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Brief Commentary On KPS AG's (FRA:KSC) Fundamentals 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 KPS AG (FRA:KSC), it is a company with robust financial health as well as a buoyant growth outlook. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at thereport on KPS here. Investors in search for stocks with room to flourish should look no further than KSC, with its expected earnings growth of 23% which is expected to flow into an impressive return on equity of 26% over the next couple of years. KSC 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. KSC appears to have made good use of debt, producing operating cash levels of 1.54x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. For KPS, I've put together three key aspects you should further examine: 1. Historical Performance: What has KSC'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. 2. Valuation: What is KSC 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 KSC is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of KSC? 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.
Estimating The Fair Value Of HEG Limited (NSE:HEG) 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 HEG Limited (NSE:HEG) by estimating the company's future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. View our latest analysis for HEG 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 begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b96.2b", "2020": "\u20b96.8b", "2021": "\u20b97.4b", "2022": "\u20b98.0b", "2023": "\u20b98.7b", "2024": "\u20b99.4b", "2025": "\u20b910.1b", "2026": "\u20b910.9b", "2027": "\u20b911.8b", "2028": "\u20b912.7b"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 10.15%", "2020": "Est @ 9.37%", "2021": "Est @ 8.82%", "2022": "Est @ 8.44%", "2023": "Est @ 8.17%", "2024": "Est @ 7.99%", "2025": "Est @ 7.86%", "2026": "Est @ 7.76%", "2027": "Est @ 7.7%", "2028": "Est @ 7.65%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 17.57%", "2019": "\u20b95.3k", "2020": "\u20b94.9k", "2021": "\u20b94.6k", "2022": "\u20b94.2k", "2023": "\u20b93.9k", "2024": "\u20b93.6k", "2025": "\u20b93.3k", "2026": "\u20b93.0k", "2027": "\u20b92.7k", "2028": "\u20b92.5k"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= ₹38.0b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (7.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 17.6%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹13b × (1 + 7.6%) ÷ (17.6% – 7.6%) = ₹136b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹136b ÷ ( 1 + 17.6%)10= ₹26.95b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is ₹64.92b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹1625.03. Compared to the current share price of ₹1468.55, the company appears about fair value at a 9.6% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. 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 HEG as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 17.6%, which is based on a levered beta of 1.165. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For HEG, I've put together three relevant factors you should further examine: 1. Financial Health: Does HEG 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 HEG'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 HEG? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every IN stock every day, so if you want to find the intrinsic value of any other stock justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Do Institutions Own HEG Limited (NSE:HEG) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of HEG Limited (NSE:HEG) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership. HEG has a market capitalization of ₹59b, so we would expect some institutional investors to have noticed the stock. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about HEG. View our latest analysis for HEG Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors own 35% of HEG. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see HEG's historic earnings and revenue, below, but keep in mind there's always more to the story. We note that hedge funds don't have a meaningful investment in HEG. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Shareholders would probably be interested to learn that insiders own shares in HEG Limited. In their own names, insiders own ₹1.8b worth of stock in the ₹59b company. It is good to see some investment by insiders, but it might be worth checkingif those insiders have been buying. With a 22% ownership, the general public have some degree of sway over HEG. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It seems that Private Companies own 37%, of the HEG stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
2019 NBA free agency Day 1 winners and losers Opening night of 2019 free agency may have been the wildest in NBA history. We are here to sort the winners and losers from a league-altering series of signings. WINNERS Brooklyn Nets When you sign Kevin Durant and Kyrie Irving two of the three biggest names on the market you are a winner in free agency , even if the former ruptured his right Achilles tendon and the latter fractured a title contenders locker room. The Nets stole the show before free agency even opened , with the news coming moments before 6 p.m. ET on Sunday. In one fell swoop, they legitimized the franchise, took ownership of New York basketball and cemented themselves as contenders in 2020-21. [Free agency updates: Keep track of the moves, rumors, cap space and more ] There are plenty of questions about how this will work. Can Kenny Atkinson wrangle Irving in a way Brad Stevens could not? Will Durant enjoy playing with Irving any more than he did Russell Westbrook? How will two of the leagues most combative superstars handle playing in the NBAs largest media market? Will Durant ever be the same after suffering a historically devastating injury ? And how much will change between now and the next time we see Durant on the court? Still, this is KD and Kyrie, two of the most talented scorers on the planet, now playing for a Nets team that was the laughingstock of the league not long ago. Brooklyn also added DeAndre Jordan and Garrett Temple, a pair of useful veterans, to a talented young roster. That the Nets are in this position arguably even with the Boston Celtics this coming season and ahead of them thereafter is a stunning turnaround six years removed from one of the worst trades in NBA history. Philadelphia 76ers This one took a wild swing in a span of four minutes on Sunday night. After JJ Redick left for the New Orleans Pelicans, we learned the Sixers agreed to send Jimmy Butler to the Miami Heat in a sign-and-trade , which seemed like a blow to a team that relied heavily on Redick to space the floor and Butler to generate offense late in playoff games, but within minutes we discovered that Josh Richardson was on his way back in the Butler deal and Al Horford was coming from Boston . Story continues The Butler deal remained up in the air late Sunday night, as the Heat tried to find a third team to take on Goran Dragics contract, but it seems headed for completion. The 76ers will essentially swap Butler and Redick for Horford and Richardson, and also signed Tobias Harris to a five-year, $180 million deal . Horford and Richardson combined to make 237 3-pointers last year, three fewer than Redick. Still, the Sixers locked in a massive starting lineup that will form a devastating defense, while making the Celtics worse. Once the key to slowing Joel Embiid in recent years, Horford can now help maximize his new frontcourt mates effectiveness and rest. There is risk to spending almost $300 million on Harris, who disappeared at times in the playoffs, and Horford, who will be 37 years old when his deal ends. But there is no clear-cut NBA favorite right now, and the Sixers just opened their title window. The new West The championship chances of the Golden State Warriors had already taken a hit in 2019-20, given the injuries to Durant and Klay Thompson, but KDs departure East seemingly lessened their title odds henceforth. Then came the news that DAngelo Russell was coming back in a sign-and-trade , which is a lot to unpack. The Warriors will not lose Durant for nothing, and they add another star alongside Stephen Curry and Draymond Green, but the moves salary-cap constraints also meant they had to move on from Andre Iguodala, and it cost them a first-round pick. This makes for a weird roster once Thompson returns , with three guards and only one plus defender among them, and no cap room to add frontcourt depth. The Warriors can always move Russell for a piece in the future, but the death lineup is dead in Golden State, and every other playoff team in the West went to bed on Sunday feeling better about their futures, regardless of their own free agency. The Utah Jazz probably feel best. Having already traded for Mike Conley, they signed Bojan Bogdanovic and Ed Davis, two of the more underrated players on the market. The sign-and-trade of Derrick Favors to New Orleans mitigates the Davis move a bit, but a starting lineup with Conley, Bogdanovic, Donovan Mitchell and Joe Ingles is a small-ball monster with Rudy Gobert mopping up on the back end. The Los Angeles Lakers, who saw a lot of their contingency plans come off the board if they do not land Kawhi Leonard, will continue to feel good with LeBron James and Anthony Davis at the top of a roster with $32 million in cap space. The Portland Trail Blazers lost Al-Farouq Aminu to the Orlando Magic, but will sign Damian Lillard to a supermax extension and keep Rodney Hood on a nicely priced two-year, $16 million deal after already swapping Evan Turner for Kent Bazemore. Likewise, the Denver Nuggets did not make a big free-agent splash on Sunday night, but they retained Paul Millsap and extended Jamal Murray for big money . The Houston Rockets also kept their core together. None of this leaves many open playoff spots, but now almost every team that gets in at least feels it has a chance. The sign-and-trade Long thought dead after the decision eight years ago to remove the fifth year from contracts for outgoing players, the sign-and-trade made a big comeback in 2019. With teams either attempting to salvage something out of an outgoing asset or doing salary cap gymnastics to maximize incoming assets, the leagues increased player movement has opened the door for the revival of the sign-and-trade. On Sunday night alone, the Celtics, Hornets, 76ers, Heat, Warriors and Nets agreed to blockbuster sign-and-trade deals, respectively, involving Terry Rozier, Kemba Walker, Jimmy Butler, Josh Richardson, Kevin Durant and DAngelo Russell. Four All-Stars changed hands, and no team left empty-handed, although Charlotte may have gotten its pocket picked in committing three years and $58 million to Rozier. Tampering Before free agency even opened, Irving and Durant had already committed to the Nets, and Kemba Walker had been a Celtic for a couple of days. Horford opted out of Boston a week ago, knowing there was a four-year deal north of $100 million on the table elsewhere. And wouldnt you know it: Butlers sign-and-trade conveniently left $100 million available, and Horford was laying in wait without ever meeting with the 76ers. More than $3 billion worth of business was conducted before midnight. Everyone knew how the dominoes would fall before the first one tipped. How this happened when teams were not permitted to recruit players before 6 p.m. is evidence that tampering is not only widespread in the NBA, but necessary to compete in the marketplace. Lakers fans will be quick to remind you that Magic Johnson was fined twice for less egregious violations of the anti-tampering rule. LOSERS James Dolan In March, the Knicks owner vowed that players and their agents told him that they want to play in New York , giving hope to the NBAs most downtrodden fanbase that Durant and Irving would come. In a way, he was right, since they went to Brooklyn. Dolan also said then, We are definitely going to pay them , which didnt go over so well when it turned out he reportedly did not want to offer Durant a max contract over concerns about his Achilles. Durant actually did take less to make room for ex-Knick DeAndre Jordan on the Nets, but the news that Dolan blinked on the max meant he was never in on KD or had a handy excuse for why he did not land him. In the end, Dolan did pay his free agents namely power forwards Julius Randle, Bobby Portis and Taj Gibson. They will make a combined $114 million over the next three years, or $26 million less in that same span than Kristaps Porzingis, the All-Star big man the Knicks traded to create max cap space for Durant and Irving. The Knicks have to take a long look in the mirror after they lost out on a superstar pairing to the crosstown-rival Nets a franchise with less history and fewer fans behind it. Madison Square Garden is no longer the mecca, and that undoubtedly is on Dolan, whose frayed relationship with players from the organizations last title contender is still impacting his ability to build a legitimate team two decades later. The choice is clear now more than ever: Either Dolan goes, or the Knicks suffer. Giannis Antetokounmpo The Milwaukee Bucks retained All-Star wing Khris Middleton and signed veteran center Brook Lopez to a sizable extension , but they also lost rising guard Malcolm Brogdon over a price tag . Rather than retain a key piece of a title contender around the NBA MVP, the Bucks opted not to match the Indiana Pacers offer of four years and $85 million for Brogdon, instead signing-and-trading him for a few draft picks. The Bucks also kept George Hill and added Robin Lopez to back up his twin brother, but losing Brogdon is a massive blow. His ability to play on or off the ball, space the floor and defend multiple positions opened up so many options, most notably the ability to mask Eric Bledsoes playoff failures. Brogdon was, at times, their third-best player behind Antetokounmpo and Middleton, and they lost him for cash. It is not as though the Bucks could not afford Brogdon. Their owners are billionaires who split the bill for Milwaukees new arena with the citys taxpayers. If ever they were going to pay into the luxury tax, it is now, when you have a contender led by a transcendent player in his prime, two years removed from his own free agency. We shall see if this decision comes back to bite them when Antetokounmpos contract ends in 2021, but it certainly makes his road to a championship tougher today. Boston Celtics When the news came down that the Celtics were signing-and-trading Rozier for Walker, it appeared as though Boston might be making a play to retain Horford. It would have required even more salary-cap machinations, but there was a moment where making one last pitch to their All-Star center seemed like a real possibility. Then, Horford left for the rival Sixers. The Celtics did add Walker, avoiding complete disaster , but they lost Irving, Horford and Rozier. It is still unclear which midlevel exception Boston will have to spend on a replacement center, but a number of their options at $5 million or $9 million went elsewhere on Sunday. Even if they land one of the top bargain bigs left, matching up with Horford and Embiid is a logistical nightmare. If the Celtics believed, as was probably the case, that they were not a title contender with Walker and Horford, offering Horford $109 million over the next four years probably was not a prudent move. Still, the Celtics are less talented today than they were last season, even if the locker room may be a happier place. Orlando Magic The Magic spent $154 million on Nikola Vucevic and Terrence Ross, keeping together the core of a roster that finished 42-40, captured the seventh seed in the East and lost in a five-game, first-round series to the eventual champions. The Vucevic deal is a curious one, because they locked him in for the remainder of Mo Bambas rookie contract. It is unclear who they were bidding against. How they plan to develop one center while paying the other $25 million annually is a difficult question to answer, unless they now view Vucevic as a trade asset down the line. The Magic did swipe Al-Farouq Aminu from the Blazers for three years and $29 million, which gives them depth on the wing, where again they are paying Aaron Gordon $20 million and trying to develop Jonathan Isaac. These moves seem to have been made with an eye toward prioritizing mediocrity over development. Los Angeles, for now The only move either L.A. team made was the Clippers retaining Patrick Beverley for $40 million over the next three years . Both teams remain in a holding pattern as they await Kawhi Leonards free-agent decision . At least one will whiff with its max cap space, and there is a chance both do, should Leonard return to the Raptors. Every other top free agent on the market is now committed elsewhere, which destroyed the Clippers dream of pairing Leonard with another max-salaried free agent like Butler or Horford. The biggest star name left is DeMarcus Cousins, and he is not going to sway Leonards decision. The Clippers are now left to sell last years roster as being one two-time Finals MVP away from title contention. Meanwhile, the Lakers are pitching a super-team of never-before-seen proportions, grouping three of the leagues best five talents. If they cannot persuade Leonard to join LeBron and Anthony Davis, their alternative plan to spend $32 million in cap space on a trio of players got a little tougher on Sunday night. Many of the guys who could have provided depth Ross, Beverley and Darren Collison, to name a few are no longer available. They could be looking at scraps if Leonard keeps them waiting. It is increasingly likely that whatever team lands Leonard will be the title favorite in 2020, so one L.A. teams fortunes could change at any moment. But on the first night of free agency, at least, the Lakers and Clippers are hanging in the balance. Kyrie Irving and Kevin Durant will join forces on the Brooklyn Nets. (Getty Images) Ben Rohrbach is a staff writer for Yahoo Sports. Have a tip? Email him at rohrbach_ben@yahoo.com or follow him on Twitter! Follow @brohrbach More from Yahoo Sports: World Cup: Englands coach praises Rapinoe's character Mets put living players in In Memoriam montage Gronk's physical appearance sends a clear message about retirement Here are the full rosters for the 2019 MLB All-Star Game
'KUWTK': Khloe Flips Over Jordyn Woods on 'Red Table Talk' & Kylie Jenner Begs Kim Not to 'Bully' Former BFF The infidelity drama continued during the second half of the Keeping Up With the Kardashians season finale on Sunday, as Kim and Kourtney attempted to help Khloe handle the fallout of Tristan Thompson's alleged cheating with Kylie Jenner's bestie, Jordyn Woods . It's been a few days since the news first broke, and Khloe has been screening Tristan's calls and generally trying to get into a headspace to cope with the drama. However, Kourtney thinks Khloe is taking all of it too lightly and being too careful about her choice of words and her behavior. The sisters go out for a Palm Springs getaway to relax, but after some prodding and goading from Kourtney and Kimora Lee Simmons, Khloe decides to let her angry side out. First, they call their mom, Kris Jenner, to let her know they aren't going to be playing it safe any more to protect the public face of the family. "This st is so fking wack. These fking bitches think they can go ahead and fk our men," Khloe screams to her mother over the phone. "Mom, they're gonna try and fk your man in a second!" Kim declares, "We're not doing this the Kris Jenner way anymore." However, after a few margaritas and some encouragement from bestie Malika Haqq, Khloe called up Tristan's best friend, Savas, who says the NBA star claims he doesn't remember the night in question and denies kissing Jordyn. "Liar! They both admitted it to me. Both of them," Khloe screams, hoping Tristan can hear her in the background, over the phone. However, things didn't get better for Khloe's anger when she found out Jordyn would be sitting down with Jada Pinkett Smith for an upcoming episode of her Facebook Watch series, Red Table Talk, e specially when she heard that Kris had learned of the interview from Pinkett Smith the day before. "I'm your daughter. Look what they're doing to us. They're fking with us!" Khloe tearfully screamed at her mom over the phone, upon learning the news. "My family was ruined! What don't you get?" Story continues Later, after an emotional sit-down with her family, Khloe began to truly process the "humiliation and the hurt" that she's endured through Tristan's actions and finally comes to terms with the fact that their relationship needs to end. "I think Tristan might love me but he has no respect for me," Khloe said. "There's no amount of phone calls or apology text messages that is ever gonna repair Tristan and my relationship." However, the heartbreak and betrayal wasn't soley felt by Khloe. Kylie was struggling with her own whirlwind of emotions after her best friend since childhood found herself in the middle of the situation and facing a whole lot of hate from the Kardashian sisters and their many followers on social media. On the sisters' trip to Palm Springs, Kim had taken to her Instagram story to post videos of herself and Malika dancing in the back seat of the car to a song with lyrics about infidelity, in what many saw as an intentional diss toward Jordyn, and it brought Kylie to tears. "I just feel like were bigger than this, were better than this," Kylie told Kim over the phone. "We just dont need to bully anyone." Kylie also revealed that Jordyn, who had been living with her, came to pick up her stuff from the house and it looked like she'd been emotionally devastated. "The look in her eye, she is just obviously going through it," Kylie said through tears. "I just dont think anyone deserves this. We should express everything to each other in person, however we feel." Ultimately, Sunday's finale ended with Khloe lamenting the fact that all of this deep, personal drama has to play out in the public, because of the lifestyle she's chosen to live as a reality star. "You have to be really strong for this environment that we created," Khloe shared. "It just sucks it has to be so public, because no one understands how Im not just a TV show. This is my life I think people forget I'm not just an episode of television. Its not just to get something trending. This is my real life. No one would ever fake this." RELATED CONTENT: Khloe Kardashian Reveals When She'll Be Ready to Date Again (Exclusive) Inside Khloe Kardashian's All-Pink Themed 35th Birthday Party Tristan Thompson Calls Khloe Kardashian 'the Most Beautiful Human' in Emotional Birthday Post Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear
Amazon’s Fire TV Recast DVR box is $100 off today If you've been considering a Fire TV Recast, now is the time to buy - the DVR is on sale for its lowest price ever. From today, theRecastis on sale for $129.99, a saving of $100. The compact box offers bothDVR and streaming features, giving cord cutters an option to watch network TV content and sports broadcasts as well as streaming services like Netflix or Hulu. You can watch over-the-air-TV from channels like ABC, CBS, FOX, NBC, PBS or the CW or record shows to watch later. There's also Alexa integration and you can use the device with your mobile device (iOS and Android) as well as Fire TV, Echo Show or Fire Tablet. The deal comes in the lead-up to Amazon's Prime Day, which is actuallytwo daysthis year on July 15th and 16th. It's also in advance of National Cut the Cord Day on July 7th, when streaming companies offer deals to tempt viewers away from their cable TV packages.
Jennifer Eberhardt on Oakland Police cutting its traffic stops Award-winning Stanford University social psychologist Professor Jennifer Eberhardt has worked with the Oakland Police Department for a number of years to analyse racial profiling data and help mitigate officers acting on their unconscious bias. Speaking on Yahoo Finance UKs Global Change Agents with Lianna Brinded show, Eberhardt described how Stanfords Social Psychological Answers to Real-world Questions (SPARQ) researchers helped the department cut down its traffic stop numbers. The big concern was ... police officers were stopping people who were not involved in ... serious criminal activity, Eberhardt said. There were thousands of people who were stopped who ended up having minor traffic violations rather than some serious crime that they had committed, and so they wanted to try to cut down on those numbers. Watch the full Dr. Jennifer Eberhardt Global Change Agents interview here The suggested solution was remarkably simple. A question was added to the form officers were required to fill out when performing a stop: Was this stop intelligence-led? Yes or no. Stops made by the Oakland Police Department plummeted to 19,000 in 2018, down from 32,000 the year prior. Photo: Getty Images The question referred to whether the officer had evidence the person had been involved in specific criminal activity. Officers had been told the department was prioritising intelligence-led spots and de-prioritising stops for minor violations, such as a broken tail light. The question was designed to slow officers down to focus on the reasons why they were performing a stop. Eberhardt said people are more likely to act on their biases when they are in a heightened state and feel they need to respond quickly. There was an over-40% drop in the number of stops by simply adding this question that caused them to pause whether the stop was a good stop and whether it was a priority stop, she said. Data from the Oakland Police Department shows the total number of discretionary stops fell to 19,900 in 2018 from 31,528 the year prior a 37% decrease. From 2017 to December 2018, the overall percentage of intelligence-led stops increased to 31% from 27%. Story continues The Oakland Police Department is a leader in the country as it relates to stop data collection and bias based policing, an Oakland Police Department public information officer said in a statement. Oakland Police Department is determined to eliminating any form of racial profiling as well as reducing crime and serving the community through fair and professional, high-quality policing services. This commitment requires the Oakland Police Department to continually detect, assess, and address the impacts of racial disparities against the measure of constitutionality and legitimacy of policing when serving the Oakland community. Global Change Agents with Lianna Brinded explores the stories of some of the most inspirational women across business, tech, and academia. Catch up on all the latest episodes here .
Network Rail bid as British Steel workers await their fate The Scunthorpe steelworks. Photo: Christopher Furlong/Getty Images Thousands of workers at British Steel are waiting to hear their fate after the deadline expired for bids to buy the firm in liquidation on Sunday. Up to nine potential buyers are reported to have shown significant interest in the UKs second largest steel producer since it collapsed in May, but the deadline may be extended to encourage more firm offers. State-owned Network Rail confirmed it had made an indicative offer for the railway-critical parts of the firm, which it relies on for 100,000 tonnes of rails a year. But the break-up of the firm would be controversial, with union leaders warning a buyer must be found for the whole of the business. Steve Turner, assistant general secretary of the Unite union, called steelmaking a foundation industry, saying the government could not build the UKs manufacturing sector without British Steel. READ MORE: Could the UK still nationalise the steel industry? British Steel is a vital business that sustains so many communities and thousands of jobs. If no responsible buyer for the whole of it comes forward then the govt and new PM must step in and bring it under public ownership, he tweeted. The compulsory liquidation of British Steel left 5,000 employees in limbo and put an estimated 20,000 more roles in the supply chain at risk. Staff have been kept on and the firm is continuing to trade, with the government stepping in to provide funds to keep production going in Scunthorpe and Teesside. The British Steel flag. Photo: Anna Gowthorpe/PA via AP READ MORE: 25,000 jobs at risk as British Steel battles for survival Sources in finance and industry told Reuters as many as nine possible buyers had been identified, but none were willing to buy the whole firm because of the huge capital investment needed to make it viable. Reuters also reports that India's JSW Group, former owner Greybull, Sanjeev Gupta's GFG Alliance, private equity firm Endless, a Ukrainian and two Chinese steelmakers were among the potential buyers. Many Asian and European steel firms are said to have rejected efforts by the UK governments official receiver and its advisors EY to see if they would submit offers. Story continues British Steel was bought by Greybull Capital from Tata Steel for £1 three years ago. Gareth Stace, director general of trade body UK Steel, told BBC Radio 4s Today programme: "I don't think we will be hearing anything in the first half of the week," "The Official Receiver has extended the deadline for further bids this week, that is what we understand. If there is a bit of a delay, I'd see that as a positive." He also said Brexit was a "massive uncertainty" hanging over the UK steel industry, with a no-deal Brexit potentially hitting it with 25% tariffs to export to the EU. READ MORE: British firms stockpile £6.6bn in goods in run-up to Brexit
Yuan Surges, Asian Assets Enjoy Time in the Sun on US-China Trade Talks Redux. But How Long Will it Last? Open your FXTM account today The Offshore Yuan is Asia’s best performer on Monday morning, climbing 0.6 percent against theUS Dollarat the time of writing. Meanwhile, safe haven assets are losing ground on the ebbing risk aversion, with Gold falling below the psychological $1400 level, while the Japanese Yen weakened by some 0.3 percent to go back above the 108 level versus the Greenback. The US-China truce announcement staves the risk off more tariffs being imposed over the immediate term on shipments between the world’s two largest economies, giving markets the go-ahead to push further into the risk-on territory for the time being. The resumption of US-China trade talks doesn’t necessarily mean a trade deal is imminent. While an immediate deterioration in US-China relations has been averted, for now at least, the tariffs already imposed on global trade are still in effect and are expected to continue weighing on global growth. This US-China truce may merely offer markets a temporary high, as the announcement by both governments appears to kick the can down the road. The road towards a lasting US-China trade deal remains unclear, in light of the complexities and sensitivities encountered during negotiations from earlier this year. The risk of talks falling apart, or another flare-up in tensions, could still rear its ugly head at some point in the future, blindsiding investors yet again. The trepidatious investor will be tempted to ponder whether the same script will play out again over the coming months. In the meantime, risk assets are expected to enjoy their time in the sun, until the storm clouds of US-led tensions darken market sentiment once again. Brentand WTI crude are on the verge of gaining two percent respectively at the time of writing, after Russia and Saudi Arabia agreed to restrain Oil supplies through the end of 2019 at least. The pact between two of the biggest producers within OPEC+ should pave the way for an official stance by the alliance to extend the output cuts campaign, as the group’s meeting in Vienna begins Monday. Oil prices should enjoy some immediate relief given expectations of the OPEC+ production cuts extension, along with the positive sentiment accompanying the revival of US-China trade talks. While an official extension should strengthen the floor under Oil prices, the lingering concerns over slowing global demand growth may cap Oil’s upside, unless existing US-China tariffs are lifted to brighten the global economic outlook. Markets will also be assessing whether OPEC+ efforts to rebalance the global Oil markets may be enough, in light of record US crude output, along with the risk of another flare-up in the US-China trade conflict which could drag global growth lower. Disclaimer:The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same. Thisarticlewas originally posted on FX Empire • Why Fed May Pass on July Rate Cut • NZD/USD Forex Technical Analysis – July 2, 2019 Forecast • EUR/USD Daily Forecast – Euro Falls Below 1.1300 • The Crypto Daily – The Movers and Shakers 02/07/19 • DASH Technical Analysis – Support Levels in Play –02/07/19 • The RBA Cut Rates, but The AUD is The Star performer
Justin Bieber Accuses Taylor Swift of 'Crossing a Line' in Apology Over Scooter Braun Drama Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear View this post on Instagram Hey Taylor. First of all i would like to apologize for posting that hurtful instagram post, at the time i thought it was funny but looking back it was distasteful and insensitive.. I have to be honest though it was my caption and post that I screenshoted of scooter and Kanye that said taylor swift what up he didnt have anything to do with it and it wasnt even a part of the conversation in all actuality he was the person who told me not to joke like that.. Scooter has had your back since the days you graciously let me open up for you.! As the years have passed we havent crossed paths and gotten to communicate our differences, hurts or frustrations. So for you to take it to social media and get people to hate on scooter isnt fair. What were you trying to accomplish by posting that blog? seems to me like it was to get sympathy u also knew that in posting that your fans would go and bully scooter. Anyway, One thing i know is both scooter and i love you. I feel like the only way to resolve conflict is through communication. So banter back and fourth online i dont believe solves anything. Im sure Scooter and i would love to talk to you and resolve any conflict, pain or or any feelings that need to be addressed. Neither scooter or i have anything negative to say about you we truly want the best for you. I usually dont rebuttal things like this but when you try and deface someone i loves character thats crossing a line.. A post shared by Justin Bieber (@justinbieber) on Jun 30, 2019 at 2:54pm PDT
India's 2019/20 sugar output seen down 14.5% year-on-year NEW DELHI (Reuters) - India is likely to produce 28.2 million tonnes of sugar in the season beginning Oct. 1, 2019, down 14.5 percent from a year earlier, a leading industry body said on Monday. India, the world's biggest consumer of sugar, is sitting on massive mounds of the sweetener, as mills struggle to export due to unattractive global prices. Despite estimates of lower output, India will be in a position to export sugar next year, the Indian Sugar Mills Association said in a statement. (Reporting by Sudarshan Varadhan; Editing by Sanjeev Miglani)
Traders unwinding G20 hedges, but can the good-will last? Now, while the bulk of what we’ve seen was in-line with expectations, and aligned with what was reported in the Chinese press last week. However, risk assets have warmed to what they’ve heard, and traders are clearly unwinding their G20 hedges today. Looking around the markets, we can see the S&P 500 and Nasdaq 100 futures are up 0.9% and 1.2% respectively. Asian equity markets are firmer, notably in China, which is over 2%. In FX land, USDCNH (offshore yuan) is 0.3% lower, although it has come firmly off it’s earlier low and perhaps reacting to the contraction in the Caixin and NBS manufacturing report. USDJPY has followed S&P 500 futures higher and is tracking at 108.24. Interestingly AUDUSD is a touch lower on the day, as is EURUSD, resulting in the USDX up smalls. The NOK is the best performer in G10 FX, largely as a result of a strong move in crude on the open, while the TRY is finding buyers as volatility sellers encourage carry to outperform. In my mind, there are too many questions that remain, and there’s been no real progress on the key sticking points to feel this is in any way a game changer, at this stage. Certainly, the US and Chinese corporate sector, or the Federal Reserve, will have not heard anything that gives them real confidence that the G20 Summit changes the script. However, the highlights that spring out: • Trade truce – there will be no new tariffs, for now, on the remaining $300b of Chinese exports (to the US) • Trade truce – A commitment to resume talks that recently fell apart – when do these formally start? • Political landmine – the US will loosen restrictions on US tech company sales to Huawei and the wider China tech space. There is a credibility angle here, and we have already seen huge condemnation from cross-parties from the likes of Chuck Schumer and Marco Rubio. • In return, the Chinese will commit to buying increased amounts of ag products from US farmers • Improved visa treatment for Chinese students in the US We are most focused on the schedule and future meetings between the two respective trade teams, in the search for real substance and the leaders to agree. Like many, I am cautious, as it feels these policies are cosmetic and designed to keep financial markets in check. We are watching domestic pushback, notably on the political fallout from Trump’s easing of pressure on Huawei – it has already been met by angry protests from the Democrats (specifically Chuck Schumer) and on Trump’s Republican side, namely Marco Rubio, who is threatening to put the restrictions (on Huawei) back to Congress. The question we need to ask is whether these outcomes give the Fed any clarity and I’d argue not really. It will, therefore, be interesting to hear the thoughts, direct from the source, with Fed vice-chair Richard Clarida due to speak shortly at 16:10aest, and then NY Fed president John Williams speaks tomorrow at 20:35aest. It feels too early to believe the G20 fully removes the threat of a 50bp cut, especially when we get the US ISM manufacturing (00:00 aest) and non-farm payrolls (Friday (22:30aest) this week. So, expect the USD, gold and equities to be sensitive to this narrative. We can also add the fact that we’ve heard agreement between Russia and OPEC to extend the production output curbs into 2020, and we’re currently seeing Brent and WTI crude gaining 2% apiece. I focus on the Fed here, but consider tomorrow’s RBA meeting (14:30aest), as this is a genuine risk event for traders holding an AUD or AUS200 exposure over the announcement. TheAUDUSDset-up looks constructive, although the risk of a failed break above the neckline of the double-bottom is increasing. As far as the playbook and the key considerations that I feel should be assessed, it feels as though the AUD upside should be greater than that of any downside move. Although the case for a cut or for rates to be held for this month is finely balanced, and I wouldn’t like to be too exposed to this meeting. • Looking at Aussie cash rate futures pricing, a cut tomorrow is priced at 69%. We can make a strong case for the RBA to cut or to hold. But this pricing suggests we could get a decent spike higher or lower at 14:30aest, and it poses a risk to traders holding AUD exposures over the announcement. • AUDUSD overnight implied volatility sits at 13.03%%, residing at its 57th percentile, but the period in May masks the reality of its current elevation. Through options pricing, we can see this equates to a 42-pip move (with a 68% degree of confidence) in either direction, with the one standard deviation range at 0.7042 to 0.6958. I have charted this, as well as increasing the level of confidence to 80% of how far price may move (from spot) and see price contained in a 0.6930 to 0.7066 range. • 18 of 26 economists are calling for the cut, with all of the ‘Big-4’ forecasting easing. • A quick glance at the weekly futures trader’s report (CFTC data), and we can see ‘non-commercial’ traders (predominantly those who use FX futures to speculate) hold a net short position of 66,320 contracts The bottom line is this is a genuine risk event for traders. Some love this backdrop and will trade around the announcement. Others will see the implied vol and binary nature of the event risk and reduce exposures. But this is the crux of event risk management. Sign up herefor my Daily Fix orStart trading now Chris Weston, Head of Research atPepperstone(Read OurReview) Thisarticlewas originally posted on FX Empire • Asia Markets Take a Respite • Price of Gold Fundamental Daily Forecast – Just Enough Offsetting News to Hold Gold Rangebound • DASH Technical Analysis – Support Levels in Play –02/07/19 • Why Fed May Pass on July Rate Cut • Risk Sentiment Cautious as Trade Truce Paints Illusion of Market Stability • GBP/USD Daily Forecast – Sterling Extends Losses, 1.2600 in Focus
No 'big' stimulus needed in China unless trade war worsens, says PBOC adviser DALIAN, China (Reuters) - China's economy is likely to hit its growth target this year provided a bitter trade dispute with the United States does not worsen, and hence will not need "very big" stimulus measures to prop up growth, a central bank adviser said on Monday. "If the Sino-U.S. trade relationship does not deteriorate further, the possibility of keeping gross domestic product (GDP) growth over 6% this year is rather big," Ma Jun told Reuters on the sidelines of the World Economic Forum. Chinese leaders have set a growth target of 6-6.5% for 2019. "There should be no need to take very big, new stimulus measures," he said. The United States and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing. But China's weak manufacturing readings in June, reflecting slowing momentum in a key sector driving growth, are likely to cast a shadow over the apparent progress U.S. and Chinese leaders made at the G20 summit in Japan. The People's Bank of China (PBOC) has already slashed the amount of cash banks must hold as reserve six times since early 2018 to help turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower. Premier Li Keqiang raised expectations of more action last week by pledging measures to cut real interest rates on financing for small and micro firms. The central bank has vowed not to adopt "flood-like" stimulus that analysts say could exacerbate debt and structural risks. Larry Hu, chief China economist at Macquarie Group, still expects China's economic stimulus to "escalate to the next level" in the four quarter as the economy is seen deteriorating further, even if trade tensions de-escalate. "The reason is that the current growth slowdown in China is related to, but not caused by the trade war," he wrote in a note on Sunday. Asked if the PBOC will follow in the footsteps of the U.S. Federal Reserve in monetary easing, PBOC's Ma said China's monetary policymaking is primarily based on domestic economic conditions. The Fed is expected to confirm a U-turn in global monetary policy and cut interest rates for the first time since the financial crisis a decade ago. Ma said such changes in the external environment is "only for reference" in terms of its impact on the central bank's monetary policies. Nomura economists said on Sunday they expected China's real GDP growth to drop from 6.4 percent in the first quarter year-on-year to 6.1 percent in the second quarter, the lowest on record since 1990. Some analysts' in-house models put China's actual growth much lower than official readings suggest. Capital Economics' gauge has been below 6% for some time. "The latest (PMI) survey data suggest that China's economy is coming under renewed pressure as a result of cooling foreign demand and waning fiscal support, which should trigger further monetary easing," Capital Economics said in a note on Monday. (Reporting by Kevin Yao; Writing by Yawen Chen; Editing by Jacqueline Wong)
First official look at Daniel Craig in 'Bond 25' as filming hits London Daniel Craig in Bond 25 (Credit: Eon) 007 has arrived in London, and we now have our first official shot from Bond 25 . It finds Daniel Craig's veteran secret agent in an impossibly sharp suit striding down Whitehall, with a classic Aston Martin V8 at his heels. After pretty secretive shoots in Norway and then Jamaica, we now have a glut of on-set material via the official James Bond Twitter. 007 star Daniel Craig, director Cary Fukunaga and the #Bond25 crew were out in the sunshine today shooting across a number of London locations, including Whitehall, where Daniel filmed a scene with a classic @astonmartin V8, first seen in a Bond film in THE LIVING DAYLIGHTS. pic.twitter.com/rhs13nNeyW — James Bond (@007) June 30, 2019 There's a shot of Craig with the Household Cavalry, and some additional pomp going on down what looks like the Mall yesterday. Daniel Craig meets the Household Cavalry ( @HCav1660 ) @ArmyInLondon . #Bond25 pic.twitter.com/pXnpr7OwWE — James Bond (@007) June 30, 2019 #Bond25 on location in London. pic.twitter.com/P0C7UoVQjf — James Bond (@007) June 30, 2019 Then he's seen pulling up to the curb in the V8, as London traffic flows past on Whitehall. Story continues Daniel Craig and the @astonmartin V8 on location for #Bond25 pic.twitter.com/cPgfMSlUYm — James Bond (@007) June 30, 2019 Producers also shared some brief video footage last week too, with Craig in a Land Rover and taking in some of the Jamaican nightclubbing, as well as a glimpse of Jeffrey Wright's Felix Leiter, thought to be key to the plot of the movie, and Lashana Lynch, who plays Nomi. On set with #Bond25 : Jamaica. Check out director Cary Fukunaga, Daniel Craig (James Bond #007), @jfreewright (Felix Leiter) and @LashanaLynch (Nomi) in this behind the scenes look at our recent Caribbean filming. Watch the full video at https://t.co/1JH3zpzGuv pic.twitter.com/cIo5iMzVoN — James Bond (@007) June 25, 2019 It all paints a picture of a shoot going swimmingly, but the reality has been rather far from that. There have been not a few issues since principle photography on the so-far untitled movie began at the end of April (and before that, if we're counting Cary Fukunaga replacing Danny Boyle as director). Read more: The troubled timeline of Bond 25 Craig sustained an ankle injury while filming in Port Antonio, Jamaica, and was jetted back to the US for surgery, holding up filming for several weeks. Then back at Pinewood Studios, a controlled explosion on set injured a crew-member, further interrupting production. This all followed reports that the movie's script is being constantly re-written as the movie films, with the likes of Craig, Fukunaga and Fleabag's Phoebe Waller-Bridge all having input on Neal Purvis and Robert Wade's Still, it's said that the slated release date remains unaffected by the various delays. Also starring Rami Malek, Lea Seydoux, Ralph Fiennes, Naomie Harris, Rory Kinnear, Ben Whishaw, and Ana de Armas.
Chinas taste for meat is reshaping Brazils economyand its environment A pile of dried soybeans behind a semi-transparent map of China This story is part of an ongoing series on how China is reshaping our world. What does a meat market in China have to do with Brazilian soybean farms? A whole lot, it turns out. Chinese diners are consuming more meat than ever, pork in particular. All those pigs have to eat, too, and overwhelmingly Sign up for the Quartz Daily Brief , our free daily newsletter with the worlds most important and interesting news. More stories from Quartz: Tip your delivery worker in cash, not via an app A Go Back to Africa media campaign uses AI to boost African American tourism
BIS Chief: Central Banks May Issue Digital Currencies ‘Sooner Than We Think’ After issuing comments and reports heavily critical of cryptocurrencies over the last few years, Agustin Carstens, chief of the Bank for International Settlements (BIS), has acknowledged that central banks will likely soon need to issue their own digital currencies. Speaking to theFinancial Timeson Sunday, Carstens said that BIS – which acts like a central bank for central banks – is supporting global central banks’ efforts to research and develop digital currencies based on national fiat currencies. A number of central banks are engaged in such work and “we are working on it, supporting them,” Carstens said. Further, the arrival of such products might just around the corner if there is clear evidence of demand from the public. Related:Bitcoin, Facebook and the End of 20th Century Money According to Carstens: “[I]t might be that it is sooner than we think that there is a market and we need to be able to provide central bank digital currencies.” The comments come soon after Facebook’sunveilingof its planned Libra cryptocurrency made headlines and shook regulators worldwide, as the prospect of a tech firm with users in the billions launching is own money potentially poses a threat to state currencies. France’s finance ministerhas saidthat Libra must not be allowed to become a sovereign currency. Related:Monero and Zcash Conferences Showcase Their Differences (And Links) Over in the U.S., Congresswoman Maxine Waters hasasked Facebookto halt development of the Libra Network untilhearings can be held. BIS itselfname-checked Facebookin its latest annual report, expressing fears that initiatives like Libra pose a long-term threat to central banks control of money: “Regulators need to ensure a level playing field between big techs and banks, taking into account big techs’ wide customer base, access to information and broad-ranging business models.” Talking to the FT, Carstens again addressed the Facebook issue. “The issue is how will the currency be used? Will there be discovery of information, or data that can be used in credit provision and how will data privacy be protected?” he said, adding that a “simple way” to regulate such cryptocurrency networks is to start addressing “immediate and very obvious” money laundering concerns. Agustin Carstensimage via Sari Huella/Wikimedia Commons • Facebook’s Libra Crypto Code Draws Critiques and Clones • JPMorgan CEO Dimon Says Crypto Companies ‘Want to Eat Our Lunch’
A tiny tweak in California law is creating a strange thing: carbon-negative oil There is a set of technologies, scientists say, without which the world is unlikely to avert climate crisis. These so-called “ negative-emissions technologies ” have been discussed by climate scientists in academic journals for many years. But now, entrepreneurs at three startups—one each in the US, Canada, and Switzerland—are vying to bring the most promising of those technologies to market. They will potentially offer the world a new set of tools to stave off climate catastrophe—a reverse gear on a car headed for the cliff. The startups have each been developing a technology called direct air capture. The idea is to build machines that can filter the air and capture only carbon dioxide molecules. If those molecules aren’t released into the atmosphere, the result is negative emissions. So far every startup has showed the technology works. The next hurdle is to scale the technology and lower its cost. Jeffrey Epstein’s fortune is built on fraud, a former mentor says First out of the gate was Climeworks. In 2017, with the help of small grants from the EU, the Swiss startup installed a machine in Iceland that captured carbon dioxide from the air, mixed it with water, and injected it underground. There, thanks to geology, the gas reacted with minerals to become stone . The machine captures about 50 metric tons each year, which is the annual emissions of one household in the US—or about 10 in India. But to hit the more ambitious climate goals set under the Paris climate agreement, annual negative emissions need to reach more than 1 billion metric tons by mid-century. That’s why an announcement made last month in Jackson Hole, Wyoming was especially interesting. Canadian startup Carbon Engineering is pairing with US oil giant Occidental Petroleum to build a plant by 2022 that will capture and bury 500,000 metric tons each year. The plant is expected to cost hundreds of millions of dollars. Rarely have energy or climate technologies scaled up at that pace—many orders of magnitude in less than five years. Rarer still is the likelihood that this plant will make money. Most early energy technologies lose money. Pulling it off took the genius of a Harvard professor, the climate ambition of an oil CEO, and the long-term thinking of California lawmakers. Story continues Hong Kong’s protesters put AirDrop to ingenious use to breach China’s Firewall Sucking it up David Keith is a professor at Harvard University working on geoengineering. David Keith is a no-nonsense academic at Harvard University studying geoengineering, a set of ideas to manage the Earth’s climate on a planetary scale. In 2009, he co-founded Carbon Engineering with Geoff Holmes, a student from his research lab. The idea that carbon dioxide can be captured from the air we breathe is decades old. Such systems have been used in submarines for a long time. The Harvard pair’s innovation was to make the technology cheap enough to deploy it at scale, and maybe help dial down the temperature of the planet. Carbon Engineering first set up shop in Squamish, a small town north of Vancouver in Canada. Bill Gates became one of its earliest backers. By 2015, Keith, Holmes, and a handful of employees had built a working prototype that could capture up to one metric ton of carbon dioxide each day. While six years is a long time in a software company’s life, it’s not very long for a chemical-engineering startup. To get there so fast, Carbon Engineering did two things. First, it used known technologies and combined them to handle different aspects of the capture process. Second, it designed its plant to use off-the-shelf equipment instead of custom-built parts. Here’s how the plant works: A large fan sucks in huge volumes of air and passes it over corrugated sheets. A chemical solution, which reacts with carbon dioxide in the air, is poured onto the sheets. The carbon-rich solution is then transported to a container where it’s brought in contact with quicklime (or calcium oxide) that reacts with the mixture to form pellets of limestone (or calcium carbonate). In a third container, these limestone pellets are heated to about 1000°C to create quicklime that can be reused and release carbon dioxide as a pure stream of gas. The greenhouse gas can then be injected underground in depleted gas fields or converted into something useful. (To heat the kiln to 1000°C, natural gas is burned in pure oxygen and the carbon dioxide produced in the process is also captured. There are also plans to use renewable electricity to heat the kiln, cutting out the use of any fossil fuels.) In June 2018, Keith published a peer-reviewed study in the journal Joule that described the process in great detail. It’s the only direct-air-capture (DAC) company to offer its work for peer review so far. The main point of the paper, however, was to correct a misconception about the technology that it’s necessarily expensive. According to a 2011 study by the American Physical Society, DAC technology could cost more than $600 per metric ton. For context, the highest global price on carbon emissions—as a tax or a tradable credit—is around $200 per ton. But Keith showed that Carbon Engineering’s technology could capture carbon dioxide for between $100 and $250 per metric ton. Within months of the paper’s publication, Steve Oldham, who Keith and Holmes had brought in to be CEO of Carbon Engineering, found himself in a meeting with Vicki Hollub, CEO of Occidental Petroleum. She wanted access to more carbon dioxide. He wanted to raise capital to scale up the technology to capture hundreds of thousands of tons each day. Green oil Vicki Hollub became the first female CEO of a major international oil company in 2016. In 2016, Hollub became the first female CEO of a major international oil company. She’s already made her mark on the 100-year-old company she leads. In 2018, the company released its first climate report, looking at the risks and opportunities it faces in a carbon-constrained world. The same year, it launched a venture fund to invest in technologies to lower the carbon footprint of the company’s operations and the fossil fuels it produces. It joined the Oil and Gas Climate Initiative, banding together with 12 other oil companies that are focused on cutting emissions and looking to spend more than $1 billion to develop greener technologies. But Occidental Petroleum, also called Oxy after its stock ticker symbol, is going further than its peers. In March, Hollub announced the company will aspire to be carbon neutral, inclusive of the products it sells. That is, if you as a consumer burned Oxy-produced oil, then the company will offset even those emissions. Though Oxy hasn’t set a date to reach that goal, its climate report says it will happen in time to help keep global average temperatures from rising above 2°C. No oil company in the world has such a goal. There are some reasons to believe that Oxy can actually achieve it. (Read Quartz’s profile of Vicki Hollub for further insight into her climate leadership.) Apart from the standard things that oil companies do—extract, transport, and sell oil—Oxy has created a niche for itself. It is the global leader in injecting carbon dioxide into oil fields to eke out more oil than it can with conventional techniques. According to public filings, in 2017, the company injected 27 million metric tons of carbon dioxide into oil fields, a process called enhanced oil recovery (EOR). By doing so, it increased the total oil production of depleted fields by as much as 25%. Crucially, virtually all the injected carbon dioxide stays in the field, according to company reports produced to comply with US Environmental Protection Agency (EPA) regulations. That means it’s possible to pump in more carbon dioxide into the field that would be produced when the oil it helps to extract is burned in cars or planes. The result is a strange thing: “a carbon-negative barrel of oil,” according to a testimony Richard Jackson, president of Oxy’s venture fund, gave to the US Senate in May. To be sure, while the greenhouse-gas impacts could be negated, burning oil also produces particulate pollution. And, so far, carbon-negative oil doesn’t exist. While Oxy’s been doing CO 2 -EOR for more than 40 years, most of the carbon dioxide it injects comes from underground geological fields that already contain carbon dioxide. Why would someone go mining for carbon dioxide when there’s too much of it in the air? Money. It costs less to mine carbon dioxide than it does to capture it from the air or from industries that produce it as waste. Hollub’s leadership has brought about a change in thinking. She realized that the company’s carbon-capture expertise could be used not just to make profits for shareholders but also to do climate good. That’s why Hollub is confident that Oxy can become carbon neutral, and why she was sitting at a table in Edinburgh, Scotland in November 2018 with Carbon Engineering’s Oldham. As of this year, Carbon Engineering has raised about $100 million, including about $15 million of government funds. Carbon also counts oil major Chevron and mining giant BHP as investors. But Carbon Engineering needed hundreds of millions of dollars to build at large scale using a technology that few thought was ready for prime time. Hollub wouldn’t have been at the table were it not profitable to invest such large sums of money. And luckily, she had the vision of California lawmakers to make the economics attractive. Terminating emissions Century City and downtown Los Angeles are seen through the smog December 31, 2007. For decades, California has led other US states and much of the world in regulating transport’s impact on the environment. The credit goes to its citizens who have consistently backed environmental stewardship by electing leaders that have delivered on the mandate. The lesser known, but equally deserving force behind these changes is the California Air Resources Board (CARB), created in 1967 by then-governor Ronald Reagan as the “clean air agency.” For most of its existence, CARB’s mandate has been to clean up cities of particulate pollution created by California’s growing number of cars. It’s done so by adopting increasingly ambitious fuel-efficiency standards. Then, in the 2000s, two things happened that increased CARB’s responsibilities. In 2004, CARB was given the power to also set greenhouse-gas regulations. In 2006, then-governor Arnold Schwarzenegger signed an act to require the state to cut its emissions by 80% by 2050 compared to 1990 levels. The board realized that fuel-efficiency standards on their own weren’t enough to hit those ambitious goals. It needed to create a program that would promote the development and deployment of new technologies, such as the use of zero-carbon hydrogen, biofuels, and electric cars. Its answer was the low-carbon fuel standard (LCFS), a cap-and-trade program, where CARB sets a cap on the total emissions from the transport sector and brokers trade in the form credits for metric tons of carbon dioxide lowered using a low-carbon alternative. In 2011, the LCFS came into effect. In 2016, the program created $92 million worth of credits, which make low-carbon alternatives cheaper to use. The program has been so effective that multiple jurisdictions around the world, including the EU, have adopted similar standards to clean up their transport sectors. Now California, the world’s fifth largest economy, is looking to do even more. In October, under former governor Jerry Brown, the state passed a law to reach net-zero emissions by 2050 . Though going from an 80% reduction to a 100% reduction might seem incremental, the effort to decarbonize the economy gets harder the closer we get to 100%. And the hardest emissions to cut are those from transport. To deliver on the much more ambitious goal, CARB needs more technologies in the mix. The “net-zero” part is acknowledgement that, for some sectors of the economy, such as air travel, we won’t have cost-effective solutions to cut emissions. Instead, California will have to look to offset those emissions using negative-emissions technologies like direct air capture (DAC). CARB realized the technologies weren’t sufficiently developed and needed government support to get there. So starting Jan. 1, the LCFS was modified to include DAC. That means, any entity that captures and sequesters a ton of carbon dioxide from the air (which traded at an average price of $160 in 2018), can claim a credit from California. And because it doesn’t matter where the carbon dioxide is captured and stored, any entity in the world can apply for the credit. Means to an end Steve Oldham became CEO of Carbon Engineering in 2018. The availability of the LCFS credits changes the economics of deploying DAC technology, and it’s why the discussion Oldham and Hollub had during that Edinburgh meeting resulted in a deal. They are now teaming up to build a large-scale plant that will capture and sequester 500,000 metric tons of carbon dioxide from the air each year. The plant, which will be operational in three years, is to be located in the Permian Basin, where Occidental Petroleum has multiple depleted oil fields that need carbon dioxide injections to recover more oil. (Oxy is also experimenting with using CO 2 to extract unconventional oil through fracking, which if successful will mean more demand for CO 2 .) Apart from the LCFS credit value, the project will have two other sources of revenue. Under the newly-passed 45Q tax credit from the US federal government, each ton of captured carbon dioxide used for enhanced oil recovery will earn Oxy $35. Add that to $160 (or thereabouts based on the spot price), and the money Oxy will make from the oil recovered in the process, and it’s likely to earn more than $200 per ton of CO 2 buried underground. “Both 45Q tax credits and LCFS credits are crucial for allowing us to get on with building the first plant,” Oldham said. He wouldn’t give a firm figure for the cost of capturing emissions at the first DAC plant, but insisted it will be “much lower” than $200 per metric ton. That means the first plant will actually make money? I asked. “The baseline economics works. Otherwise we wouldn’t be spending money on this,” he said. The project also makes sense to Oxy from a different perspective. “[The DAC plant] provides us carbon dioxide at a lower cost than some of the organic carbon dioxide we use today,” Hollub said. (By organic, she means that derived from geological fields.) Of course, it’s possible to simply bury carbon dioxide captured from the air and not produce fossil fuels using it, but there isn’t enough economic incentive to do that. Yet the project’s connection to oil extraction has tainted it. Dan Lashof of the World Resources Institute told MIT Tech Review that the project is “extending the fossil-fuel era.” That’s a short-sighted view. No realistic forecast suggests that the fossil-fuel era is coming to a close within the few decades left for the world to reach zero emissions and avoid climate catastrophe. The world consumes 100 million barrels of oil each day, and by mid-century, even under the most ambitious plans, the world will consume many tens of millions of barrels each day. If anything, Hollub argues that using CO 2 -EOR to extract oil from depleted oil fields reduces the need for oil companies to go looking for new oil fields. And then she goes a step further. “The last barrel of oil that’s produced in this world should be from CO 2 -enhanced oil recovery,” she said. While there are other types of negative-emissions technologies , direct air capture is a vital part of the mix. So the crucial thing, says Deepika Nagabhushan of the Clean Air Task Force, is that projects like these will help Carbon Engineering gain experience and find ways to lower its cost of capture, perhaps from $250 per metric ton to closer to $100, as Oldham was hinting has begun to happen. The large incentives under the LCFS may not be around forever. That means the technology has to become cheaper if it is to capture more than a billion tons of carbon dioxide each year by mid-century, as many climate models suggest . If the models or Occidental Petroleum is wrong, then the world may not have to use DAC technology. Some investors will lose money, but we’d all be in a better place. However, if the forecasts are correct and global industry missed its chance to invest in developing direct air capture, we’ll be left struggling to reduce CO 2 levels and stave off climate catastrophes. The choice really is that simple. 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Here's Why I Think Bufab (STO:BUFAB) 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! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as 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 contrast to all that, I prefer to spend time on companies likeBufab(STO:BUFAB), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. 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 Bufab As one of my mentors once told me, share price follows earnings per share (EPS). That makes EPS growth an attractive quality for any company. As a tree reaches steadily for the sky, Bufab's EPS has grown 24% each year, compound, over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling. I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). Bufab maintained stable EBIT margins over the last year, all while growing revenue 18% to kr3.9b. That's a real positive. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. While profitability drives the upside, prudent investors alwayscheck the balance sheet, too. Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don't always get it right. The good news is that Bufab insiders spent a whopping kr75m on stock in just one year, and I didn't see any selling. As if for a flower bud approaching bloom, I become an expectant observer, anticipating with hope, that something splendid is coming. Zooming in, we can see that the biggest insider purchase was by Director Bengt Liljedahl for kr75m worth of shares, at about kr100.00 per share. On top of the insider buying, it's good to see that Bufab insiders have a valuable investment in the business. To be specific, they have kr201m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. That amounts to 5.0% of the company, demonstrating a degree of high-level alignment with shareholders. Given my belief that share price follows earnings per share you can easily imagine how I feel about Bufab's strong EPS growth. On top of that, insiders own a significant stake in the company and have been buying more shares. So it's fair to say I think this stock may well deserve a spot on your watchlist. If you think Bufab might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company. There are plenty of other companies that have insiders buying up shares. So if you like the sound of Bufab, you'll probably love thisfreelist of growing companies that insiders are buying. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Market report: Oil pops, stocks rally, and Apple tax A worker walks past the oil well at the Sindbad oil field near the Iraqi-Iranian border in Basra, Iraq. Photo: Essam Al-Sudani/Reuters Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad: Oil pops Oil prices are rallying strongly on Monday after Russia and Saudi Arabia agreed to extend Opec production cuts. Vladimir Putin said on Sunday that Russia and Saudi Arabia would extend an oil production cap agreement that expired yesterday for another six to nine months, according to Reuters . News that production cuts will continue has spurred oil prices. Crude oil was up 2.8% to $60.11 ( CL=F ) at 8.30am UK time, and Brent was up 1.2% to $66.58 ( BZ=F ). Opec leaders will meet in Vienna today and tomorrow to discuss further oil production policy. Stocks rally after positive G20 Global stocks were rallying on Monday after the G20 meeting sparked hopes of a positive resolution to global trade tensions. The US and China agreed to restart trade talks over the weekend after US President Donald Trump met Chinese counterpart Xi Jinping at the G20 summit in Japan. “It feels that the weekend saw positive progress on a lot of things,” Deutsche Bank strategist Jim Reid and his team wrote in note to clients on Monday. “A US/China trade truce, a constructive surprise Trump meeting with Kim Jong Un, positivity over US/Turkey relations, a Russian/Saudi OPEC+ agreement on extending cuts (official OPEC/OPEC+ meetings today/tomorrow), and in the background the EU and Mercosur (South American trading block) brokered a trade deal after 20 years of negotiating.” Stocks are rallying strongly as a result. Britain's FTSE 100 ( ^FTSE ) was up by 0.9% at a two-month high and Germany's DAX ( ^GDAXI ) was up by 1.6%, and France’s CAC 40 ( ^FCHI ) was up by 1.2%. Asian stocks jumped overnight. Japan's Nikkei 225 ( ^N225 ) ended up by 2.1% overnight and China's benchmark Shanghai Composite ( 000001.SS ) was up by 2.2%. Hong Kong's Hang Seng index ( ^HSI ) was down by 0.2% as protests against the government continued. Apple’s UK tax bill falls Apple ( AAPL ) paid just £3.8m in tax in the UK last year despite sales of £1.2bn. Story continues Accounts for Apple Retail UK show that sales fell by 2% in the 12-month to September 2018. A rise in administrative costs, a fall in other income, and the use of offsetting mechanisms meant Apple’s tax bill fell from £10.1 million in 2017 to £3.8m last year. Apple Retail UK, which employs over 5,000 people in the UK, made a profit of £29.7m last year. It paid a dividend of £13m to its Irish parent company. Aston Martin investor considers upping stake Strategic European Investment Group – a subsidiary of private equity firm Investindustrial Advisors – said it is considering buying a 3% stake worth £68m in luxury car firm Aston Martin Lagonda ( AML.L ). Strategic European Investment Group is already the biggest investor in Aston Martin, with a 30.97% holding. The investor said it had the support of car maker Daimler, which has agreed to approve the deal in respect of its 4.2% shareholding in Aston Martin. Other investors Adeem Automotive Manufacturing Company, Asmar, Primewagon and Stehwaz Automotive Jersey have also agreed to support the deal in respect of their 30.6% combined shareholdings in Aston Martin. $1.6bn cruise ship deal DP World ( 3DW.F ), one of the world’s largest port operators, has snapped up Dubai-based offshore vessel business Topaz in a deal worth £1.1bn. Topaz is currently owned by Oman-listed Renaissance Services and Standard Chartered Private Equity. Sultan Ahmed Bin Sulayem, group chairman and chief executive officer of DP World, said: “We are pleased to announce the acquisition of Topaz, further strengthening DP World’s position as a world-leading operator in maritime logistics services.” What to expect in the US US stock futures were pointing to a higher open later today. S&P 500 futures ( ES=F ) were up by 1.1%, Dow Jones Industrial Average futures ( YM=F ) were up by 1%, and Nasdaq futures ( NQ=F ) were up by 1.7%.
Does Rheinmetall AG's (FRA:RHM) 40% Earnings Growth Make It An Outperformer? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In this commentary, I will examine Rheinmetall AG's (FRA:RHM) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the industrials industry performed. As an investor, I find it beneficial to assess RHM’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. See our latest analysis for Rheinmetall RHM's trailing twelve-month earnings (from 31 March 2019) of €313m has jumped 40% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 35%, indicating the rate at which RHM is growing has accelerated. How has it been able to do this? Let's see whether it is only attributable to industry tailwinds, or if Rheinmetall has experienced some company-specific growth. In terms of returns from investment, Rheinmetall has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 5.1% exceeds the DE Industrials industry of 3.9%, indicating Rheinmetall has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Rheinmetall’s debt level, has increased over the past 3 years from 7.7% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 56% to 31% over the past 5 years. Though Rheinmetall's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Rheinmetall gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Rheinmetall to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for RHM’s future growth? Take a look at ourfree research report of analyst consensusfor RHM’s outlook. 2. Financial Health: Are RHM’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.
G20 officially supports FATF’s crypto guidelines that require exchanges to share customer data The Group of Twenty (G20), an international forum for the governments from 19 countries and the EU, has officially welcomed cryptocurrency guidelines set by the global money-laundering watchdog, the Financial Action Task Force (FATF). At the 2019 G20 summit held on June 28–29 in Osaka, Japan, the forumsaid:“We reaffirm our commitment to applying the recently amended FATF Standards to virtual assets and related providers for anti-money laundering and countering the financing of terrorism.” The FATFreleasedits final crypto guidelines on June 21, which compels exchanges to collect and transfer customer information such as originator’s name, his account number and location information, as well beneficiary’s name and beneficiary’s account number, during transactions. G20 was already affirming their intention to hold to FATF guidelines, but it has now officially announced the support at the summit.On the contrary, industry leaders at crypto companies such as Circle, Coinbase and Chainalysis, say that adhering to the FATF guidelines globally could be costly to implement and would require unprecedented collaboration globally. G20 further said that it is “closely monitoring” developments in the cryptocurrency industry and remains “vigilant to existing and emerging risks,” though crypto assets currently “do not pose” a threat to global financial stability. The group also welcomed the on-going work by the Financial Stability Board (FSB) on the possibleimplicationsof decentralized financial technologies and how regulators can engage other stakeholders.
What Does Balco Group AB's (STO:BALCO) P/E Ratio Tell You? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll show how Balco Group AB's (STO:BALCO) P/E ratio could help you assess the value on offer.Balco Group has a price to earnings ratio of 18.37, based on the last twelve months. That means that at current prices, buyers pay SEK18.37 for every SEK1 in trailing yearly profits. Check out our latest analysis for Balco Group Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Balco Group: P/E of 18.37 = SEK69.4 ÷ SEK3.78 (Based on the trailing twelve months to March 2019.) A higher P/E ratio means that investors are payinga higher pricefor each SEK1 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. It's nice to see that Balco Group grew EPS by a stonking 47% in the last year. And earnings per share have improved by 171% annually, over the last three years. So we'd generally expect it to have a relatively high P/E ratio. The P/E ratio indicates whether the market has higher or lower expectations of a company. You can see in the image below that the average P/E (18.4) for companies in the building industry is roughly the same as Balco Group's P/E. That indicates that the market expects Balco Group will perform roughly in line with other companies in its industry. The company could surprise by performing better than average, in the future. Further research into factors such asinsider buying and selling, could help you form your own view on whether that is likely. The 'Price' in P/E reflects the market capitalization of the company. So it won't reflect the advantage of cash, or disadvantage of debt. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores. Net debt totals 16% of Balco Group's market cap. This could bring some additional risk, and reduce the number of investment options for management; worth remembering if you compare its P/E to businesses without debt. Balco Group has a P/E of 18.4. That's higher than the average in the SE market, which is 16.7. While the company does use modest debt, its recent earnings growth is superb. So on this analysis a high P/E ratio seems reasonable. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Fake Facebook Warlord Used to Spread Malware, Researchers Say (Bloomberg) -- In one of the largest malware campaigns to exploit Facebook Inc., a suspected Libyan hacker lured tens of thousands of people into exposing personal information and granting access to personal devices, Israeli cyber security company Check Point Software Technologies Ltd. said. A Facebook page impersonating Khalifa Haftar, the head of a militia fighting Libya’s internationally recognized government, was Check Point’s first clue to an attack that had been going on for five years, the company said. Repetitive spelling mistakes in Arabic that suggested dyslexia helped researchers track other pages set up by the hacker, who used an avatar called Dexter Ly, it added. “Facebook is not widely used to infect people with malware,” said Lotem Finkelstein, Check Point’s head of research. “This is probably one of the biggest malware campaigns using the platform.” While Facebook itself wasn’t breached, according to Check Point, the hack highlighted how social media platforms can be abused to carry out attacks. In all, about 50,000 users from North Africa, Europe and the U.S. clicked on infected links that included alleged reports from Libyan intelligence units exposing Qatar or Turkey as conspiring against Libya, or bogus photos of a purportedly captured pilot who tried to bomb Libya, Check Point said. Others were supposed to lead to mobile recruitment sites for Haftar’s armed forces. Facebook said it couldn’t confirm the figures. Under Fire Facebook users have been previously hit by malware attackers, include a 2017 hack that used its Messenger feature to infect computers with malware that mined cryptocurrency. Facebook and other social companies have also come under assault for failing to curb fake news on their platforms. Facebook has said it removed 2.2 billion fake accounts in the first quarter alone. The suspected Libyan hacker has since shared sensitive information culled through the attack, including secret Libyan government documents as well as emails, phone numbers and pictures of passports belonging to officials, Check Point said in a blog post. The secret documents included policy updates and internal intelligence reports from foreign embassies in Libya and Libyan embassies abroad. Check Point started tracing the hacker after its research team discovered a file that looked suspicious and followed the trail. ”These pages and accounts violated our policies and we took them down after Check Point reported them to us,” Facebook said in an emailed statement. “We are continuing to invest heavily in technology to keep malicious activity off Facebook, and we encourage people to remain vigilant about clicking on suspicious links or downloading untrusted software.” Political Strife Haftar’s forces are battling fighters loyal to Libya’s internationally recognized government. His troops were pushed out of a strategic city south of the capital in late June, his biggest setback since he swept the country’s south in early 2019 and launched an offensive in April to seize Tripoli. The hacker, an Arabic-speaker, used his knowledge of Libya’s political strife to draw Facebook users to more than 30 pages he either commandeered or impersonated, Check Point said. The majority of the pages offered news from cities including the capital, Tripoli, and Benghazi, while others supported political campaigns or military operations. “This was unique in its scope of actual and potential victims, as well as in the length of the campaign,” Finkelstein said. “It was also sophisticated in its use of phishing topics, topics that used credible knowledge to lure people into following the Facebook pages and then clicking on the links.” To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net To contact the editors responsible for this story: Riad Hamade at rhamade@bloomberg.net, Amy Teibel, Giles Turner For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
Euro zone factory activity contracted for fifth month in June: PMI LONDON (Reuters) - Factory activity in the euro zone shrank faster last month than previously thought in a broad-based downturn, according to a survey on Monday that suggested there would be no quick turnaround. The downbeat data will likely add to calls for the European Central Bank to ease monetary policy as it also highlighted weakening inflationary pressures. IHS Markit's June final manufacturing Purchasing Managers' Index (PMI) was 47.6, below an earlier flash reading of 47.8 and May's 47.7, marking its fifth month below the 50 level separating growth from contraction. An index measuring output change, which feeds into a composite PMI due on Wednesday and is seen as a good gauge of economic health, spent its fifth month below the breakeven mark, registering 48.5. It was 48.9 in May. "Euro zone manufacturing remained stuck firmly in a steep downturn in June, continuing to contract at one of the steepest rates seen for over six years," said Chris Williamson, chief business economist at IHS Markit. "The disappointing survey rounds off a second quarter in which the average PMI reading was the lowest since the opening months of 2013." Indicating there will be a slow start to the second half, new orders fell for a ninth month, stocks of new materials were depleted again, backlogs of work were run down and headcount was reduced for a second month. To try to encourage demand, factories barely increased their prices in June. The output prices PMI fell to 50.6 from May's 51.6, its lowest reading since September 2016. Inflation in the euro zone was stable at 1.2% in June, a long way from the 2% the ECB would like it near, official data showed on Friday. "The downturn is also increasingly feeding through to lower inflationary pressures, as producers and their suppliers compete on price to retain customers and generate sales," Williamson said. ECB President Mario Draghi in a speech last month called for additional stimulus in the absence of any improvement in weak growth and tepid inflation. The central bank will by the end of September either cut its deposit rate or ease its forward guidance further, a recent Reuters poll found.
Japan to restrict exports to South Korea, citing less trust TOKYO (AP) — Japan is imposing restrictions on exports to South Korea, citing a decline in "relations of international trust" between the Asian neighbors. The Ministry of Economy, Trade and Industry said a review soliciting public comments starts Monday on the move to effectively remove South Korea from a list of so-called "white nations," like the U.S. and European nations, that have minimum restrictions on trade. Starting Thursday, Japanese manufacturers must apply for approval for each technology-related contract, such as sales of fluorinated polyimides used for displays, the ministry said. The statement did not say what exactly was behind the decision. But relations have soured since South Korea's Supreme Court ordered the seizure of local assets of a Japanese company after it refused to compensate forced laborers during World War II. South Korea's trade ministry said Monday it will "sternly" deal with the Japanese move, calling it an "unjust" action that violates rules of the World Trade Organization. The trade minister, Sung Yun-mo, said the government in Seoul planned to file a WTO complaint. South Korea "thinks this Japanese measure is regrettable," Park Tae-sung, a senior official at the Ministry of Trade, Industry and Energy, told reporters in South Korea. He said a thorough analysis is required to study what impact the Japanese measure would have on South Korean exports of semiconductors. The change would mean the approval process will be delayed for such products, where Japan is a significant supplier. South Korean technology companies including Samsung Electronics and SK Hynix say they are assessing how the Japanese import restrictions could possibly impact their business. Before the latest move, the exports required only a single encompassing approval process. Now the ministry approval will be delayed on average by 90 days, a ministry official said, speaking on customary condition of anonymity. Story continues In a landmark ruling in October, South Korea's top court ordered Nippon Steel & Sumitomo Metal Corp. to pay 100 million won ($88,000) each to four plaintiffs forced to work for the company when Japan colonized the Korean Peninsula from 1910-45. But the company refused, siding with Japan's long-held positon that all colonial-era compensation issues were settled by a 1965 treaty that restored diplomatic relations between the two governments. Japanese government officials have also rejected the ruling. The Supreme Court in South Korea also issued a similar verdict on Mitsubishi Heavy Industries to financially compensate 10 Koreans for forced labor. Other exports affected by Tokyo's decision are what is called "resist" for making semiconductors and hydrogen fluoride used for semiconductors, pharmaceuticals and polymers, including nylon and Teflon. Japan's longtime position is that all historical compensation issues were settled when Tokyo and Seoul signed a treaty in 1965 that restored diplomatic ties. The trade tensions developing between the Asian neighbors seem to undermine the message of free and open trade that leaders endorsed at the Group of 20 summit in Osaka last week. But the Japanese ministry said the latest move comes after overtures to patch up relations with South Korea failed at the Group of 20 summit in Osaka last week. "It is not a retaliatory measure," Deputy Chief Cabinet Secretary Yasutoshi Nishimura said, noting the measure came about because of overall difficulties in "maintaining a relationship of trust with South Korea in carrying out export controls." ___ Follow Hyung-jin Kim, who reported from Seoul, on Twitter https://twitter.com/hyungjin1972 Follow Yuri Kageyama on Twitter https://twitter.com/yurikageyama On Instagram https://www.instagram.com/yurikageyama/?hl=en
Read This Before Buying Balco Group AB (STO:BALCO) 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! Could Balco Group AB (STO:BALCO) 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. Balco Group has only been paying a dividend for a year or so, so investors might be curious about its 2.9% yield. The company also bought back stock during the year, equivalent to approximately 2.9% of the company's market capitalisation at the time. There are a few simple ways to reduce the risks of buying Balco Group for its dividend, and we'll go through these below. Click the interactive chart for our full dividend analysis Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Balco Group paid out 53% of its profit as dividends. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Balco Group paid out 223% of its free cash flow last year, which we think is concerning if cash flows do not improve. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. While Balco Group's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Cash is king, as they say, and were Balco Group to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign. Consider gettingour latest analysis on Balco Group'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. During the past one-year period, the first annual payment was kr1.00 in 2018, compared to kr2.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 100% a year over that time. Balco Group has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Balco Group has grown its earnings per share at 61% per annum over the past five years. With recent, rapid earnings per share growth and a payout ratio of 53%, this business looks like an interesting prospect if earnings are reinvested effectively. To summarise, shareholders should always check that Balco Group's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Balco Group gets a pass on its dividend payout ratio, but it paid out virtually all of its cash flow as dividends. This may just be a one-off, but we'd keep an eye on this. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. In sum, we find it hard to get excited about Balco Group from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria. Are management backing themselves to deliver performance? Check their shareholdings in Balco Group inour latest insider ownership analysis. 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.
What Should Investors Know About RELX PLC's (LON:REL) Earnings Outlook? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In February 2019, RELX PLC (LON:REL) released its most recent earnings announcement, which confirmed that the business endured a substantial headwind with earnings deteriorating by -14%. Below is my commentary, albeit very simple and high-level, on how market analysts predict RELX's earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for RELX Market analysts' prospects for the coming year seems rather subdued, with earnings growing by a single digit 8.0%. The growth outlook in the following year seems much more buoyant with rates reaching double digit 15% compared to today’s earnings, and finally hitting UK£1.8b by 2022. Although it is useful to be aware of the rate of growth year by year relative to today’s figure, it may be more valuable to analyze the rate at which the company is rising or falling every year, on average. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of RELX's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 6.9%. This means that, we can presume RELX will grow its earnings by 6.9% every year for the next couple of years. For RELX, I've put together three essential factors you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is REL 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 REL is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of REL? 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.
Centamin (LON:CEY) Shareholders Booked A 68% Gain In The Last Five 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 the aim of active stock picking is to find companies that provide returns that are superior to the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. To wit, the Centamin share price has climbed 68% in five years, easily topping the market return of 3.2% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 0.8% in the last year, including dividends. Check out our latest analysis for Centamin To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Centamin actually saw its EPS drop 17% per year. This means it's unlikely the market is judging the company based on earnings growth. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. On the other hand, Centamin's revenue is growing nicely, at a compound rate of 8.6% over the last five years. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). Centamin is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Centamin stock, you should check out thisfreereport showing analyst consensus estimates for future profits. When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Centamin's TSR for the last 5 years was 113%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted thetotalshareholder return. Centamin shareholders gained a total return of 0.8% during the year. But that return falls short of the market. On the bright side, the longer term returns (running at about 16% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. Before forming an opinion on Centamin you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist 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 GB exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Recticel SA/NV (EBR:REC) A Volatile Stock? 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 Recticel SA/NV (EBR:REC), 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 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. 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. 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 Recticel Given that it has a beta of 1.25, we can surmise that the Recticel share price has been fairly sensitive to market volatility (over the last 5 years). If this beta value holds true in the future, Recticel 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 Recticel is growing earnings and revenue. You can take a look for yourself, below. With a market capitalisation of €436m, Recticel is a very small company by global standards. It is quite likely to be unknown to most investors. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case. Since Recticel 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 Recticel’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 REC’s future growth? Take a look at ourfree research report of analyst consensusfor REC’s outlook. 2. Past Track Record: Has REC 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 REC's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how REC 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.
Should You Consider Elkem ASA (OB:ELK)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Elkem ASA (OB:ELK) 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 ELK, it is a financially-healthy company with an impressive history of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Elkem here. ELK delivered a bottom-line expansion of 54% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 22%, which is what investors like to see! ELK's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that ELK has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ELK appears to have made good use of debt, producing operating cash levels of 0.36x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. ELK's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if ELK's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, ELK's share price is trading below the group's average. This bolsters the proposition that ELK's price is currently discounted. For Elkem, there are three fundamental aspects you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for ELK’s future growth? Take a look at ourfree research report of analyst consensusfor ELK’s outlook. 2. Dividend Income vs Capital Gains: Does ELK 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 ELK as an investment. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of ELK? 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.
Hunt plans £6bn no-deal Brexit war chest 'like the bank bailout' Jeremy Hunt sips a milkshake during a visit to Chelmsford High Street. Stefan Rousseau/PA via AP Jeremy Hunt could spend £6bn protecting UK fishing and farming under a no-deal Brexit, comparing it to the bailout of the banks during the financial crisis. The Conservative MP, who is fighting Boris Johnson in the race to Britains next prime minister, said he would also use an emergency budget to cut corporation tax. Hunt will use a speech on Monday to outline how he would try to alleviate the potentially catastrophic damage for the UK economy of leaving the EU without a deal. "I will mitigate the impact of no deal Brexit on you and step in to help smooth those short-term difficulties. If we could do it for the bankers in the financial crisis, we can do it for our fisherman, farmers and small businesses now," he said in a pre-released expert of his speech. READ MORE: British Steel workers await their fate as deadline ends for bids But the health secretarys rhetoric has also hardened in recent days on his determination to leave without a deal if necessary to make Brexit happen. He sparked shock among business leaders on Sunday by saying he would be willing to tell firms destroyed by a no-deal Brexit that democracy must come first. He has previously outlined plans to slash corporation tax to 12.5% and axe business rates for many high street firms. He is expected to also unveil plans to use emergency powers to keep ports and airports working, and establish a new national logistics committee to manage the likely huge disruption to the free movement of goods. The proposed £6bn set aside for the sheep farmer in Shropshire and fishermen in Peterhead is intended to soften the blow of what could be devastating new export tariffs and delays and competition from abroad. His rival Boris Johnson has also proposed significant new spending plans in recent days, suggesting he would be happy to borrow more to spend more on education. READ MORE: UK firms stockpile £6.6bn of goods in run-up to Brexit
How Many Elkem ASA (OB:ELK) Shares Do Institutions Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of Elkem ASA (OB:ELK) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership. Elkem isn't enormous, but it's not particularly small either. It has a market capitalization of øre14b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about ELK. View our latest analysis for Elkem Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. Elkem already has institutions on the share registry. Indeed, they own 21% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Elkem, (below). Of course, keep in mind that there are other factors to consider, too. Hedge funds don't have many shares in Elkem. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own less than 1% of Elkem ASA. But they may have an indirect interest through a corporate structure that we haven't picked up on. Keep in mind that it's a big company, and the insiders own øre8.3m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checkingif those insiders have been buying. With a 20% ownership, the general public have some degree of sway over ELK. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It seems that Private Companies own 59%, of the ELK stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free. Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Huawei Reprieve Is Good and Bad News for Asia Tech Stocks (Bloomberg) -- Stock markets in Asia surged in a relief rally Monday after the world’s largest economies declared a truce in their trade war. The sector that just won the biggest reprieve is tech stocks. President Donald Trump’s decision to allow U.S. corporations to resume sales to Huawei Technologies Co., China’s largest telecommunications-equipment maker, and plans to hold off imposing an additional $300 billion in tariffs made tech stocks the best performers in Asia Monday. The MSCI Asia Pacific Infotech Index soared as much as 2%, while the regional benchmark climbed 0.9%. Trump and Xi Call Time (For Now) on Trade War: Balance of Power Shares of chipmakers -- among the biggest contributors to the MSCI Asia Pacific Index -- have been embroiled in the U.S. and China trade conflict for more than a year. Trump’s move to cut off supplies to Huawei in May added to the sector’s wall of worry. Volatility has soared by about 300% since its low just before the trade spat escalated. These Asia Stocks May Benefit From Halt to Huawei Ban, Citi Says “The lifting of a ban on the sale of technology to Chinese companies was a step beyond expectations and the market reaction come Monday will likely be positive,” said Kerry Craig, global market strategist at JPMorgan Asset Management, by email. Samsung Electronics Co. -- the world’s biggest chipmaker -- erased early gains and fell 0.9% after Japan said the exporters of chip materials to South Korea will have to apply for individual approvals from July 4, citing a worsening bilateral trust relationship. SK Hynix Inc., a supplier to both Huawei and U.S. companies, stayed buoyant. On the flipside, Huawei’s limited supply of imported chips that had helped boost China’s domestic producers amid Trump’s blacklist may be negatively impacted. Watch Unigroup Guoxin, Ingenic Semiconductor, Wuhan P&S Information Technology, Hangzhou Silan Microelectronics and Konfoong Material. “The most fragile part of the tech sector in our view remains semiconductor names, due to the uncertainty surrounding Huawei and the entity list combined with persistent price decline in memory chips,” said Frank Benzimra, head of Asia equity strategy at Societe Generale SA. PC, Phone Suppliers Trump’s decision to hold off on an additional levies will be good for suppliers of personal computers and smartphones. “We expect the market to react positively as the next batch of tariffs impacting PCs and smartphones now will not be imposed,” Citigroup analyst Arthur Lai said in a June 30 report. Lai pointed to companies that are “fast and flexible enough to adapt to operating environment changes” like Taiwan’s Delta Electronics, Micro-Star International, Inventec and Wistron. Here are some other sectors to watch: China Stocks China investors can finally turn their focus elsewhere after the Trump-Xi meeting showed some progress on trade. Fund managers weren’t expecting much as the two leaders met Saturday at the Group of 20 summit in Japan. An agreement to resume negotiations will be welcomed by investors. Chinese video surveillance giants could rally -- Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. -- after the U.S. and China agreed to resume negotiations. In May, the U.S. administration considered barring both companies from purchasing U.S. technology. The DMZ Meet Trump’s brief crossing of the North Korean border in the Demilitarized Zone and an agreement to restart stalled nuclear talks in a historic meeting with Kim Jong Un may also move defense-related stocks: South Korea’s so-called ‘‘peace stocks’’: Hyundai Rotem rose 5.9%, Hyundai Elevator climbed 8.5%, Namhae Chemical gained 3.7%, Hyundai Engineering climbed 2.6%, HDC Hyundai Development advanced 0.6%Japan: Ishikawa Seisakusho, Howa Machinery, Hosoya Pyro-Engineering, Mitsubishi Heavy Industries Japan Watch auto stocks as Japan and the U.S. agreed to speed up trade talks after Trump threatened to raise auto tariffs on Tokyo. The U.S. is Japan’s largest export market after China and its biggest car customer. Companies to keep an eye on include: Toyota Motor, Honda Motor, Nissan Motor, Isuzu, Hino and Subaru. As disputes over wording on climate change and trade became a focus at the G-20, a Japanese stock that could bear the brunt of any issues on this front is Hitachi Zosen. There are more than 370 waste-to-power plants operating in Japan, according to the environment ministry’s Kurisu. Japanese companies including Hitachi are producing and exporting the facilities. South Korea President Moon Jae-in’s meeting with Trump on Sunday could also give Korea’s stocks a jolt Monday: Auto stocks and their suppliers: Kia Motors, Hyundai Motor, SL Corp., Hyundai Wia, Mando Corp and Hankook TireKorean steel: Posco Southeast Asia Vietnam’s recent fame as a big winner of the U.S.-China trade war, putting itself in Trump’s crosshairs, may lead to some moves in the nation’s stock market: Kinh Bac City, Gemadept, Thanh Cong Textile, Vietnam National Textile & Garment Group, FPT Corp., Mobile World. Skepticism With no real trade deal in place, some aren’t convinced the relief rally expected on Monday will last. “The reprieve may be short-lived and there is still no guarantee that a deal can be reached or even that any deal would completely address all of the differences that have driven investor anxieties, particularly when it comes to technology and the enforcement of a possible deal,” JPMorgan’s Craig said. (Updates throughout with Monday's market moves.) --With assistance from Naoto Hosoda, Kurt Schussler, Min Jeong Lee, Nguyen Kieu Giang and Cormac Mullen. To contact Bloomberg News staff for this story: Jackie Edwards in Sydney at jedwards160@bloomberg.net;Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net;Amanda Wang in Shanghai at twang234@bloomberg.net;Heejin Kim in Seoul at hkim579@bloomberg.net To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Joanna Ossinger For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
Do Institutions Own L.D.C. S.A. (EPA:LOUP) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in L.D.C. S.A. (EPA:LOUP) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of €1.9b, L.D.C is a decent size, so it is probably on the radar of institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about LOUP. See our latest analysis for L.D.C Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. L.D.C already has institutions on the share registry. Indeed, they own 6.7% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see L.D.C's historic earnings and revenue, below, but keep in mind there's always more to the story. We note that hedge funds don't have a meaningful investment in L.D.C. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own the majority of L.D.C. S.A.. This means they can collectively make decisions for the company. Insiders own €1.4b worth of shares in the €1.9b company. That's extraordinary! It is good to see this level of investment. You cancheck here to see if those insiders have been selling any of their shares. The general public holds a 13% stake in LOUP. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. We can see that Private Companies own 9.6%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Investigate Davide Campari-Milano S.p.A. (BIT:CPR) At €8.62? 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 Davide Campari-Milano S.p.A. (BIT:CPR). The company's shares had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of €8.58 to €9.22. However, is this the true valuation level of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Davide Campari-Milano’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Davide Campari-Milano Davide Campari-Milano appears to be overvalued according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 33.58x is currently well-above the industry average of 22.16x, meaning that it is trading at a more expensive price relative to its peers. Furthermore, Davide Campari-Milano’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range. 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. Davide Campari-Milano’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. Are you a shareholder?It seems like the market has well and truly priced in CPR’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe CPR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor?If you’ve been keeping tabs on CPR for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for CPR, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Davide Campari-Milano. You can find everything you need to know about Davide Campari-Milano inthe latest infographic research report. If you are no longer interested in Davide Campari-Milano, 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.
Should We Worry About Davide Campari-Milano S.p.A.'s (BIT:CPR) P/E Ratio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at Davide Campari-Milano S.p.A.'s (BIT:CPR) P/E ratio and reflect on what it tells us about the company's share price.Davide Campari-Milano has a P/E ratio of 33.58, based on the last twelve months. That is equivalent to an earnings yield of about 3.0%. View our latest analysis for Davide Campari-Milano Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Davide Campari-Milano: P/E of 33.58 = €8.62 ÷ €0.26 (Based on the year to December 2018.) The higher the P/E ratio, the higher the price tag of a business, relative to its trailing 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. When earnings grow, the 'E' increases, over time. And in that case, the P/E ratio itself will drop rather quickly. Then, a lower P/E should attract more buyers, pushing the share price up. Davide Campari-Milano shrunk earnings per share by 16% over the last year. But it has grown its earnings per share by 15% per year over the last five years. The P/E ratio indicates whether the market has higher or lower expectations of a company. As you can see below, Davide Campari-Milano has a higher P/E than the average company (22.2) in the beverage industry. That means that the market expects Davide Campari-Milano will outperform other companies in its industry. Clearly the market expects growth, but it isn't guaranteed. So further research is always essential. I often monitordirector buying and selling. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. 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. Net debt totals just 8.7% of Davide Campari-Milano's market cap. So it doesn't have as many options as it would with net cash, but its debt would not have much of an impact on its P/E ratio. Davide Campari-Milano has a P/E of 33.6. That's higher than the average in the IT market, which is 15.8. With a bit of debt, but a lack of recent growth, it's safe to say the market is expecting improved profit performance from the company, in the next few years. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Risk Green Light at the Open, But Amber is Flashing at the Next Interchange G20 ended as well as anyone expected and, fortunately, we were spared any unpleasant surprises, but the biggest question on everyone mind is will any armistice stick or will history repeat, and trade war gridlock set in.? The markets G-20 base case scenario was doubtlessly validated if not exceeded on Saturday as the U.S. will hold off raising tariffs while negotiations to end the trade war between the two countries continue and over the short term this should be enough to anchor risk sentiment in our view. But we need to let the dust settle and gauge main streets reaction since there are several key issues to iron out none more significant than China’s demand for the U.S. to remove current tariffs and the enforcement mechanism, which in my view is “The Bridge too Far.” Now it’s time to focus on this week’s workload, and with a cluttered docket, traders have plenty to digest this week besides US-trade tension Specifically, Japan’s Tankan, Korean exports, and PMIs on Monday; the RBA in play on Tuesday; India’s budget and U.S. non-farm payrolls out on Friday to state a few. But with ‘rate cut fever” dominating investors’ minds, the only thing that matter for risk is with the Fed deliver on the markets rate cut lofty expectations. So, we are back to “data watch “where this week’s US ISM data will be significant to the market July Fed “rate cut fever” ambitions, even more so after U.S. consumer prices as measured by the Personal Consumption Expenditures index rose 0.2% on Friday. Frankly, it’s nice to get back to business after last week’s headline tease and tangle, as economic data, not headline risk will drive sentiment this week. But at least for this morning, especially given the chatter around the street. Traders are in profit taking and fade mode, especially after the unwinding of downside risk, has given the markets an extra boost. So, until there is more evidence or even a blueprint to a complete and lasting trade détente, given the comprehensive list of demand from both sides of the table, it not only suggests a bridge too far, but underlying sentiment remains quite bearish in terms of the medium-term outlook for a US-China trade deal as well the global growth outlook. Oil Prices surgedthis morning as traders feast on a double-barrelled dose of bullish news from the G-20 after Russian President confirmed the supply deal extension was done for six months but could be as much as 9. Saudi Energy Minister Khalid al-Falih supported this view said the deal would most likely be extended by nine months and no deeper reductions were needed This optimistic news triggered an immediate of unwinding G-20 and OPEC meeting tail risk premiums especially the later as OPEC+ uncertainty was building Friday when there was energetic chatter making the rounds suggesting that the Russian Oil Barons were aggressively lobbying in opposition to the extension. With the G-20 double whammy of positivity to feast on, Oil bulls are stampeding higher at the open still riding the momentum of rising geopolitical tensions, and a tighter market conditions amidst evidence that U.S. oil inventories are falling. With risk flashing green at the open,gold prices gappedlower at the open as price action is tethered to the hip of equity markets and risk sentiment but fell well short of testing significant support at $1375. Although there was a breakthrough in negotiations around Huawei, the markets remain circumspect as to whether the broader investment community will view G-20 as an absolute success. So, while the post-G-20 risk boost has undercut Gold prices, but we suspect the opening move lower was likely exaggerated by COMEX stops in thin liquidity. So, while we will monitor the integrity of the long gold position clear out, with so much global uncertainties Gold should continue to provide haven relief in these challenging times. support $1375 $1340 resistance $1400 $1420 Euro Despite all the hoopla about the USD on its death throes,the EURUSDhad its smallest weekly trading range last week since its launch. If you need farther evidence that central banks continue to squeeze the life out of currency markets look no further than that fact, I’m talking 1067 weeks of data!! 6/28/2019 1.1412 -1.1344 last 1.1374 .0068 weekly range. No wonder everyone is trading EMFX Yen Big gap at the open as the market unwind downside gamma exposure and whatever remnants of G20 fall out hedge. Liquidity was predictably thin a at 5 AM Singapore and likely exacerbated the move, so we sold someUSDJPY clipson the opening salvo widely expecting the reversions to set in ahead of Japan’s Tankan “Yuan Yuatch” Delaying tariffs and hitting the trade talk reset button means we will stay below 7 for the time being, which is directly in line with the market’s consensus. If discussions remain amicable, we would expect the USDCNH to gradually move towards 6.75 and possibly to 6.60 if a trade agreement is reached. For immediate concerns, I would expect the USD to weaken against the RMB, and ASEAN currency, which is consistent with the trade war relief long USD unwind that enveloped sentiment of the past few weeks. But I expect the USD sell-off versus ASEAN currencies to accelerate, especially with the markets tacking towards an aggressive Fed easing bias. The biggest fear I have about going all in on the Long CNH trade is the range of issues that need to be ironed out and since delaying tariff is only a reprieve, if tensions suddenly escalate again, we could have an intense move higher in USDCNH. But with that said, I’m off the stairway to 7(USDCNH) bandwagon as I do believe the U.S. administration is embarking on a weaker USD policy while the dovish Fed should continue to dent U.S. dollar demand Also, with ongoing trade discussions, I think China’s counter-cyclical F.X. policy will become more biased towards a stronger Yuan. After the U.S. administration raised tariffs on USD200bn of goods to 25%, the market was convinced USDCNH would knock on 7 USDCNH doors, but the Pboc drew a definitive line in the sand and kept USDCNY fixing below 6.90, well below our modelled expectation and the clearest signal to get out of long USD positions. I think the Yuan fix is of no lesser importance after both sides agreed to hit the trade talk reset button, so we remain on *Yuan Yuatch.” This article was written by Stephen Innes, Managing Partner atVanguard Markets LLC Thisarticlewas originally posted on FX Empire • Why Fed May Pass on July Rate Cut • EUR/USD Mid-Session Technical Analysis for July 2, 2019 • The RBA Cuts Rates as Trump Talks of Tariffs on EU Goods • Oil Price Fundamental Daily Forecast – Rangebound as Demand Concerns Outweigh Supply Cuts • XRP Keeps Retreating • Price of Gold Fundamental Daily Forecast – Just Enough Offsetting News to Hold Gold Rangebound
How Does L.D.C. S.A. (EPA:LOUP) Stand Up To These Simple Dividend Safety Checks? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll take a closer look at L.D.C. S.A. (EPA:LOUP) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. A 1.3% yield is nothing to get excited about, but investors probably think the long payment history suggests L.D.C has some staying power. 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 L.D.C! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 18% of L.D.C's profits were paid out as dividends in the last 12 months. We'd say its dividends are thoroughly covered by earnings. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. The company paid out 82% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn. It's positive to see that L.D.C's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Remember, you can always get a snapshot of L.D.C'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. L.D.C has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was €0.75 in 2009, compared to €1.50 last year. Dividends per share have grown at approximately 7.2% per year over this time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see L.D.C has grown its earnings per share at 16% per annum over the past five years. Rapid earnings growth and a low payout ratio suggests this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future. We'd also point out that L.D.C issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Firstly, we like that L.D.C pays out a low fraction of earnings. It pays out a higher percentage of its cashflow, although this is within acceptable bounds. Next, growing earnings per share and steady dividend payments is a great combination. L.D.C performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 5 analysts we track are forecasting for L.D.Cfor freewith publicanalyst estimates for the company. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
FWD buys Thai insurance unit for $3 billion, in top SE Asian sector deal By Chayut Setboonsarng BANGKOK (Reuters) - FWD Group is acquiring the life insurance business of Thailand's Siam Commercial Bank (SCB) for 92.7 billion baht ($3 billion) in Southeast Asia's biggest insurance M&A deal, broadening a rapid Asian expansion by the Hong Kong-based firm. Southeast Asia has emerged as a battleground for foreign insurers who are attracted by the region's lower insurance penetration levels and faster growth rates for life insurance premiums than in their home markets. FWD and SCB, Thailand's biggest lender by assets, said in a joint statement on Monday that the deal by FWD to acquire SCB's entire stake in SCB Life Assurance Public Co Ltd is expected to be completed later this year, subject to obtaining regulatory approvals and approval by the bank's shareholders. Owned by tycoon Richard Li, the youngest son of Hong Hong's richest person Li Ka-shing, FWD has aggressively expanded its insurance footprint in the last few years with its businesses now spread out in Indonesia, Malaysia, Singapore and Japan as it competes with the likes of Prudential and AIA. "Under this arrangement, SCB will distribute FWD's life insurance products to the bank's customers in Thailand, leveraging the bank's distribution channels for a period of 15 years," the statement said. "SCB will receive a total deal amount of 92.7 billion baht along with additional payments common in bancassurance transactions over the course of the bancassurance partnership," it said. The deal comes days after FWD agreed to buy the Hong Kong operations of U.S. insurer MetLife Inc. "Southeast Asia is growing and we want to be part of that market," said Huynh Thanh Phong, FWD's CEO, adding that FWD was keen to invest more in Thailand. FWD and SCB revived talks about the transaction in March, two years after they failed to reach a deal over disagreements on valuation, Reuters has reported. FWD executives said Thailand was a promising insurance market for the company. "Thailand is already a key market for FWD with highly attractive macroeconomic fundamentals and favourable demographics," Ronald Arculli, FWD's board chairman, told reporters in Bangkok. SCB Life and FWD are ranked fifth and eighth, respectively, or 14% combined in terms of market share of total premiums in Thailand, according to data from Thai Life Assurance Association for the first quarter of 2019. Sources told Reuters in October that FWD was working on a stockmarket listing, plans for which were likely to be formulated over the next two years. ($1 = 30.5300 baht) (Reporting by Chayut Setboonsarng; Writing by Anshuman Daga; Editing by Muralikumar Anantharaman)
The Latest: SKorea summons Japanese envoy over export curbs TOKYO (AP) — The Latest on Japan's tightening of restrictions on technology exports to South Korea (all times local): 5:50 p.m. South Korea's Foreign Ministry says the vice foreign minister has summoned the Japanese ambassador to Seoul to demand that Japan withdraw restrictions on exports of materials used in technology products. The ministry said Monday that Vice Minister Cho Sei-young told the ambassador, Yasumasa Nakamine, that the controls could hurt South Korea's industry and bilateral relations between the countries. ___ 5:15 p.m. South Korea says it plans to file a complaint with the World Trade Organization over Japan's imposition of restrictions on exports of key technology materials to South Korea for what it described as a deterioration of "international trust" between the Asian neighbors. South Korean Trade Minister Sung Yun-mo said Monday that the Seoul government sees Japan's move as retaliation against South Korean court rulings ordering Japanese firms to compensate South Korean plaintiffs over forced labor during World War II. Starting Thursday, Japanese manufacturers of fluorinated polyimides, which are used in displays and a material called "resist" and hydrogen fluoride, which are used in semiconductors, must apply for approval for sales to South Korea. South Korean technology companies including Samsung Electronics and SK Hynix say they are assessing how the Japanese import restrictions might affect their businesses. ___ 12:00 p.m. Japan is imposing further restrictions on exports to South Korea, citing a decline in "relations of international trust" between the Asian neighbors. The Ministry of Economy, Trade and Industry said a review soliciting public comments starts Monday on the move to effectively remove South Korea from a list of so-called "white nations" that have minimum restrictions on trade. Starting Thursday, Japanese exports related to technology in manufacturing, such as fluorinated polyimides used for displays, must apply for approval for each contract, the ministry said. The statement did not say what exactly was behind the bilateral tensions. But relations have soured since South Korea's Supreme Court ordered the seizure of local assets of a Japanese company after it refused to compensate forced laborers during World War II.
Does Autoneum Holding AG (VTX:AUTN) Have A Good 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! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can use Autoneum Holding AG's (VTX:AUTN) P/E ratio to inform your assessment of the investment opportunity.Autoneum Holding has a P/E ratio of 11.89, based on the last twelve months. That is equivalent to an earnings yield of about 8.4%. View our latest analysis for Autoneum Holding Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Autoneum Holding: P/E of 11.89 = CHF140.6 ÷ CHF11.83 (Based on the trailing twelve months to December 2018.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up. Autoneum Holding saw earnings per share decrease by 39% last year. But EPS is up 31% over the last 5 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. As you can see below Autoneum Holding has a P/E ratio that is fairly close for the average for the auto components industry, which is 11.9. That indicates that the market expects Autoneum Holding will perform roughly in line with other companies in its industry. The company could surprise by performing better than average, in the future. I would further inform my view by checkinginsider buying and selling., among other things. 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 spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context. Autoneum Holding's net debt equates to 43% of its market capitalization. While that's enough to warrant consideration, it doesn't really concern us. Autoneum Holding has a P/E of 11.9. That's below the average in the CH market, which is 18.3. With only modest debt, it's likely the lack of EPS growth at least partially explains the pessimism implied by the P/E ratio. Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. You might be able to find a better buy than Autoneum Holding. 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.
Rexel S.A.'s (EPA:RXL) Earnings Grew 43%, Did It Beat Long-Term Trend? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. Investors may find my commentary, albeit very high-level and brief, on Rexel S.A. (EPA:RXL) useful as an attempt to give more color around how Rexel is currently performing. View our latest analysis for Rexel RXL's trailing twelve-month earnings (from 31 December 2018) of €151m has jumped 43% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -15%, indicating the rate at which RXL is growing has accelerated. How has it been able to do this? Let's take a look at whether it is solely due to industry tailwinds, or if Rexel has experienced some company-specific growth. In terms of returns from investment, Rexel has fallen short of achieving a 20% return on equity (ROE), recording 3.6% instead. Furthermore, its return on assets (ROA) of 2.2% is below the FR Trade Distributors industry of 4.8%, indicating Rexel's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Rexel’s debt level, has increased over the past 3 years from 7.7% to 8.7%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 74% to 61% over the past 5 years. While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There could be factors that are affecting the entire industry hence the high industry growth rate over the same time frame. I recommend you continue to research Rexel to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for RXL’s future growth? Take a look at ourfree research report of analyst consensusfor RXL’s outlook. 2. Financial Health: Are RXL’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 December 2018. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Outrage as Venezuelan navy captain dies under 'torture' after arrest over alleged coup plot Rafael Acosta was among 13 people arrested over the alleged plot; he died after two days in custody - Twitter The United States and Venezuela's opposition on Sunday condemned the death under "torture" of a naval officer detained for alleged trying to oust President Nicolas Maduro. Washington blamed Maduro for the death of Rafael Acosta Arevalo, which came amid a standoff between Venezuela's opposition chief Juan Guaido and the president that's stretched for more than five months. "The United States condemns the killing and torture of" Acosta, the State Department said in a statement. The officer "died while in the custody of Maduro's thugs and their Cuban advisers," it added. National Assembly leader Mr Guaido, recognized as interim president by the United States and about 50 countries, said on Saturday evening that Acosta died "after being tortured." Acosta was part of a group of 13 people arrested for alleged involvement in a failed "coup d'etat" against Mr Maduro, which the government has tied to Guaido. Mr Maduro's government has claimed the coup was to have taken place on June 23 and 24 and involved the assassination of the president and several other senior officials. The Lima Group, made up of a dozen Latin American countries and Canada, condemned the "assassination" of Acosta and called for the intervention of UN High Commissioner for Human Rights Michelle Bachelet. Ms Bachelet, a former Chilean president, visited Caracas last week and called for the "release" of imprisoned political opponents in the country, which NGO Foro Penal says number close to 800. Tamara Suju, a Venezuelan lawyer and human rights activist exiled in the Czech Republic, tweeted that Acosta appeared in court on Friday in a "wheelchair with severe signs of torture." Venezuela's defence ministry confirmed in a statement that Acosta had "fainted" during the court hearing and that the judge ordered him transferred to a hospital, "where he died." Story continues Former intelligence chief Manuel Christopher, who joined a failed April 30 uprising against Maduro and later fled the country, in a letter on Sunday called on military commanders to "join the side of those in need and stop crossing your arms while our people and our soldiers are killed and tortured." Without referring to the mistreatment allegations, Attorney General Tarek William Saab, who is close to Mr Maduro, announced an "objective, independent and impartial investigation" following the officer's death. The National Assembly made a series of demands following Acosta's death, including an investigation by the UN rights chief, an autopsy of Acosta by an "independent international forensic team" and a "verification of the state of health" of military personnel held on accusations of "conspiracy." But the National Assembly's resolutions and laws are considered null and void by Venezuela's Supreme Court and the Constituent Assembly, both of which are controlled by Maduro loyalists. The death of Acosta comes amid heightened tensions between Maduro's government and the opposition following two rounds of unsuccessful talks held in Norway. However Mr Maduro recently said "dialogue will continue," without specifying a schedule or agenda. On top of the fraught political situation, Venezuela is also grappling with its most-severe economic crisis in recent history, with the country in the grip of power cuts and shortages of basic goods and medicines. According to the United Nations, more than seven million Venezuelans - a quarter of the country's population - need emergency humanitarian aid.
Justin Bieber jumps into 'bullying' row between Taylor Swift and Scooter Braun (Getty) Justin Bieber has waded into the Taylor Swift and Scooter Braun row, telling the Shake It Off singer that she has crossed a line by accusing the music manager of bullying. Swift hit out at Biebers manager Braun on Tumblr, posting that the man who bullied her now owns her entire back catalogue. Brauns Ithaca Holdings is acquiring Big Machine Label Group, which released all of Swifts previous work and owns her masters. Read more: Taylor Swifts scathing Tumblr post about Scooter Braun She moved labels to Universal in November, saying she did so to make sure she owned any future work, but has now blasted Braun in social media posts for his apparent bullying of her. However, his client and friend Bieber has jumped to his defence on Instagram, posting a photo of his younger self with Swift and calling her actions unfair. Bieber took responsibility for an Instagram post from 2016, where he had screenshotted a Facetime call between himself, Braun, and Kanye West and captioned it What up Taylor Swift. It was a reference to a recording leaked by Kim Kardashian of a call between West and Swift over his Famous lyric in which he disses Swift, which she says he never ran by her but which Kardashian claimed they had discussed. View this post on Instagram A post shared by Justin Bieber (@justinbieber) on Jun 30, 2019 at 2:54pm PDT She says that she was offered a deal to earn her back catalogue back with one previous album for each new one released at the label, but chose to walk away. Brauns wife Yael Cohen also responded to the post to defend her husband, claiming that Swifts father Scott Swift would have known about the sale as a shareholder - although he apparently opted out of the board meeting because there was a strict non-disclosure agreement and he didnt want to have to withhold information from his daughter. View this post on Instagram A post shared by Yael Cohen Braun (@yael) on Jun 30, 2019 at 3:53pm PDT Cohen added: And girl, who are you to talk about bullying? The world has watched you collect and drop friends like wilted flowers. My husband is anything but a bully, hes spent his life standing up for people and causes he believes in...
All-nighter EU summit enters 15th hour as leaders deadlocked over whether to replace Juncker with socialist An EU summit to choose Jean-Claude Juncker' s successor and other top Brussels jobs has gone through the early hours of the morning and picked up again at breakfast. Though the mammoth European Council meeting in the Belgian capital was formally suspended in the early hours of the morning, leaders and delegations used the time for informal bilateral discussions with each other throughout the night. After a brief rest they picked up again at breakfast on Monday morning, with a view to filling the EU's top posts – including the coveted role of European Commission president. As the summit entered its 15th hour of talks Frans Timmermans, the socialist group's candidate to lead the EU's executive, appeared to be emerging as the compromise choice after he received the backing of Angela Merkel behind the scenes. But some central and eastern European countries, wary of Mr Timmermans's reputation for social liberalism, have been blocking his appointment - at least for now. The Dutch politician supports a second Brexit referendum and has previously criticised Boris Johnson for making "borderline racist" comments. Leaders are keen to hash out a final nominee for the top post at this summit so they can beat the European Parliament to the punch on selecting a candidate - part of the power struggle between the European institutions. The Council's choice would then be put to MEPs in the European Parliament for a confirmatory vote, which will sit for the first time in this session on Tuesday. A video of a meeting on the sidelines of the summit between Mr Timmermans and Bulgarian prime minister Boyko Borissov shot late into the evening appeared to suggest a compromise was close. Under the plan, Manfred Weber, the centre-right candidate for Commission president, might instead be handed the European Parliament presidency, while Mr Timmermans - a social democrat who speaks seven languages - would take charge of the Commission. Story continues Socialist group leader Udo Bullmann (left) and and his party's candidate for Commission President, Frans Timmermans campaign in Berlin (AFP/Getty Images) “A compromise is on the horizon, in which Weber will take the Parliament and you will take the Commission, so I wanted to see from you,” Mr Borissov tells Mr Timmermans in the video. Mr Borissov then says this had been “discussed with Angela [Merkel], [Mark] Rutte and other colleagues today". EC president Jean-Claude Juncker at the summit (EPA) Mr Timmermans then says he is not sure “we should be recording all of this" before the video of the meeting ends. States opposed to the centre-left candidate heading up the Commission are reported to include the Czech republic, Poland, and Slovakia. Other top EU posts are also up for grab at the summit, including the bloc's foreign affairs chief, and potentially Donald Tusk's replacement as European Council president. Considering all the posts at the same time allows leader to horse trade - potentially making breaking the deadlock easier. Leaders discussed the succession over creamy pea soup and pan-fried langoustine, with fillets of sole and mashed potatoes, followed by a dark chocolate poached meringue and ice cream at the summit's dinner. The meal was hours later starting to allow for more one-on-on discussions between different parties to take place. The main meeting was also suspend a number of times throughout the course of the evening to make time for bilateral chats. Mr Tusk is understood to have taken a tour of EU leaders in the early hours of the morning to try and break the deadlock. Theresa May attended the meeting, for what is likely to be her last visit to Brussels as prime minister - but played a low-key role in proceedings. The only social media post the prime minister made during the summit was a picture of herself watching a cricket match of England vs India.
Pound slides as UK manufacturing hits six-year low The pound slid on Monday after British manufacturers suffered the sharpest fall in activity in more than six years last month. Brexit uncertainty and global trade tensions appear to be damaging industry, while firms have also stopped stockpiling for a no-deal Brexit that never came in March. The IHS Markit/CIPS manufacturing purchasing managers' index (PMI), a monthly survey on the performance of 600 UK firms, slid from a 49.4 reading in May to 48 in June. The figure fell below predictions in a recent Reuters poll of economists to the lowest rating since February 2013. Sterling was down more than 0.4% against the dollar in early trading, though agreement between the US and China to restart trade talks also strengthened the dollar. Reported employment levels in the sector sunk for the third month in a row despite the current record high in UK employment. The survey’s authors blamed it on “lower workloads, economic slowdown, Brexit uncertainty and hiring freezes.” The index’s figure for manufacturing output slid even further, in its biggest contraction since October 2012. READ MORE: Jeremy Hunt plans £6bn no-deal war chest ‘like bank bailout’ A spokesman for UK manufacturers said the figures showed Boris Johnson’s and Jeremy Hunt’s “race to the bottom” to sound tougher promoting a no-deal Brexit was the “height of irresponsibility.” Seamus Nevin of Make UK suggested the rhetoric of the two candidates to be the next UK prime minister showed “zero understanding” of the consequences. "The downturn in UK manufacturing deepened during June as the impact of firms unwinding stockpiles built before the original Brexit date continued to reverberate through the sector and exacerbate weak demand," IHS Markit economist Rob Dobson said. Figures seen by Yahoo Finance UK last week showed British firms had built up £6.6bn in stocks in the run-up to the now-delayed March deadline amid predictions of delays and shortages. Export demand fell for a third month in a row, as manufacturers suffer from the trade conflict between the United States and China. Story continues READ MORE: British Steel workers await their fate after deadline passes for bids Seamus Nevin, chief economist at manufacturers’ trade body Make UK, said: “Today’s data proves that May’s plunge below the 50-threshold was not just a one-off. “Businesses are cutting back on both day-to-day and capital spending with the contraction in output a reflection of growing Brexit uncertainty and, worsening global trade winds. “Firms are reporting that export demand is falling month-on-month as customers around the world are losing confidence in the future of the UK market.” He added that there was “little sign of improvement” to come because of weaknesses in the Eurozone economy. Nevin added: “Given this outlook, increasing competition to see who can race to the bottom and act tough on ‘no deal’ is the height of irresponsibility with zero understanding of the consequences.” READ MORE: UK firms stockpile £6.6bn of goods in run-up to Brexit But Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the figures showed “light at the end of the tunnel.” He said there could be a fall in output of between 0.5% and 2% in the second quarter of 2019, but added: “We’re hopeful, however, that manufacturing output will edge up in Q3, given the robust outlook for households' real incomes, recent positive news on the global trade war and the possibility of another stockpiling boost ahead of the October Brexit deadline.”
The Power of Google and Amazon Looms Over Tech IPOs (Bloomberg) -- After a years-long drought, a wave of technology startups -- Uber, Lyft, Pinterest and more -- are going public, evidence that the sector is thriving. But there’s a shadow hanging over almost all of them. Seventeen of the 22 tech initial public offerings that aimed to raise $100 million or more in the last 18 months mention Amazon.com Inc. or Google -- and sometimes both -- as a competitor or risk to their business. Many, like cyber security software maker Tenable Holdings Inc., are operationally dependent on Amazon’s cloud. Others, like photo collection site Pinterest Inc., compete directly with one of the giants, in this case Google’s image search. Critics including U.S. Democratic presidential candidate Senator Elizabeth Warren say big tech companies have created a “kill zone” that prevents startups from getting past a certain size without being bought or pushed out of business. But filings from newly public tech startups suggest a more nuanced picture is emerging: Companies can escape the “kill zone,” but if they do, they’re likely beholden to the tech giants in other ways. Consider Lyft Inc. The ride-sharing company needs to get people to download its app, so it turns to the biggest advertising system in the world -- Alphabet Inc.’s Google. In 2018 alone, Lyft spent more than $90 million on Google ads. Those ads sent people to Google and Apple-owned app stores. When they open the app, the map they see inside is driven by Google technology, which Lyft also pays for. Much of Lyft’s systems run on Amazon’s cloud -- to the tune of $300 million in fees through 2021. Moreover, Google owns more than 5% of Lyft through its investing arm Capital G. It even has a board seat. “Some of our competitors or technology partners may take actions which disrupt the interoperability of our platform with their own products or services,” Lyft said in a filing. “We expect the types and levels of competition to increase.” It’s true that big tech companies helped create the current wave of startups. Cloud providers like Amazon Web Services make it possible for businesses to grow quickly without having to build their own server farms. Google and Facebook Inc. enable companies to target and likely customers. But as the tech giants expand and enter new markets, they’re increasingly disrupting smaller businesses they may have helped foster. Fastly Inc., which specializes in a niche type of cloud computing, has benefited from distribution partnerships with Google and Amazon, helping it raise more than $180 million in its May IPO. But now, as Google and Amazon expand their cloud offerings, they’re beginning to compete with Fastly directly, the company said in a May 6 filing. Chewy Inc., the online pet food and supplies site, uses Amazon’s cloud but has viewed the e-commerce giant as a rival ever since Amazon started its own pet products brand last year. The tech giants have the power to change their services at any time, generating havoc downstream. For years, Pinterest nabbed free traffic straight from Google searches. But in early 2018, Google made a tweak that meant Pinterest image pages didn’t show up in search results, hurting online traffic and slowing user growth in the months that followed. “Our ability to maintain and increase the number of visitors directed to our service from search engines is not within our control,” Pinterest said in a filing. “Search engines, such as Google, may modify their search algorithms and policies or enforce those policies in ways that are detrimental to us. Pinterest also uses small bits of code dropped into peoples’ browsers to learn which ads they should show to each individual. Apple has cracked down on this practice in its Safari browser, and Google has made moves to limit it on Chrome as well. Software developers have long complained that they are being overcharged to use the giants’ app stores. Newly public companies also pay these tolls. Sciplay Corp., which develops mobile casino games, got all of its revenue in 2017 and 2018 through Apple, Google, Facebook and Amazon. The Las Vegas, Nevada-based company pays about 30% of its revenue back to these companies for the privilege of appearing on their app stores. The dilemma for would-be trustbusters is how to rein in the power of the big tech companies without disrupting the web of companies that now rely on them. To contact the reporter on this story: Gerrit De Vynck in New York at gdevynck@bloomberg.net To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Robin Ajello, Molly Schuetz For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
Bull of the Day: The Trade Desk (TTD) I last profiledThe Trade Desk(TTD) on May 20 in our weekly Top Picks video after the company had reported a strong "beat and raise" first quarter and the stock fell back from all-time highs above $230 to an attractive consolidation zone between $195 and $205. I was pounding the table then about the true disruption this $10 billion digital advertising David was creating amidst the Goliaths Facebook and Google. Why? Not just because they are disrupting a $750 billion global advertising market. And not just because they just entered the largest single-language consumer market in the world, China, with over 500 million people using their mobile phones to search, shop, and engage content. But precisely because The Trade Desk is a next generation advertising platform that allows marketers precision access to billions of consumers using hundreds of websites, apps, web-connected TV channels and other digital content providers like streaming music sites that slip ads into the experience. In other words, while Google and Facebook are giant "walled gardens" for advertisers to experiment in, they are not the entire universe of possible locations where companies can find their potential consumers. Plus, The Trade Desk has capitalized on the same type of data-driven technology that the giants use to target specific audiences and then give ad buyers detailed information on which customers made a purchase based on which of their ads.This attribution data is the lifeblood of the digital advertiser. What's more, The Trade Desk technology gives advertisers all of this information and access in a real-time "mission control" platform that allows two important functions: (1) consumer behavior data and research across digital media "channels" and verticals to obtain precision targeting; and (2) complete automation of ad-buying programs that can participate in virtually unlimited auctions -- lasting just 1/10th of a second -- for omnichannel advertising "real estate" that suits their requirements and audiences. Advertising Goes Algo This "programmatic" ad-buying auction is why you now see static ads changing every 30 seconds on your favorite websites. And The Trade Desk says that"Even media that isn't digital will be transacted digitally, using the internet." CEO Jeff Green even compares their platform to the modern stock exchange where automated algorithms are responsible for over 70% of the trading volume. As you may know, the real-time, global, electronic auctions that have become our security exchanges are powered by lightning-fast fiber optics and high-powered servers -- and they are largely responsible for increased liquidity via tighter bid/ask spreads and depth, supported by the speed of computers which can control risk on bigger size. This "price discovery" auction process is as old as the first futures exchanges in Chicago over 150 years ago and has always relied on a multitude of diverse participants coming together in one place and each voting for their own idea of value. Thus, the modern programmatic ad auction becomes the centralized market place for the discovery of advertising value and thereby delivers the central answer being sought: what is an ad really worth? The Linchpin: The Marketing Agency "Ads are the currency of the internet. Ads are the currency of nearly all media." - Jeff Green, CEO of The Trade Desk While advertisers can access The Trade Desk platform directly, the classic middle-man in the industry remains important. In fact, the modern ad agency is being transformed by this data-driven revolution as they no longer have to guess what will work and everything can be tested in real-time. The days of "creative" departments pitching ideas that may or may not work with a broad audience, but can't be tracked and measured, are over. Today, there is a deluge of data about customer behavior and purchasing being recorded on the web and elsewhere and all this information is available to savvy marketers. Through a self-service, cloud-based platform, ad buyers can create, manage and optimize data-driven digital advertising campaigns for their clients, including display, video, audio, native and social, and all on a multitude of devices. And they can set up ad buying and placement programs to run automatically to "chase" target audiences across the omnichannel jungle of content providers, placing ads in front of the right people, in the right place, at the right time -- and all with attribution data that is tracked to let them know what worked and what didn't. Going Algo Means Going AI Here's what my colleague Ben Rains wrote about the company's latest innovation on May 22... TTD rolled out its own AI technology it calls Koa last summer to help automatically surface data-driven recommendations in real-time to improve ad campaigns. The process allows customers to get a more market-driven price on their ads, reach the right target audience on the right devices, and more. In the end, non-ad supported services such asNetflix(NFLX),AmazonPrime (AMZN), Spotify (SPOT), and soon enoughDisney(DIS) and Apple (AAPL), have made consumers harder to reach. Therefore, companies big and small need a more modern, data-driven way to advertise, and The Trade Desk seems poised to benefit from these needs. Investors should also note that The Trade Desk recently launched a programmatic ad buying platform in China. The firm also said that its newer connected TV and audio channels “grew multiples faster” than its more mature units, which is a good sign as smart TVs from the likes ofRoku(ROKU) and digital audio and podcasts proliferate. On top of that, The Trade Desk boasted that its customer retention rate remained over 95% during Q1, “as it has for the previous 21 quarters.” (end of Ben Rains notes) The OTT World of Connected TV When advertisers circumvent traditional ad-buying and placement channels with networks and cable to get their commercials onto TV shows using the internet, it's call "over the top," or OTT. Initially named in reference to devices that go “over” a cable box to give the user access to TV content, OTT advertising is also delivered via an internet connection rather than through a traditional cable/broadcast provider. This is probably one of the biggest new markets for The Trade Desk. Here' how the company describes the opportunity for advertisers... What if you could get all the benefits of advertising on TV, but with more control over who sees your ads and how often? With Connected TV (CTV), you can serve up your ads at the right time, the right number of times – so your audience doesn’t tune out. Plus, get real-time results that help you optimize campaigns faster. Technology has changed the way people watch TV. Now we’re changing the way you reach audiences with your ads. CTV brings the advantages of programmatic to TV advertising, helping you connect with a highly engaged audience wherever they’re watching. And here are the primary benefits The Trade Desk sees its platform being able to deliver to OTT advertisers... • Data-driven targeting. Use first and third-party data to reach your most valuable audiences on every screen -– just like with your digital campaigns. • Better measurement. Track the impact of your CTV campaigns with digital and traditional metrics, including video completion rates and gross rating points. • Smarter retargeting. Re-engage viewers within households across streaming devices, computers, tablets, and mobile phones. • Premium inventory. Run your ads alongside popular TV shows and movies, in front of an audience that’s fully invested. What About the Valuation? With this year's revenue projected to hit $650 million, representing 36% growth, this $10.25 billion company is trading for over 15 times sales. That's not cheap, but it's also not out of line with many young software high-fliers like Veeva Systems (VEEV) orShopify(SHOP) that have high margins and are growing revenues between 30% and 50%. And since The Trade Desk doesn't create content or sell products, it's never in competition with any platform, marketer, or retailer. It is merely the exchange for hundreds of ad brokers and thousands of companies to get the right ads at the best price. That's why going into China right now, as a partner to Baidu,Alibaba(BABA), and Tencent makes so much sense. As CEO Jeff Green put it recently on Mad Money, they approached China as a business developer looking to facilitate ad spend and commerce for their biggest brands, not merely to tap the Chinese consumer and take money out of the country. Finally, The Trade Desk has some of the highest margins in all of software and the company is projected to grow the bottom line to $3.60 EPS next year for over a 20% advance. I would be a long-term buyer of TTD shares on pullbacks under $220. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >> 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 Trade Desk Inc. (TTD) : Free Stock Analysis ReportShopify Inc. (SHOP) : Free Stock Analysis ReportRoku, Inc. (ROKU) : Free Stock Analysis ReportNetflix, Inc. (NFLX) : Free Stock Analysis ReportThe Walt Disney Company (DIS) : Free Stock Analysis ReportAlibaba Group Holding Limited (BABA) : Free Stock Analysis ReportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
July 4th sales you don't want to miss out on For some people, the Fourth of July means grilling by the pool, long beach days and refreshing cocktails. For others, it's like Christmas in July, with our favorite retailers offering some of the most impressive sales of the season. Whether you're in the market for a new pair of summer sandals or a home decor refresh, these are the best steals to take advantage of this holiday week. Adrianna Papell:20 percent off from July 1st to July 7th Alala: Starting on July 3rd, the brand will be offering select red, white, and blue styles for up to 50 percent off with no code required Algenist: Take 20 percent off your purchase when you spend $100+ from July 3rd to July 7th Allswell: 15 percent off sitewide with codeFIREWORKSfrom June 30th to July 6th Alternative Apparel:Spend $100 and get 30 percent off with codeBIGBANG30 Anthropologie: Take an extra 50 percent off sale Athleta: All swimwear, other select styles up to 40 percent off Baublebar: Every item in their sale is under $20 -- shop through July 7th Best Buy: 40 percent off on select appliances until July 10th Boden: Save up to 50 percent off across all categories Boston Proper: Take an additional 30 percent off all sale items from July 2nd to July 7th Century 21:Shop designer brands up to 75% off across all departments including clothing, accessories and shoes. Cover FX: 20 percent off bestsellers with codeFIREWORKSfrom July 3rd to July 8th Chinese Laundry: 50 percent off your second pair, from July 1st to July 4th Cupshe: 20 percent off $80 or more with codeJULY4from July 3rd to July 7th Draper James: Additional 40 percent off sale items from July 3rd to July 7th Fossil: Extra 30 percent off sale items from July 3rd to July 7th Franco Sarto: 30 percent off Franco Sarto sandals only with codeFRANCOSANDALS, exclusions apply Frontgate: 25 percent off plus free shipping sitewide, including furniture from July 2nd to July 6th Home Depot: Save up to 40 percent on appliances with special buys and select patio Hunter Boots: Extra 10 percent off on July 3rd and July 4th, no code necessary Hush Puppies: 60 percent off select styles until August 21 Jack Rogers: Up to 60 percent off select styles until July 4th Kendra Scott: Up to 50 percent off July 3rd to July 7th La Roche-Posay: 20 percent off + free My UV Patch with orders $50+ with codeJULY19 Lilly Pulitzer: Receive a travel bottle opener for every $75 spent, travel carafe for $200 spent and collapsible basket for $500 spent Macy's: 20 percent off clearance with codeFOURTHand $10 off $25 sale with codeFOURTH25, exclusions apply M. Gemi:Over 65 percent off a handful of men's and women's style Naadam: Get Select styles up to 25 percent off through July 7 Nuria:From 7/3 until 7/7, beauty shoppers can choose either free shipping (promo codeJULY4SHIP) or 15% off (promo codeJULY4SAVE). Old Navy:Up to 60 percent off everything from June 26 until July 7, with styles starting from $4 Overstock: Take an extra 20 percent off sale items and get free shipping Parachute: Take advantage of free shipping and returns SKAGEN: Receive 60 percent off sale from now until July 6 Space NK: Beauty sets up to 50 percent off starting July 1st Socialite Clothing: 25 percent off everything and 30 percent off when you spend $300+ with codeJULY4 Swarovski: Select pieces in-store and online up to 50 percent off Trina Turk:Save an additional 30 percent on sale merchandise in-stores + online True Religion:50 percent off online and in stores until July 10th Ulta Beauty: Save up to 50 percent off and get free shipping with any $35 purchase UNOde50:Up to 50 percent off select styles from June 21 to July 31 Walmart: Save big thanks to rollbacks on everything from electronics and jewelry to baby and furniture Wayfair: Save big on outdoor furniture, bedroom furniture, living room furniture, décor, wall art and more Zulily: Up to nearly 80 percent off on select merchandise sitewide Related: Cocktails to whip up this holiday
These Factors Make Mphasis Limited (NSE:MPHASIS) 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! I've been keeping an eye on Mphasis Limited (NSE:MPHASIS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MPHASIS has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the fullreport on Mphasis here. MPHASIS delivered a bottom-line expansion of 26% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 20% return to shareholders, which is an notable feat for the company. MPHASIS's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that MPHASIS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MPHASIS's has produced operating cash levels of 1.92x total debt over the past year, which implies that MPHASIS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. MPHASIS’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 2.7%. For Mphasis, there are three key factors you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for MPHASIS’s future growth? Take a look at ourfree research report of analyst consensusfor MPHASIS’s outlook. 2. Valuation: What is MPHASIS 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 MPHASIS is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of MPHASIS? 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.
Trump's House allies lie in wait for Mueller Democrats have been dying to hear directly from special counsel Robert Mueller for months, but they're not alone. President Donald Trump's GOP allies in Congress are salivating at the chance to bruise Mueller's reputation and cast doubt on the integrity of his work. Muellers intensely anticipated July 17 testimony will bring him face to face with the Republican lawmakers who have savaged his reputation and called him the ringleader of a coup against Trump. While Democrats attempt to squeeze morsels of new information out of the notoriously tight-lipped investigator, these Trump defenders are signaling that theyll use the historic moment to try to undercut his credibility and paint him as a political pawn in Democrats efforts to undermine the president. Hes done some irreparable damage to some things and hes got to answer for them, said Rep. Louie Gohmert, one of 25 Republicans on the House Intelligence and Judiciary Committees who get to grill Mueller during the back-to-back hearings. The Texas congressman added that his reading of the special counsels report did little to temper his long history of animosity for the former FBI director: It reinforced the anal opening that I believe Mueller to be. Many House Republicans on the committees set to interview him have actually supported Mueller in the past, even if they've criticized his Russia investigation; they've sought to separate the man a senior Justice Department appointee dating to the George H.W. Bush administration and Marine Corps veteran from the probe. But Mueller will also face a grilling from Trump's top Republican allies in Congress, including Reps. Jim Jordan (Ohio), Matt Gaetz (Fla.), Devin Nunes (Calif.) and Andy Biggs (Ariz.). They intend to press him on long-held articles of Trumpian faith: that Mueller's team was biased against the president from the start and that the Russia investigation was tainted by inappropriate surveillance. Story continues Its one of the uncomfortable realities for Mueller, who is reluctantly coming to Capitol Hill under subpoena, despite telling lawmakers he intends to say nothing beyond the words in his 448-page report , which described a Trump campaign eager to benefit from Russian interference in the 2016 election. It becomes readers theatre, predicted Biggs, a member of the Judiciary Committee. When pressed on whether he thought the high-profile hearing could backfire for Democrats, the Arizona Republican replied with a smile: I certainly hope so. Arizona Rep. Andy Biggs says he expects Robert Muellers appearance may well backfire on House Democrats. Im looking forward to it, he added. Back when Democrats were still hopeful they'd be able to secure the special counsels testimony voluntarily, Rep. Doug Collins of Georgia, the top Republican on the Judiciary Committee, even released a statement calling on Chairman Jerry Nadler to seek Muellers testimony. He called the aftermath of his report a critical moment in our countrys history. In his report, Mueller indicated that he lacked evidence to charge any American with conspiring with Russians, but he detailed more than 100 contacts between Trump associates and Russian operatives. Mueller also laid out damning evidence of Trumps attempts to interfere in the special counsels investigation. And he described limitations on his ability to investigate as a result of destroyed or deleted messages, false testimony from top Trump associates like Paul Manafort and witnesses who refused to cooperate by either pleading the Fifth or invoking attorney-client privilege. Democrats hope to use the moment to bring Muellers findings mainstream. Theyve lamented that since Muellers redacted final report became public in mid-April, few Americans have actually read the document; instead it has been filtered through the lens of TV newscasts and cable punditry. A growing contingent of House Democrats who favor launching impeachment proceedings against Trump, largely because of what Mueller found, say they hope his on-camera recitation of his findings accomplish what the last two months havent. But Republicans preparing over the next two-plus weeks to question Mueller say they have their own points they hope to drive home to Americans as well. Several indicated they intend to press Mueller on when he first determined he lacked evidence to charge Americans with conspiring with Russia insinuating, without evidence, that he allowed suspicions to linger long after he had shifted his focus to the obstruction of justice investigation. The obvious question is the one that everyone in the country wants to know: when did you first know there was no conspiracy, coordination or collusion? said Jordan, one of the Republicans fiercest investigators. How much longer did it take Bob Mueller to figure that out? Did he intentionally wait until after 2018 midterms, or what? Mueller emphasized in his report that he did not make a finding on collusion, since its not a legal term, and that his decision not to bring charges didnt mean he found no evidence of them. Republicans have also questioned whether Muellers team was biased against Trump or at least appeared that it was because of the presence of officials who had either donated to Democratic candidates or privately criticized Trump. Theyve highlighted unearthed text messages from longtime FBI agent Peter Strzok, who helped initiate the investigation of the Trump campaign , in which he repeatedly blasted Trump. Strzok was removed from Muellers team early on, after his texts were discovered. How did he handle all that? What did he ask Mr. Strzok? Jordan said he intends to ask. Did he really check into how biased he was and how it impacted his work? I think thats a pretty good line of questioning. Republicans say they intend to huddle and devise a full strategy ahead of the Mueller hearing. Still, theyve already signaled that they want to press the former special counsel on how the so-called Steele Dossier factored into his work. Former British intelligence officer Christopher Steele compiled the document in 2016, describing salacious allegations about a years-long conspiracy between Trump and Russians. During the last presidential campaign, the opposition research firm Fusion GPS hired Steele, who had a longtime relationship with the FBI on Russia-related matters, to scrutinize Trump. Steele also passed his findings on to the FBI, which later used them to help obtain a surveillance warrant on a Trump campaign associate, Carter Page. Steeles work is mentioned more than a dozen times in the redacted version of Muellers final report, and Republicans say they want to know more about how Mueller viewed it and whether it informed any of his findings. Thats such an important part of this whole thing, said Rep. Chris Stewart (R-Utah), a member of the Intelligence Committee. I wouldve thought hed have wanted to know more about that. Republicans should be wary of overreaching in their questioning of Mueller, Capitol Hill and Justice Department veterans say. Mueller, who led the FBI under both a Republican and Democratic president, has long enjoyed bipartisan support. And hell be ready to parry any of the flak that GOP lawmakers send his way. Bob will stick with Marine-like discipline to his battle plan of staying within the four corners of his report. Members will say much more with their statements than he will say with his answers, said Paul McNulty, who was a deputy attorney general in the George W. Bush administration Justice Department while Mueller was FBI Director. He also served as a U.S. attorney and as a House Judiciary GOP aide during President Bill Clintons impeachment proceedings. Sam Sokol, a former top House Judiciary Committee Democratic counsel, said Republicans are asking for trouble if they travel down rabbit holes in their questioning. I think Mueller will be extremely prepared, he said. Hell present factually compelling and my guess would be an emotionally powerful defense of the good faith and patriotism of his team. I think the claims of bias or flawed procedures or misuse of the FISA court that have been made, as far as Ive seen, dont have a credible foundation and I think Mueller will be able to expose how small and political those charges are, especially when put up against the gravity of the attack on our election and foreign interference on our democracy that his report documents, Sokol said. Michael Zeldin, who served as Muellers special counsel when he was assistant attorney general of the Justice Department's Criminal Division, said Mueller has to prepare for a Republican onslaught, which could backfire if Mueller is on his game. He gets impatient, agitated, and hes not one who abides fools lightly. But I cant imagine the GOP questioning will make him nervous, because theres there nothing to expose, said Zeldin, who added that hes never seen Mueller get nervous. Other longtime observers of presidential scandal also see Republicans costing Trump politically if they push Mueller in ways that dont make sense to that small sliver of independent, swing-vote Americans who havent yet made up their mind about the significance of the Russia investigation by the time the hearing rolls around later this month. Ironically, the thing that might hurt the president the most is the tea party people who will ask Mueller probably the most hostile questions, said Steven Brill, a veteran journalist who covered Clintons impeachment and later founded the cable channel Court TV. It seems to me the most likely drama is theyre going to step in it by asking some hostile questions not based in anything. Still, some Republicans are betting that Democrats will fumble, as congressional investigators have thus far failed to land any major blows on Trump. Democrats were mercilessly mocked by the GOP for hauling in former Nixon White House Counsel John Dean during their first hearing on the Mueller report, while others criticized Democrats for gleaning little information from former Trump aide Hope Hicks during her recent closed-door testimony. The Democrats have tried impeachment lite for two months. Theyve tried hearings. They brought John Dean. They brought a cavalcade of circus stars and nothings changed, said Collins. Its still the report.
Read This Before Judging Essentra plc's (LON:ESNT) ROE 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 Essentra plc (LON:ESNT). Over the last twelve monthsEssentra has recorded a ROE of 4.7%. Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.046. View our latest analysis for Essentra Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Essentra: 4.7% = UK£24m ÷ UK£604m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the profit over the last twelve months. The higher the ROE, the more profit the company is making. So, all else equal,investors should like a high ROE. Clearly, then, one can use ROE to compare different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Essentra has a lower ROE than the average (10%) in the Chemicals industry. Unfortunately, that's sub-optimal. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Still,shareholders might want to check if insiders have been selling. Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Essentra has a debt to equity ratio of 0.52, which is far from excessive. Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Deutsche Börse’s Xetra Exchange Lists First Blockchain Firm Xetra, a Deutsche Börse-operated trading venue for financial assets such as stocks, bonds and funds, has just listed its first blockchain company. Asreportedby DGAP.de on Monday, shares in the firm, Advanced Blockchain AG, will be tradeable on Xetra from today. The news comes after the same company launched on the Frankfurt Stock Exchange in January. Berlin-based Advanced Blockchain AG develops distributed ledger technology (DLT) software for businesses, according to DGAP. Along with its subsidiary nakamo.to GmbH, the firm has built a project called peaq, which sets out to provide a blockchain base layer for enterprises. Related:Meeting Bitcoiners Online When They Live in the Same City It’s also developing adirected acyclic graph (DAG)-based blockchain called “DAGchain”. When completed, the DAGchain protocol is slated for use in a number of projects in industries such as IoT, automotive, financial and engineering. In May, Advanced Blockchain madeForbes’ listof “10 Blockchain Companies to Watch in 2019,” ranking at number 2. According toDeutsche Börse, over 90 percent of share trading across German exchanges, and around 30 percent of trading in ETFs in Europe, is transacted through Xetra. Deutsche Börseimage via Shutterstock • Metaco Offering Crypto Custody Insurance via Giant Broker Aon • Bundesbank Chief Warns on Risks of Central Bank Digital Currencies • Bitbond Plans to Raise $3.9 Million in Germany’s ‘First’ Regulated STO
The First Picture of Sophie Turner's Wedding Dress Is Here And Just Wow Photo credit: Getty Images From ELLE It's official! Everyone's favourite celebrity couple Sophie Turner and Joe Jonas have tied the knot in a lavish ceremony. The newlyweds, who legally married in a quickie Las Vegas wedding after an awards show in May, celebrated their union in front of friends and family in the south of France on Saturday. Turner opted for a traditional wedding gown with long satin sleeves, a wide skirt and a veil for the nuptials. Her blonde hair was down and she was escorted around the venue carrying her bridal bouquet under an umbrella presumably to shield her from the record-breaking hot temperatures that hit France this weekend. Photo credit: BACKGRID Also in attendance at the wedding was Jonas' brothers Nick and Kevin and their respective spouses Priyanka Chopra and Danielle. Photo credit: Getty Images Turner's Game of Thrones co-star and friend Maisie Williams, with dyed pink hair to match her beau Reuben Selby was also there, as was model Ashley Graham with husband Justin Ervin, Jonas' DNCE band members and Diplo. The ceremony followed a jam-packed week of fun for the couple, who first jetted into Paris to eat at various restaurants, hit the Celine store and party it up on a boozy boat cruise before jetting to the south of the country for some serious pre-wedding R&R. The night before the Saturday ceremony, the couple held an all-white rehearsal dinner. Williams opted for a chic shirt dress for the Friday night festivities while Graham looked divine in a cream slip dress accessorised with a small bag and open-toe sandals. Photo credit: Getty Images Sounds like a dreamy wedding to us. ('You Might Also Like',) Pyjamas You Can Wear All Day 10 Hand Soaps To Make Your Bathroom Feel Like A Fancy Hotel 8 Of The Best Natural Deodorants
An Intrinsic Calculation For TAKKT AG (ETR:TTK) Suggests It's 30% Undervalued 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 TAKKT AG (ETR:TTK) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. Check out our latest analysis for TAKKT 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. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (\u20ac, Millions)", "2019": "\u20ac94.2m", "2020": "\u20ac94.8m", "2021": "\u20ac104.1m", "2022": "\u20ac111.1m", "2023": "\u20ac116.3m", "2024": "\u20ac120.3m", "2025": "\u20ac123.2m", "2026": "\u20ac125.4m", "2027": "\u20ac127.0m", "2028": "\u20ac128.3m"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x3", "2020": "Analyst x3", "2021": "Analyst x3", "2022": "Est @ 6.67%", "2023": "Est @ 4.73%", "2024": "Est @ 3.38%", "2025": "Est @ 2.44%", "2026": "Est @ 1.77%", "2027": "Est @ 1.31%", "2028": "Est @ 0.99%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 9.93%", "2019": "\u20ac85.7", "2020": "\u20ac78.4", "2021": "\u20ac78.4", "2022": "\u20ac76.1", "2023": "\u20ac72.5", "2024": "\u20ac68.2", "2025": "\u20ac63.5", "2026": "\u20ac58.8", "2027": "\u20ac54.2", "2028": "\u20ac49.8"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= €685.5m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (0.2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.9%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €128m × (1 + 0.2%) ÷ (9.9% – 0.2%) = €1.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€1.3b ÷ ( 1 + 9.9%)10= €514.37m 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 €1.20b. 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 €18.29. Relative to the current share price of €12.8, the company appears quite good value at a 30% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at TAKKT 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 9.9%, which is based on a levered beta of 1.628. 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 TAKKT, I've compiled three important aspects you should further examine: 1. Financial Health: Does TTK 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 TTK'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 TTK? 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 ETR 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.
Dave Bautista deals out a vicious burn to the 'Fast & Furious' series Bautista as Sapper Morton in Blade Runner 2049 (Credit: Warner Bros) Ever since Dave Bautista's brooding turn in Blade Runner 2049 and, to a lesser extent, the Guardians of the Galaxy movies, he's shown that he's got rather more range than your average wrestler turned movie star. But he's not going to be joining the musclebound Fast & Furious franchise any time soon, like his former wrestling chum John Cena. Read more: Jordana Brewster for F&F9 When a fan on Twitter suggested hook up with Vin Diesel, with Baustista as the villain, he unleashed a devastating burn. Dropping in a couple of vomiting emojis, he said: “Thank you for your consideration. #Idratherdogoodfilms.” 🤢.....thank you for your consideration...🤮 #idratherdogoodfilms https://t.co/7VT0wFG6bY — Dave Bautista (@DaveBautista) June 29, 2019 Dave, that’s brutal. When another fan dropped in that he'd appeared in the less than glowing Escape Plan 2, he replied: “Genius! Big Dave didnt state that he’s never done a bad film. But I did them for particular reasons that helped build an 'acting' career. And I got to work with Sly so in your face with that! You’re dismissed!” Genius! Big Dave didnt state that he’s never done a bad film. But I did them for particular reasons that helped build an “acting” career. And I got to work with Sly so in your face with that! You’re dismissed! https://t.co/edz550V0HF — Dave Bautista (@DaveBautista) June 30, 2019 Indeed, Bautista has some ropey work on his CV (anyone for The Scorpion King 3 ? No? Anyone?), and his forthcoming appearance in the straight-to-DVD E scape Plan 3 likely won't be a career highlight. Read more: Has Vin Diesel just joined the Avatar sequels? Story continues But he's currently filming Denis Villeneuve's remake of Dune , with Oscar Isaac, Timothee Chalamet, Rebecca Ferguson, Zendaya and Josh Brolin, so there's that, not to mention reprising the wonderfully humourless Drax The Destroyer in Guardians of the Galaxy Vol. 3 . Dune is due out in November 2020, with Guardians currently without a release date as yet.
Wimbledon AI tech will examine players' reactions to instantly decide best bits of every tennis match Serbia's Novak Djokovic reacts against Britain's Kyle Edmund during their men's singles third round match on the sixth day of the 2018 Wimbledon Championships - AFP Tennis is well-known for arousing plenty of passion from players on the court - and now competitors at Wimbledon can expect to have their tense expressions and celebratory body language examined by artificial intelligence technology. Wimbledons AI machine will use visual image recognition technology to capture players reactions in order to instantly clip highlights for viewers to watch at the end of the game. The Championships is using more AI than ever before to capture the best bits in a match, including analysing the players body language through a live video stream and measuring the crowd noise through a microphone in the umpires chair. The technology, named IBM Watson, can pick up anything from an agonising gasp to a celebratory cheer - prompting him to automatically clip that point in the match. Each point is then ranked based on crowd excitement and player gestures, enabling the team of 180 people based in Wimbledons AI bunker to automatically generate the best moments for highlights in just two minutes. This year, for the first time, IBM Watson has been taught to understand the strike of a tennis ball on a racquet. Britain's Johanna Konta reacts after winning the first set against Greece's Maria Sakkari during their women's singles third round match on the fifth day of the 2017 Wimbledon Championships Credit: OLI SCARFF/AFP This allows us to clip the highlights package to be really tight, so it knows exactly when play is happening, Sam Seddon, head of IBMs AI unit at Wimbledon, told the Telegraph . We asked ourselves how do we create video content thats available really quickly?, Mr Seddon said. What are the most exciting moments in a match? You can sit there as a digital editor in a match and make that decision yourself, or you can turn that question over to an AI system. Then we had to define what exciting is - well, lets listen to how excited the crowd are, let's look how animated the players are, lets analyse the data and see whether this is a turning point in the match and use of that to generate highlights. The Duchess of Cambridge's gasps will be picked up by IBM Watson when she is sitting in the crowd at this year's Wimbledon Credit: Eddie Mulholland This is not an automatic publish process, it creates a package and the editor then chooses if they want to use it. But it is taking away the time they waste just sitting there and watching that one part of the match. Provided by IBM since 2015, AI equipment at Wimbledon is installed throughout 10 courts to monitor up to 10 hours of play a day over 13 days. Thats an awful lot of video content, Mr Seddon said. And its a lot of digital editorial time. So we actually free up time for the digital editors to go and create other content. Last year there were 220 million views of highlights across Wimbledons digital platforms. We are continuously expanding what we are doing with AI and this is the most we have ever used at Wimbledon before, Mr Seddon said. Story continues Spectators react as Britain's Andy Murray wins against Italy's Fabio Fognini Credit: AFP The All England Lawn Tennis Club, who run Wimbledon, said the excitement formula used by their AI machine is here to stay and will be used for many years to come. Whats been the most seismic shift in the past three to four years is making a conscious decision to say that if we do not evolve our traditions then we will be obsolete, Alexandra Willis, head of communications, content and digital at the All England Lawn Tennis Club, said. IBM Watson allows us to turn around highlights very quick for fans to watch online. It gives them control to watch and follow the matches and players they are most interested in. View comments
Mobile users can now change providers with just one text: Here's everything you need to know Mobile phone customers can nowswitch their suppliersby sending a single text message, thanks to new rules that come into effect today. The changes were introduced by telecoms regulatorOfcomwith the aim of making it less hassle for people to switch network provider. Until today, customers were required to ring their existing provider to set the process in motion, which usually led to the company making unwanted attempts to persuade customers to stay instead - something the watchdog said deters people from switching. Ofcom also found that 2.5 million people experienced at least one major problem when switching mobile phone provider, while seven in 10 encountered some difficulty. The watchdog said that these new rules will allow customers to control how much contact they have with their providers, and prevent mobile phone operators from "delaying and frustrating the switching process". But what do these new rules mean for you? This is the new system thatmobile phoneproviders in the UK are obliged to offer. From Monday 1 July 2019, a customer texting for a PAC code or a cancellation code will have to be sent the information immediately. These codes are valid for 30 days after they are requested. If a user decides to leave, mobile phone providers are banned from charging for a notice period that run after the switch date. Customers will text one of two memorable short codes, depending on whether they would like to keep their current telephone number or switch to a new one. All mobile phone providers are using the same short codes and are obliged to respond immediately. • Text 'PAC' to 65075 to keep your existing number and leave your contract • Text 'STAC' to 75075 to get a new mobile number and leave your contract • Text 'INFO' to 87075 to find out whether you are still in contract or not and whether you will have to pay exit charges Customers will receive a code in response via text. Businesses will receive a code within two working days. The reply should also include important information about early termination charges, handset costs and any outstanding mobile phone charges. These codes will be valid for 30 days. Customers can pass these codes on to a new provider to set up a new account, which should be switched within one working day. The old service will end on the same day, and there are no notice period charges to pay. These rules are designed to allow customers more freedom to switch between providers, and avoid racking up unnecessary costs from staying in outdated contracts or notice period charges. UK consumers could be in line to save around £10 million a year by avoiding having to pay for overlapping mobile phone services from an old and new provider during an account switch. Individually, people who are out of contract could save almost £100 per year of overpayments on their current deal, according to uSwitch figures. In short, yes. Although you can still ring your mobile phone provider to negotiate a better deal for your service, you now no longer have to go through the customer service process to switch provider seamlessly. You will still have to speak to your new provider to give them the PAC or STAC codes for the switch-over. If you don't want to use the text message system to leave, the code requests will also work on your provider's online services.
Should You Buy Advanced Micro Devices Stock? Here Are 3 Pros, 3 Cons Advanced Micro Devices (NASDAQ: AMD ) continues its roller coaster ride. AMD stock has been all over the map recently, and it shows no signs of letting up. With the stock market now surging again, AMD stock should break out in coming months. We could see $40 this fall, or 33% upside from current levels. Should You Buy Advanced Micro Devices Stock? Here Are 3 Pros, 3 Cons Source: AMD Don’t get married to the bull case for AMD stock, however. Over the long haul, this is likely to be a relatively high point for AMD. The company and its industry are highly cyclical, and AMD faces many challenges to maintain its current winning streak. AMD Stock Cons Excessive Valuation : Never forget that AMD stock is up more than 1,000% from its early 2016 lows. That’s great for folks who got in on the ground floor. But it’s a much different story for people buying AMD stock today. InvestorPlace - Stock Market News, Stock Advice & Trading Tips At this point, the market is valuing the company at about $33 billion for a company that did just $6 billion in sales last year and earned just $300 million. That’s a P/E multiple of more than 120x and also an extremely high 5.4x price-to-sales ratio for this sort of low-margin business. Intel (NASDAQ: INTC ) trades at just above 3x sales and 10.8x earnings. Analysts have AMD’s forward P/E ratio in the 30s, as they assume better margins and competitive conditions. If their earnings projections are right, AMD stock still looks super expensive. AMD’s stock price would have to drop by about 50% to reach a 15x P/E ratio and a comparable P/S ratio to Intel. Don’t Bet On Crypto Gains : AMD, like its rival Nvidia (NASDAQ: NVDA ), previously rode the crypto wave. NVDA stock and AMD stock both surged in 2017 as the price of bitcoin soared as much as a 1,000%. This made sense. People saw the rising price of bitcoin and wanted to mine coins for themselves. They were using AMD and Nvidia gear to do that. 7 Stocks to Buy for a Dovish Fed Since then, however, the crypto mining world has largely moved on. Both AMD and Nvidia reported huge declines in their graphics tech sales, in large part due to the loss of crypto revenues. AMD’s 2019 guidance was also soft, in part, because it saw crypto revenues remaining subdued. AMD said that, “the year-over-year decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales.” Story continues Now, some of these revenues could certainly come back. But people won’t be using AMD cards for mining bitcoin or many other major coins because more specialized cards work better. AMD could certainly pick up some sales if enough alt-coins really surge, but don’t count on another crypto boom like 2017. Trade War Fears : The trade war continues to stymie semiconductor companies. Many folks, myself included, have long expected an imminent deal with China. The jury’s still out on what to make of this past weekend’s meetup in Osaka. But we could be wrong. Perhaps the trade war will drag on well into this election cycle as the Chinese hope to wait and see if Trump gets the boot. If so, the prolonged uncertainty would wreak havoc on AMD’s prospects. That, in turn, would deflate AMD’s stock price. AMD Stock Pros Doing Better Than Expected : It’s no secret that semiconductors have gone into a trough. With that, AMD stock was supposed to tumble. In fact, however, AMD stock has held up very well all things considered. Rivals like Micron (NASDAQ: MU ) and Nvidia have gotten shellacked in recent months, and their revenues have plummeted. AMD’s revenue decline has been much more modest. AMD stock has gained 15.2% in the past three months, while NVDA is down almost 10% and MU shares are off 8.7%. And with tons of new product launches along with Intel struggling in data centers, AMD could even return to revenue growth again over the next couple of quarters. Strong Momentum : AMD stock may continue to be in the right place at the right time. Given its huge gains over the past couple years, it’s a leader in the tech sector. Traders gravitate to AMD stock when the NASDAQ is going up. Good news on that front; expect the NASDAQ to have a lot of good days and weeks going forward. That’s because the Fed has rolled out the red carpet for risk-takers. It plans to accelerate the economy with more rate cuts, even with a strong GDP print in Q1, very low unemployment, and stellar housing numbers recently. With the market set to roar higher, high-beta momentum darling AMD could shoot up higher. Short Squeeze Potential : Bears can’t stand AMD stock. Now there are plenty of highly valued stocks out there. But only a select few, like Tesla (NASDAQ: TSLA ) and AMD attract a passionate crowd of people obsessed with the stock. The Top 8 Tech Stocks of 2019 (So Far) These bears, unfortunately for them, have bet frequently and prematurely against AMD stock. They are now, still, short more than 10% of AMD’s float — or more than 100 million shares. At today’s prices, that’s a more than $3 billion bet that’s been running in the wrong direction. Thing will get spicy in a hurry if AMD stock breaks overhead resistance and the bears have to cover. AMD Stock Verdict In the long-run, I expect AMD stock bears will ultimately be right. The company is simply way overpriced for its current level of sales and profitability. AMD has had a great run against Intel, but the giant will strike back in due time. It requires significant optimism to expect AMD to be able to continue gaining on Intel indefinitely. In the short-term, however, anything can happen. I’m bullish on the stock market, and Advanced Micro Devices stock is perfectly positioned to ride the wave. As a trading darling with massive short interest, AMD stock could fly. The key level is $34, where the stock stalled out last year. Top that, and AMD stock could hit $40. Just be careful to take profits before gravity eventually kicks in. At the time of this writing, Ian Bezek owned INTC stock. You can reach him on Twitter at @irbezek. More From InvestorPlace 2 Toxic Pot Stocks You Should Avoid The 7 Top Small-Cap Stocks Of 2019 Critical Levels to Watch in 7 Marijuana Stocks 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post Should You Buy Advanced Micro Devices Stock? Here Are 3 Pros, 3 Cons appeared first on InvestorPlace .
Ten people killed after small plane crashes into hangar at Texas airport Ten people have been killed after a small plane crashed into a hangar at an airport in Texas. No one on board the twin-engine plane survived the incident at Addison Municipal Airport, about 20 miles north of Dallas, on Sunday morning. The Beechcraft BE-350 King Air struggled to gain altitude after taking off, veered to one side and plunged into a hangar, authorities and witnesses said. Officials said two crew members and eight passengers were killed when the twin-engine plane, scheduled to fly to St Petersburg, Florida, crashed at the Addison Municipal Airport at 9.11am. Firefighters battle to put out the blaze after the plane crashed into a hangar (Picture: Reuters) The hangar at Addison Airport in Texas was damaged by the crash (Picture: AP) The identities of those killed were not immediately released. "We don't know a lot about the people on board at this point," National Transportation Safety Board Vice Chairman Bruce Landsberg said. Read more Boris Johnson admits 'deep sense of anguish' over Nazanin Zaghari-Ratcliffe case Donald Trump becomes first sitting US president to enter North Korea In pictures: Britain basks in hottest day of the year so far Officials say the aircraft hit a hangar that then burst into flames with black smoke billowing from the building as firefighters sprayed it with water. A plane and helicopter in the hangar were damaged, but there were no people in the building. All ten people on the plane were killed in the crash (Picture: AP) Edward Martelle, a spokesman for the town of Addison, said the plane was taking off at the south end of the airport and had just lifted off the runway when it veered left, dropped its left wing and went into the hangar. Asked if the behaviour of the plane indicated engine failure, Mr Landsberg said: "We cannot confirm that there was an engine failure at this point." "There are any number of possibilities that could occur," he said. ---Watch the latest videos from Yahoo UK---
Ireland invests disputed Apple taxes in low risk, highly rated bonds DUBLIN, July 1 (Reuters) - Ireland's debt agency has invested disputed taxes collected from Apple in low risk, highly rated euro-dominated fixed income securities, predominantly short to medium-term sovereign and quasi-sovereign bonds, it said in its annual report. The European Commission ruled in August 2016 that Apple had received unfair tax incentives from Ireland. Both Apple and Dublin are appealing the ruling, saying the iPhone maker's tax treatment was in line with Irish and European Union law. Nevertheless Ireland had to fully recover the 13.1 billion euros plus interest of 1.2 billion, pending the appeal that will take several years. It will hold the funds in an escrow fund whose aim, the report said, was preserving capital to the greatest extent possible given prevailing market conditions. (Reporting by Padraic Halpin)
Meghan Markle, Prince Harry slammed over christening Archie Harrison Mountbatten-Windsor will reportedly be christened on Saturday, July 6 — two months to the day after his May 6 birth. Royal sources have told London’s The Times that parents Meghan Markle and Prince Harry are planning an intimate christening at Windsor Castle’s St. George’s Chapel, where they wed in May 2018. The ceremony will be private, in deference to their wishes to raise their son as a “private citizen.” Hello! , meanwhile, reports that the guest list has been limited to 25 guests, including Kate Middleton, Prince William, Prince Charles, Camilla, the Duchess of Cornwall and Meghan’s mother, Doria Ragland. The queen is not expected to attend. Meghan and Harry made an appearance at a Red Sox-Yankees game last weekend. (Photo: Alex Trautwig/MLB Photos via Getty Images) The infant’s godparents will also presumably be present, though they have not yet been named. Serena Williams , a close friend of Meghan’s, has been suggested as a possible godmother. According to Rebecca English, royal correspondent for the Daily Mail , the couple will break with tradition by releasing their own photo from the christening, rather than allowing media access on the day to cover arrivals. Baby #ArchieHarrison will be christened in the Queen’s private chapel at Windsor Castle (not St George’s Chapel) next Saturday,, tomorrow’s #DailyMail can reveal. There will be just 25 guests attending the intimate family ceremony. Pictures will be released afterwards. — Rebecca English (@RE_DailyMail) June 30, 2019 But while royal christenings are traditionally private affairs — with Princess Charlotte’s being the exception — Meghan and Harry are facing some flak as their reported plans come on the heels of news that U.K. taxpayers funded renovations on their home. Some are now accusing the couple of being hypocritical by taking public money while demanding privacy, while members of the media are complaining about the lack of access. Story continues Piers Morgan, last seen having it out with Alexandria Ocasio-Cortez , accused them of using the press “when it suits them.” 'They like to use the Press repeatedly when it suits them to promote themselves... you can't turn that tap on and off as and when you see fit.' @piersmorgan on Prince Harry and Meghan Markle reportedly making the decision to keep the christening of baby Archie private. pic.twitter.com/Y2lpBViY8v — Good Morning Britain (@GMB) July 1, 2019 They are happy to take money from the public purse but don't want public to have any part of their private lives and duties? They can't have it both ways. They are either Royals with everything that entails, or private citizens with no public funding at all. Hypocrites — bookfan2 (@HappyWalker59) July 1, 2019 So it seems like a small facility to cover arrivals would be reasonable, with official photographs to be released later in the day. There’s an incredible amount of goodwill, still, for Harry and Meghan and it would be a nice way to reciprocate that. — Rebecca English (@RE_DailyMail) June 30, 2019 Fans of the couple, however, have swooped to their defense. Many say Meghan and Harry are understandably wary of the media given the negative coverage they’ve received. The only ones moaning about Archie's christening being private are the haters, don't worry you lot will be able to criticise Archie's looks, skin tone and compare him to his cambridge cousins when official photos from the day are made public 🙄😐 #MeghanMarkle — Connie_1990 (@Connie19901) July 1, 2019 You all didn’t have the decency to allow her a modicum of humanity throughout her pregnancy. The goodwill that you all afforded her is being reciprocated. — DeAsia (@_iamDjayB) June 30, 2019 They will reciprocate. To the public. Us. We will get pics. We’re happy. Please don’t project your bitterness. — The Age of Sussex (@brenbrenchie) June 30, 2019 What is this anti Megan & Harry agenda about. Media intrusion killed his mother, who can blame Harry wanting to protect his family. Frogmore cottage was renovated using existing royal funds. We weren't charged extra. #teamsussex — Truly Scrumptious (@Cattleclass) July 1, 2019 Goodwill they say.... 🙄🙄🤔 pic.twitter.com/ccUfvhlyoJ — buskyta (@buskyta) June 30, 2019 This is perplexing to me, are you shocked that they have all this goodwill even after the continuous negative and abusive hit articles you and your colleagues have written against them? Do you guys have any humanity left in you or it's just about money? We 💖💖💖 them! — Benedicta Weir (@adzo72) June 30, 2019 Read more from Yahoo Lifestyle: Glowing Prince Harry and Meghan Markle attend an MLB game in London Meghan Markle and Prince Harry split from joint charity with Kate Middleton and Prince William Prince Harry celebrates his first Father's Day with new photo of son Archie Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day.
CEO Collymore, who built Safaricom into $11 billion telco, dies of cancer By Omar Mohammed and Duncan Miriri NAIROBI (Reuters) - Bob Collymore, the chief executive who helped to turn Safaricom Plc <SCOM.NR> into East Africa's most profitable company with an $11 billion valuation, has died after a nearly two-year long battle with cancer. Collymore, who took the top job with the Kenyan company in 2010, oversaw an increase of nearly 500% in its share value thanks to the popular mobile money transfer service M-Pesa and a growing customer base. Collymore, who was 61, had agreed in May to serve another year in the role after the Kenyan government, which owns 35% of the company, insisted that a local was picked to succeed him, complicating the hiring process. The board will meet on Monday to discuss his succession, Chairman Nicholas Ng'ang'a said. "The board was aware that sooner or later we needed to organize succession for Bob," he told a news conference. "We will be giving a way forward hopefully later today or in the next 24 hours." President Uhuru Kenyatta, who worked with Collymore on a joint government and private sector initiative to draw up anti-corruption strategies, mourned his passing. "We've lost a distinguished corporate leader whose contribution to our national wellbeing will be missed," the president said in a statement https://twitter.com/StateHouseKenya/status/1145557495332708352. Employees at the company also spoke warmly of Collymore, praising his friendly personality and care for their welfare. Collymore had traveled to Britain in October 2017 and received treatment for Acute Myeloid Leukemia, a cancer of the blood. He had since been undergoing treatment locally, the company said. "In recent weeks, his condition worsened and he succumbed to the cancer at his home in the early hours of Monday," the firm said. He is survived by a wife and four children. REGULATORY BATTLES Collymore, previously head of corporate affairs at South Africa's Vodacom <VODJ.J>, led the company through a pricing war sparked by rival operator Airtel Kenya <BRTI.NS> shortly before he joined Safaricom, presiding over a decision to maintain tariffs at elevated levels relative to the competition. In recent years, he has fought off attempts by the telecoms regulator to break up the company into two, the financial services business and the telecoms business, due to its dominant size. Safaricom, which is 35% owned by South Africa's Vodacom <VODJ.J>, controls about 62% of Kenya's mobile market, with 30 million subscribers. Britain's Vodafone <VOD.L> has a 5% stake. Collymore's successor will face the threat of regulatory intervention to seek to increase competition in the sector, analysts said. "At least in the interim they need someone who will be able to continue the conversation with the government around regulation issues because that is the key risk," said Mbithe Muema, a financial analyst at Infallible Group in Nairobi. Shares fell 2.7% at the start of trading on Monday before paring the losses to trade 1.4% down in mid-morning. Those who knew Collymore praised the drive that saw him rise to the top job at Safaricom with just a high school certificate. "His work ethic was unquestionable," said Jeff Koinange, a local broadcaster who was close friends with Collymore. A Briton who was born in Guyana, Collymore, launched Vodafone's 3G strategy in the Japanese business market and had worked for retailer Dixons, mobile operator O2 and BT <BT.L> in Britain before joining Vodafone. (Reporting by Omar Mohammed, Duncan Miriri and George Obulutsa; Writing by Duncan Miriri; Editing by Keith Weir)
Will Smith Thanks Fans As ‘Aladdin’ Tops ‘Independence Day’ To Become Star’s Biggest Film Worldwide Click here to read the full article. Will Smith took to Instagram this weekend as Aladdin , the Disney live-action remake of the 1992 animated classic, overtook Independence Day to become the star’s biggest film ever at the global box office (unadjusted). In a video post, a “humbled” Smith said, “To be in this game as long as I’ve been in this game and to have my biggest movie at this point in my career, I just want to say thank you.” Check out the video below in which Smith offers those thanks in myriad languages. Through Sunday , Aladdin , which is also director Guy Ritchie’s biggest global hit, has cumed $568.3M at the international box office and $874.2M worldwide. Independence Day ‘s unadjusted lifetimes were $511.2M overseas and $817.4M global. Domestically , Aladdin is just shy of Independence Day at $305.9M versus the 1996 film’s unadjusted $306.2M. For the moment, Suicide Squad remains Smith’s top-grossing movie in North America with $325.1M (also unadjusted). Related stories 'Spider-Man: Far From Home' Takes Off With $111M Overseas; 'Toy Story 4' Nears $500M WW - International Box Office 'Spider-Man: Far From Home' Snares $71M In China Through Saturday; Full Offshore Weekend Eyeing $110M+ 'Spider-Man: Far From Home' Could Weave Near Half Billion Web Around The World In First 10 Days Of B.O. - Preview Aladdin has been the surprise hit of the summer, riding its magic carpet past major milestones from early June . Strong word of mouth continues to bring a shine to the lamp and the pic has soared with audiences around the world (defying any early industry sniping which simply did not translate to moviegoers). Notably, Aladdin has made over $60M in Korea while it’s nearing $67M in Japan. Drops have been slight throughout the six weekends — this past frame was off by just 30% versus last — and there have been increases in some markets as the movie reaps holiday business. It should cross $900M global by the end of the run. Story continues The Top 5 offshore hubs through Sunday are Japan ($66.6M), Korea ($60.2M), China ($53.3M), UK ($42.8M) and Mexico ($32.1M). Domestically, Aladdin remained in the Top 4 in its 6th weekend, and this frame became Disney’s third release of 2019 to pass the $300M threshold. It’s the fourth of Disney’s live-action reimaginings to get to $300M domestically alongside Beauty And The Beast, The Jungle Book and Alice In Wonderland . Here’s Smith offering up his domo arigato and more (also “pay attention” to the Aladdin musical number reference in the text): View this post on Instagram Aladdin just became the biggest movie of my career! I’m honored and I’m Speechless. (You see what I did there?Gotta pay attention) The only thing I can say is… Thank You A post shared by Will Smith (@willsmith) on Jun 27, 2019 at 10:21am PDT Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Italians buy back float-flop shares in Aston Martin Aston Martin’s biggest shareholder took advantage of its float flop on Monday with plans to buy more shares at a knockdown price. Italian private equity firm Investindustrial, which sold a large stake at £19 per share at the IPO last year, has offered to buy back a 3% stake in the marque carmaker at £10 per share. The move prompted a rally in the FTSE 250 listed company’s shares, up 1.4%, or 13.6p, to 1018p. Following the deal, Investindustrial’s stake will rise to 34%. It owned 40% before the IPO, before cutting that to 31% at the float. Aston Martin shares have plunged by 40% since it came to market last November as sceptics question whether the company’s high spending on the development of a luxury SUV will pay off. The float, which was troubled from the start when shares tanked on the first day, has prompted chief executive Andy Palmer to launch a staunch defence. The listing had 12 banks on the deal, leading to questions about why it performed so poorly. The fresh purchase by Investindustrial, which also owns UK marque the Morgan Motor Company, suggests it believes Aston Martin is undervalued and its shares can bounce back. That’s in contrast to Aston’s second-biggest shareholder, the Kuwaiti firm Primewagon, which has slowly been selling shares over the past few months, driving down the price even further. It has taken its stake from 36% following the IPO to 30% last month with a string of share sales. The Italians had planned to buy the 3% off the Kuwaiti firm but will have to offer to buy from all shareholders, including institutional and retail investors, due to Takeover Panel rules. The sale will take the Kuwaitis down to 27%. Executives have also been busy buying shares recently. Palmer bought nearly £200,000 worth last month and finance chief Mark Wilson spent £50,000. Aston Martin, founded in London in 1913, was owned by Ford between 1987 and 2007. The US cars giant sold the business to the Kuwaiti Primewagon. Investindustrial got involved when it bought a stake in 2013.
Should Biesse S.p.A. (BIT:BSS) Be Part Of Your Dividend Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could Biesse S.p.A. (BIT:BSS) 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. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Biesse is a new dividend aristocrat in the making. It sure looks interesting on these metrics - but there's always more to the story . Remember though, given the recent drop in its share price, Biesse's yield will look higher, even though the market may now be expecting a decline in its long-term prospects. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Biesse paid out 30% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Biesse paid out 187% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. While Biesse's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Biesse's ability to maintain its dividend. We update our data on Biesse every 24 hours, so you can always getour latest analysis of its financial health, here. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Looking at the data, we can see that Biesse has been paying a dividend for the past five years. During the past five-year period, the first annual payment was €0.19 in 2014, compared to €0.48 last year. Dividends per share have grown at approximately 21% per year over this time. The dividend has been growing pretty quickly, which could be enough to get us interested even though the dividend history is relatively short. Further research may be warranted. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see Biesse has been growing its earnings per share at 46% a year over the past 5 years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. 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 Biesse's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Ultimately, Biesse 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. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for Biessefor freewith publicanalyst estimates for the company. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does Keyware Technologies NV's (EBR:KEYW) CEO Salary Compare Well With Others? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In 2001 Stéphane Vandervelde was appointed CEO of Keyware Technologies NV (EBR:KEYW). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid. View our latest analysis for Keyware Technologies At the time of writing our data says that Keyware Technologies NV has a market cap of €21m, and is paying total annual CEO compensation of €582k. (This figure is for the year to December 2018). That's just a smallish increase of 2.3% on last year. While we always look at total compensation first, we note that the salary component is less, at €376k. We looked at a group of companies with market capitalizations under €176m, and the median CEO total compensation was €327k. It would therefore appear that Keyware Technologies NV pays Stéphane Vandervelde more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see, below, how CEO compensation at Keyware Technologies has changed over time. Keyware Technologies NV has reduced its earnings per share by an average of 80% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 5.5%. Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assessthis data-rich visualizationof earnings, revenue and cash flow. Since shareholders would have lost about 44% over three years, some Keyware Technologies NV shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation. We examined the amount Keyware Technologies NV pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group. Earnings per share have not grown in three years, and the revenue growth fails to impress us. Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! Shareholders may want tocheck for free if Keyware Technologies insiders are buying or selling shares. Important note:Keyware Technologies 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.
Should You Worry About Safran SA's (EPA:SAF) CEO Pay? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Philippe Petitcolin has been the CEO of Safran SA (EPA:SAF) since 2015. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid. View our latest analysis for Safran According to our data, Safran SA has a market capitalization of €56b, and pays its CEO total annual compensation worth €2.9m. (This figure is for the year to December 2018). We note that's an increase of 20% above last year. While we always look at total compensation first, we note that the salary component is less, at €800k. We took a group of companies with market capitalizations over €7.0b, and calculated the median CEO total compensation to be €3.4m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure. So Philippe Petitcolin is paid around the average of 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 a visual representation of the CEO compensation at Safran, below. Safran SA has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 28%. This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested inthisfreevisualization of analyst forecasts. Most shareholders would probably be pleased with Safran SA for providing a total return of 122% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. Philippe Petitcolin is paid around the same as most CEOs of large companies. Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Safran (free visualization of insider trades). If you want to buy a stock that is better than Safran, thisfreelist of high return, low debt companies is a great place to look. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Plant-based meats sound healthy, but theyre still processed foods The meat industry wants to say how cell-cultured meat will be regulated. Twice in June, ingredients used by both of Americas most popular plant-based meat companies were called into question. On June 21, a consumer interest group issued concerns around one of the ingredients in Beyond Meats production process. And earlier in June, the World Health Organization said that eating hemea main ingredient in the Impossible Foods burgeris linked with the formation of carcinogens in the gut. Jeffrey Epsteins fortune is built on fraud, a former mentor says WHO says there's strong evidence that eating heme (in meat) can contribute to the formation of carcinogens in the gut. https://t.co/VzQGG9yd11 Deena Shanker (@deenashanker) June 7, 2019 Hong Kongs protesters put AirDrop to ingenious use to breach Chinas Firewall So far, both companies have weathered the criticism. But increased scrutiny of Beyond Meat and Impossible Foods meat alternatives poses a big question for all companies offering substitutes to edible animal flesh. How do they truthfully and thoughtfully communicate what they are makinghighly processed foodto consumers who are invested in their social missions, yet dubious of food that humans have tinkered with? For their part, Beyond Meat has explained that the consumer group is wrong about its use of a chemical called hexane. The pea protein we use is extracted using a water-based process, said Kelli Wilson of Beyond Meat in a statement. There are no other solvents and that process at no time involves the use of or exposure to hexane in any way. Plant-based meat companies are ultimately making processed foods, but their marketing is more in line with natural, organic offerings. I was encouraging the plant-based companies to recognize this a couple years ago, says Jack Bobo, a food technology consultant who works with companies making meat alternatives. Story continues At the time, the companies didnt seem to consider the fact that groups opposed to genetically-modified and processed foods would eventually come after them. They often tried to position themselves as being in the organic, gluten-free, natural product space, Bobo says. Now, Beyond Meat and Impossible Foods are increasingly facing questions around how their products are made. The first backlash arguably hit in 2018, when the US Food and Drug Administration expressed concern over a key ingredient in the Impossible Foods burger. The company uses genetically modified yeast to produce the soy leghemoglobin, or heme, that gives its burger a meat-like flavor. The agency later gave the company its nod of approval. An even newer category of meat alternative companies would do well to pay attention. Cell-cultured meat producers like JUST, Aleph Farms, and Memphis Meat make animal protein t hat doesnt require the slaughtering of animals. If the plant-based meat concerns catch enough public attention, they risk hurting the perception of all meat alternativesincluding the cell-cultured products that havent even hit the market. Anybody can poison the well for everybody, says Bobo. Some cell-cultured food companies are tackling their messaging even before products hit shelves. We spend a lot of time trying to make sure everyone understands what were doing, says Mike Selden, the co-founder of cell-cultured fish company Finless Foods. Theres just too many people and they dont all go for the same news sources and channels of communication. But some messaging has to wait. No matter what a lot of our communication is going to be right at the endpoint of use, like in the restaurant on the menu, and what it tastes like. As Bobo explains, how people use language around their products matter, especially when consumers are shopping and eating in an environment in which theres suspicion (much of it scientifically unwarranted) around genetically-modified ingredients and the health impacts of processed foods. For these meat alternative companies, the issue boils down to how they truthfully and thoughtfully communicate what theyre making. So far, though, the plant-based alternatives have demonstrated a winning playbook. Beyond Meats stock price has climbed more than 500% since its initial public offering in early May, from an opening price of $25 per share to $154.13 when the US markets opened Friday (June 28). Beyond Meats stock has only hit small road bumpswhen Nestlé announced plans to launch a veggie burger in the US this fall, when both Perdue Farms and Tyson Foods touted intentions to sell hybrid plant-meat products later this year, and when a story broke that grocery store chains are still mulling whether plant-based burgers should be sold in the meat aisle instead of the specialty foods section. From the perspective of cell-cultured meat companies, that early resilience could even make it easier to enter the market. Bruce Friedrich runs The Good Food Institute, a non-profit that represents, supports, and sometimes lobbies on behalf of both plant-based meat companies and startups working on cell-cultured meat. The more we can get the conventional meat industry normalizing eating plant-based meats the better, says Friedrich. All of that will help make mainstream the idea of cell-based meats as an alternative to meat. 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The Best Small Wallets for Women We get it: you love your bottomless, trifold, continental wallet and never leave home without the thing if you can help it. But when it comes to traveling, it’s best to leave big, bulky accessories at home. Lucky for you (and your credit cards, ID, and other wallet items), compact wallets are more than meets the eye. In fact, most mini wallets will fit just as much, if not more, than that 7” x 4” pouch that lives in your purse. And if you’re strapped for room in your mini backpack or plan on doing a lot of walking once you reach your destination, a heavy, boxy wallet is the last thing you want. So what do you want exactly? Well, for starters, any small wallet under 5” long will be easy to pack or carry around in a small purse. You may also want to go for a bifold wallet — one that unfolds into two halves, like our selections from Fossil and Tory Burch. And keep an eye out for anything with a short chain; these wallets are typically light enough to carry around like a wristlet. Our picks from Gucci and Michael Kors are frontrunners in this category. Still, maybe you’re not so convinced a compact wallet can hold all your cards and bills. Models like Zero Grid’s passport wallet may convince you otherwise (and you might just fall further in love with this one when you read about its anti-rip and waterproof features). Below, we’ve rounded up 12 lightweight and packable women’s mini wallets that’ll keep your travel essentials secure and compact. Coach Small Zip Around Wallet Courtesy of Coach This mini wallet enables you to downsize on the road without giving up any essentials. With two card slots, a full-length bill compartment, and a zip coin pocket, this leather pouch will keep all your belongings organized. To buy: coach.com , $125 Kate Spade ‘Sylvia’ Mini Keyring Wallet Courtesy of Kate Spade You won’t find a wallet much tinier (or more functional) than this one from Kate Spade. It’s decked out with three interior card slots, a zipper coin pocket, and a back exterior ID holder, taking up minimal space in your purse or luggage. Story continues To buy: katespade.com , $98 Cuyana Mini Zip Around Wallet Courtesy of Cuyana This chic and simple wallet was designed with the minimalist in mind. Though it’s small as can be, the pouch is equipped with enough interior slots to fit all your cards and bills, and it comes in both pebbled and smooth leather. To buy: cuyana.com , $110 Gucci ‘Rajah’ Chain Card Case Wallet Courtesy of Fossil Eliminate the need for a purse altogether with this sturdy, chained wallet from Gucci. This Italian-crafted piece opens up to reveal five card slots and two pockets, making it the perfect travel accessory to splurge on. To buy: farfetch.com , $580 Fossil ‘Logan’ RFID Mini Multifunction Wallet Courtesy of Amazon This small leather Fossil wallet easily hides away into your bags with all your cash and cards in tow. In addition to five card slots, an ID window, and two gusseted pockets, this wallet is equipped with RFID-blocking technology, so you can rest assured knowing your credit card information is safe. To buy: fossil.com , $58 Pofee Small Bifold Wallet Courtesy of Leatherology Stylish, functional, and budget-friendly, this fold-out wallet is the ultimate vacation accessory. You can fit up to 20 cards in its nine slots, slide an ID into its clear window, and add a few bills before folding it flat for easy transport. To buy: amazon.com , $19 Leatherology ‘Devon’ Slim Zip Card Case Courtesy of Michael Kors A no-bulk option like this card case-wallet hybrid is ideal for those who like to travel without a purse. Roughly the size of your smartphone, this six-slot case tucks neatly into your pants pockets or backpack compartments. To buy: leatherology.com , from $35 Michael Kors ‘Whitney’ Small Butterfly Camo Chain Wallet Courtesy of Amazon This wallet-card case combo is the ideal pick for anyone who cringes at the thought of giving up style for functionality. The studded outer shell is connected by a chain to an interior removable card case, which means you can tuck this pouch into a purse, or carry it solo by the chain. To buy: michaelkors.com , $56 Toughergun Compact Bifold Wallet Courtesy of Burberry This folding, waxed leather case will fit everything you’d need for a quick trip out of town in its six card slots, ID window, and various money pockets. Available in 16 colors, this RFID-secure wallet adds a sense of style to any travel wardrobe. To buy: amazon.com , $14 Burberry ‘Monogram Motif’ Leather Wallet Courtesy of Tory Burch Don’t let the elongated body of this Burberry piece fool you — its 5” x 3” frame will fit in the palm of your hard. Designed with fine, Italian leather, a chain wrist strap, and plenty of card slots and change pockets, this wallet is one you’ll want to tote around long after vacation is over. To buy: burberry.com , $530 Tory Burch ‘Robinson’ Mini Wallet Courtesy of Farfetch Tory Burch’s snap-close mini wallet is great for adding a pop of color to any travel wardrobe. At 4.2” x 3.6”, the tiny wallet fits neatly into small purses — but it’s also big enough to hold plenty of bills, change, and at least six cards. To buy: toryburch.com , $128 Zero Grid Passport Wallet Courtesy of Amazon This RFID-blocking nylon case was made for the frequent flier. At less than six inches long, the wallet manages to fit your passport, ID, money, tickets, and up to 10 credit cards. The case is also water- and rip-resistant, which means stress-free travel for you. To buy: amazon.com , $15
You Might Like Cramo Oyj (HEL:CRA1V) But Do You Like Its Debt? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Investors are always looking for growth in small-cap stocks like Cramo Oyj (HEL:CRA1V), with a market cap of €933m. However, an important fact which most ignore is: how financially healthy is the business? Evaluating financial health as part of your investment thesis is essential, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. Let's work through some financial health checks you may wish to consider if you're interested in this stock. However, these checks don't give you a full picture, so I’d encourage you todig deeper yourself into CRA1V here. CRA1V has built up its total debt levels in the last twelve months, from €442m to €835m – this includes long-term debt. With this increase in debt, CRA1V's cash and short-term investments stands at €7.9m to keep the business going. Moreover, CRA1V has generated cash from operations of €223m during the same period of time, leading to an operating cash to total debt ratio of 27%, signalling that CRA1V’s debt is appropriately covered by operating cash. With current liabilities at €322m, it appears that the company may not be able to easily meet these obligations given the level of current assets of €208m, with a current ratio of 0.64x. The current ratio is the number you get when you divide current assets by current liabilities. Since total debt levels exceed equity, CRA1V is a highly leveraged company. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can test if CRA1V’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 CRA1V, the ratio of 6.32x suggests that interest is appropriately covered, which means that lenders may be willing to lend out more funding as CRA1V’s high interest coverage is seen as responsible and safe practice. CRA1V’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. But, its lack of liquidity raises questions over current asset management practices for the small-cap. This is only a rough assessment of financial health, and I'm sure CRA1V has company-specific issues impacting its capital structure decisions. You should continue to research Cramo Oyj to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for CRA1V’s future growth? Take a look at ourfree research report of analyst consensusfor CRA1V’s outlook. 2. Valuation: What is CRA1V 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 CRA1V 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.
Why We Like STMicroelectronics N.V.’s (EPA:STM) 14% Return On Capital Employed Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at STMicroelectronics N.V. (EPA:STM) and reflect on its potential as an investment. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. Firstly, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Finally, we'll look at how its current liabilities affect its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for STMicroelectronics: 0.14 = US$1.3b ÷ (US$11b - US$2.1b) (Based on the trailing twelve months to March 2019.) So,STMicroelectronics has an ROCE of 14%. Check out our latest analysis for STMicroelectronics ROCE can be useful when making comparisons, such as between similar companies. STMicroelectronics's ROCE appears to be substantially greater than the 9.9% average in the Semiconductor industry. I think that's good to see, since it implies the company is better than other companies at making the most of its capital. Regardless of where STMicroelectronics sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look. Our data shows that STMicroelectronics currently has an ROCE of 14%, compared to its ROCE of 1.9% 3 years ago. This makes us think about whether the company has been reinvesting shrewdly. You can see in the image below how STMicroelectronics's ROCE compares to its industry. Click to see more on past growth. It is important to remember that ROCE shows past performance, and is not necessarily predictive. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is, after all, simply a snap shot of a single year. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for STMicroelectronics. Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. STMicroelectronics has total liabilities of US$2.1b and total assets of US$11b. As a result, its current liabilities are equal to approximately 18% of its total assets. A fairly low level of current liabilities is not influencing the ROCE too much. Overall, STMicroelectronics has a decent ROCE and could be worthy of further research. STMicroelectronics shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth. I will like STMicroelectronics better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Could Corbion N.V. (AMS:CRBN) Have The Makings Of Another Dividend Aristocrat? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll take a closer look at Corbion N.V. (AMS:CRBN) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. A slim 2.0% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Corbion 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. Explore this interactive chart for our latest analysis on Corbion! 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 61% of Corbion's profits were paid out as dividends in the last 12 months. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Corbion paid out 84% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. It's positive to see that Corbion's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Consider gettingour latest analysis on Corbion's financial position here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Corbion's dividend payments. During the past ten-year period, the first annual payment was €0.42 in 2009, compared to €0.56 last year. This works out to be a compound annual growth rate (CAGR) of approximately 2.9% a year over that time. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see Corbion has been growing its earnings per share at 94% a year over the past 5 years. With recent, rapid earnings per share growth and a payout ratio of 61%, this business looks like an interesting prospect if earnings are reinvested effectively. To summarise, shareholders should always check that Corbion's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think Corbion is paying out an acceptable percentage of its cashflow and profit. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. In sum, we find it hard to get excited about Corbion from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria. Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 Corbion 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.
India considers more powers for RBI to regulate shadow banks NEW DELHI (Reuters) - The Indian government is considering giving more powers to the central bank to regulate the struggling shadow banking sector, Finance Minister Nirmala Sitharaman informed Parliament on Monday. The government does not have any plans to infuse funds in privately-held shadow banks, she said in a written reply. "Government has received a proposal from RBI to strengthen RBI's regulatory and supervisory powers under the Reserve Bank of India Act, 1934, and the same is under consideration," Sitharaman said. The outlook on the shadow banking sector has been bleak ever since the state-run Infrastructure Leasing & Financial Services defaulted on a series of debt obligation triggering New Delhi to take over the control of the company. (Reporting by Aftab Ahmed in New Delhi; editing by Gopakumar Warrier)
Calculating The Fair Value Of Kesla Oyj (HEL:KELAS) 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 Kesla Oyj (HEL:KELAS) by taking the expected future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. Check out our latest analysis for Kesla Oyj We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. 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 (\u20ac, Millions)", "2019": "\u20ac-1.0m", "2020": "\u20ac3.5m", "2021": "\u20ac2.4m", "2022": "\u20ac1.4m", "2023": "\u20ac1.3m", "2024": "\u20ac1.2m", "2025": "\u20ac1.2m", "2026": "\u20ac1.2m", "2027": "\u20ac1.2m", "2028": "\u20ac1.1m"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ -5.03%", "2025": "Est @ -3.36%", "2026": "Est @ -2.19%", "2027": "Est @ -1.37%", "2028": "Est @ -0.8%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 10.14%", "2019": "\u20ac-0.9", "2020": "\u20ac2.9", "2021": "\u20ac1.8", "2022": "\u20ac1.0", "2023": "\u20ac0.8", "2024": "\u20ac0.7", "2025": "\u20ac0.6", "2026": "\u20ac0.5", "2027": "\u20ac0.5", "2028": "\u20ac0.4"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= €8.3m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 0.5%. We discount the terminal cash flows to today's value at a cost of equity of 10.1%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €1.1m × (1 + 0.5%) ÷ (10.1% – 0.5%) = €12m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€12m ÷ ( 1 + 10.1%)10= €4.56m 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 €12.84m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of €3.81. Relative to the current share price of €4.32, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Kesla Oyj 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 10.1%, which is based on a levered beta of 1.474. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Kesla Oyj, I've compiled three fundamental aspects you should look at: 1. Financial Health: Does KELAS 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 KELAS'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 KELAS? 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 HEL 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.
Freedom Holding Corp. Subsidiaries Assigned S&P Rating ALMATY, KAZAKHSTAN / ACCESSWIRE / July 1, 2019 /Freedom Holding Corp. (FRHC) (the "Company") today announced that Standard and Poor's Financial Services, LLC (S&P) has assigned Company subsidiaries JSC Freedom Finance, a Kazakhstan corporation and LLC Investment Company Freedom Finance, a Russian limited liability company, an issuer credit rating of "B-/stable/B" and assigned B-/B long-term and short-term foreign currency issuer credit ratings. Additionally, S&P assigned JSC Freedom Finance a national scale rating of KzBB-. Company CEO, Timur Turlov, stated, "We are pleased with our initial S&P rating as it compares favorably with the B anchor SACP that S&P assigned to regional financial service companies. It fairly reflects the current stability of our Company, as we continue to execute our business plan focusing on regional retail securities brokerage and expanding and increasing our related financial services and investment banking activities. Pursuing an S&P rating is evidence of our sensitivity to risk and our focus on managing our risks responsibly while simultaneously pursuing the many opportunities for business growth and regional expansion of our financial services activities. We expect our rating to provide our clients and business associates greater transparency and insight while allowing us the opportunity to leverage our rating for various business purposes." About S&P S&P is an international market leader in the provision of independent financial market analysis including credit data and credit ratings for companies and countries. About Freedom Holding Corp. Freedom Holding Corp. is a financial services holding company conducting retail financial brokerage, investment counseling, securities trading, investment banking and underwriting services through its subsidiaries under the name of Freedom Finance in Eastern Europe and Central Asia. The Company is a professional participant of the Kazakhstan Stock Exchange (KASE), Astana International Exchange (AIX), Moscow Exchange (MOEX), the Saint-Petersburg Exchange (SPB) the Republican Stock Exchange of Tashkent (UZSE) and the Ukrainian Exchange. The Company is headquartered in Almaty, Kazakhstan, with executive office locations in Russia and the United States. The Company operates more than 70 branch offices in Kazakhstan, Russia, Kyrgyzstan, Ukraine, Germany and Cyprus. The Company's common shares are registered with the United States Securities and Exchange Commission and are traded in the United States on the OTCQX Best Market operated by OTC Markets Group Inc., the world's largest electronic marketplace for broker-dealers to trade unlisted stocks. Investors are able to view Real Time Level II stock quotes for the Company at:http://www.otcmarkets.com. Cautionary Note Regarding Forward-Looking Statements This release contains "forward-looking" statements.All forward-looking statements are subject to uncertainty and changes in circumstances. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business and regulatory risks and factors identified in the Company's periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. The OTC Markets Group, Inc. has not approved nor disapproved of the contents of this press release. CONTACT: usoffice@freedomholdingcorp.com SOURCE:Freedom Holding Corp. View source version on accesswire.com:https://www.accesswire.com/550345/Freedom-Holding-Corp-Subsidiaries-Assigned-SP-Rating
Women Are Sharing The Devastating Reason They're Deciding Not To Have Children (Photo: Illustration: HuffPost; Photos: Getty) Theres a moment in the evening when I go to check on my children in their beds. I stay and watch them sleep for a while, enjoying their peaceful, steady breathing and the rare stillness in their faces. I feel a wave of love for them but also a jab of fear. There were many things I expected to experience when I became a parent. Love, a fierce sense of protection, exhaustion, bone-crushing tedium. What I didnt expect was so much fear not so much about grazed knees and high fevers, but an existential fear about what kind of life my children can expect in a world facing down environmental crises too enormous and terrifying to wrap our heads around. I have covered the environment for many years; I knew climate change was a disaster already unfolding: waste was building up on a planet with nowhere to put it, wildlife and trees were disappearing at an alarming rate. And yet I decided to have one child, and then another. Five years later and the world feels so much worse. My head is filled with statistics about soaring temperatures , sea level rises and insect deaths , with images of fires ripping through communities and islands being swallowed by the sea . A mural by artist Shane Grammer is visible on the wall of a building destroyed by the 2018 wildfire that destroyed the town of Paradise, California. Climate change is leading to more intense and more frequent wildfires. (Photo: Justin Sullivan via Getty Images) In 2050 by which time, according to a June study , the Arctic could be ice free, the Amazon ecosystem may have collapsed and human civilization as we know it will be disintegrating my children will be just 34 and 36. Maybe a stage in their lives when theyll have, or be thinking about having, children of their own. Maybe they wont ever have the luxury of that decision. As scientists continue to punch out increasingly apocalyptic warnings about the state of the planet, and feelings of eco-anxiety rise, its perhaps not surprising that some people have started to question whether they want to bring a child into the world. In this landscape of uncertainty, a nascent movement of grassroots organizations has sprung up to help people try to navigate these impossible decisions. One of the most high-profile is Conceivable Future. Co-founders Meghan Kallman and Josephine Ferorelli met at a concert in 2014. Within minutes of being introduced, they found themselves talking about how the climate crisis was shaping their view of having children. Story continues We we were really hungry to talk about this obviously, it was really close to the surface for us both, Ferorelli, a writer, illustrator and yoga instructor, told HuffPost. And it was a powerful relief to say it out loud and to hear someone else recognize it. Josephine Ferorelli (l) and Maghan Kallman (r), co-founders of Conceivable Future, say they are trying to inject some humanity into the debate on climate change by talking about the personal way it affects people's lives. (Photo: Jennifer Ludden) This connection between the two women planted the seed for Conceivable Futures model, which centers on bringing people together to talk about the climate crisis through the lens of their parenthood hopes and fears. When you look at all the social movements in history that have been successful, a common theme is that people can really understand what this means for their own lives, said Kallman, a sociologist and city councillor. The organization helps people put on house parties, gatherings where participants those without children as well as those who are expecting or already have kids come together to tell their stories. Some of these stories, which Kallman and Ferorelli call testimonies, are filmed and uploaded. Meis is one of the most recent. For a long time, she says in the video, she didnt want to have children. There was a knot of reasons: The potential hit to her career along with the lack of support in the U.S. for parents raising kids. But one concern really gnawed at her. I came to realize it was about climate change and anxiety about what kind of a world I would be leaving to a potential child, said Mei, 37, who lives in Chicago. She had lengthy debates with her husband. The entire time the conversation centered on climate change and whether that was an ethical thing for us to do. Eventually, they decided to go for it, and Meis first baby is due in August. But she remains deeply worried. Other testimonies reveal the agony of indecision. Meghan Hoskins, a 23-year-old from New Hampshire who very much wants kids, lays out her dilemma : I am afraid that they will eventually have to live in a world where there is no fresh water and that is increasingly full of dangerous and toxic chemicals. Back in March, during an Instagram livestream from her kitchen, Rep. Alexandria Ocasio-Cortez (D-N.Y.) paused from cooking to say: Theres scientific consensus that the lives of children are going to be very difficult. And it does lead young people to have a legitimate question: Is it OK to still have children? She triggered plenty of conservatives with this statement, including Sen. Mike Lee (R-Ut.), who staged a bizarre presentation from the Senate floor claiming the answer to climate change was more American babies . But Ocasio-Cortez also hit a nerve with people around the country, tapping into deep-seated concerns that are rarely voiced publicly. Love HuffPost? Become a founding member of HuffPost Plus today. There remains a strong taboo around women deciding not to have children, whatever their reason: whether its the climate crisis, the growing number who choose to be childfree , or the increasingly divisive national debate about abortion . This taboo is even stronger in some developing countries, where often women have little agency over their reproductive choices, explaining why the conversation about climate crisis and reproduction tends to be a relatively western one. In common with much of the climate movement generally , its a relatively white one, too. Part of the reason that talking about reproduction can inspire so much pushback, said Colin Hickey, a researcher at Utrecht University who focuses on philosophy and climate ethics, is because the world is geared toward having children. We celebrate when people announce they are going to have kids, its sort of expected, its built into our tax code, its built into our advertising and film representation. Groups like Conceivable Future, said Hickey, provide a counterpoint to this prevailing culture. I think infusing the popular debate with some other sketches of viable alternative ways of living, where being childless is not necessarily seen as a kind of failing, actually can be helpful. The world is geared toward having children and there is a taboo around women talking publicly about their decision not to have them. (Photo: Rawpixel via Getty Images) Conceivable Futures Kallman and Ferorelli insist they have no desire to prescribe or judge peoples choices. Discussions about kids and the climate crisis tend to get stuck in this question of what people are doing with their reproductive lives, said Kallman. We are totally agnostic about what people actually choose, whether they have five children, whether they have none. The aim, she said, is to draw attention to the fact people are having to ask this question at all: Its an impossible question in an impossible time. For the more than 330 members of the U.K. organization BirthStrike , the impossible decision has been made. Each has signed a voluntary declaration that theyve decided not to have children while the political will to tackle climate change continues to languish. The groups founder, Blythe Pepino, a 33-year-old musician from the U.K., wanted to have children with her partner. But then she found herself haunted by climate change research in particular the grim 2018 U.N. report that warned we have just 12 years to get our act together on climate change. Suddenly awakened to the extent of the crisis, her motherhood ambitions dissolved. She wondered if others felt the same. I put it out on Facebook and I got like 50 people coming back saying, I think Im in the same situation as you, Im interested in this, Im willing to sign up. And so, in 2018, she formed BirthStrike. The aim of the organization is not to judge people for their choices, said Pepino, but rather to get the message out about ecological breakdown, to wake people up, and bring them together. Last year Blythe Pepino founded BirthStrike, a movement for those who have decided not to have children because of the climate crisis. (Photo: Dani Riot) As with Conceivable Future, Pepino takes pains to distance herself from the population control movement. Instead, she wants to galvinize this anxiety around having children into an activist movement and a support network. The public controversy her organization inspires helps her reach people with her climate activism message. It also exposes her to online vitriol. I see people saying I wouldnt rape you anyway or Youd be a terrible mother, thank god the libtards are all stopping giving birth, said Pepino. One of the reasons the topic is so divisive, is that people fear that they will be judged for having children, said Hickey (even though both Birthstrike and Conceivable Future hammer home the point that they respect all choices). The decision thats always seemed natural and inevitable and personal, now it faces a kind of moral criticism that we havent been confronted with before. People bristle at the implication that having a child is selfish, he added. And while birth rates in the U.S. and other western countries are declining, the climate impact of having a child in a developed country is much more intense. A 2017 study found that having one fewer child was the best thing an individual could do to tackle climate change, saving a family in a developed country 58.6 tons of carbon a year . To put that in perspective that is far more than the report calculates you could save going car-free (2.4 tons), quitting flying (1.6 tons saved per transatlantic flight) or eating a plant-based diet (0.8 tons). But making reproductive decisions based on carbon metrics can feel unbearably pessimistic. And for some, having a child is a form of hope. This has been true for Londoner Lucie Brown. The mother of two, who works in the nonprofit sector and is a climate activist, told HuffPost, Maybe having children and experiencing that grief and fear for the future is what spurred me on to find the power within myself and a community of other parents to say actually we can and we have to change the systems that were living within. Lucie Brown, who has two children, says being a parent has helped spur her climate activism. (Photo: Lucie Brown) Still, she fears for the future. I dont know in this moment [whether] I would have children if I was currently without children. Jessica Garrett feels the same. After spiraling into a depression after the birth of her son How could I do my first job as a parent: keep him safe and healthy? the science educator from Somerville, Massachusetts, joined activist group Mothers Out Front, where she found a community. We could share our fears and grief and hopes for our children. And then we go out together and speak up. But if she were deciding now, she said, she might not have had any children. She completely understands would-be parents agonizing over their futures. Its an utterly heart-wrenching kind of decision to make. We do not like to think or talk about a terrifying future that we do not seem to be able to do anything about, said Jem Bendell, a sustainability professor at the University of Cumbria and the author of a 2018 viral paper on how to adapt to the inevitability of climate breakdown. We feel it is more kind to agree about visions of a better future, he said, it is a way of not facing loss and death until we have to. Conceivable Futures Ferorelli concurs. Its not a particularly hopeful project, she admitted of her cause. It involves acknowledging what a dark situation were in. Even under normal circumstances, so much about parenting can feel tinged with grief. From the difficulties many have with conception, or finding someone with whom to conceive, to the frequency of miscarriage, the pain and devastation of labor, the abandonment of an old life, the little of punches of sadness as your kids grow up and away from you . I once held tiny, utterly dependent babies in my arms. Now I have two boisterous preschoolers. I dont know what their future holds and I dont know how I will prepare them for vastly uncertain lives. The climate crisis brings with it a whole new form of grief. But what I am certain about is, that knowing all this, I would still have children again. There are no right choices here but, for me, there is hope in humanity. There has to be. Have fears about climate breakdown caused you to rethink your family plans? Share your story with us at thisnewworld@huffpost.com For more content and to be part of the This New World community, follow our Facebook page. HuffPosts This New World series is funded by Partners for a New Economy and the Kendeda Fund. All content is editorially independent, with no influence or input from the foundations. If you have an idea or tip for the editorial series, send an email to thisnewworld@huffpost.com Related Coverage These People Have Given Up Flying To Help The Environment This One Idea Can Save Us From Climate Breakdown, Say Campaigners Shocking New Report On Loss Of Nature Paints A Terrifying Picture For The Future Of Humanity Also on HuffPost This article originally appeared on HuffPost .
'Carry On' films to make a comeback after 27 years British actor Sid James (1913 - 1976) during the filming of 'Carry On Up the Khyber', 1968. (Photo by Keystone/Hulton Archive/Getty Images) The bawdy Carry On movies could be about to stage a comeback, 27 years after the last movie hit cinemas in the UK. Film producer Brian Baker has been in a legal battle with ITV, who own the rights to the franchise, for nine years, spending a reported £500,000 on fighting for the rights to sell Carry On branded products. But in a ruling by the Intellectual Property Office last week, he's now been given permission to do so, after it was deemed that ITV was not using the brand, making its trademark rights invalid. Baker, 72, is now planning to fund a new movie with the proceeds from launching a range of Carry On merchandise. He told The Daily Mail : “This ruling means we can carry out [ Carry On creator] Peter Rogers’s legacy and get everything into gear. Sid James and Barbara Windsor as they complete the last day of shooting of the film "Carry On Girls", 1973. (AP Photo/Robert Dear) “We’ll be bringing together a new team of actors with their own idiosyncrasies and personalities for the films. “They will be adapted to bring it up to modern times. We’ll have to be a bit more politically correct today.” Read more: Barbara Windsor becoming ‘more scared’ in Alzheimer’s battle The Carry On movies began in the late 1950s, and turned its ensemble of stars like Sid James, Joan Sims, Kenneth Williams, Charles Hawtree, Barbara Windsor, Hattie Jacques, Kenneth Connor and Jim Dale into household names. Producer Peter Rogers made 31 movies in all, beginning with Carry On Sergeant in 1958, and concluding with Carry On Columbus in 1992. The filming of the sequence was at Pinewood Studio's. Actress Elizabeth Knight wearing wellington boots laughs as Barbara loses her bra. (Photo by Crawshaw/Mirrorpix/Mirrorpix via Getty Images) Columbus , though a critical disaster, brought in new stars like Julian Clary and Keith Allen, alongside the old guard like Dale, Leslie Phillips and Bernard Cribbins, and was the first Carry On movie since 1978. A final movie, Carry On London , was set to go into production in 2008, at one time with Charlie Higson set to direct and the likes of Paul O'Grady and Frank Skinner to star. But after Rogers death in 2009, the project was eventually shelved. ITV said in a statement: “We know the British public love Carry On and we welcome working with anyone interested in keeping this much loved brand alive.” This isn’t the first time someone has threatened to resurrect the Carry On brand. In 2016 Hereford Films’ Jonathan Sothcott announced he would be producing a new series of film bearing the Carry On title , starting with Carry On Doctors , followed by Carry On Campus . Tim Dawson and Susan Nickson, the writers of BBC sitcom Two Pints of Lager and a Packet of Crisps , were lined up to pen the scripts. View comments
USD/CAD Daily Forecast – Pair Rebounding from 3-Month Low amid Renewed Trade Hopes TheLoonie paircontinued to extend last day’s upward rally on Monday amid positive US-China trade updates. On the Saturday G20 meeting, both the parties agreed over a trade truce pact. The new agreement offered concessions highlighting no new tariffs in the upcoming sessions. Also, China has agreed to purchase a “tremendous amount” of agricultural products from the US counterpart. “The temporary agreement does little to resolve the fundamental conflicts over trade issues that broke down talks in May and does not amount to a sustainable solution for Huawei,”wroteanalysts at Eurasia Group, a political risk consultancy. In the early hours, the USD/CAD pair took the flight and breached the 1.3102 robust resistance mark. The pair touched and rebounded from the daily high near 1.3108 level in the Asian session. Crude OilWTI Futures soared more than a dollar per barrel in the initial hours. The OPEC members havedecidedto extend the supply cuts at least until December 2019. Iran has come back and has joined the top producer, Saudi Arabia. Also, Iran and Russia look for actions that would help in uplifting the Oil prices in catering the odds caused out of an economic slowdown. The Institute of Supply Management (ISM) will come up with some crucial June reports in the early European trading session. The market takes a bearish stance on the ISM Manufacturing PMI and Prices Paid this time. Street Analysts expect a June PMI data 2.16% decline over previous 52.1 points. Anyhow, the consensus estimates the June Manufacturing PMI published by Markit Economics, to report in-line with the previous 50.1 points. Today, the Canadian economic docket remains light amid lack of economic events on account of Canada day. Also, there are no Oil-specific events like API or EIA Crude reports lined up to tweak the commodity prices. However, OPEC members meet in Vienna today, followed by further talks with Russia and other allies tomorrow. In the near term, the prospect for the pair’s future movements, remain neutral as the 50-daySMAmove along with the pair. Both the significant 100-day and 200-day SMA was hovering above the USD/CAD pair, signaling a bearish trend. Somehow, the histograms of theMACDtechnical indicator was pointing north showing signs of a short term upliftment. However, any such upward movement would get capped at around 1.3138 resistance handle. On the flip side, the next support line stands near 1.3060 mark. Hence, the pair might remain clinched near its three-month bottom at least for the next few sessions. On a broader chart, theIchimoku cloudsshowcased long term bearish trend. However, looking at the north facing pair, the future actions might display a slightly mitigated downtrend. Though the Ichimoku Clouds and base line hovered above the USD/CAD pair, the position of the conversion line was something worth noticing. In the upcoming sessions, traders can expect slight positive movements in the coming sessions. Thisarticlewas originally posted on FX Empire • Markets Pause As Trade Hopes Fade, EU Leadership In Question, RBA Slashes Interest Rates • Natural Gas Price Fundamental Daily Forecast – Short-Term Heat Could Drive Prices Through $2.308 • XRP Keeps Retreating • EUR/USD Price Forecast – Euro sideways on Tuesday • S&P 500 Price Forecast – Stock markets tread water • EUR/USD Mid-Session Technical Analysis for July 2, 2019
With EPS Growth And More, Carborundum Universal (NSE:CARBORUNIV) Is Interesting Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as 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. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inCarborundum Universal(NSE:CARBORUNIV). 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. See our latest analysis for Carborundum Universal As one of my mentors once told me, share price follows earnings per share (EPS). That means EPS growth is considered a real positive by most successful long-term investors. Impressively, Carborundum Universal has grown EPS by 20% 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. While we note Carborundum Universal's EBIT margins were flat over the last year, revenue grew by a solid 14% to ₹27b. That's a real positive. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Carborundum Universal. Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. Insiders both bought and sold Carborundum Universal shares in the last year, but the good news is they spent ₹2.2m more buying than they netted selling. So, on balance, the insider transactions are mildly encouraging. It is also worth noting that it was Executive Vice President of Human Resources M. Muthiah who made the biggest single purchase, worth ₹174m, paying ₹355 per share. On top of the insider buying, it's good to see that Carborundum Universal insiders have a valuable investment in the business. Given insiders own a small fortune of shares, currently valued at ₹5.8b, they have plenty of motivation to push the business to succeed. That holding amounts to 8.6% of the stock on issue, thus making insiders influential, and aligned, owners of the business. You can't deny that Carborundum Universal has grown its earnings per share at a very impressive rate. That's attractive. Not only that, but we can see that insiders both own a lot of, and are buying more, shares in the company. So I do think this is one stock worth watching. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Carborundum Universal is trading on a high P/E or a low P/E, relative to its industry. The good news is that Carborundum Universal is not the only growth stock with insider buying. Here'sa list of them... 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.
Why CTT - Correios De Portugal, S.A. (ELI:CTT) Could Be Your Next Investment Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of CTT - Correios De Portugal, S.A. (ELI:CTT), there's is a company with impressive financial health as well as a buoyant future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on CTT - Correios De Portugal here. Investors in search for stocks with room to flourish should look no further than CTT, with its expected earnings growth of 28% underlying the notable 26% return on equity over the next few years leading up to 2022. With a debt-to-equity ratio of 25%, CTT’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. CTT seems to have put its debt to good use, generating operating cash levels of 0.98x 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 CTT - Correios De Portugal, I've put together three essential aspects you should further research: 1. Historical Performance: What has CTT'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. 2. Valuation: What is CTT 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 CTT is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of CTT? 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.
GBP/USD Daily Forecast – Sterling Falls Below 4-Hour 100 MA After trading in a tight range for most of last week, GBP/USD has made a downside break. The move is attributed to a stronger dollar as the greenback has been gaining on positive progression in trade talks between China and the US. Trump agreed over the weekend to ease back on restriction to telecom giant Huawei and also promised not to introduce any more tariffs. In return, China will purchase an unspecified amount of US farm products, and has agreed to return back to the negotiation table. Much of the optimism as a result of this news is seen in the equity markets with several popular European indices gaining. In the currency markets, the dollar is up against all of its major counterparts. At the time of writing, the Swiss franc was the biggest decliner, down about three-quarters of a percent against the dollar. The Canadian dollar lost the least and is relatively flat versus the greenback. The British pound is the second weakest at the time of writing. It was last seen down just less than half a percent. The pair made a fairly significant break lower. Last week, it was the 100 moving average on a 4-hour chart that had been holding it higher. The pair has managed to break below it, as well as a horizontal level just below it at 1.2655. The breakdown carries bearish implications for the pair. Also, across the majors, similar price action can be seen. This makes me think that we could see a bit of a broader dollar pull back, in spite of the earlier bearish momentum. The next area to the downside in focus forGBP/USDfalls at 1.2605. Its proximity to the psychological 1.2600 handle is likely to entice buyers. I expect that rallies in the early week will be short-lived. I see some major resistance at 1.2688, but at this point, it doesn’t seem that the pair will get there even if it attempts a recovery rally. • The dollar is recovering broadly. • Recovery rallies inGBP/USDlikely to be sold following an important technical break lower. • Next area of downside interest near the 1.2600 handle. Thisarticlewas originally posted on FX Empire • Crude Oil Price Update – Taking Out $57.75 Changed Daily Trend to Down • Natural Gas Price Fundamental Daily Forecast – Short-Term Heat Could Drive Prices Through $2.308 • USD/JPY Price Forecast – US dollar continues to churn against Japanese yen • GBP/USD Price Forecast – British pound find buyers • Crude Oil Price Forecast – Crude oil markets fall hard on Tuesday • GBP/JPY Price Forecast – British pound continues to grind sideways
A Note On Walmart Inc.'s (NYSE:WMT) ROE and Debt To Equity Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Walmart Inc. (NYSE:WMT). Over the last twelve monthsWalmart has recorded a ROE of 12%. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.12 in profit. See our latest analysis for Walmart Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Walmart: 12% = US$8.4b ÷ US$75b (Based on the trailing twelve months to April 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. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Walmart has a similar ROE to the average in the Consumer Retailing industry classification (12%). That's neither particularly good, nor bad. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Virtually all companies need money to invest in the business, to grow 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 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. While Walmart does have some debt, with debt to equity of just 0.78, we wouldn't say debt is excessive. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. If two companies have 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 courseWalmart may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Teladoc Health, Inc. (NYSE:TDOC) Insiders Have Been Selling 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 we'll take a look at whether insiders have been buying or selling shares inTeladoc Health, Inc.(NYSE:TDOC). It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required. 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. 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 Teladoc Health The Chief Human Resources Officer, Michelle Bucaria, made the biggest insider sale in the last 12 months. That single transaction was for US$71k worth of shares at a price of US$60.00 each. That means that even when the share price was below the current price of US$66.41, 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. 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. This single sale was just 31% of Michelle Bucaria's stake. The only individual insider seller over the last year was Michelle Bucaria. 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! 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. It appears that Teladoc Health insiders own 1.3% of the company, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. The fact that there have been no Teladoc Health insider transactions recently certainly doesn't bother us. Our analysis of Teladoc Health 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 Teladoc Health. 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.
Your Taurus Monthly Horoscope Photo credit: Getty/Katie Czerwinski From Cosmopolitan Your Key Dates: July 2: Think about your past to predict your future July 7: Get your information from people you trust July 16: Get rid of whatever is holding you back July 22: Prioritize your happiness You’ve been feeling like something is a bit off with your crew, and this month, you’re about to find out exactly what’s going on. Eclipse season officially kicks off on July 2, when a solar eclipse in Cancer illuminates the sky. This is the third eclipse in the series. They previously occurred on July 12, 2018 and January 5, 2019. Think back to these dates, Taurus babe. Was tension high with a close friend, classmate, or colleague? Pay close attention to how events in early July align with your previous situations. This could be major. Of course, you may want to cross-check your sources after July 7 when Mercury goes retrograde. Yes, Taurus, it’s happening again. For the second time in 2019, the planet of expression will begin cruising in reverse. Though Mercury Retrograde isn’t the end of the world, it can definitely lead to some interpersonal meltdowns. During this cosmic reversal, be sure to check your sources twice. Eclipses always travel in pairs, and the second eclipse of the month occurs on July 16. This lunar eclipse will create a powerful tension between the areas of your chart linked to local community and far-away adventure, encouraging you to think outside your comfort zones. Could it be that your peers are holding you back? While it’s important to have close connections, remember that there is so much that exists beyond the horizon. If you don’t make room to expand, how will you ever grow? Domestic matters take precedent when the Sun drifts into Leo on July 22. You’re fiercely loyal-but with your steadfast spirit also comes that signature stubborn sensibility. If a tough situation has been causing you undue stress, sashay away. On July 31, a cosmic double-feature (a New Moon in Leo and Mercury ending retrograde) will inspire you to take action. If you’ve been waiting for the perfect time to have a difficult conversation with your roommate, parent, or partner, plan to open this dialogue at the end of the month. Why carry these bad vibes into August, Taurus love? Your happiness should always be your priority! ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne
Visa Charges Ahead of the Competition Management atVisa(V) has been doing everything right, and 2019 has been the year that the market prices in all of the market growth and technological innovation, observesTodd Shaver, editor ofBullMarket Report. The stock is up 30% this year, which is sensational for a $380 billion blue chip. Visa is benefitting from a boom in global payments processing, as more and more transactions shift from cash to card. More from Todd Shaver:Two Special Opportunities: Financial and Energy Estimates are that the total addressable market will expand by 10% per year for the next five years, to over $3 trillion. In 1Q19, Visa’s total payments volume grew 7% — that beats rival the 5% growth ofMastercard(MA). US growth for Visa hit 11%, beating Mastercard’s 8% growth. So the underlying market is expanding, and with Visa owning over 50% of all credit transactions, expect more and more top-line as customers continue to use their cards more frequently. The prominence of payments in the global financial services system has undeniably risen over the 12 years that McKinsey has formally tracked the sector’s dynamics. Even against this backdrop, however, 2017’s results are striking. The 11 percent growth generated by payments— which topped $1.9 trillion in global revenue—is the largest annual increase we have measured in the past five years. The milestone of a $2 trillion global industry is set to be surpassed two years sooner than expected, and a $3 trillion threshold looms just beyond our five-year projection horizon. See also:Focus on Safety, Despite New Highs And when it comes to industry disruption, Visa is actually a leader, despite being the largest player in the space (usually disruptors are the little guys). Visa has already implemented tap-and-pay cards for NYC subways and buses, which makes paying your fare much easier than traditional swiping. Expect Visa to roll this feature out nationwide — and eventually worldwide — to increase market penetration. Visa also recently acquired Earthport, a platform that enables cross-border money transfer. Visa expects to use Earthport technology to substitute for wire transfers, which take time and are costly. Users will be able to send and receive money internationally without the hassle of a wire. Visa carries a PE ratio of 35. Rival Mastercard is more expensive on a PE basis, at 43. So if you want exposure to the global payments processing market — and you certainly should, given the consistent, predictable growth — then Visa is the way to go, as the company is cheaper than its closest rival. The company is aggressively expanding its global footprint. We’re already at all-time highs, and we wouldn’t be surprised if the stock tops $200 later this year or into 2020. More From MoneyShow.com: • Medtronic: Pacemakers to Surgical Robots • The Chemours Company: A Teflon Buyback • Look at Loews: An Under the Radar Conglomerate • Corteva: Spin-Off in Seeds and Crop Protection
3 "Autopilot" Funds with 8% Yields Our subscriber mailbag served up an important question from a reader this week. What are the perfect retirement dividends to buy and hold forever? notesBrett Owens, fund specialist and editor ofContrarian Outlook. This investor is retired and manages investments for him and his wife. He asked me how to build a portfolio that will give her reliable income, with little maintenance, if he can no longer look after their investments himself. It’s a great question, and one that’s likely occurred to you, too. So let’s tackle it. While we always feel you should at least check in on your investments from time to time, let’s go ahead and piece together a portfolio we’d feel pretty comfortable buying and tucking away for the long term. We’re going to do it with just three buys. More from Brett Owens:Puerto Rico and a "Popular" Pick for Contrarians When we’re done, our three-fund portfolio will hand us a diverse collection of investments built to hold up in any market, throw off a steady 8% dividend and pay monthly dividends, to boot. A monthly payout that large gives us four critical advantages: 1. The ability to live on dividends alone:with a $500K nest egg, our portfolio would pay $40,000 in yearly dividends, more than enough for a healthy retirement for most folks—especially for a single person. 2. No daily ticker parade,because as long as your dividends are secure (and covering your bills), why would you want to stay glued to the market’s daily gyrations? 3. Faster reinvestment:With monthly dividends and a dividend reinvestment plan, our portfolio will automatically reinvest our payouts faster than with quarterly dividends, enhancing our return further. 4. A legacy:With your principal intact, you can leave more cash to your kids (or grandkids) to pay for education, for example, or maybe help buy a first home. We’re going to add one “safety valve” to keep our “autopilot” portfolio off the rocks: professional management. Because if we’re not around to manage our investments, we risk our portfolio running into a “dividend dumpster fire” likeGeneral Electric(GE) and not being able to bail out! So how are we going to hire our “managers”? Simple. By investing in actively managed closed-end funds (CEFs) These funds are famous for their high yields, with payouts of 7% and up common in the CEF space. See also:Focus on Safety, Despite New Highs I’m going to show you three of the most established CEFs in the business. All are run by smart money minds, and all trade at serious discounts that lock in our upside (and hedge our downside, too). Here they are: Now let’s take a look at each of our picks individually: Eaton Vance Tax-Advantaged Global Dividend Income Fund(ETG) Despite the “global” in its name, the Eaton Vance Tax-Advantaged Global holds a large portion of its portfolio in the US (41.5%), with most of the rest in Europe (53.2%) and the Asia-Pacific (4.4%). Management firm Eaton Vance, which traces its roots to 1924, has loaded ETG with solid US companies—tech stalwartsAlphabet(GOOGL),Amazon(AMZN) andMicrosoft(MSFT) make the top-10 list. ETG also holds “megatrend” stocks like France’sVeolia Environnement SA(VEOEY), which helps companies cut pollution and boost efficiency—a business that will never go cold, particularly in these climate-obsessed times. Another thing that makes ETG perfect for our “autopilot” portfolio: one of the steadiest CEF dividends out there. This fund yields 7.9%, and its dividend has held steady for more than a decade. Finally, ETG trades at an 8.5% discount to net asset value (NAV, or the value of its portfolio), well below its five-year average of 7.1%. So we’ve got plenty of upside ahead as its discount reverts back to its normal level. Tekla Healthcare Opportunities Fund(THQ) Tekla Healthcare Opportunities is our youngest fund — barely five years old — but its bench strength is as strong as you can get. It is run by Tekla Capital Management, a Boston firm with a team of medical doctors and boots-on-the-ground researchers. Dr. Daniel R. Olmstead runs Tekla, which he joined nearly 20 years ago. His researchers come from big players, likeMerck & Co.(MRK), as well as tiny biotech firms. If you’ve been investing in pharma stocks for a while, you know that success here is all about a company’s drug pipeline. And THQ’s savvy crew gives us the closest thing to inside knowledge of these firms’ pipelines we can get. Their approach has paid off: THQ has pummeled theiShares US Pharmaceuticals ETF(IHE), including dividends, since the CEF's launch in January 2014. And thanks to Tekla Healthcare Opportunities' mammoth 7.9% dividend (compared to just 1.2% for IHE), most of that return was in cash. These days, our pharma all-stars are honing in on some of the biggest companies in the space, with the most robust pipelines, includingPfizer(PFE),Amgen(AMGN) andGilead Sciences(GILD). THQ also holds a few non-pharma names, like health insurerAnthem(ANTM). Overwrought fears of lower healthcare spending, driven by Democrats’ “Medicare for all” proposals, have weighed on pharma stocks. That’s made THQ a bargain, at a 10.4% discount to NAV, well below its five-year average of 7.7%. That’swaytoo cheap for a fund paying 7.9% today and whose monthly dividend has held steady (not to mention a one-time special dividend paid a few years ago) since inception. The time to move on THQ is now—then you can lock it up for decades. Western Asset High Income Fund II(HIX) Western Asset High Income II is a high-yield bond fund with a long history of strong performance. The fund, run byLegg Mason(LM), which has been in the fixed-income business for 48 years, has tripledin value (including dividends) since its IPO in the late 1990s, crushing the S&P 500. HIX gives investors that strong return while yielding 8.3%. Legg Mason generates HIX’s payout through a portfolio that includes high-yield corporate bonds (61.4%), emerging-market debt (22.2%), bank loans (6.5%) and investment-grade corporate bonds (5.9%). And if you’re worried about rising interest rates hurting HIX, don’t be: the average duration of its bond holdings is a long 6.2 years, and long-duration bonds tend to perform well as rates fall. We’ve already seen that in action since January, when Fed Chair Jerome Powell put interest rates on pause — and HIX’s gains have accelerated now that rate cuts — possibly starting as early as July — are on the table. The fund’s historically high total return and consistent share-price performance make it a good fit for our “autopilot” portfolio. The fact that it’s trading at an 8.5% discount to NAV— well below its five-year average of 4.9% — makes it particularly compelling now. More From MoneyShow.com: • Medtronic: Pacemakers to Surgical Robots • The Chemours Company: A Teflon Buyback • Look at Loews: An Under the Radar Conglomerate • Corteva: Spin-Off in Seeds and Crop Protection
How to Personalize a Home (When It Isn’t Yours to Keep) Whether you’re a renter or an owner who’s still in search of their “forever home,” making your living quarters feel homey—when you know you aren’t actually staying long—can be a bit of a challenge. But we promise, guys: With a few clever, low-lift updates, you can totally give a temporary abode loads of personality and pizzazz. Here are our five favorite tricks in the book. Swap Out Generic Lighting Fixtures Reminder: 99 percent of the time, you can trade out generic, preexisting fixtures for fabulous statement lighting of your choice. All you need to do is clear the change with your landlord (if necessary), then hire a handyman or electrician to come make the swap for you. (Their average hourly rate is around $100, btw.) You can’t ask for a more transformative upgrade! Give the Space a Signature Scent Just like a spritz of your favorite perfume makes you feel like your best self in the morning, scent is a super powerful tool for creating a sense of identity within the home, too. Our best advice? Look to the new Glade® PlugIns® Scented Oil , which offer the most adjustable warmer, long-lasting (like, up to 50 days long) fragrance and a vibrant slew of scents to choose from—like the ultra-transportive Hawaiian Breeze™. (Sense of place, achieved.) Decorate Like a Gallerist Nothing will make you feel more at home than being surrounded by your personal collections of artwork and keepsakes—so whatever you do, don’t let them linger in storage . Fill your walls with paintings, garnish your surfaces with treasured tchotchkes, and generally, adopt a gallerist’s approach to creating beautiful displays throughout the home. Say it with us now: v ignette (your new favorite word). Dress Up Your Walls with Removable Wallpaper Aspirations for a bigger home one day are no excuse to live through bland, colorless walls. In fact, paint jobs and removable wallpaper are generally very welcome updates from landlords. While you can’t take ’em with you when you leave, they truly take a room from blah to beyond. In other words, they’re cosmetic updates that are well worth the splurge. Story continues Buy Forever Pieces, Regardless When you know you aren’t staying forever, it might feel tempting to buy inexpensive furniture suited to that particular space. But knowing you won’t be taking a piece with you when you leave will only enhance any transitory feelings. Instead, focus on finding furniture that you’re downright obsessed with. You may not be in your forever home yet. But hey, at least you have your forever reading chair.
Americans Think They're Smarter Than They Really Are About Money, Survey Shows When it comes to finances, most Americans think they know what they're talking about. Nearly three-quarters (71%) of U.S. adults gave themselves a high rating regarding how much they know about general finance topics, according to a report from the FINRA Investor Education Foundation. On the surface, that seems like positive news. However, when put to the test about this knowledge, the majority of Americans failed. Participants were given a 6-question quiz about relatively basic concepts like diversification, compound interest, and inflation. Only 40% of people were able to get at least four questions correct, and just 7% answered all questions correctly. Large pile of hundred dollar bills Image source: Getty Images While not everyone needs to be a finance whiz, understanding some of the more common financial concepts can help you make smart long-term money decisions. Thinking you know more than you really do can also be dangerous, because you may think you're doing what's best for your bank account when you might actually be doing more harm than good. The good news, though, is that it's relatively easy to brush up on your financial knowledge to start making the best choices for your future. Making sense of financial jargon It's understandable why not many people have a strong grip on financial concepts. Not only is the financial world filled with jargon, but it's also not the most exciting topic to think about. However, as mundane as some of these topics are, they are crucial to understand if you want to make the most of your money. One of the most commonly misunderstood financial concepts is compound interest -- only 30% of those who took the FINRA quiz were able to correctly answer how compound interest affects their money. Yet compound interest is a critical component of saving for the future, particularly when it comes to retirement. Compound interest essentially has a snowball effect on your money. You're earning interest on your interest, so your money grows exponentially faster over time. Instead of earning interest on just your initial deposit, you start earning interest on the total amount in your account. So if you're saving for retirement, the longer you leave your money in your account, the more it will grow. Story continues Another concept that those who took the quiz struggled with was regarding risk and diversification . When asked whether buying a single company's stock was safer than investing in a mutual fund, only 43% of participants correctly answered "no," while 45% admitted that they didn't know the correct answer. Understanding risk is critical when investing your money for retirement, because it can affect how much you're able to save. Investing in a mutual fund or index fund allows you to limit your risk by investing in dozens (or even hundreds) of different stocks at once. So if one or two stocks in the fund take a nosedive, your money will still be safe. On the other hand, if you were to invest all your money in a single company's stock and that company dropped in value or went out of business, you'd lose most, if not all, of your savings. Investing your money in the right places is one of the most important things to do to ensure your money is as safe as possible. Boosting your financial knowledge Everyone wants what's best for their money, but sometimes you don't know what you don't know. You may think you have a good understanding of how to manage your finances, so you may not even realize you could be making better decisions. One way you can ensure you're doing everything you can to make the most of your money is to talk to a financial professional. Approximately 60% of organizations offer online financial guidance, a survey from financial services company Alight Solutions found, and 61% of companies offer one-on-one financial counseling. If your company offers any type of financial help, it's a good idea to take advantage of it -- even if you think you don't need it. Finance can be a tricky topic, and saving for retirement is serious business. Even one seemingly minor mistake -- like investing all your money in a single stock rather than diversifying and limiting your risk -- can potentially spell disaster for your savings. Even if you've got a good handle on your money and think you're making all the right decisions, it never hurts to get a second opinion and see where there are areas to improve. Nobody knows everything, and sometimes you simply may not realize where you're falling short financially. By trying to learn as much as you can, though, you can ensure you're doing everything you can to protect every dollar. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market The Motley Fool has a disclosure policy .
Your Capricorn Monthly Horoscope Photo credit: Getty/Katie Czerwinski From Cosmopolitan Your Key Dates: July 2: Maybe change your relationship status July 7: Lighten up! July 16: Allow yourself to change your mind. July 22: Dust off your old diary for some emotional recall Capricorn babe, the next few weeks will be important for you even though it isn’t your birthday month. Two major eclipses will be shaking up your life in an extremely profound way. The drama kicks off on July 2, when a solar eclipse in Cancer blankets the sky, activating your partnership zone. I’m NGL, eclipses are very extra. Expect radical changes to occur in your interpersonal dynamics at the beginning of the month . Don’t fret, eclipses only ever expedite the inevitable. The only transformations that will take place are those already destined to occur. Sudden shifts in your bonds feel pretty significant, but try not to take everything so seriously (cough for once in your life cough). On July 7, Mercury, the planet of expression, goes retrograde, and everything is about to be a major shitshow. Communication breakdowns, technology failures, and aggravating travel delays will be inevitable through July 31. T he best thing you can do is to release some of the pressure. Let it go, Capricorn! You can’t control everything, so you might as well have some fun with this wonky Moonwalk! The second eclipse of the month occurs on July 16. If you thought the first one was important, well, get ready for round two. As the Moon in your own sign faces off with Cancer (your opposite) in the sky, dynamic tension will form between your sense of self and relationship expectations. You may soon discover that the people you were once attracted to are no longer cutting it, and that’s totally fine . Eclipses shift our perspective, but they also help us get back on track with our highest vibration. What once served you may no longer be working, so under this sky, remember that it’s totally fine to change your mind. Leo season kicks off on July 22 when the Sun drifts out of Cancer and into this fiery sign. Over the next few weeks, you may find yourself in a reflective state of mind as you process all of the radical transformations that occurred. This is an excellent time to reach out to old friends, look through journals, or sift through family archives. In fact, during the New Moon on July 31, don’t be surprised if you stumble upon a very important piece of information from your past. Your previous experiences may reveal critical information about your current realities, so use this month’s final lunation to look under the hood. ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne
Your Sagittarius Monthly Horoscope Photo credit: Getty/Katie Czerwinski From Cosmopolitan Your Key Dates: July 2: Don’t take action based on your feels July 7: Catch your breath July 16: Avoid jumping to conclusions July 22: TURN. UP. You’re legit always ready for an adventure, which is a good thing because July is-to put it simply-doing the most . The month kicks off with a solar eclipse in Cancer on July 2, marking the third installment of this eight-part series. For you, this lunation triggers a lot of deep, introspective feelings. You may find yourself recalling lots of past memories and experiences under this sky. Let these move through you, Sagittarius darling. Just because you’re thinking about your ex doesn’t mean you need to slide into their DMs. Just saying. Be careful not to send any messages impulsively from July 7 through July 31. For the second time in 2019, Mercury, the planet of expression, goes retrograde. During Mercury’s reverse motion, everything involving community gets a bit dicey. Technology meltdowns, travel delays, and interpersonal faux pas will be abundant. It can be a bit of a downer, but don’t let it kill your vibe, Sagittarius love. This cosmic about-face is a time for reflection, so rather than bulldoze full-steam ahead, take this opportunity to catch your breath. Ready for even more drama? Of course you are, Sagittarius babe! This month’s second eclipse occurs on July 16, when the Sun and Moon oppose each other in the sky. Unlike Full Moons (when the Moon glows at maximum illumination), the shadow of the Earth projected on the Moon during an eclipse, creating an unusual, tawny coloration. Similarly, your perspective may be a bit skewed during this eclipse, so try to keep your cool mid-month. This eclipse series will continue through 2020, so even though you may not receive all the information right now, trust that you’re moving in the right direction. Pretty intense stuff, huh? Don’t worry, you’ll still have lots of time to play. On July 22, the Sun moves into like-minded Leo, a fire sign that definitely knows how to turn up. This is perfect for you because over the next few weeks, Leo energy will fuel your own fire. How can you celebrate your most authentic self, Sagittarius love? You’ll be focused on feeding your curiosities through exploration, storytelling, and lots of spontaneous weekend trips. The New Moon in Leo on July 31 (which also coincides with the end of Mercury Retrograde, hallelujah!) will encourage you to indulge your truest desires. At the end of the day, you’re in charge of your own destiny. Have fun with it. ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne View comments
Your Leo Monthly Horoscope Photo credit: Getty/Katie Czerwinski From Cosmopolitan Your Key Dates: July 2: Reflect on everything that’s changed July 7: Don’t triple-text your crush at 3AM July 16: Make small changes to improve your life July 22: Happy (almost) birthday! Start shining ✨ The last two summers have been… a bit extra. Since 2016, eclipses on the Leo-Aquarius axis were shaking up almost every area of your life. While most of these changes proved to be positive, they were absolutely exhausting. Fortunately, the eclipses have switched gears and will be illuminating the Cancer-Capricorn axis through 2020. On July 3, a solar eclipse in Cancer will activate the area of your chart connected to your intuitive, psychic realm. This is time to reflect on all that has transformed. How has your life evolved over the past three years? Your senses will be extremely sharp under this sky, so make sure to give yourself plenty of space to decompress. Carving out some solo time will be especially important beginning on July 7 when Mercury-the planet of expression-goes backward in your own sign. That’s right, Leo babe, Mercury Retrograde is at it again. Through July 31, you’ll want to be extra diligent to avoid social disasters. I know you want to hear from your crush, but sending five dozen text messages may not be the best approach. Keep your cool, lion darling. You don’t want to create problems unnecessarily. Eclipses always travel in pairs. On July 16, a lunar eclipse in Capricorn will electrify the night sky. This lunation will create a dynamic tension between your spirituality and functionality, encouraging you to reconsider how you spend your days. If the rat race has started taking a toll on your energy, this is an excellent time to renegotiate your realities . Before you make any radical changes (especially during Mercury Retrograde), start small. Try taking a different route during your morning commute-even the slightest shift in perspective could yield monumental results. On July 22, the Sun, which just so happens to be your celestial ruler, moves into your own sign and kicks off Leo season. Hello, birthday baby. It’s officially your time to shine! You love to be the center of attention, so live it up under the Sun. The next few weeks are all about you. Be sure to celebrate your passionate, playful, and performative sensibilities. On July 31, the Moon will join the Sun in Leo, creating a dynamic New Moon that will be sure to catalyze exciting opportunities . So embrace it in true Leo fashion-with big hair, animal prints, and lots of bold decisions. ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne
Your Aries Monthly Horoscope Photo credit: Getty/Katie Czerwinski From Cosmopolitan Your Key Dates: July 2: Take on a new role in your family July 7: Pack some emergency Advil July 16: Prepare for a big surprise July 22: Dont think twicechase your crush Heres to hoping June was restful, restorative, and relaxing because the cosmos are not f*cking around this July. In what very likely could be the most extra month of the year-filled with back-to-back eclipses and retrogrades- radical transformations are abound. Hold on to your hat, Aries babe: This month is going to be a doozy. Were off with a bang, as a solar eclipse electrifies the sky on July 2. Solar eclipses occur during New Moons when the Sun and the Moon meet in the same sign. On this date, theyre connecting in Cancer, the sensitive water sign that lights up the area of your chart associated with the home. During this eclipse, consider the ways your role within your family structure has changed. Youre maturing faster than you realize, Aries love! On July 7, everyones favorite messenger planet Mercury begins its retrograde cycle. Yep, Mercury is going backward again, and this time, its moving through the area of your chart linked to creativity, artistic expression, and romance. Through July 31, dont be surprised if you find yourself navigating through lots of miscommunications and malfunctions. Headaches are inevitable during Mercury Retrograde, so remember to pack an emergency Advil. When it comes to this cosmic reversal, the best way out is through. Julys second eclipse will occur on July 16 as a lunar eclipse electrifies the Cancer-Capricorn axis. Lunar eclipses occur on Full Moons-a phenomena thats known to deliver critical information. Due to the unpredictable nature of eclipses, the details may seem a bit shocking at first. Lean into it, Aries. You love surprises! Eclipses are linked to narratives so, right now, focus on identifying the major themes that are presenting themselves. These will continue to unfold through 2020. Story continues But theres more to this month than just responsibilities and growth; its summer, after all! On July 22, the Sun scoots into Leo-a like-minded fire sign thats all about the glow-up. Whether youre spearheading a drinking game, delivering a poignant wedding speech, or showing off your new (and completely spontaneous) tattoo, Leo season will make sure youre basking in the spotlight. And considering this months zeal, its no surprise the month concludes with drama. On July 31, a New Moon in Leo will mark the third lunation of this month, encouraging you to channel all that scattered energy and make a big, declarative statement. Will you finally work up the courage to make a move on your long-time crush? Mercury ends its retrograde cycle just in time to let you do your thing. Go for the gold, Aries love! ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne
5 Questions to Ask Before You Get a Joint Loan with Your Partner Here are some things you should consider before you take out a loan with your significant other. Image source: Getty Images. When you become romantically involved with someone, there often comes a point where you become financially involved, too. You may decide you want topurchase a hometogether. Or you may simply decide you want to go in together on big purchases such as furniture for your shared apartment, a car you can share, or a wedding. When you decide to join together to accomplish things, there may come a time when taking a joint loan could make sense. You could be co-borrowers on a car loan, for example, or get a joint mortgage orpersonal loanwhere you’re both the borrowers. Taking a joint loan is a big deal because both co-borrowers are legally liable for paying back the entire amount. This means if your partner doesn’t live up to his or her end of the bargain or if you split up and your partner refuses to pay, you could be on the hook for the whole loan amount. And your credit could be damaged by your partner’s irresponsible spending behavior. You don’t want to risk your financial future if you aren’t really ready to commit to a joint loan with your partner, so before you sign up to become a co-borrower, make sure you ask yourself a few key questions first. The rate you’ll get on a joint loan is going to depend onbothof yourcredit scores. If your partner has poor credit, you may not be able to get approved for a loan at all or you may not be able to get a loan at a reasonable rate. You need to be willing to share your scores and yourcredit historyso you can see if borrowing is a possibility that makes sense. Knowing your partner’s credit score also gives you insight into what kind of borrower they are. If your paramour has a perfect credit score, you likely don’t need to worry very much that they’ll default on the loan -- after all, they won’t want to blemish that perfect score. But if your partner’s credit history is marred by bankruptcies, maxed outcredit cards, court judgements, and late payments, you’re taking a huge risk by borrowing with someone who has proven to have problems with credit in the past. Having a joint bank account isn’t a prerequisite to getting a loan together, but sharing other aspects of your financial life is helpful. When you have joint accounts, it can be easier for both of you to deposit your funds into the account to make loan payments. And you’ll also have a pretty clear idea of what your partner earns and spends if you have combined other financial accounts. If you don’t have joint accounts, talk with your partner before you get a loan together about how you plan to pay for it. Will one of you pay the full bill and the other write a check for half? It’s also a good idea to know how much money your partner has in the bank. If your partner has no savings, then they might have a hard time making loan payments if there’s an interruption in income. Before going into debt with someone, you want to make sure that your partner is responsible about borrowing -- and spending. Someone who spends every last dollar and who routinely takes on lots of debt is going to be a pretty big credit risk, while someone who is careful with spending is likely to take borrowing much more seriously. If your partner seems to have no control over where his or her money goes, then you can’t be confident they’ll cut back spending enough to make loan payments -- so you may want to think twice about borrowing with them. When you take out a loan together, you need to be able to talk about who will pay it, how it will get paid, what happens if one of you can’t make a payment, and how you’ll make sure the loan is paid back on time. In other words, you need to have regular money conversations, at least about the loan. If you’re not really comfortable sharing details about your money, or if your partner won’t open up to you, you can’t have the conversations you need to make sure the loan will be paid on time and in full. You should work on this aspect of your relationship and practice being open about your finances before you borrow money together. No one likes to think about breaking up -- but it happens sometimes. If you’re married and you divorce, there’s a formal process for deciding what happens to shared assets and debts. But if you aren’t married, it can become a lot harder to determine who is responsible for paying off the loan you’ve taken out together. And if you took out a loan to buy a shared asset -- such as a couch or a car or a house -- there could be fights about what happens to your joint property. You need to make sure you discuss what will happen both to whatever you buy with the loan proceeds and what will happen to the debt you’ve taken on together. As you have this conversation, remember that creditors will still hold you both responsible if you’re co-borrowers -- even if you both agree your partner should be the one paying after a split. So if your partner promises they’ll take over loan payments but then defaults on the loan, the creditor could come after you. One possible option you should consider is that one partner will agree to keep the asset and to refinance the loan into his or her own name if a breakup happens. Depending on the value of the item and the specifics of your situation, the partner who keeps the asset may also need to buy out the interest of the other partner by paying back some of the payments that have already been made. Whatever you decide, make sure you have a serious conversation about the outcome of a breakup before you take out a loan -- and consider making a written agreement so there’s no confusion over responsibility if the day comes that you decide to split. Taking out a joint loan is a big deal -- especially if you aren’t married and decisions about the loan won’t be part of a formal divorce settlement. Before you agree to share debt, make sure you’re comfortable with how your partner spends money, have exchanged credit scores, are able to talk about money together, and know what will happen if you break up. If you’ve been together for a while and you are confident that your partner will be responsible about paying back what you owe, then you can say yes to a joint loan when doing so helps accomplish your financial goals. Just make sure you’re both on the same page about payback so the money you borrow doesn’t lead to big disagreements in the future. The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either. Our number one goal is helping people find the best offers to improve their finances. That is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Your Gemini Monthly Horoscope Photo credit: Getty/Katie Czerwinski From Cosmopolitan Your Key Dates: July 2: Enjoy where you are right now July 7: Don’t reply all to everyone on the email chain July 16: Become a money magnet July 22: Plan to have all the fun You’re an easy-going person. In fact, your adaptable nature is one of your superpowers. But every now and then, you may find yourself stepping away from an opportunity prematurely. They say the grass is always greener, but this month, you may discover that you’re already in a pretty good spot. On July 2, a solar eclipse in Cancer blankets the sky, activating the area of your chart connected to finances and values. You’ll discover that there’s absolutely nothing wrong with investing in systems that support your long-term growth. Sure, day-to-day money management isn’t sexy now, but ultimately, it’s about scaling your resources into something really meaningful. Be careful, Gemini babe. You’re governed by Mercury, the celestial body that rules communication and expression. So when Mercury goes retrograde on July 7, you’re going to feel its backward motion in a major way. Misunderstandings will be inevitable-especially since this Mercury Retrograde will be illuminating the area of your chart linked to the local community. Be sure to triple-check emails, get insurance on your expensive technology, and pad you itineraries with plenty of extra travel time. When literally everything fails, you can blame it on the stars. On July 16, the second major eclipse of the month (a lunar eclipse) will create a dynamic opposition between the Sun in Cancer and Moon in Capricorn. With the two luminaries facing off, you’ll receive important information about your monetary circumstances. Now, you’ll realize that abundance isn’t just about dollars in the bank; ultimately, it’s a state of mind. During this eclipse, consider ways you can project the best frequency: What can you do to generate even more wealth-both physically and emotionally-into your life? The ball’s in your court, Gemini. Story continues Leo season begins on July 22 when the radiant star cruises into this passionate, theatrical fire sign. You shine under this blazing light: Your quick-witted humor is pairs nicely with Leo’s sociable, playful essence. On July 31, during a New Moon in Leo, plan to fill your calendar with engagements that truly energize your curious spirit. You’ll love bouncing between black-tie soirées and backyard barbecues. Gemini is ruled by the twins, so what could be more fun than exploring your inherent duality? ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne
Your Cancer Monthly Horoscope Photo credit: Getty/Katie Czerwinski From Cosmopolitan Your Key Dates: July 2: Take action, not a nap July 7: Lock your wallet in a safe July 16: Prepare for your relationships to change July 22: Saddle up for another ride around the Sun! It’s your birthday season , and in a perfect world, you’d just be on vacation, relaxing by the pool with a piña colada. I hate to break it to you, but the cosmos have a different plan. On July 2, a solar eclipse in Cancer activates your chart in a major way. Think back to last July 2018 and early January: What was happening in your life? Were your navigating a professional transition? A breakup? A move? Take note of how these eclipses have been transforming your life because, by the time they finally conclude in 2020, virtually everything will be different. This is a time for tremendous growth, Cancer love. Don’t be afraid to embrace change. On July 7, Mercury, the planet of expression, begins a new retrograde cycle. This will encourage you to redefine your value systems. You may feel compelled to make a large purchase but resist the urge to pull out your wallet. Our judgment can be skewed when the messenger planet goes reverse. If you must throw down your credit card, be sure to save your receipt. Mercury only goes retrograde for three weeks, so you’ll still be able to make the 30-day return policy when it resumes its direct motion on July 31. This month’s second eclipse touches down on July 16, when the Sun in your sign creates a direct opposition to the Moon in Capricorn. This could directly impact your closest bonds, Cancer love. Expect massive shifts in your interpersonal dynamics under this sky. Whether the eclipse fuels commitment or closure, remember that this powerful lunation will only ever speed up the inevitable. The results may seem shocking or unexpected at the time, but the outcome only perpetuated what was meant to happen. I know it’s a lot, so don’t forget to breathe. The Sun shimmies into Leo on July 22, finally bringing your birthday season to close. Though Leo energy is known for its larger-than-life bravado, this movement inspires you to ease back on the drama. It’s time to take personal inventory and set goals, Cancer darling. After all, you’re just beginning a new trip around the Sun. This is the perfect opportunity to make sure your present realities are reflecting your aspirations. On July 31, a New Moon in Leo will encourage you to solidify your goals and intentions. Welcome new energy with straightforward manifestations, and watch as everything (slowly but surely) begins to unfold. ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne
Your July Financial To-Do List Consumer Reports has no financial relationship with advertisers on this site. Consumer Reports has no financial relationship with advertisers on this site. For many people, summer offers the chance to enjoy some down-time and focus on the company of family and friends. But at this halfway point in the year, we recommend consumers also take a few moments to tend to their financial well-being. July is a good month to review your finances for the year so far and prepare for the next half. Read on for our recommended financial to-dos this month. Double Check Your Tax Withholdings Midyear has always been a good time to make sure that youre not paying too much or too little in taxes. Its particularly important after the changes to the tax code that repealed personal exemptions . If you didnt update your W-4 form to reflect that change, you probably got slammed by owing money this past April. If that's the case, you've got plenty of incentive to make sure to update your W-4 now. Even if you did update your withholdings already, July is a good time to check and see whether you're on target, might get a big refund in April, or will owe a lot of money, says Beth Logan, an enrolled agent and federally licensed tax professional with Kozlog Tax Advisers in Chelmsford, Mass. "I tell my clients that most tax mistakes are made from May through December, because people aren't thinking about taxes," says Logan. Logan recommends you take your last paystub from June (halfway through the year), your investment account statements from the end of June, your June bank statements showing interest, other income informationlike Social Security income and money earned from any side hustlesand your 2018 tax return. Then input the information into the IRS withholding calculator. The calculator will provide suggestions on how to adjust your withholdings so as to lessen any payment or reduce your refund. Story continues "If all this is too confusing for you, find an Enrolled Agent to help you figure it out ," Logan advises. "Fixing your withholdings in July will make your tax season so much better." Check In on Your Financial Goals While you're at it, this is a great time to check on your financial goals for the year, says Brent Weiss, a CFP and founder of Facet Wealth, a financial planning firm based in Baltimore, Md. Weiss says that the more effective plans haveas a part of larger overall strategy shorter-term goals that can be tracked each year, such as building an emergency fund , saving for a specific item like a new car, or increasing retirement savings. "With half the year gone, July is often the last opportunity to spread contributions out without the monthly payments becoming overwhelming," says Joshua Escalante Troesh, a fiduciary financial planner and founder of Purposeful Strategic Partners, an investment advisory firm based in Alta Loma, Calif. Make a Budget and Scale Back Spending Summer is often a time when people overspend, the experts say. If you already have a budget, great! July is a good time to review it to make sure that you're sticking to it, says Patricia Russel, a certified financial planner and founder of the personal finance blog FinanceMarvel. If you don't have a budget, it's not too late to get one. "We recommend the 50/30/20 rule for budgeting," says Brian Walsh, a certified financial planner at SoFi, a personal finance company. "You should be spending 50 percent on essential expenses, 30 percent on discretionary expenses, and 20 percent towards your goals," says Walsh. If your discretionary funds are less than you'd like, choose ones that you'd be willing to eliminate, Walsh advises. "Summer is a great time to cut the cable cord ," says Lou Haverty, a certified financial planner with Financial Analyst Insider. "Most regular shows are in reruns, so it's an easy time to use a cheaper alternative like a streaming service ." Other ways to scale back spending: pause your gym membership and take a few hikes outside or take a walk instead of calling a rideshare or taking the bus. Plan Your Winter Vacation Although it's a little late to be planning your summer getaway, you can definitely get a jump on making arrangements for a fall or winter trip. Planning ahead and booking early can help you find good deals on airfare and hotels, and you'll beat the competition at more sought-after locations. Depending on your travel plans, it's also worth considering whether to apply for TSA Precheck or Global Entry . The service expedites the airport security process and can make getting to your gate much easier. The TSA designation promises that youll clear domestic security in about 5 minutes. Global Entry includes TSA Precheck and allows for expedited service through U.S. Customs and Immigration. TSA Precheck costs $85 for a five-year membership and Global Entry is $100, but you may not have to pay for them. Many credit cards and loyalty programs cover the cost or provide a statement credit toward the application fee. To apply for either program, you must be a U.S. citizen and a lawful permanent resident. To get started, fill out an online application and bring proof of identity and citizen status to an enrollment center . Test-Drive a Car End-of-season sales on cars tend to take place in late summer, so if youre thinking of buying a car, you should start doing your research now. Choosing your trim and options and setting a budget before you start talking to a salesperson will put you in a good position to bargain. Youll have the best pricing transparency if you can negotiate the price of the car separately from the financing. In addition to shopping around for the best car at the best price, youll also want to look for the best loan to fit your needs. Compare quotes from at least three lenders, focusing on the total price, rather than your monthly payment. Once you have an offer you like, see whether your dealer can beat it. Check our new-car buying guide for helpful advice. Buy Products on Deep Discount Research by Consumer Reports product experts, who track prices year-round, shows July is the best month to buy a number of products. Youll find discounts on summer must-haves like gas grills and sunscreen, as well as several household appliances. Amazon Prime Day also takes place in July. Look out for updates on CR about deals and shopping tips to navigate the online retailer's "Christmas in July" discount day. More from Consumer Reports: Top pick tires for 2016 Best used cars for $25,000 and less 7 best mattresses for couples Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2019, Consumer Reports, Inc.
Are Investors Undervaluing Eidos Therapeutics, Inc. (NASDAQ:EIDX) By 34%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Does the July share price for Eidos Therapeutics, Inc. (NASDAQ:EIDX) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. See our latest analysis for Eidos Therapeutics We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF ($, Millions)", "2020": "$-90.0m", "2021": "$-96.0m", "2022": "$24.5m", "2023": "$139.5m", "2024": "$158.7m", "2025": "$175.2m", "2026": "$189.5m", "2027": "$201.8m", "2028": "$212.7m", "2029": "$222.4m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x3", "2021": "Analyst x3", "2022": "Analyst x2", "2023": "Analyst x2", "2024": "Est @ 13.74%", "2025": "Est @ 10.44%", "2026": "Est @ 8.13%", "2027": "Est @ 6.51%", "2028": "Est @ 5.37%", "2029": "Est @ 4.58%"}, {"": "Present Value ($, Millions) Discounted @ 10.01%", "2020": "$-81.8", "2021": "$-79.3", "2022": "$18.4", "2023": "$95.3", "2024": "$98.5", "2025": "$98.9", "2026": "$97.2", "2027": "$94.1", "2028": "$90.1", "2029": "$85.7"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $517.0m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. 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%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$222m × (1 + 2.7%) ÷ (10% – 2.7%) = US$3.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$3.1b ÷ ( 1 + 10%)10= $1.21b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.73b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $46.88. Compared to the current share price of $30.99, the company appears quite undervalued at a 34% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. 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 Eidos Therapeutics 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%, which is based on a levered beta of 1.221. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Eidos Therapeutics, I've put together three pertinent aspects you should look at: 1. Financial Health: Does EIDX 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 EIDX'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 EIDX? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Bitcoin Charts Hint At Price Pullback to Below $10K • Bitcoin could fall below $10,000 this week as a strong sign of buyer exhaustion have emerged on the weekly chart in the form of “gravestone doji” candle. • A bear cross of short-term moving averages and weakening buy pressure on the daily chart also suggest scope for a drop. • The case for a price retreat into the four digits would weaken if bitcoin jumps above $12,450, invalidating a bearish pattern on the 4-hour chart. That would open the doors to a retest of the recent high of $13,880. With the technical charts flashing signs of buyer exhaustion, bitcoin (BTC) risks falling to levels below $10,000 this week. The top cryptocurrency by market value rose to a 17-month high of $13,880 last Wednesday only to end the week on Sunday (UTC time) with a 0.66 percent loss at $10,760, according to Bitstamp data. Essentially, BTC created a candle called “gravestone doji” on the weekly chart, which comprises of tall upper shadow (marking a big gap between the open and high) and little or no lower shadow (meaning low and close are almost identical). Related:Bitcoin, Facebook and the End of 20th Century Money The narrative behind the candle is that buyers had pushed prices up to unsustainable levels during a specific period, then sellers ended up pushing prices back to the starting point. This sort of price action, if witnessed following a stellar rally, is widely considered a sign of bullish exhaustion and an early warning of an impending price drop. That may well be the case here, as the gravestone doji formed after bitcoin reached 17-month price highs. As a result, BTC could be quoted in four digits across cryptocurrency exchanges later this week. As of writing, the cryptocurrency is changing hands at $11,000 on Bitstamp, representing a 6.5 percent drop on a 24-hour basis. It’s worth noting investors may view any pullback to levels below $10,000, as just another chance to get involved in the bull market. After all, a number of bullish price drivers are lined up over the next few months, according toAlex Kruger, a prominent technical and fundamental analyst. Related:Bitcoin Heading for Fifth Month of Gains Despite Price Correction BTC created a gravestone doji last week with the biggest red volume (selling volume) bar since November. Further, the candlestick has appeared following a near 90-degree rise from levels near $4,000 seen at the beginning of April and the relative strength index (RSI) continues to report overbought conditions with an above-70 print. Therefore, the case for a price drop to $10,000 looks strong. It is worth noting that the 5- and 10-week moving averages are still trending north, indicating a bullish setup. As a result, the averages, currently located at $9,840 and $8,757, could fuel a price bounce. As seen on the daily chart (above left), the Chaikin money flow index has retreated sharply from 0.39 to 0.19 in the last five days – a sign of weakening buying pressure. The oscillator takes into account both the price and trading volume to gauge buying and selling pressures. The 5- and 10-day MAs are also teasing a bearish crossover. Over on the 4-hour chart, meanwhile, the cryptocurrency has carved out a bearish lower high at $12,448. Overall, both charts are aligned in favor of a short-term drop to levels below $10,000. The bearish case, however, would weaken if the price breaks above $12,448 with high volumes. In that case, BTC could revisit the recent high of $13,880. Disclosure:The author holds no cryptocurrency at the time of writing Chartimage via Shutterstock; charts byTradingView • Down $1.7K: Bitcoin’s Price Dives Amid Crypto Market Boost • ShapeShift Founder Says Crypto Exchange Service Will Support Libra
Deutsche Bank tipped for further cuts to London bank staff amid global cull Deutsche Bank’s London staff were braced for further job cuts today amid reports of a global 20,000 cull potentially being announced this week. Among the departments tipped to be cut are Deutsche’s equity operations, which employ hundreds in London. Generally, investment banking is set to be the hardest hit. The company declined to comment but chief executive Christian Sewing is expected to instigate the biggest restructuring in years. He is predicted to shake up the board so that he will take over formal oversight of the investment bank at board level, echoing Barclays chief Jes Staley’s recent management reshuffle. If the 20,000 figure proves accurate, it would represent more than a fifth of staff leaving the bank. Sewing has been forced into drastic action following the failure of merger talks with rival Commerzbank. Many staff have already left the London operation, but Deutsche remains one of the City’s big employers. Reports suggested the US operations would bear the brunt of the latest cuts, with equities again being in the forefront. Deutsche last week succeeded in passing US stress tests.

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