebound in ticket sales, potentially helping to push the final domestic gross past $850 million. Globally,Avengers: Endgamehas already grossed $2.75 billion. Disney's latest Marvel movie has been a huge hit. Image source: Getty Images. While it was eventually overshadowed byEndgame,Captain Marvelhad already become a big hit earlier in the year. With a domestic gross of $427 million -- and a worldwide total of $1.13 billion -- it stands as the clear No. 2 movie year to date. Disney has continued its streak of success since late May. Its live-action remake ofAladdinhad racked up $295 million at the domestic box office as of Wednesday -- good for third place year to date, behindAvengers: EndgameandCaptain Marvel-- and continues to add to that total. (In fact,Aladdinhas remained the No. 2 or No. 3 performer at the box office in recent days, despite being released more than a month ago.) Aladdinhas also performed well overseas, bringing in more than $500 million in its first month. It may not become a billion-dollar blockbuster likeAvengers: EndgameandCaptain Marvel, but it's on pace to end its run with a global box-office haul of at least $900 million. The studio's momentum has continued over the past week with the release ofToy Story 4on June 21. The latest installment in the popular Pixar franchise brought in $121 million domestically on opening weekend. (It also brought in $124 million abroad despite not opening in several major markets.) By the end of Wednesday,Toy Story 4had grossed $168 million in the U.S. Image source: The Walt Disney Company. With no major new releases coming this weekend -- and only one in the first half of July,Sony'sSpider-Man: Far From Home--AladdinandToy Story 4should continue to climb up the domestic box-office charts in the weeks ahead. The former is on track to surpass $300 million this weekend and could top out near $350 million. It's a little early to know where the latter will land, butToy Story 3grossed $415 million at the domestic box office with a smaller opening-weekend haul.Toy Story 4has also received excellent reviews. This suggests that the film has a good chance to surpass $400 million domestically. Between the four movies mentioned above andDumbo-- which was a flop by Disney's standards, with a $114 million domestic box-office total -- Disney is already closing in on the $2 billion mark domestically for 2019. These five films account for more than a third of the domestic box office for the first half of the year. AT&T's Warner Brothers is in second place with $820 million, a figure that includes more than $200 million from holdover titles released in 2018. Disney's run of box-office success in 2019 is far from over, with four more high-potential releases scheduled for the second half of the year. First up is a live-action remake ofThe Lion King, which will hit theaters next month. The original film earned $313 million in the U.S. during its initial run in 1994 -- nearly $100 million more than the originalAladdinhad grossed two years earlier. Thus, the newLion Kingmovie has a good chance to perform even better thanAladdinhas. In October, Disney will releaseMaleficent: Mistress of Evil, a follow-up to the 2014 film that grossed $241 million in the U.S. and more than $750 million globally.Frozen 2will arrive in time for Thanksgiving. The original did $401 million in the U.S. and $1.28 billion globally in 2013. Finally, the last installment of the latestStar Warstrilogy will come out on Dec. 20.Star Wars: The Last Jedibrought in a "disappointing" $620 million domestic box-office haul two years ago, afterStar Wars: The Force Awakensposted a record-setting $937 million total in the U.S. in 2015. These movies may not all be box-office triumphs, given the mixed performance of sequels and franchise films recently. But Disney's track record suggests that it will have more successes than failures. As a result, its final domestic box-office haul for 2019 could be close to $4 billion -- without even counting Fox. Globally, Disney recently surpassed $5 billion for 2019, and $10 billion seems easily within reach for the full year. In fiscal 2018, the period ending last September, Disney's studio-entertainment division posted a $3 billion profit on $10 billion of revenue, up 19% and 27%, respectively, year over year. Those gains reversed in the first half of fiscal 2019, with studio-entertainment segment revenue down 20% and operating profit down 50% year over year. The strong performance of Disney's recent releases -- andThe Lion King's blockbuster potential -- should drive a return to growth in the second half of fiscal 2019. Moreover, Disney's strong film slate for the last few months of 2019 (i.e. the first quarter of fiscal 2020) should get the studio off to an excellent start in the new fiscal year. To be fair, the studio-entertainment division accounts for less than 20% of revenue and profit at Disney. However, the content produced there also powers its theme park and consumer products businesses. That's why Disney's continuing dominance at the box office is great news for shareholders. More From The Motley Fool • 10 Best Stocks to Buy Today Adam Levine-Weinbergowns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has adisclosure policy.
Can Columbia Sportswear Company (NASDAQ:COLM) Maintain Its Strong Returns? 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 Columbia Sportswear Company (NASDAQ:COLM), by way of a worked example. Our data showsColumbia Sportswear has a return on equity of 17%for the last year. That means that for every $1 worth of shareholders' equity, it generated $0.17 in profit. View our latest analysis for Columbia Sportswear Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Columbia Sportswear: 17% = US$297m ÷ US$1.7b (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 profit over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of 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. As is clear from the image below, Columbia Sportswear has a better ROE than the average (12%) in the Luxury industry. That's clearly a positive. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently. Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first 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. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Shareholders will be pleased to learn that Columbia Sportswear has not one iota of net debt! Its ROE suggests it is a decent business; and the fact it is not leveraging returns indicates it is well worth watching. At the end of the day, when a company has zero debt, it is in a better position to take future growth opportunities. Return on equity is 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 when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreereport on analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 Worry About First Interstate BancSystem, Inc.'s (NASDAQ:FIBK) CEO Salary Level? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Kevin Riley became the CEO of First Interstate BancSystem, Inc. (NASDAQ:FIBK) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO. Check out our latest analysis for First Interstate BancSystem Our data indicates that First Interstate BancSystem, Inc. is worth US$2.6b, and total annual CEO compensation is US$2.5m. (This figure is for the year to December 2018). Notably, that's an increase of 39% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$741k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m. This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at First Interstate BancSystem has changed from year to year. First Interstate BancSystem, Inc. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the last year. This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. I think that the total shareholder return of 55%, over three years, would leave most First Interstate BancSystem, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. It appears that First Interstate BancSystem, Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Kevin Riley deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling First Interstate BancSystem (free visualization of insider trades). Important note:First Interstate BancSystem may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Snap-on (NYSE:SNA) Shareholders Booked A 38% Gain In The Last Five Years Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But Snap-on Incorporated ( NYSE:SNA ) has fallen short of that second goal, with a share price rise of 38% over five years, which is below the market return. Zooming in, the stock is up just 3.1% in the last year. View our latest analysis for Snap-on While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over half a decade, Snap-on managed to grow its earnings per share at 15% a year. The EPS growth is more impressive than the yearly share price gain of 6.6% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). NYSE:SNA Past and Future Earnings, June 29th 2019 We know that Snap-on has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Snap-on will grow revenue in the future. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Snap-on's TSR for the last 5 years was 50%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! A Different Perspective Snap-on shareholders gained a total return of 5.4% during the year. But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 8.5% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. If you would like to research Snap-on in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company. Story continues Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. 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 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.
Wall Street Week Ahead: Halfway through 2019, tech leads on Wall Street By Noel Randewich SAN FRANCISCO (Reuters) - Technology stocks are Wall Street's top performers as 2019 hits half-way, with investors betting on lower interest rates, although Apple and chipmakers face turbulence related to the U.S.-China trade war. The S&P 500 information technology index has surged 9% in June, its strongest month in three years. That rally, and the S&P 500's record high on June 21, reflect investors' increased appetite for risk as they become more confident the Federal Reserve will cut interest rates to support a slowing economy. It also shows that Wall Street is mostly confident that U.S. President Donald Trump, who has shown a dislike for stock market downswings, will ultimately resolve his trade conflict with China. Looking for evidence of progress on the trade front, investors will closely watch a planned meeting this weekend between Trump and China's president, Xi Jinping, at the upcoming Group of 20 summit in Japan. "The risk to the downside is the greatest. If trade talks break down then we could head lower, probably a lot further, and the tech sector could be a leader to the downside," said Randy Frederick, Vice President of Trading & Derivatives at Charles Schwab. Other investors say their optimism about the tech stocks is grounded in expectations that the sector's earnings growth will outperform the rest of the economy over the next several years. "Our expectations for genuine progress regarding tariffs at the G20 is quite low," said David Carter, chief investment officer at Lenox Wealth Advisors in New York. "Tech is less of a short-term tactical play, and more a belief in the long-term growth potential of the space. Certainly, it's affected by tariffs and regulation, but the growth story is still there." Although just short of its April record high, the technology index is up 26% so far in 2019, leading other sectors by far and easily beating the S&P 500's 17% return. Among June's strong performing technology stocks are Nvidia, Apple, Xerox, each up over 13%. Facebook, Amazon and Netflix all rose more than 7% in June, slightly outperforming the S&P 500's increase of just under 7% as investors increased bets on high-growth, volatile stocks. Uncertainty related to the trade conflict and Washington's blacklisting of China's Huawei have pushed the Philadelphia Semiconductor Index down 8% from its record high in April, but it is still up 27% for the year, buoyed by expectations that a slump in global sales is near its bottom and that demand is set to recover. The benchmark chip index has surged over 5% since Tuesday, when Micron Technologies said it resumed some sales to Huawei and forecast a recovery in memory chip demand in the second half of the year. Underpinning not just tech, but most of Wall Street's recent strength, is the recently increased confidence that the Fed will cut interest rates as soon as July, with interest rate futures pointing to three rate cuts this year to support already dwindling economic growth. The recent strong performance of technology stocks comes even as analysts predict a drop in quarterly earnings for the sector, in part due to uncertainty around the trade war. Many U.S. semiconductor companies rely on China for over half of their revenue. Analysts on average expect the S&P 500 IT sector's earnings per share to sink 8% in the second quarter, compared to a 0.3% increase predicted for the S&P 500, according to Refinitiv's IBES data. S&P 500 semiconductor companies are seen posting a much deeper 28% slump in second-quarter earnings, and a 20% drop for all of 2019. Analysts on average expect Advanced Micro Devices and rival Nvidia to post declines of over 40% in earnings per share for the quarter. A resolution of the trade conflict would lead analysts to increase their earnings estimates for the technology sector to reflect improved global economic conditions, Frederick said. "The economy really hasn't slowed down that much. That says we're still in a cyclical market and there’s still some upside potential, and tech tends to be one of the leaders when you’re in a cyclical market," he said. (Reporting by Noel Randewich; editing by Alden Bentley and Chizu Nomiyama)
Did You Manage To Avoid First Midwest Bancorp's (NASDAQ:FMBI) 20% 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! The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately theFirst Midwest Bancorp, Inc.(NASDAQ:FMBI) share price slid 20% over twelve months. That's well bellow the market return of 7.7%. On the bright side, the stock is actuallyup17% in the last three years. See our latest analysis for First Midwest Bancorp To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Even though the First Midwest Bancorp share price is down over the year, its EPS actually improved. It's quite possible that growth expectations may have been unreasonable in the past. The divergence between the EPS and the share price is quite notable, during the year. So it's easy to justify a look at some other metrics. First Midwest Bancorp managed to grow revenue over the last year, which is usually a real positive. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). 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. If you are thinking of buying or selling First Midwest Bancorp stock, you should check out thisfreereport showing analyst profit forecasts. We've already covered First Midwest Bancorp's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for First Midwest Bancorp shareholders, and that cash payout explains why its total shareholder loss of 18%, over the last year, isn't as bad as the share price return. Investors in First Midwest Bancorp had a tough year, with a total loss of 18% (including dividends), against a market gain of about 7.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 4.9%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at. There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 Factors Make Oshkosh Corporation (NYSE:OSK) An Interesting Investment Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Oshkosh Corporation (NYSE:OSK), it is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Oshkosh here. Over the past year, OSK has grown its earnings by 39%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 22% return to shareholders, which is an notable feat for the company. OSK's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that OSK has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. OSK seems to have put its debt to good use, generating operating cash levels of 0.67x 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 Oshkosh, I've put together three key factors you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for OSK’s future growth? Take a look at ourfree research report of analyst consensusfor OSK’s outlook. 2. Valuation: What is OSK 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 OSK is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of OSK? 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.
Is Oshkosh Corporation (NYSE:OSK) A Financially Strong Company? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Mid-caps stocks, like Oshkosh Corporation (NYSE:OSK) with a market capitalization of US$5.8b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. OSK’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Don’t forget that this is a general and concentrated examination of Oshkosh's financial health, so you should conduct further analysisinto OSK here. See our latest analysis for Oshkosh OSK has sustained its debt level by about US$819m over the last 12 months – this includes long-term debt. At this current level of debt, the current cash and short-term investment levels stands at US$322m , ready to be used for running the business. On top of this, OSK has produced US$545m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 67%, meaning that OSK’s debt is appropriately covered by operating cash. With current liabilities at US$1.8b, the company has been able to meet these commitments with a current assets level of US$3.4b, leading to a 1.86x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Machinery companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments. With debt at 33% of equity, OSK may be thought of as appropriately levered. This range is considered safe as OSK is not taking on too much debt obligation, which may be constraining for future growth. We can test if OSK’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For OSK, the ratio of 12.78x 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. OSK’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. Furthermore, the company will be able to pay all of its upcoming liabilities from its current short-term assets. This is only a rough assessment of financial health, and I'm sure OSK has company-specific issues impacting its capital structure decisions. I suggest you continue to research Oshkosh to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for OSK’s future growth? Take a look at ourfree research report of analyst consensusfor OSK’s outlook. 2. Valuation: What is OSK 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 OSK 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.
Here's Why I Think Southern (NYSE:SO) 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. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.' In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeSouthern(NYSE:SO). 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 Southern 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. That makes EPS growth an attractive quality for any company. We can see that in the last three years Southern grew its EPS by 8.4% per year. That's a good rate of growth, if it can be sustained. 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. I note that Southern's revenuefrom operationswas lower than its revenue in the last twelve months, so that could distort my analysis of its margins. Southern's EBIT margins have actually improved by 6.8 percentage points in the last year, to reach 17%, but, on the flip side, revenue was down 4.6%. That's not ideal. In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers. You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Southern'sfutureprofits. Since Southern has a market capitalization of US$58b, 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. With a whopping US$65m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth. As I already mentioned, Southern is a growing business, which is what I like to see. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. Of course, just because Southern is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry. Although Southern 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.
TransCanna Signs Exclusive Agreement To Acquire 100% Of Lifestyle Delivery and CannaStrips(TM) Vancouver, British Columbia--(Newsfile Corp. - June 29, 2019) -TransCanna Holdings Inc.(CSE: TCAN) (OTC PINK: TCNAF) (FSE: TH8) ("TransCanna" or the "Company") and Lifestyle Delivery Systems Inc. (CSE: LDS) (FSE: LD6) (WKN: A14XHT) (OTCQX: LDSYF) ("LDS") entered into an exclusive agreement to negotiate a proposed business combination between TransCanna and LDS. The proposed business combination is expected to involve the acquisition by TransCanna of all the outstanding common shares of LDS at a price equal to the greater of $51,660,140 payable in common shares of TransCanna and the amount resulting from a fixed exchange ratio of one (1) TransCanna common shares for every ten (10) LDS common shares. Highlights: • LDS generated an aggregate of $6,795,548 in gross revenue during the year ended December 31, 2018 together with Q1 ended March 31, 2019 • LDS shareholders will represent approximately 13.95 million shares out of 47.81 million shares or approximately 29.1% of TransCanna • Combination of owning CannaStrips™ and its existing revenue stream, with one of the largest cannabis facilities in California, is a significant milestone and will help TransCanna in its goal to become a California market leader. • Provides TransCanna with 5 operations; Annual Licensees for manufacturing (series 5 and 7), transportation and distribution and Annual License submissions for nursery and cultivation with the additional Municipal dispensary permit with Cal Cannabis annual retail (dispensary) submission. • Combined entity will include:-196,000 sq ft vertically integrated cannabis focused facility inModesto (owned)-20,000 sq ft state-of-the-art laboratory, nursery and cultivation & 20,000 sq ftwarehouse facility (leased)- 25.5 acres in Adelanto, CA; majority of land in the "green zone" (owned) • Potential for significant cost savings and synergies with additional potential for other operating efficiencies including higher profit margins and fewer taxes. • The combined entity will be an attractive platform for further accretive growth and consolidation throughout California and beyond. • Enhance our capital markets presence including analyst coverage, and significantly broader retail investor and shareholder base. "This proposed transaction represents an opportunity for all of the combined shareholders to benefit from an exceptionally well integrated platform, capable of avoiding excessive industry fees and taxes creating significantly larger profit margins. Merging the revenue generating assets created by the LDS team, including the flagship CannaStripsTM, with the scale oriented TransCanna team and their 196,000 sq ft vertically integrated, cannabis focused facility in central California equals, in our opinion, a California-based powerhouse," stated Brad Eckenweiler, CEO of LDS. "This has the potential to be a transformative acquisition by TransCanna. The combined company will expedite our processes and corporate goals by at least 24 months. TransCanna will be revenue generating, with the ability to immediately scale throughout California," stated Jim Pakulis, CEO of TransCanna. It is expected that the Proposed Transaction will be completed by way of a plan of arrangement, resulting in LDS becoming a wholly-owned subsidiary of TransCanna at closing. Following completion of the Proposed Transaction, it is expected that the outstanding options and warrants of LDS will be exercisable to acquire common shares of TransCanna on the basis of the exchange ratio set out above. Completion of the Proposed Transaction remains subject to a number of conditions, including satisfactory completion by TransCanna and LDS of their respective due diligence investigations, the negotiation and execution of a definitive agreement, the receipt by LDS of an independent fairness opinion, the approval of LDS shareholders, in addition to other customary closing conditions, including the approval of the British Columbia Supreme Court and all other regulatory and stock exchange approvals. There is no assurances that the Proposed Transaction will be completed as described in this news release or at all. LDS has agreed to certain non-solicitation and exclusivity restrictions, including a right to match in favor of TransCanna with respect to any third party debt or financings. Certain directors and officers of LDS own shares of TransCanna, and certain directors and officers of TransCanna may own shares of LDS. Subject to the execution of a definitive agreement and satisfaction of all closing conditions, TransCanna expects the Transaction to be completed in September 2019. TransCanna is holding an investor conference call on Wednesday, July 3rdat 1:15pm PST. Conference call in numbers: (US) 888-585-9008, (Canada) (888) 299-2873 and (Germany) 0 800 723 5123. The Conference room pin is 477 995 281. For further information, please visit the Company's website atwww.transcanna.com. About TransCanna Holdings Inc. TransCanna Holdings Inc. is a Canadian-based company focused on providing integrated branding, transportation and distribution services, through its wholly-owned California subsidiaries, to a range of industries including the cannabis marketplace. About Lifestyle Delivery Systems Inc. Lifestyle Delivery Systems Inc. is a technology company that licenses its technology to a state-of-the-art production and packaging facility located in Southern California. The Company's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to other forms of delivery but also superior bioavailability of cannabis constituents. Some strips will also include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides. The technology provides a new way to accurately meter the dosage and assure the purity of selected product. From start to finish, the production process, based on the Company's technology, tests for quality and composition of all the ingredients used in each and every strip which results in a delivery system that is safe, consistent and effective. For further information, please visit the Company's website atwww.transcanna.comor email the Company atinfo@transcanna.com. Media ContactTransCanna@talkshopmedia.com604-738-2220 On behalf of the Board of Directors James PakulisChief Executive OfficerTelephone: (604) 609-6199 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains "forward-looking statements" and "forward-looking information" as such term is defined in applicable Canadian securities laws). Except for statements of historical fact relating to Transcanna or LDS, information contained herein constitutes forward-looking statements. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend," "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this news release include, but are not limited to, statements relating to completion of the acquisition of LDS and the expected timing of completion, statements regarding the expected benefits to Transcanna shareholders of the proposed transaction. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include (i) completion of the Proposed Transaction between TransCanna and LDS remains subject to a number of conditions , (ii) developments, whether generally or in respect of the cannabis industry specifically, in the United States, not consistent with Transcanna's current expectations, as well as those risk factors discussed or referred to in Transcanna's continuous disclosure filings available at www.sedar.com. Although Transcanna has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Transcanna does not undertake any obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. Information herein with respect to LDS has been provided by management of LDS and Transcanna does not assume any responsibility or liability with respect to LDS's information set out herein or any obligation to update such information, except as require by applicable securities laws. Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45996
Are Insiders Selling The Southern Company (NYSE:SO) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sellThe Southern Company(NYSE:SO), you may well want to know whether insiders have been buying or selling. Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required. We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. Check out our latest analysis for Southern The , Christopher Womack, made the biggest insider sale in the last 12 months. That single transaction was for US$953k worth of shares at a price of US$50.36 each. That means that even when the share price was below the current price of US$55.28, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 60.9% of Christopher Womack's holding. Happily, we note that in the last year insiders paid US$164k for 3261 shares. On the other hand they divested 59293 shares, for US$2.9m. All up, insiders sold more shares in Southern than they bought, over the last year. 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! For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.1% of Southern shares, worth about US$65m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. The fact that there have been no Southern insider transactions recently certainly doesn't bother us. Our analysis of Southern insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Southern. If you would prefer to 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. 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.

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