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Guess Who Just Became Amazon's Biggest Shipper FedEx(NYSE: FDX)rocked the world of online shopping recently when it announced that it had made the decisionnot to renew its contractwithAmazon.com(NASDAQ: AMZN). The carrier would no longer deliver FedEx Express shipments in the United States. The shipper downplayed the move, pointing out that Amazon packages represented less than 1.3% of FedEx's total revenue in 2018. As my colleague Adam Levypointed out, "the writing's been on the wall for a while," as the company has continually expanded its logistics network in recent years and even launched afreight brokerage platform. In the wake of these moves, it shouldn't be too much of a surprise that Amazon is now its own biggest shipper. Image source: Amazon.com. Amazon was delivering nearly half of its own packages by the end of May, according to Rakutan Intelligence, by way ofa report in Axios. The e-commerce leader was responsible for 48% of its shipments, while the U.S. Postal Service delivered 33%, andUnited Parcel Service(NYSE: UPS)carried 17%. FedEx rounded out the list with less than 2%. This represents a drastic change from just two years ago, when the Postal Service delivered about 63% and Amazon carried about 15% of its packages. At that time, UPS carried about 20%, while FedEx carried less than 2%, similar to its recent volume. Another revelation from the report is that Amazon is delivering about 20% of all e-commerce deliveries in the U.S., a result of its domination of the digital shopping market. Amazon is responsible for about 40% of all domestic e-commerce sales, which equates to roughly 20% of all e-commerce packages delivered in the United States. The decisive move away from the U.S. Postal Service shouldn't come as a surprise, considering the acrimonious relationship between President Trump and Amazon. Trump has waged a war of words against the company and its founder and CEO, Jeff Bezos. In aseries of tweetsearly last year, the president blamed Amazon for the ongoing woes at the Postal Service, though the agency was in trouble long before Amazon's rise to prominence. Given the very public tiff, and its long-term aspirations, it makes sense that Amazon would continue to build out its own shipping and logistics capabilities, while also extricating itself somewhat from Trump's barbs. Image source: Amazon.com. It's important to note that Amazon disputes the accuracy of the data, saying, "The numbers are not an accurate representation of how Amazon shipments are shared between Amazon and our carrier partners" -- though the company failed to elaborate on the inaccuracies. Amazon's response isn't surprising, considering the company has a history of keeping its data close to the vest. Even if the figures aren't entirely correct, they're more than likely directionally accurate, signaling Amazon's growing reliance on its own shipping network. That also shouldn't be surprising considering the company spend more than $34 billion on fulfillment last year, its biggest expense category aside from cost of sales. As its massive sales slow down, Amazon has recently beenfocusing on its marginsand boosting its bottom line. By cutting out the middle man and delivering more packages itself, Amazon advances these goals. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Danny Venaowns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and FedEx. The Motley Fool has adisclosure policy.
Is Eidos Therapeutics, Inc. (NASDAQ:EIDX) Trading At A 34% Discount? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Does the July share price for Eidos Therapeutics, Inc. (NASDAQ:EIDX) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. Check out our latest analysis for Eidos Therapeutics We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF ($, 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. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10%. 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 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 $1.73b. 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 $46.88. Compared to the current share price of $30.99, the company appears quite good value 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. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at 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 essential 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.
New report sheds more light on Jony Ive's departure Legendary designerJony Iveis no longer a part of Apple — well, sort of; he'll still be freelancing the same gig — but many questions about the nature of his departure still remain. A new report byThe Wall Street Journalhas a number of details and anecdotes that give us a better idea of what drove Ive away. It doesn't offer a single answer; instead, a multitude of issues piled up over the years. For one, CEO Tim Cook and other Apple leaders just weren't interested in product design as much as Ive would've liked them to be. He was absent from the company a lot in the past couple of years. And finally, Apple has struggled to launch a clearly winning product for a while, increasing the pressure on the company's head of design.Read more... More aboutApple,Jony Ive,Tech, andBig Tech Companies
JUICE, a Digital Marketing Agency Based in New York City, Joins Facebook’s New Marketing Partner Program JUICE is One of the first Marketing Agencies to Become Part of the Innovative New Program NEW YORK, NY / ACCESSWIRE / July 1, 2019 /The founders of JUICE, New York City's fastest-growing digital marketing agency, are pleased to announce that they are one of the first agencies to become part of Facebook's new Marketing Partner Program. To learn more about JUICE and the services that they offer, please visithttps://www.thinkjuice.com. As a company spokesperson noted, JUICE has already been named as a Facebook Preferred Partner and has been recognized for allocating over 98 percent of client spending towards direct response objectives that are optimized to drive meaningful business outcomes for their clients. From managing campaigns at scale and reaching new clients to improving marketing campaigns, Facebook Marketing Partners allows companies like JUICE to supercharge their marketing on Facebook as well as other places. As the spokesperson noted, Facebook only selects a small number of companies that meet exceptionally high standards for performance and ability to earn the Facebook Marketing Partner badge. The fact that JUICE is part of such an innovative new Facebook program and has already been named as a Facebook Preferred Partner will not surprise the many satisfied clients who work with the digital marketing agency. Since the day JUICE opened for business, the company has earned a well-deserved reputation for their outstanding and effective marketing services that involve working individually with every client. "We'll know your business like the backs of our hands," the spokesperson noted, adding that the only way the team from JUICE can ensure that they help their clients grow their customer base is by knowing their companies from the inside out. "We're not looking for just numbers, but sales, repeat customers and driving retention from day one." For instance, the team at JUICE sits down with every new client to learn more about the company, and then work together to create a tangible and effective plan that will help the client achieve his or her goals. JUICE will then take that plan and work on it continually until the desired results are achieved. About JUICE: JUICE is a performance-focused digital marketing agency offering strategy, growth, marketing, and technology services. Their strict focus on maximizing ROI has helped their clients achieve enormous revenue-driving success across user acquisition, e-commerce, and lead generation campaigns. For more information, please visithttps://www.thinkjuice.com. JUICE11 Harrison St., 2nd FloorNew York, NY 10013 Contact: Alison Parkhello@thinkjuice.com(212) 688-3683 SOURCE:JUICE View source version on accesswire.com:https://www.accesswire.com/550252/JUICE-a-Digital-Marketing-Agency-Based-in-New-York-City-Joins-Facebooks-New-Marketing-Partner-Program
Why Canopy Growth Corporation (TSE:WEED) Is A Financially Healthy Company Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Canopy Growth Corporation (TSE:WEED), a large-cap worth CA$18b, comes to mind for investors seeking a strong and reliable stock investment. Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. In times of low liquidity in the market, these firms won’t be left high and dry. They are also relatively unaffected by increases in interest rates. Using the most recent data for WEED, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment. View our latest analysis for Canopy Growth WEED has built up its total debt levels in the last twelve months, from CA$8.4m to CA$946m , which accounts for long term debt. With this rise in debt, WEED currently has CA$4.5b remaining in cash and short-term investments to keep the business going. Its negative operating cash flow means calculating cash-to-debt wouldn't be useful. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can assess some of WEED’soperating efficiency ratios such as ROA here. At the current liabilities level of CA$412m, the company has been able to meet these obligations given the level of current assets of CA$5.1b, with a current ratio of 12.32x. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, a ratio above 3x may be considered excessive by some investors. With a debt-to-equity ratio of 13%, WEED's debt level may be seen as prudent. This range is considered safe as WEED is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. Risk around debt is very low for WEED, and the company also has the ability and headroom to increase debt if needed going forward. WEED’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. However, the company exhibits proper management of current assets and upcoming liabilities. I admit this is a fairly basic analysis for WEED's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Canopy Growth to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for WEED’s future growth? Take a look at ourfree research report of analyst consensusfor WEED’s outlook. 2. Valuation: What is WEED 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 WEED 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.
This Is the Top Marijuana Stock to Buy in July As the second half of the year begins, the long-term outlook for the marijuana industry continues to blossom. A relatively new report ("State of the Legal Cannabis Markets") from the duo of Arcview Market Research and BDS Analytics finds that worldwide licensed dispensary sales are on track to grow from $10.9 billion in 2018 to$40.6 billion by 2024. That's a compound annual growth rate of bit over 24% over this six-year period. But here's the real kicker: This figure doesn't even include cannabinoid-based pharmaceutical sales or cannabidiol sales outside of licensed dispensaries, which could be a huge market in the United States. Suffice it to say, there's plenty of potential for cannabis investors to make money over the long run. Image source: Getty Images. Despite this potential, marijuana stockshave had a rough go of things in the second quarter. Supply issues in the U.S. and Canada, along with a persistent black-market presence, have sapped near-term sales and profit projections for most pot stocks. Of course, this could also mean that bargains abound. In July, I view one small-cap marijuana stock as the most attractive in the entire cannabis landscape, which makes it my top marijuana stock to buy this month. Ladies, gentlemen, and investors alike, I'd like to direct your attention to U.S. dispensary operatorTrulieve Cannabis(NASDAQOTH: TCNNF). Let's begin by addressing the reasons behind Trulieve's more than 30% decline since early April. The way I see it, there are four variables that could be causing concern among Wall Street and investors. The first worry likely revolves around the company's expected lock-up expiration for approximately 75.5 million shares. This lock-up, which disallows insiders from selling any of their holdings for a period of 180 days following a public offering, was extended voluntarily by insiders for a period of six months in mid-January. This halted all sales of insider stock prior to July 25, 2019. But with Wall Street havingwitnessed the carnageonTilray's lock-up expiration, there's clear worry that insider selling could put pressure on Trulieve's share price within a few weeks. Image source: Getty Images. Secondly, competition is picking up in Trulieve's home market of Florida. With 29 of the company's 31 open dispensaries in that state, any brand-name competition is unwelcome.Curaleaf Holdingshas around half of its open dispensaries in Florida -- Curaleaf leads all dispensary operators in terms of operational retail stores -- whileMedMen Enterpriseshas announced plans to enter Florida with up to 30 stores. These well-known brands have the potential to steal market share from Trulieve. Thirdly, there's the growing possibility that Florida may have arecreational marijuana legalization amendmenton the ballot in 2020. Without the need for a medical card to buy most cannabis products, Trulieve would have to reestablish its brand dominance in Florida all over again (albeit with far more competitors this go-around). Fourth and finally, I believe there's likely concern about Trulieve pushing into markets outside of Florida. Acquisitions have allowed the company to establish a presence in California, Massachusetts, and Connecticut. But let's be honest, Trulieve is starting from scratch in these other states. Thus, building its brand and launching new stores could be a costly venture that pushes expenses higher and margins lower in the near term. In my opinion, this summarizes why Trulieve Cannabis has declined in recent months. Now, let's look at why I believe it's the best cannabis stock you can buy in July. Image source: Getty Images. Let's start by circling back to the basics:Trulieve's Florida market dominance. Back in April, Trulieve announced that 65% of all milligrams of medical cannabis dispensed in the Sunshine State were by its stores. As a seed-to-sale operator, it has more than 600,000 square feet of cultivation space that'll soon move to over 700,000 square feet, allowing for close to 38,000 kilos of annual run-rate production. More important, by focusing on building its brand in its home market, which includes a variety of more than 170 stock keeping units (SKUs), the company has been able to keep costs down. Instead of spreading itself thin like Curaleaf and MedMen, which are attempting to open stores, grow farms, and processing sites, in one dozen states (each), Trulieve has remained laser-focused on what should be one of the most successful marijuana markets by 2024. Though it won't be a national name, its brand building in Florida haspaid off in the form of lower expenses. What's more, medical marijuana consumers tend to be just what the doctor ordered (pardon the pun) for cannabis companies. When compared to adult-use consumers, medical patients use marijuana more frequently, buy product more often, and usually gravitate toward derivatives, which are a higher-priced, higher-margin product than traditional dried cannabis. Or, to put this in another context, more than 90% of the company's open dispensaries are in a market focused on high-margin medical pot patients. Image source: Getty Images. That brings me to the next point: profitability. Trulieve Cannabis is one of maybe four pure-play pot stocks that's profitable on a recurring basis. And we're not talking about Trulieve eking out a profit or leaning on fair-value adjustments for its gains. This is a company that's beenvery profitable on an operating basis, and looks to expand its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the years to come. In the company's first-quarter earnings release, Trulieve guided to a range of $220 million to $240 million in 2019 sales, up from $102.8 million last year, and $380 million to $400 million in 2020. Furthermore, adjustedEBITDA(not including fair-value gains on biological assets) is expected to increase from $45.6 million in 2018, to a range of $95 million to $105 million in 2019, and lift to between $140 million and $160 million in 2020. Bring everything together -- the company's Florida opportunity, its potential to grow inbillion-dollar marketslike California and Massachusetts, and its medical focus -- and it's no surprise that Trulieve has thelowest forward price-to-earnings ratioof any marijuana stock. The company's forward P/E of 12.4 is more than 25% lower than the forward P/E of theS&P 500, despite the fact that sales and adjusted EBITDA will basically quadruple in a two-year span. As for the remainder of the worries, they're likely overblown. Lock-up expirations are a very short-term event, and it's unlikely that Trulieve will cede too much market share in Florida, even if recreational marijuana gets the green light in 2020 or beyond. Pound for pound, Trulieve Cannabis is a fundamental steal, and thus the top marijuana stock to buy in July. More From The Motley Fool • Beginner's Guide to Investing in Marijuana Stocks • Marijuana Stocks Are Overhyped: 10 Better Buys for You Now • Your 2019 Guide to Investing in Marijuana Stocks Sean Williamshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
An Intrinsic Calculation For Bunge Limited (NYSE:BG) Suggests It's 44% Undervalued Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! How far off is Bunge Limited (NYSE:BG) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. See our latest analysis for Bunge We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF ($, Millions)", "2020": "$572.3m", "2021": "$663.0m", "2022": "$736.6m", "2023": "$799.9m", "2024": "$854.5m", "2025": "$902.4m", "2026": "$945.2m", "2027": "$984.3m", "2028": "$1.0b", "2029": "$1.1b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x3", "2021": "Analyst x1", "2022": "Est @ 11.1%", "2023": "Est @ 8.59%", "2024": "Est @ 6.83%", "2025": "Est @ 5.6%", "2026": "Est @ 4.74%", "2027": "Est @ 4.14%", "2028": "Est @ 3.71%", "2029": "Est @ 3.42%"}, {"": "Present Value ($, Millions) Discounted @ 8.38%", "2020": "$528.1", "2021": "$564.4", "2022": "$578.6", "2023": "$579.7", "2024": "$571.4", "2025": "$556.8", "2026": "$538.0", "2027": "$517.0", "2028": "$494.7", "2029": "$472.1"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $5.4b 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 (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.4%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$1.1b × (1 + 2.7%) ÷ (8.4% – 2.7%) = US$19b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$19b ÷ ( 1 + 8.4%)10= $8.58b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $13.98b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $98.83. Compared to the current share price of $55.71, the company appears quite good value at a 44% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Bunge as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 0.948. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Bunge, There are three further aspects you should further research: 1. Financial Health: Does BG 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 BG'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 BG? 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 NYSE 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.
Why Bunge Limited (NYSE:BG) Is An Attractive Investment To Consider 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 Bunge Limited (NYSE:BG), it is a financially-robust company with a strong track record superior dividend payments, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Bunge here. BG'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 implies that BG manages its cash and cost levels well, which is an important determinant of the company’s health. BG’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps BG expand. BG is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BG's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the food industry, BG is also trading below its peers of similar sizes in terms of their assets. This bolsters the proposition that BG's price is currently discounted. BG rewards its shareholders with attractive dividend yield, higher than the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile. For Bunge, there are three key factors you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for BG’s future growth? Take a look at ourfree research report of analyst consensusfor BG’s outlook. 2. Historical Performance: What has BG's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of BG? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The US-China trade war is far from over: Morning Brief Monday, July 1, 2019 Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET.Subscribe U.S. stockfutures climbedearly Monday morning following atrade truce reached between the U.S. and Chinaat the G20 summit over the weekend. President Donald Trump said that he would hold off on slapping additional tariffs on the remaining $300 billion worth of Chinese goods and reverse the ban on Chinese tech giant Huawei. This week will be a shortened trading week with markets closing early on Wednesday and closing on Thursday in observance of the Independence Day holiday. Read more The Trump trade war is far from over:Markets like the outcome of the talks between President Trump and President Xi Jinping of China on June 29. The mini-deal on trade included modest concessions from both sides and an apparent halt in escalating punitive measures. But the unsteady truce does not signal an end to Trump’s trade war with China. More tariffs could be on the table soon, rattling markets anew. A final deal might not come until 2021, after the next U.S. presidential election. [Yahoo Finance] Also:Trump-Xi summit ends, clearing Wall Street's modest expectations for trade talk progress[Yahoo Finance] 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. The IHS Markit/CIPS manufacturing purchasing managers' index (PMI) slid from a 49.4 reading in May to 48 in June. [Yahoo Finance UK] Asia's factories falter in June: Factory activity shrank in most Asian countries in June as the simmering U.S.-China trade conflict put further strains on the region's manufacturing sector, keeping policymakers under pressure to deploy stronger steps to avert a global recession. [Reuters] OPEC set to extend oil supply cut as Iran endorses pact: OPEC and its allies look set to extend oil supply cuts this week at least until the end of 2019 as Iran joined top producers Saudi Arabia, Iraq and Russia in endorsing a policy aimed at propping up the price of crude amid a weakening global economy. [Reuters] Jamie Dimon attacks populism of AOC and Bernie Sanders: ‘Just because it resonates, doesn’t make it right’ Recent IPOs show investor appetite is strong for biotechs Elizabeth Warren wants answers from JPMorgan on new forced arbitration policy 'Spider-Man's' European vacation set to defy summer box office doldrums What Eva Amurri Martino learned from Oscar-winning mom Susan Sarandon To ensure delivery of the Morning Brief to your inbox, please addnewsletter@yahoofinance.comto your safe sender list. Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Here's What Portland General Electric Company's (NYSE:POR) P/E Ratio Is Telling Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at Portland General Electric Company's (NYSE:POR) P/E ratio and reflect on what it tells us about the company's share price. Based on the last twelve months,Portland General Electric's P/E ratio is 21.88. That corresponds to an earnings yield of approximately 4.6%. Check out our latest analysis for Portland General Electric Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Portland General Electric: P/E of 21.88 = $54.17 ÷ $2.48 (Based on the year to March 2019.) The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Probably the most important factor in determining what P/E a company trades on is the earnings growth. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. And in that case, the P/E ratio itself will drop rather quickly. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. Portland General Electric increased earnings per share by an impressive 24% over the last twelve months. And earnings per share have improved by 11% annually, over the last five years. This could arguably justify a relatively high P/E ratio. The P/E ratio essentially measures market expectations of a company. As you can see below Portland General Electric has a P/E ratio that is fairly close for the average for the electric utilities industry, which is 22.1. Its P/E ratio suggests that Portland General Electric shareholders think that in the future it will perform about the same as other companies in its industry classification. If the company has better than average prospects, then the market might be underestimating it. Further research into factors such asinsider buying and selling, could help you form your own view on whether that is likely. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. Thus, the metric does not reflect cash or debt held by the company. In theory, a company can lower its future P/E ratio by using cash or debt to invest in 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. Portland General Electric's net debt equates to 49% of its market capitalization. While it's worth keeping this in mind, it isn't a worry. Portland General Electric has a P/E of 21.9. That's higher than the average in the US market, which is 18.1. While the company does use modest debt, its recent earnings growth is very good. So on this analysis it seems reasonable that its P/E ratio is above average. Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. You might be able to find a better buy than Portland General Electric. 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.
Latest Bitcoin price and analysis (BTC to USD) At the time of writing, Bitcoin (BTC) is trading just above $11,055 after price crashed close to 23% from $13,800 to $10,500 during the weekend. It seems the hypothesis that weekends are good for Bitcoin may not always be true, even though Bitcoin price is now higher than it was one week ago as BTC consolidated above the key $11,000 level during Sunday. Will Bitcoin bounce back? Or will we see more major retracements back to the $7,000 – $8,000 region? Bitcoin/USD Bitcoin has experienced a major rally that has taken its price upwards close to 50% over the past few weeks. Even with minor retracements, the market is moving positively with higher lows each time it falls, meaning we should expect BTC to continue its climb towards $13,000 – which in my opinion might come within the next couple of weeks. Last week, I also mentioned how I’m still bullish even though I believe we’ll see 30% to 40% corrections. Prominent Bitcoin trader davincij15 has claimed all bull markets are expected to suffer large corrections of around 30-35% of the total highs in the early stages. This means we could still see Bitcoin touching its 100-day EMA or even its 200-day EMA despite the bull cycle (which can last a couple of years). Don’t forget we’ve seen similar movements during previous cycles in 2013 and 2016-2017. Nevertheless, I consider Bitcoin to be in a bull run when the 20-day EMA is above the 50-day EMA and the latter is above the 200-day EMA. As we’ve already accomplished that goal, I personally think the bears have retreated and bulls are now firmly in charge. Corrections are expected and welcomed so that we can accumulate even during bull seasons. $10,000 per bitcoin is absolutely justified given the current level of adoption. The Bitcoin blockchain has remained consistently above 3.5 TPS since January (1st graph) & deals @LocalBitcoins has remained above $50 million a week since reaching this level in 2017 (2nd graph). pic.twitter.com/zHa2AgOD4A — Mati Greenspan (@MatiGreenspan) June 21, 2019 Volume also seems to be increasing as well. Over the past two weeks, volume has gone from $17 billion to $23 billion, consolidating now around $20 billion. Story continues Putting all this information together, we’re now clearly on the right path to reach $15,000 – or maybe even $20,000 – by the end of 2019 . Of course, if you think I might be overreacting to positive news, you can always check what other expert analysts have to say about this recent price movement. Hopefully, the market will continue this positive momentum. Pay attention to retracements back down towards the 200-day EMA to make new entries. Safe trades! Current live Bitcoin pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents: US Dollar – BTCtoUSD British Pound Sterling – BTCtoGBP Japanese Yen – BTCtoJPY Euro – BTCtoEUR Australian Dollar – BTCtoAUD Russian Rouble – BTCtoRUB About Bitcoin In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are. The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On 3rd January 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins. More Bitcoin news and information If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started. As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not. *The views and opinions expressed by the author should not be considered financial advisement. The author is not a professional trader, nor investor. The post Latest Bitcoin price and analysis (BTC to USD) appeared first on Coin Rivet .
Portland General Electric Company (NYSE:POR) Has A ROE Of 8.7% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Portland General Electric Company (NYSE:POR), by way of a worked example. Portland General Electric has a ROE of 8.7%, based on the last twelve months. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.087 in profit. Check out our latest analysis for Portland General Electric Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Portland General Electric: 8.7% = US$221m ÷ US$2.5b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. That means it can be interesting to compare the ROE of different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Portland General Electric has a similar ROE to the average in the Electric Utilities industry classification (10%). That isn't amazing, but it is respectable. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. While Portland General Electric does have some debt, with debt to equity of just 0.97, we wouldn't say debt is excessive. Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company. But note:Portland General Electric may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Gazza challenges Snoop Dogg to 'cannabis vs booze' charity boxing match (ITV) Paul Gascoigne has challenged Snoop Dogg to a “cannabis versus booze” charity boxing match to put their differences behind them. Last week, Gazza was shocked to discover that the rapper had tweeted pictures of himself and the former footballer at 20 years old and 47 years old, Gazza’s entitled “alcohol abuse” and Snoop’s “marijuana abuse”, seemingly to show how much better he looked than recovered alcoholic Gascoigne. Gazza retaliated with his own Twitter video where he dressed up as Snoop Dogg to mock him, but has now come up with a better plan - fighting it out in the ring. Read more: Gazza hits back at ‘ugly’ Snoop Dogg The ex-England midfielder told Good Morning Britain : “I’ll tell you what I’ll do, I’ll do a charity boxing match with him, cannabis versus booze. Bring it on. I’ve been working out, as usual.” He added to Piers Morgan: “When I found out it was Snoop Dogg I went, ‘why me?’ That happened (the photo) about six or eight years ago. “You know when they say when you’re famous in America you’ve made it, well - you’re famous in America, now so am I.” On a more serious note, Gazza said that he was appalled the star would poke fun at an addiction that he and many others battle every day. He said: “Sometimes, I expect it from the English press, but to come from Snoop Dogg...I’m a fan of his as well, I cannot believe it. Read more: Alcohol charity condemns Snoop Dogg meme “When I came out of treatment years and years ago, I used to go back in every day and support everyone, wish them well, because it is work to stick to the tools you were given. “For him to attack someone like myself, with the trouble I’ve put myself through...for him to do that was really bang out of order and I was upset at the time.” Snoop Dogg calling out Gazza is one thing i didn't expect to see when i woke up this morning..? pic.twitter.com/sl04uETaVf — Footy Accumulators (@FootyAccums) June 27, 2019 Gazza admitted: “Normally I would probably drink and that, but now I try to look on the funny side of it. But there wasn’t really much of a funny side to that to be fair. Story continues “I remember watching him ages ago and I would have become a fan, but I think he must (know who I am) for him to just reel that one out. I was shocked.” However, he did manage to spin the row into a positive message for the Lionesses, who take on the USA in the Women’s World Cup semi-final on Tuesday night. He said: “Good luck girls and keep it going. I’m against Snoop Dogg in America and you’re against Americans - go and do the job.”
Could Black Hills Corporation's (NYSE:BKH) Investor Composition Influence The Stock Price? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in Black Hills Corporation (NYSE:BKH) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned. Black Hills is a pretty big company. It has a market capitalization of US$4.7b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about BKH. See our latest analysis for Black Hills 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 88% of Black Hills. 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 Black Hills's historic earnings and revenue, below, but keep in mind there's always more to the story. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Black Hills is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 data suggests that insiders own under 1% of Black Hills Corporation in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around US$37m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checkingif those insiders have been selling. The general public holds a 11% stake in BKH. 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. 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. If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Jony Ive reportedly felt that Tim Cook wasn’t interested in design Jony Ive'sdeparturewas made official last week, but may have begun years ago because of Apple's shift in focus from design to operations, according to theWSJandBloomberg. Citing multiple unnamed sources, the reports stated that Ive was "dispirited" by Tim Cook's lack of interest in design, especially considering the close synergy he shared with former Apple CEO Steve Jobs. At the same time, Ive was coming into Apple's offices much less often than before, "straining the cohesion central to product development," theWSJstated. Update (6 PM ET):In an email to a reporter, Tim Cookcalled the story "absurd." Ive reportedly started showing up at Apple's offices less often after the release of the Watch. Rather than an iPhone peripheral, Ive saw it was a fashion accessory, clashing with Apple executives over how to position it. The resulting device, at $349, sold only 10 million units (a quarter of the forecast), while "thousands" of copies of the $17,000 gold version went unsold, according to theWSJ. Much like many Apple fans, Ive was supposedly frustrated with the change in company culture from the one established by he and Jobs where design ruled. He was not only disappointed by the fact that Tim Cook "showed little interest in the product development process," but also that Apple's Board was increasingly filled with directors that had no experience in Apple's business. Ive was promoted to Chief Design Officer shortly after the launch of the Watch, but only came to the office a couple of days a week, according toBloomberg. Meetings were often moved to San Francisco where he lived, and even to hotels, homes of employees and other venues. "The team craved being around him," said aWSJsource close to Apple leadership at the time. "He's engaging. Him being around less was disappointing." Ive created numerous iconic projects with Apple, often as a result of discussions, debates and arguments with Jobs. That includes iconic products like the iPhone, iPad, iPod, MacBook Air, Apple Watch and even Apple's new headquarters. However, recent products like the HomePod and iPhone X models have enjoyed less success, and Apple recently killed its AirPower charging pad, which Ive imagined as a catchall for Apple devices. According to theWSJ, however, "engineering tests found it behaved more like a dorm-room hot plate." Now his new design firm, "LoveFrom," will reportedly be paid "millions of dollars a year to continue to work with Apple," theWSJsaid. That could give Ive the best of both worlds, only working on the stuff he wants for Apple without having to deal with internal politics. VideoPresenter: Dana WollmanScript: Terrence O'BrienScript Editor: Dana WollmanEditor: Kyle MaackProducer/Camera: Michael Morris
Sarah Huckabee Sanders slams AOC over Ivanka Trump dis Piers Morgan wasn’t the only one fuming after Rep. Alexandria Ocasio-Cortez criticized Ivanka Trump . “It may be shocking to some, but being someone’s daughter actually isn’t a career qualification,” Ocasio-Cortez tweeted after the French presidential palace shared footage of the first daughter trying to join a conversation with world leaders at the G20 Summit. It may be shocking to some, but being someone’s daughter actually isn’t a career qualification. It hurts our diplomatic standing when the President phones it in & the world moves on. The US needs our President working the G20. Bringing a qualified diplomat couldn’t hurt either. https://t.co/KCZMXJ8FD9 — Alexandria Ocasio-Cortez (@AOC) June 30, 2019 When British talk show host and former Celebrity Apprentice contestant Morgan shot back with a dig at the freshman congresswoman’s bartending work, Ocasio-Cortez responded by calling out his “classism.” Actually, that would make government better - not worse. Imagine if more people in power spent years of their lives actually working for a living. We’d probably have healthcare and living wages by now. https://t.co/HoxIyu6ftj — Alexandria Ocasio-Cortez (@AOC) June 30, 2019 As always, I‘m proud of my work in restaurants. I also worked for Sen. Ted Kennedy, piloted literacy projects in the South Bronx, studied Development Economics in W Africa, served as an Educational Director & won international science competitions before I ran for office, too. — Alexandria Ocasio-Cortez (@AOC) June 30, 2019 Some of the most nuanced, intelligent, & grounded people I‘ve ever met weren’t at BU, MIT or Harvard events when I was a student. They were the plumbers & waitresses I hung out with at happy hour, who had ferocious intellectual curiosity and a lived context of the real world. — Alexandria Ocasio-Cortez (@AOC) June 30, 2019 (And that’s if they even take out their own trash, which I doubt) — Alexandria Ocasio-Cortez (@AOC) June 30, 2019 Now Sarah Huckabee Sanders , who just stepped down as White House press secretary , is coming for Ocasio-Cortez, too. Sanders stood up for the Trumps and accused the New York lawmaker of “phoning it in.” Story continues Rosie O'Donnell told Sanders to leave Ocasio-Cortez "alone." (Photo: Alex Wong/Getty Images) “Thank you for reminding Americans everyday [sic] why they elected Trump,” the Arkansas native tweeted at Ocasio-Cortez. Phoning it in @AOC is wasting your time on Twitter while destroying jobs in NY. @realDonaldTrump & @IvankaTrump actually created millions of new jobs and continue to make the US stronger on the global stage but thank you for reminding Americans everyday why they elected Trump. https://t.co/uGN4GXgAsC — Sarah Huckabee Sanders (@SarahHuckabee) July 1, 2019 Ocasio-Cortez hasn’t responded, but Rosie O’Donnell, an outspoken Trump critic, had something to say on the matter. thank god u r leaving the White House - may we never hear ur voice again - and leave AOC alone - she's got all the things u lack - mostly courage and moral clarity - u sold ur soul Sarah - now u gotta live with that — ROSIE (@Rosie) July 1, 2019 Sanders’s tweet had some supporters agreeing, with one calling Ocasio-Cortez “sooo jealous of Ivanka.” AOC is soooo jealous of Ivanka, with good reason, Ivanka is successful and aoc is a joke! — Gabriela Ostrow (@gabriela_ostrow) July 1, 2019 AOC has ZERO moral standing nor any real qualifications to talk to a decent and hard working press secretary like that. Despicable! — Daniel Benaim (@dbenaim2500) July 1, 2019 Thankfully, NO ONE TAKES HER SERIOUSLY! She makes a mockery of everything she touches. — 𝔹𝕚𝕣𝕕𝕚𝕖 𝕒𝕟𝕕 𝔹𝕖𝕥𝕥𝕪 (@birdieandbetty) July 1, 2019 Others accused Sanders of lying and blasted her as a “traitor.” Now would you agree to what you’re saying under oath because we all know it’s the only time you tell the truth. — Mike Axelrod (@mike_axelrod) July 1, 2019 Read more from Yahoo Lifestyle: Melania Trump is noticeably absent from the G-20 summit photos: ‘Was she at the spa?’ Alexandria Ocasio-Cortez supports #WayfairWalkout: 'This is what solidarity looks like' Alexandria Ocasio-Cortez slams 'card-carrying and flag-waving racists' Follow us on Instagram , Facebook , and Twitter for nonstop inspiration delivered fresh to your feed, every day. View comments
70% of Americans Aren't Saving for Retirement for This Reason Without independent savings, retirees risk struggling to keep up with their bills at a time in life when generating extra income may not be so easy. Contrary to what some have been led to believe, Social Securitydoesn't provide enough incomefor seniors to live on. Those benefits only replace about 40% of the average worker's earnings, and retirees generally need somewhere in the ballpark of 70% to 80% of their previous income to live comfortably. The difference, in many cases, needs to come from personal savings. (The exception is if you happen to have a generous pension, money from an inheritance, or another substantial income source.) Unfortunately, a large number of workers today aren't saving for their golden years, and the reason boils down to having too much debt,according to the Employee Benefit Research Institute. Specifically, 60% of workers admit that their debt level is a problem and 70% say their debt has impacted their ability to set aside funds for retirement. If that's the scenario you're facing, it's imperative that you knock out that debt and free up money to fund your nest egg. Otherwise, you're apt to struggle later in life. IMAGE SOURCE: GETTY IMAGES. The problem with having debt is multifold. The longer you carry debt, the more interest you risk racking up, thereby compounding the problem. Furthermore, large levels of debt can drag your credit score down, and once that happens, it'll be more expensive to borrow again, thereby making it even harder for you to dig out of your hole. Additionally, the more of your income you're forced to allocate to debt payments, the less money you'll have available to fund a retirement plan. And that could really put you in a tough spot for your golden years. Even if you're only making relatively small monthly debt payments at present, think about what that money might instead do for your IRA or 401(k). Imagine you owe your credit card company $200 a month as a minimum payment and expect it to take a decade to pay off your balance under that payment plan. If you were to save that $200 a month instead over a 10-year period and invest it at a 7% average annual return (which is more than doable with a stock-heavy portfolio), you'd have $33,000. If you were to then leave that $33,000 alone and not add another dime but keep it invested for 20 more years at an average annual 7% return, you'd wind up with $128,000. And that's why you can't let your debt problem linger for too long. How do you put a stop to it? First, examine your budget orcreate oneif you don't have one yet. Next, comb through that budget and identify expenses to slash immediately, whether it's larger ones like your rent or car payment or smaller ones like your cable package or gym membership. Once you start cutting expenses, you can take the money you save and use it to slowly, but surely, chip away at your debt. At the same time, look at getting asecond jobon top of your main one. The extra money you earn from it can be used to knock out your debt. Or you can use your primary salary to pay off your debt and use your secondary earnings to start saving for retirement sooner rather than later. Too much debt can not only upend your finances at present but prevent you from dedicating funds to the nest egg you really ought to be building. Be proactive in getting yourself out of debt so that your golden years don't end up suffering because of it. More From The Motley Fool • Everything You Need to Know About Retirement • Don't Retire Early Until You Do This • The $16,728 Social Security Bonus You Can’t Afford to Miss The Motley Fool has adisclosure policy.
CPF responds to mans social media plea following failed attempt to withdraw funds for childs tuition The Central Provident Fund (CPF) Board has publicly responded to a Facebook post that had been making the rounds on Singaporean social media last week, in which a local man named Lim Koh Leong stated that he was denied a request by CPF officials to withdraw money from his CPF account which he intended to use to pay his daughters tuition fees despite having the necessary funds. The statutory board took to Facebook on Friday, June 28 to tell its side of the story according to CPF, Lim did not have enough savings accrued for retirement, and hence allowing him to use his CPF for his daughters education is not appropriate. In the post, the board added that Lim has since been contacted by its staffers, who have advised him on the alternative options available to him and that The Nanyang Academy of Fine Arts, the school that his daughter is set to study in, will also be in touch with him. In Lims original Facebook post published last Wednesday, June 26, he recounted his experience of speaking to a staff member at the CPF Building. According to Lim, he was told that he was not allowed to withdraw the requested portion of the funds because his salary did not meet the lowest deposit threshold. He said that he tried to explain that the purpose of withdrawing the money to pay for his daughters tuition and that the CPF staff replied that though he can apply, the chance of it is zero. Right now in my CPF there is 70,000+, I only need 15,000 to pay for my daughters school fees, wrote Lim, who lamented the difficulty of financing his daughters tuition given the fact that he is 60-years-old and does not have a stable job. In his emotional post, Lim said that he felt cheated, humiliated and angry. So many years of hard work, sweat and tears to earn the money and its inside CPF. It is supposed to be my money. Im in need of it and yet, I cannot take my own money to help pay my daughters school fees. Story continues Do I really have to resort to borrowing money and loans when I got my money in my CPF? Should I be forced to stop my daughters education? he asked. In an updated post published on Saturday, June 29, Lim said that the issue over funding his daughters tuition had been resolved with the help of those around him. He also gave thanks to those who helped out. Lims experience, however, sparked an active debate across Singaporean social media. Many citizens felt that their own experiences resonated with his encounter and argued that the he should be allowed to do whatever he wants with his own hard-earned CPF savings. Others empathized with Lim but also stressed the importance of having sufficient funds in the CPF account to retire. Screengrab: CPF/FB Screengrab: CPF/FB This article, CPF responds to mans social media plea following failed attempt to withdraw funds for childs tuition , originally appeared on Coconuts , Asia's leading alternative media company. Want more Coconuts? Sign up for our newsletters!
A Close Look At Watts Water Technologies, Inc.’s (NYSE:WTS) 14% ROCE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Watts Water Technologies, Inc. (NYSE:WTS) to see whether it might be an attractive investment prospect. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. First of all, we'll work out how to calculate ROCE. Then we'll compare its ROCE to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Watts Water Technologies: 0.14 = US$196m ÷ (US$1.7b - US$322m) (Based on the trailing twelve months to March 2019.) Therefore,Watts Water Technologies has an ROCE of 14%. View our latest analysis for Watts Water Technologies When making comparisons between similar businesses, investors may find ROCE useful. Watts Water Technologies's ROCE appears to be substantially greater than the 11% average in the Machinery industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Independently of how Watts Water Technologies compares to its industry, its ROCE in absolute terms appears decent, and the company may be worthy of closer investigation. In our analysis, Watts Water Technologies's ROCE appears to be 14%, compared to 3 years ago, when its ROCE was 5.1%. This makes us think the business might be improving. You can see in the image below how Watts Water Technologies's ROCE compares to its industry. Click to see more on past growth. When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for Watts Water Technologies. Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Watts Water Technologies has total liabilities of US$322m and total assets of US$1.7b. As a result, its current liabilities are equal to approximately 19% of its total assets. Low current liabilities are not boosting the ROCE too much. This is good to see, and with a sound ROCE, Watts Water Technologies could be worth a closer look. Watts Water Technologies 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. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Be Concerned About Watts Water Technologies, Inc.'s (NYSE:WTS) Historical Volatility? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Watts Water Technologies, Inc. (NYSE:WTS) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The 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 mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one. See our latest analysis for Watts Water Technologies Looking at the last five years, Watts Water Technologies has a beta of 1.16. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If this beta value holds true in the future, Watts Water Technologies shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Watts Water Technologies's revenue and earnings in the image below. Watts Water Technologies is a fairly large company. It has a market capitalisation of US$3.2b, which means it is probably on the radar of most investors. It takes a lot of money to influence the share price of large companies like this one. That makes it interesting to note that its share price has a history of sensitivity to market volatility. There might be some aspect of the business that means profits are leveraged to the economic cycle. Beta only tells us that the Watts Water Technologies share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether WTS is a good investment for you, we also need to consider important company-specific fundamentals such as Watts Water Technologies’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Future Outlook: What are well-informed industry analysts predicting for WTS’s future growth? Take a look at ourfree research report of analyst consensusfor WTS’s outlook. 2. Past Track Record: Has WTS 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 WTS's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how WTS 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.
Trump talk of easing Huawei ban lifts suppliers' shares despite doubts By Sijia Jiang and Yimou Lee HONG KONG/TAIPEI (Reuters) - U.S. President Donald Trump's decision to allow U.S. firms to sell "high tech" products to Huawei led Asian investors to snap up shares in suppliers to the Chinese smartphone maker on Monday, even as some experts wondered what had changed. Huawei was put on a U.S. list in May that restricts U.S. tech firms such as Alphabet Inc's <GOOGL.O> Google from doing business with the Chinese telecom network gear maker, viewed as a security risk by Washington amid trade tensions with Beijing. Trump said on Saturday the ban was unfair to U.S. suppliers, who were upset that they could not sell parts and components to Huawei without U.S. government approval. However, he did not say which U.S. firms could resume supplying Huawei. While analysts had doubts about what it meant for the company, shares in Huawei's smartphone suppliers jumped in Asian trading on Monday as investors saw Trump's comments as a positive sign for its smartphone sales. OLED display panel maker BOE Technology Group <000725.SZ> and Shenzhen Goodix Technology <603160.SS>, a maker of fingerprint sensors, climbed 10% to their daily limit. Taiwan's Foxconn <2317.TW>, the world's top contract electronics assembler, and contract chipmaker TSMC <2330.TW> rose 3% and 4% respectively. "The White House's apparent U-turn ... is unlikely to give Huawei the products it really needs," Richard Windsor, founder of independent research firm Radio Free Mobile, said in a note. "And even if it did, it is quite possible that fatal damage has already been done to Huawei's smartphone business," he said. Trump's remarks were taken by some tech bloggers to mean that Google would be able to restore Huawei's access to Play Store and apps. Arthur Liao, a Taipei-based tech analyst at Fubon Securities, said it was unclear whether U.S. tech firms can deliver components for Huawei's future products or just components for existing lines. Shares in some other suppliers including Shennan Circuits <002916.SZ>, Luxshare Precision Industry <002475.SZ>, Shenzhen Sunway Communication <300136.SZ>, and OFILM Group Co Ltd <002456.SZ> also surged. LOBBYING EFFORT After saying for weeks that it has access to enough non-U.S. technology to carry on as usual, Huawei said last month it would take a $30 billion revenue hit. "We acknowledge the U.S. president's comments relating to Huawei and have no further comments at this time," a Huawei spokesman told Reuters on Monday. Several U.S. companies stopped supplying Huawei in recent weeks, but quietly lobbied the U.S. government to ease the ban, Reuters reported last month. Memory-chip maker Micron <MU.O> said last week it had resumed some shipments to Huawei, and chip maker Intel <INTC.O> took similar action, according to the New York Times. Google said last month it would not provide the Android operating system (OS) for Huawei phones after a temporary reprieve from the ban expired in August, but current models could still use the apps. Windsor said Huawei's access to Google mobile products could remain blocked despite Trump's remarks. "It is fairly easy to argue that Google Mobile Services is unique and only available from the U.S. and potentially could be considered a security threat depending on what data is going over those services," he said. A Google spokesman in Singapore declined to comment on Monday. The sanctions also prevent U.S. telecom companies from buying network equipment from Huawei based on national security grounds. Huawei has denied its products pose a security threat. "National security concerns will remain paramount," National Economic Council chairman Larry Kudlow said on Sunday, adding that Trump's decision to allow expanded sales of U.S. technology supplies to Huawei will leave the most sensitive equipment off limits. (Reporting by Sijia Jiang in Hong Kong and Yimou Lee in Taipei; Additional reporting by Aradhana Aravindan in Singapore; Writing by Sayantani Ghosh; editing by Darren Schuettler)
Is Bristol-Myers Squibb Company's (NYSE:BMY) P/E Ratio Really That Good? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll show how you can use Bristol-Myers Squibb Company's (NYSE:BMY) P/E ratio to inform your assessment of the investment opportunity. Looking at earnings over the last twelve months,Bristol-Myers Squibb has a P/E ratio of 14.4. That means that at current prices, buyers pay $14.4 for every $1 in trailing yearly profits. See our latest analysis for Bristol-Myers Squibb Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Bristol-Myers Squibb: P/E of 14.4 = $45.35 ÷ $3.15 (Based on the trailing twelve months to March 2019.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future. Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. 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. In the last year, Bristol-Myers Squibb grew EPS like Taylor Swift grew her fan base back in 2010; the 461% gain was both fast and well deserved. Even better, EPS is up 49% per year over three years. So you might say it really deserves to have an above-average P/E ratio. The P/E ratio indicates whether the market has higher or lower expectations of a company. We can see in the image below that the average P/E (18.9) for companies in the pharmaceuticals industry is higher than Bristol-Myers Squibb's P/E. Its relatively low P/E ratio indicates that Bristol-Myers Squibb shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with Bristol-Myers Squibb, it's quite possible it could surprise on the upside. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling. Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. 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. The extra options and safety that comes with Bristol-Myers Squibb's US$2.7b net cash position means that it deserves a higher P/E than it would if it had a lot of net debt. Bristol-Myers Squibb has a P/E of 14.4. That's below the average in the US market, which is 18.1. It grew its EPS nicely over the last year, and the healthy balance sheet implies there is more potential for growth. The below average P/E ratio suggests that market participants don't believe the strong growth will continue. Since analysts are predicting growth will continue, one might expect to see a higher P/E soit may be worth looking closer. Investors should be looking to buy stocks that the market is wrong about. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Did You Miss CAE's (TSE:CAE) Impressive 146% Share Price Gain? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you canmakemore than 100%. Long termCAE Inc.(TSE:CAE) shareholders would be well aware of this, since the stock is up 146% in five years. On top of that, the share price is up 18% in about a quarter. View our latest analysis for CAE There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, CAE achieved compound earnings per share (EPS) growth of 11% per year. This EPS growth is lower than the 20% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here.. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, CAE's TSR for the last 5 years was 168%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted thetotalshareholder return. It's nice to see that CAE shareholders have received a total shareholder return of 31% over the last year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 22%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at. CAE is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
If You Had Bought CAE (TSE:CAE) Shares Five Years Ago You'd Have Made 146% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you canmakemore than 100%. For instance, the price ofCAE Inc.(TSE:CAE) stock is up an impressive 146% over the last five years. Also pleasing for shareholders was the 18% gain in the last three months. See our latest analysis for CAE To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, CAE managed to grow its earnings per share at 11% a year. This EPS growth is slower than the share price growth of 20% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Thisfreeinteractive report on CAE'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further. When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of CAE, it has a TSR of 168% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! We're pleased to report that CAE shareholders have received a total shareholder return of 31% over one year. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 22% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at. There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Did Business Growth Power XPO Logistics's (NYSE:XPO) Share Price Gain of 115%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make muchmorethan 100% if the company does well. For example, theXPO Logistics, Inc.(NYSE:XPO) share price has soared 115% in the last three years. How nice for those who held the stock! It's also up 11% in about a month. But this could be related to good market conditions -- stocks in its market are up 6.7% in the last month. Check out our latest analysis for XPO Logistics 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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. XPO Logistics became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We know that XPO Logistics has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling XPO Logistics stock, you should check out thisFREEdetailed report on its balance sheet. While the broader market gained around 7.6% in the last year, XPO Logistics shareholders lost 42%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 15%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before deciding if you like the current share price, check how XPO Logistics scores on these3 valuation metrics. But note:XPO Logistics may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Brief Commentary On Watsco, Inc.'s (NYSE:WSO) Fundamentals 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 Watsco, Inc. (NYSE:WSO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe WSO has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on Watsco here. WSO delivered a bottom-line expansion of 12% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, WSO also outperformed its industry, which delivered a growth of -7.0%. This is an notable feat for the company. WSO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that WSO manages its cash and cost levels well, which is an important determinant of the company’s health. WSO's has produced operating cash levels of 1.86x total debt over the past year, which implies that WSO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. WSO’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 3.9%. For Watsco, I've compiled three key aspects you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for WSO’s future growth? Take a look at ourfree research report of analyst consensusfor WSO’s outlook. 2. Valuation: What is WSO 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 WSO is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of WSO? 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.
Our Presidential Nomination Process Is Nuts W hew! Those debates this week. Hoo boy . There have been a number of solid takes about the leftward lurch of the Democratic party. I want to offer my own perspective, looking at why the candidates take positions that are far outside the mainstream. In the short term, it may be good for the Republicans that the Democrats are so prone to adopting radical and radically unpopular positions. But in the long run, if we are ever to get our politics back to where we’d like, we need to get a handle on these insane nomination processes, on both sides. Over the past quarter century, the Democrats have undergone a wholesale revolution in campaign finance. Whereas Democratic campaigns were once funded by labor unions, New Left public-interest groups, and corporations friendly to left-wing causes, candidates are relying more and more on small donors. This has been a boon for the party’s coffers, as Democrats have been able to raise eye-popping totals from the socioeconomically upscale portion of their base, more than they ever could accumulate through the old channels. It has also freed the party from the stigma of being in hock to labor unions or other interest groups, which often harmed Democrats’ ability to compete in places where unions are not especially strong. But the new role of small donors has also shifted the incentives of primary-campaign candidates, in ways that were on display this week. If your goal as a candidate is to maximize your haul from small-dollar donors who are not affiliated with a professional interest group, then you’re basically chasing the Rachel Maddow Show crowd — hyper-engaged, public-spirited progressives. They do not constitute a majority of the party, or of the country. But a lot of them have Act Blue bookmarked on Google Chrome. The campaign rules established by the party this year — whereby candidates have to secure a certain number of donors and a certain percentage of support in the major polls — reinforce the influence of these donors. Candidates are desperate to get these people to contribute just a dollar, not for so much for that dollar’s ability to buy the candidate campaign services, but to establish the candidate’s viability in the eyes of the party. (And of course there is a long-term opportunity in acquiring new donors, but you can’t reap those benefits if you do not qualify for the next debate.) Story continues These kinds of donors do not have the kind of power that a Walter Reuther or George Meany could exercise in the post-war decades, but they’re not just going to give their cash away to any old schmo. You have to say things that they want to hear. Progressive things. Very progressive things — like open borders and free health care for illegal immigrants. That is what we saw this week: a Democratic cattle call for the progressive donor base. If I were a Democrat, this would frustrate me deeply. It sure is a stupid way to run a party! Forcing candidates to take extreme views that will hurt them in the general election just so they can raise cash for the primaries — oh yeah, that is brilliant . (Obligatory “to be sure” quote coming up) To be sure, the Republicans have similar problems. In general, politically minded people on both sides do not think about our nominating system in terms of raw power politics — who gets to pick the nominee? If the power is currently distributed in such a way as to hamper a party’s ability to win the general election by forcing would-be nominees to take highly unpopular stands, then power needs to be redistributed. But I’m not a Democrat, that is their business, and they are aren’t going to listen to me. The real concern for me as a citizen is who may end up being governed by one of these loons. The good news is that I think the candidates were blowing smoke this week to the donors, who really have no recourse against a president of their own party. In at least 100 years, no faction in a political party has been more powerful than the president. Even at the peak of its once expansive powers, Big Labor could never deny an incumbent Democrat renomination. Instead, they tended to fall behind the president, perhaps with some bellyaching. (Not always, they split ranks in 1980, with half of labor backing Ted Kennedy, but that was under exceptional circumstances. If anything, the lesson of 1980 was “Don’t split the party, because it will just help the other side.”) So my guess is that all those Democrats who pledged the other night to offer social welfare to illegal aliens would ditch those pledges as soon as they got into the White House. And the progressive base would be okay with it — even if they were unhappy, they’d back the Democratic nominee in four years, anyway. Yet even if we downplay the specifics of this week’s pie-in-the-sky promises, the thematics were not altogether comforting. The days of the Democrats nominating basically moderate candidates who had some progressive instincts looks to be pretty much over, at least for now. Instead, all of these would-be nominees are going to be as progressive as they think they can get away with and maybe even a little more than that. That is scary, and it demonstrates that the electorate at large is not being served by either party. In thrall to their progressive base, the Democrats are not grounded by any semblance of pragmatism. (Again, to be sure , the GOP has similar problems, having nominated a candidate for office in 2016 whom most Americans were dubious about.) And isn’t it reasonable for middle-of-the-road voters to expect the two sides to nominate candidates who are not going to blow up the social, political, and economic contract because of their commitment to some set of goofball abstract principles? I think it is. So, while the partisan in me might be glad to see the Democrats falling victim to a disordered nomination process, the citizen in me recognizes that both parties need to redesign their nomination procedures to keep the interests of the whole nation in mind. Put bluntly: We need to figure out a way to get these increasingly zany nomination contests under control. More from National Review The Problem with Sanders’s Small Donors A Surprisingly Close Special Election in Western Pa. The Electoral College Favors Republicans
Applied Materials, Inc.'s (NASDAQ:AMAT) Earnings Grew 10.0%, 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! Measuring Applied Materials, Inc.'s (NASDAQ:AMAT) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess AMAT's recent performance announced on 28 April 2019 and compare these figures to its historical trend and industry movements. See our latest analysis for Applied Materials AMAT's trailing twelve-month earnings (from 28 April 2019) of US$3.5b has increased by 10.0% compared to the previous year. However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 29%, indicating the rate at which AMAT is growing has slowed down. To understand what's happening, let’s take a look at what’s transpiring with margins and if the entire industry is experiencing the hit as well. In terms of returns from investment, Applied Materials has invested its equity funds well leading to a 42% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 19% exceeds the US Semiconductor industry of 8.0%, indicating Applied Materials has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Applied Materials’s debt level, has increased over the past 3 years from 16% to 26%. Though Applied Materials's past data is helpful, it is only one aspect of my investment thesis. While Applied Materials has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Applied Materials to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for AMAT’s future growth? Take a look at ourfree research report of analyst consensusfor AMAT’s outlook. 2. Financial Health: Are AMAT’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 28 April 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.
What Kind Of Shareholders Own Advanced Micro Devices, Inc. (NASDAQ:AMD)? 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 Advanced Micro Devices, Inc. (NASDAQ:AMD) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned. Advanced Micro Devices is a pretty big company. It has a market capitalization of US$33b. Normally institutions would own a significant portion of a company this size. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about AMD. View our latest analysis for Advanced Micro Devices 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 64% of Advanced Micro Devices. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Advanced Micro Devices's earnings history, below. Of course, the future is what really matters. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Advanced Micro Devices is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. 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. 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 information suggests that Advanced Micro Devices, Inc. insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$229m worth of shares. Arguably recent buying and selling is just as important to consider. You canclick here to see if insiders have been buying or selling. With a 29% ownership, the general public have some degree of sway over AMD. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. 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. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. If you 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.
Does Tecnoglass Inc. (NASDAQ:TGLS) Have A Place In Your Dividend Stock Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like Tecnoglass Inc. (NASDAQ:TGLS) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. Tecnoglass pays a 8.6% dividend yield, and has been paying dividends for the past three years. It's certainly an attractive yield, but readers are likely curious about its staying power. Some simple research can reduce the risk of buying Tecnoglass for its dividend - read on to learn more. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Tecnoglass paid out 373% of its profit as dividends. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Last year, Tecnoglass paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. As Tecnoglass has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. With net debt of 2.46 times its EBITDA, Tecnoglass has a noticeable amount of debt, although if business stays steady, this may not be overly concerning. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 2.37 times its interest expense, Tecnoglass's interest cover is starting to look a bit thin. We update our data on Tecnoglass every 24 hours, so you can always getour latest analysis of its financial health, here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. During the past three-year period, the first annual payment was US$0.50 in 2016, compared to US$0.56 last year. This works out to be a compound annual growth rate (CAGR) of approximately 3.8% a year over that time. Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much. 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. In the last five years, Tecnoglass's earnings per share have shrunk at approximately 34% per annum. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. We'd also point out that Tecnoglass issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. It's a concern to see that the company paid out such a high percentage of its earnings and cashflow as dividends. Earnings per share are down, and to our mind Tecnoglass has not been paying a dividend long enough to demonstrate its resilience across economic cycles. In this analysis, Tecnoglass doesn't shape up too well as a dividend stock. We'd find it hard to look past the flaws, and would not be inclined to think of it as a reliable dividend-payer. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. See if the 6 analysts are forecasting a turnaround in ourfree collection of analyst estimates here. 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.
What Percentage Of Royal Nickel Corporation (TSE:RNX) Shares Do Insiders Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of Royal Nickel Corporation (TSE:RNX) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of CA$342m, Royal Nickel is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about RNX. See our latest analysis for Royal Nickel 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. Institutions own less than 5% of Royal Nickel. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees. Hedge funds don't have many shares in Royal Nickel. There is some analyst coverage of the stock, but it could still become more well known, with time. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that insiders maintain a significant holding in Royal Nickel Corporation. Insiders own CA$37m worth of shares in the CA$342m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently. The general public, mostly retail investors, hold a substantial 79% stake in RNX, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability. It appears to us that public companies own 10% of RNX. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together. It's always worth thinking about the different groups who own shares in a company. But to understand Royal Nickel better, we need to consider many other factors. I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph. 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.
What You Must Know About Euronet Worldwide, Inc.'s (NASDAQ:EEFT) Financial Strength Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Euronet Worldwide, Inc. (NASDAQ:EEFT), with a market capitalization of US$8.7b, rarely draw their attention from the investing community. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. Today we will look at EEFT’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto EEFT here. Check out our latest analysis for Euronet Worldwide EEFT's debt levels surged from US$635m to US$1.1b over the last 12 months , which includes long-term debt. With this rise in debt, EEFT's cash and short-term investments stands at US$1.2b , ready to be used for running the business. Moreover, EEFT has generated cash from operations of US$382m in the last twelve months, leading to an operating cash to total debt ratio of 34%, meaning that EEFT’s current level of operating cash is high enough to cover debt. At the current liabilities level of US$1.7b, it appears that the company has been able to meet these commitments with a current assets level of US$2.2b, leading to a 1.28x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for IT companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments. With a debt-to-equity ratio of 60%, EEFT can be considered as an above-average leveraged company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. We can test if EEFT’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 EEFT, the ratio of 10.21x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving EEFT ample headroom to grow its debt facilities. Although EEFT’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for EEFT's financial health. Other important fundamentals need to be considered alongside. You should continue to research Euronet Worldwide to get a better picture of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for EEFT’s future growth? Take a look at ourfree research report of analyst consensusfor EEFT’s outlook. 2. Valuation: What is EEFT 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 EEFT 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.
Samsung accidentally leaks Galaxy Note 10 Samsung has accidentally confirmed that the Galaxy Note 10 is on its way. An image of the device, alongside the name Galaxy Note 10, was revealed during an official presentation at the firm's headquarters in Seoul, South Korea . The image, first spotted by TechRadar , appeared on a slide with dozens of other Samsung Galaxy devices. Photos of the presentation were forbidden, and the Samsung representative refused to confirm that the handset was the final Galaxy Note 10. Samsung said it was a render of a "reference device". At the same media event, Samsung Electronics CEO DJ Koh also referenced the device by name, saying "and for our Note 10, it will be another phase for Bixby". It is the first time that Samsung has publicly name-checked its new phone. Rumours surrounding the Galaxy Note 10 suggest it will be unveiled at an Unpacked event in New York on 7 August. Renders of the Galaxy Note 10 based on leaked and expected specs of the new Samsung smartphone (OnLeaks/ PriceBaba) It is expected to come in two different sizes, with at least one of them supporting 5G. The rear camera setup will also likely be different to its Note 9 predecessor , with Samsung opting instead for three lenses aligned vertically instead of horizontally. Images from the Samsung presentation gave an indication that the front camera will be centrally placed, rather than in the right-hand corner of the screen.
Acquisition Improves the Outlook of Pfizer Stock Pfizer(NYSE:PFE) stock has enjoyed an uptrend that started in late April. With an upcoming quarterly dividend of 36 cents, giving Pfizer stock a yield of 3.3%, PFE stock price may rise more in the near future. Source: Shutterstock Pfizer’s $11.4 billion acquisition ofArray BioPharma(NASDAQ:ARRY) could be a positive, near-term and long-term catalyst for Pfizer stock. The price tag of the deal looks relatively small. I used the word “relatively” because ofAbbVie’s(NYSE:ABBV) subsequent, monstrous, $63 billion acquisition ofAllergan(NYSE:AGN). Pfizer’s more manageable deal strengthens Pfizer’s biopharmaceutical unit and will accelerate the company’s growth over the long-term. • 7 F-Rated Stocks to Sell for Summer Array may boost Pfizer stock by providing PFE with BRAF/MEK inhibitors, a potential first-in-class therapy for patients suffering from BRAF-mutant metastatic colorectal cancer. According to the National Institute of Health, the BRAF gene “provides instructions for making a protein that helps transmit chemical signals from outside the cell to the cell’s nucleus.” InvestorPlace - Stock Market News, Stock Advice & Trading Tips Overall. Pfizer currently has 44 oncology projects in its pipeline. Of these. 12 are in Phase 3 and five have already been approved and are in the process of being registered. The pipelineincludesbiologics, small molecules, immunotherapies, and biosimilars. Source: Pfizer Pfizer hasmany different types of approachesit uses to target various types of tumors. Array primarily uses combination therapies. Its BRAFTOVI and MEKTOVI treatments have been approved for treating metastatic melanoma. Array is conducting over 30 clinical trials of its solid tumor treatments. Among its tumor treatments being tested is its BRAF-mutant metastatic colorectal cancer (mCRC) drug. In May, Array reported statistically significant improvements of the subjects being treated in a Phase 3 trial of its mCRC treatment. According to the data, the treatment reduced the risk of death of the patients taking it by 48%, compared to those in the control group. Colorectal cancer is the third most common type of cancer in the U.S. In 2018, around 140,250 patients were diagnosed with cancer of the colon or rectum. BRAF mutations occur in about 15% of the cases. So, Array may potentially treat over 21,000 patients annually. Nearly one-third of those diagnosed with cancer of the colon or rectum, or 50,000 people, die each year, according to estimates. But the owners of Pfizer stock barely reacted when PFE announced the Array deal. Compared to the $245 billion market cap of Pfuzer stock, the $11.4 billion acquisition is small. Nonetheless, the pipeline of cancer drugs that Pfizer acquired through the transaction could meaningfully boost Pfizer’s top line, lifting Pfizer stock in the process. Moreover, developing cancer drugs is typically expensive and requires lots of capital. So the acquisition will save PFE time and money and, under Pfizer’s control, the acquired unit will have more resources and cash that it can use to develop its drugs. The acquisition is expected to start increasing Pfizer’s earnings per share in 2022. Wall Street analysts are mildly bullish on PFE stock. The eight analysts covering PFE stock have an average price target on the shares of $47.14, according toTipranks.That’s about 8.5% above PFE stock price. With the 3.32% dividend yield of Pfizer stock, the total return of PFE stock, judging by the average price target, is expected to be about 12%. Pfizer stock trades at price-earnings multiples that are below those of some of its peers, as shown in thisP/E Multiples financial model. Additionally, in the next three years, the company is expected to deliver strong growth. Yet investors have been slow to recognize its potential. Moreover, by adding Array to its portfolio, PFE has greatly improved its pipeline while further distinguishing the company from other drug makers. Income and value investors should consider Pfizer stock as a core, long-term pharmaceutical holding. As of this writing, the author owns shares of AbbVie. • 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 postAcquisition Improves the Outlook of Pfizer Stockappeared first onInvestorPlace.
Don't Sell Euronet Worldwide, Inc. (NASDAQ:EEFT) Before You Read This Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Euronet Worldwide, Inc.'s (NASDAQ:EEFT), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,Euronet Worldwide has a P/E ratio of 35.94. That corresponds to an earnings yield of approximately 2.8%. Check out our latest analysis for Euronet Worldwide Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Euronet Worldwide: P/E of 35.94 = $168.24 ÷ $4.68 (Based on the year to March 2019.) A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' 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. That means unless the share price increases, the P/E will reduce in a few years. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. Euronet Worldwide's earnings made like a rocket, taking off 58% last year. The cherry on top is that the five year growth rate was an impressive 21% per year. So I'd be surprised if the P/E ratio wasnotabove average. The P/E ratio essentially measures market expectations of a company. You can see in the image below that the average P/E (35.8) for companies in the it industry is roughly the same as Euronet Worldwide's P/E. That indicates that the market expects Euronet Worldwide will perform roughly in line with other companies in its industry. If the company has better than average prospects, then the market might be underestimating it. I would further inform my view by checkinginsider buying and selling., among other things. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth. 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. The extra options and safety that comes with Euronet Worldwide's US$438m net cash position means that it deserves a higher P/E than it would if it had a lot of net debt. Euronet Worldwide's P/E is 35.9 which is above average (18.1) in the US market. Its net cash position is the cherry on top of its superb EPS growth. So based on this analysis we'd expect Euronet Worldwide to have a high P/E ratio. Investors have an opportunity when market expectations about a stock are wrong. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. But note:Euronet Worldwide may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
I Ran A Stock Scan For Earnings Growth And Alibaba Group Holding (NYSE:BABA) Passed With Ease Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. 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 likeAlibaba Group Holding(NYSE:BABA), which has not only revenues, but also profits. Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour. See our latest analysis for Alibaba Group Holding If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no surprise, then, that I like to invest in companies with EPS growth. Alibaba Group Holding managed to grow EPS by 5.3% per year, over three years. While that sort of growth rate isn't amazing, it does show the business is growing. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. On the one hand, Alibaba Group Holding's EBIT margins fell over the last year, but on the other hand, revenue grew. So it seems the future my hold further growth, especially if EBIT margins can stabilize. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not checkthis interactive chart depicting future EPS estimates, for Alibaba Group Holding? Since Alibaba Group Holding has a market capitalization of CN¥441b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at CN¥24b. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions! One important encouraging feature of Alibaba Group Holding is that it is growing profits. If that's not enough on its own, there is also the rather notable levels of insider ownership. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. Of course, just because Alibaba Group Holding is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry. Although Alibaba Group Holding certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Consider Alibaba Group Holding Limited (NYSE:BABA)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Alibaba Group Holding Limited (NYSE:BABA) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of BABA, it is a company with strong financial health as well as a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Alibaba Group Holding here. Investors in search of impressive top-line expansion should look no further than BABA, with its expected 75% revenue growth in the upcoming year. This is expected to flow down into an impressive return on equity of 20% over the next couple of years. BABA's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that BABA has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. BABA appears to have made good use of debt, producing operating cash levels of 1.12x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. For Alibaba Group Holding, I've put together three essential aspects you should look at: 1. Historical Performance: What has BABA'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 BABA 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 BABA is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of BABA? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Fortis Inc.'s (TSE:FTS) ROE Of 6.9% Concerning? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Fortis Inc. (TSE:FTS), by way of a worked example. Fortis has a ROE of 6.9%, based on the last twelve months. One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.069 in profit. Check out our latest analysis for Fortis Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Fortis: 6.9% = CA$1.1b ÷ CA$18b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax 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. That means it can be interesting to compare the ROE of different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see Fortis has a lower ROE than the average (10%) in the Electric Utilities industry classification. Unfortunately, that's sub-optimal. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Nonetheless, it might be wise tocheck if insiders have been selling. Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. It's worth noting the significant use of debt by Fortis, leading to its debt to equity ratio of 1.34. While the ROE isn't too bad, it would probably be a lot lower if the company was forced to reduce debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. But 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 take a peek at thisdata-rich interactive graph of forecasts for the company. Of courseFortis 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.
ECB policymakers unite behind stimulus pledge By Balazs Koranyi and Tarmo Virki HELSINKI (Reuters) - Euro zone inflation remains unacceptably low and the European Central Bank will ease policy further if necessary to boost price pressures, policymakers said on Monday, just weeks after ECB chief Mario Draghi hinted at more stimulus. With growth and inflation slowing for the better part of the last year, the ECB has given up on plans to tighten policy, and policymakers are now debating whether to cut rates further or restart a recently shut, 2.6 trillion euro bond purchase scheme. But with interest rates already at a record low and the ECB's balance sheet at 4.7 trillion euros, critics say that the potency of its remaining tools is limited and more easing can only provide a modest boost. Speaking at a conference in Helsinki, chief economist Philip Lane and Governing Council members Klaas Knot, Pablo Hernandez de Cos and Olli Rehn all emphasized the ECB's willingness and readiness to act. "Especially when inflation deviates from its objective for an extended period, central banks ‒ including the ECB ‒ should adopt clear communication strategies that leave no doubt about their absolute commitment to meeting the inflation objective over the medium term," Lane said. The ECB has provided unprecedented stimulus for years and successfully revived the 19-member currency bloc only to see uncertainties over global trade and, to a lesser extent, Brexit unravel its work. Indeed, growth in the second and third quarter of this year could weaken compared with the first three months of the year, Knot, the Dutch central bank chief said, noting that the long-heralded rebound appears to be delayed. "It is indisputable that inflation remains too low," said Knot, a policy hawk, adding that the ECB was determined to act in case of an adverse scenario. Lane also disputed critics who argue that the ECB's policy arsenal is nearly depleted. "Our assessment is that (our) policy package has been effective and further easing can be provided if required to deliver our mandate," Lane said. "The effectiveness of the policy toolkit means that we can add further monetary accommodation." The ECB next meets on July 25. Some analysts expect it to announce more stimulus measures then, while others don't see a move coming until its Sept. 12 meeting, when it will also issue new economic projections. At minus 0.4%, the ECB's deposit rate is already at a record low and not far above what is considered the "effective lower bound" for rates. With government borrowing costs already also at record lows, more bond buys may do little to encourage euro zone states to spend. "In the short term... we are again in the difficult situation," de Cos, Spain's central bank governor said, referring to weak inflation and slow growth. The problem of weak price growth is not unique to the euro zone. Major central banks around the world appear to be struggling to understand what may be a broader shift in price setting. "The ECB – much like other central banks – operates in a new environment where long-run trends, such as population aging, lower long-term interest rates and climate change have become key policy issues," Rehn, Finland's central bank governor, added. Given these changes, Rehn repeated his argument that the ECB should conduct a broader review of its policy strategy, as its last review was over a decade ago and the bank has since then been forced to reinvent its policy toolkit. (Reporting by Balazs Koranyi; Editing by Toby Chopra and Hugh Lawson)
Europe's unemployment lowest in more than a decade FRANKFURT, Germany (AP) — The unemployment rate in the 19 European Union countries that use the euro fell to its lowest in more than a decade in May as domestic demand and low interest rates help keep the recovery going. Official figures Monday showed the jobless rate declined to 7.5 percent from 7.6 percent in April, well below the peak of 12.1 percent in 2013 in the wake of a debt crisis that threatened to break up the euro. Export-dependent manufacturing has suffered due to the trade conflict between the U.S. and China. But domestic demand has held up, and the economy is further supported by record low interest rates set by the European Central Bank. Weakening indicators about future growth and slack inflation have led the ECB to signal more stimulus may be coming. Unemployment is what economists call a trailing indicator, meaning it follows developments in the economy by months or years. The lower unemployment rate shows the progress that Europe has made in recovering from the Great Recession and the debt crisis that threatened the euro's existence earlier this decade. The ECB however must look ahead when doing monetary policy since its stimulus measures can take months to have an effect. In particular, stubbornly weak inflation of only 1.2 percent has led the ECB to say that unless there is improvement more stimulus would be needed. That could come in the form of bond purchases that pump newly printed money into the economy, or further interest rate cuts from current record lows. The bank has set a rate of negative 0.4 percent on deposits it takes from commercial banks, an extraordinary step. The negative rate is a penalty aimed at pushing banks to lend the money. The ECB's inflation goal is just under 2 percent, a level considered best for the economy. It has been unable to achieve that goal despite years of stimulus efforts.
Lil Nas X makes sexuality announcement at end of Pride Month Lil Nas X has said he wanted to open up about his sexuality before the end of Pride Month. The rapper, who shot to fame with his hit Old Town Road, shared a message on Twitter that appeared to confirm he is a member of the LGBTQ community. He wrote: “Some of y’all already know, some of y’all don’t care, some of y’all not gone fwm (f*** with me) no more. “But before this month ends i want y’all to listen closely to c7osure”. some of y’all already know, some of y’all don’t care, some of y’all not gone fwm no more. but before this month ends i want y’all to listen closely to c7osure. 🌈🤩✨ pic.twitter.com/O9krBLllqQ — nope (@LilNasX) June 30, 2019 He added a rainbow emoji, which is a symbol of gay pride. He posted the video for his song C7osure, which includes the lyrics: “Ain’t no more actin’, man that forecast say I should just let me grow. “No more red light for me baby, only green, I gotta go. “Pack my past up in the back, oh, let my future take ahold. “This is what I gotta do, can’t be regrettin’ when I’m old.” He adds: “Brand new places I’ll choose and I’ll go, I know. deadass thought i made it obvious pic.twitter.com/HFCbVqBkLM — nope (@LilNasX) June 30, 2019 “Embracin’ this news I behold unfolding. I know, I know, I know it don’t feel like it’s time. “But I look back at this moment, I’ll see that I’m fine.” He also tweeted a picture of his album artwork and a second image zoomed in on the rainbow included in it. Story continues He wrote: “Deadass thought I made it obvious.” Miley Cyrus performing with rapper Lil Nas X on the Pyramid Stage (Yui Mok/PA) Lil Nas X made a surprise appearance at Glastonbury on Sunday when he came out on stage during Miley Cyrus’s set to perform Old Town Road with the Wrecking Ball singer and her father, Billy Ray. He also performed Panini, the second single from his debut EP.
Does The Data Make Lucara Diamond Corp. (TSE:LUC) An Attractive Investment? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Lucara Diamond Corp. (TSE:LUC) 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 LUC, it is a company with strong financial health as well as a buoyant growth outlook. 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 Lucara Diamond here. LUC's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. LUC currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise. For Lucara Diamond, there are three essential factors you should further research: 1. Historical Performance: What has LUC'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 LUC 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 LUC is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of LUC? 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.
Novanta Inc. (NASDAQ:NOVT): What Does Its Beta Value Mean For Your Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you're interested in Novanta Inc. (NASDAQ:NOVT), 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 type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. Some stocks are more sensitive to general market forces than others. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. See our latest analysis for Novanta Given that it has a beta of 1.48, we can surmise that the Novanta share price has been fairly sensitive to market volatility (over the last 5 years). If this beta value holds true in the future, Novanta shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Novanta's revenue and earnings in the image below. Novanta is a reasonably big company, with a market capitalisation of US$3.3b. Most companies this size are actively traded with decent volumes of shares changing hands each day. It has a relatively high beta, suggesting it may be somehow leveraged to macroeconomic conditions. For example, it might be a high growth stock with lots of investors trading the shares. It's notable when large companies to have high beta values, because it usually takes substantial capital flows to move their share prices. Beta only tells us that the Novanta share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether NOVT is a good investment for you, we also need to consider important company-specific fundamentals such as Novanta’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 NOVT’s future growth? Take a look at ourfree research report of analyst consensusfor NOVT’s outlook. 2. Past Track Record: Has NOVT 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 NOVT's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how NOVT 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.
Read This Before Buying Dätwyler Holding Inc. (VTX:DAE) 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! Today we'll take a closer look at Dätwyler Holding Inc. (VTX:DAE) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A 2.0% yield is nothing to get excited about, but investors probably think the long payment history suggests Dätwyler Holding has some staying power. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Explore this interactive chart for our latest analysis on Dätwyler Holding! 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. Dätwyler Holding paid out 42% of its profit as dividends, over the trailing twelve month period. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Dätwyler Holding paid out 383% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Dätwyler Holding paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Cash is king, as they say, and were Dätwyler Holding to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign. Remember, you can always get a snapshot of Dätwyler Holding's latest financial position,by checking our visualisation of its financial health. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Dätwyler Holding's dividend payments. During the past ten-year period, the first annual payment was CHF1.80 in 2009, compared to CHF3.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 5.2% a year over that time. Dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. While there may be fluctuations in the past , Dätwyler Holding's earnings per share have basically not grown from where they were five years ago. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. 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 Dätwyler Holding's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. Second, earnings per share have been in decline, and its dividend has been cut at least once in the past. With this information in mind, we think Dätwyler Holding may not be an ideal dividend stock. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. Very few businesses see earnings consistently shrink year after year in perpetuity though, and so it might be worth seeing what the 6analysts we track are forecasting for the future. 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.
Illinois Governor Signs Order Protecting Transgender Students Illinois Gov. J.B. Pritzker (D) on Sunday signed an executive order to protect transgender students enrolled in schools across the state, declaring on the final day of Pride Month that “ignorance was no longer an excuse for bigotry.” The order establishes a task force of 25 people who will craft policies to better support transgender and nonbinary students and mandates that schools have safe spaces for LGBTQ youth. Pritzker, who signed the order the same day as Chicago’s Pride Parade, said the changes were meant to “disrupt the patterns of discrimination in our classrooms and ensure our school[s] across the state are affirming and inclusive for transgender, nonbinary and gender nonconforming students.” “While the LGBTQ community has so much to celebrate, we must also recognize that the trans community that ignited this movement has been left out of many of its victories,” the governor wrote on Twitter. “Visibility and acceptance for non-cisgender people are on the rise, but so are attacks of hate, particularly against black trans women.” He continued: “We’re taking one more step toward securing Illinois’ place as a leader in equality and hope. Under this executive order, ignorance is no longer an excuse for bigotry.” I just signed an executive order to disrupt the patterns of discrimination in our classrooms and ensure our school across the state are affirming and inclusive for transgender, nonbinary and gender nonconforming students. pic.twitter.com/NucR3pH4AA — Governor JB Pritzker (@GovPritzker) June 30, 2019 Illinois will always be beacon of equality and hope for all. Happy Pride! 🏳️‍🌈 pic.twitter.com/XFhCZeVjTd — Governor JB Pritzker (@GovPritzker) June 30, 2019 The move was hailed by local lawmakers , including new Chicago Mayor Lori Lightfoot, who called it an “important first step towards ensuring every Illinois student has a safe space that allows them to reach their full potential.” Story continues “Ending the intolerable levels of discrimination and violence against our transgender community starts here ― in our schools ― by making the values of tolerance and respect just as much a part of our educational cultural as academics, athletics, and the arts,” Lightfoot said at the signing ceremony, according to ABC7. Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
Is BE Semiconductor Industries N.V.'s (AMS:BESI) ROE Of 29% Impressive? Want to participate in a short 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. To keep the lesson grounded in practicality, we'll use ROE to better understand BE Semiconductor Industries N.V. ( AMS:BESI ). Our data shows BE Semiconductor Industries has a return on equity of 29% for the last year. That means that for every €1 worth of shareholders' equity, it generated €0.29 in profit. See our latest analysis for BE Semiconductor Industries How Do I Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for BE Semiconductor Industries: 29% = €109m ÷ €375m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. What Does ROE Mean? ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule, a high ROE is a good thing . Clearly, then, one can use ROE to compare different companies. Does BE Semiconductor Industries Have A Good Return On Equity? Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, BE Semiconductor Industries has a better ROE than the average (11%) in the Semiconductor industry. Story continues ENXTAM:BESI Past Revenue and Net Income, July 1st 2019 That's what I like to see. We think a high ROE, alone, is usually enough to justify further research into a company. For example, I often check if insiders have been buying shares . Why You Should Consider Debt When Looking At ROE Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. BE Semiconductor Industries's Debt And Its 29% ROE Although BE Semiconductor Industries does use debt, its debt to equity ratio of 0.74 is still low. Its ROE is very impressive, and given only modest debt, this suggests the business is high quality. 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. The Bottom Line On ROE Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company . Of course BE Semiconductor Industries may not be the best stock to buy . So you may wish to see this free collection 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Add These 5 Relative Price Strength Stocks for Better Gains Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s important to measure the performance of such a stock relative to its industry or peers, or the appropriate benchmark. If you see that a stock is underperforming on fundamental factors, then it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance to provide considerable returns. Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy. Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains. Screening Parameters Relative % Price change – 12 weeks greater than 0 Relative % Price change – 4 weeks greater than 0 Relative % Price change – 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.) % Change (Q1) Est. over 4 Weeks greater than 0:Positive current quarter estimate revisions over the last four weeks. Zacks Rank equal to 1:Only Zacks Rank #1 (Strong Buy) stocks – that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years – can get through. You can seethe complete list of today’s Zacks #1 Rank stocks here. Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000:A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity. VGM Score less than or equal to B:Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential. Here are the five stocks that made it through the screen: Arch Capital Group Ltd.ACGL: Arch Capital Group, headquartered in Pembroke, HM, offers insurance, reinsurance and mortgage insurance across the world. The firm has a VGM Score of B and an excellent earnings surprise history. It has a 100% track of outperforming estimates over the last four quarters at an average rate of 14.8%. Oasis Midstream Partners LPOMP: Oasis Midstream Partners is a publicly traded master limited partnership formed by oil and gas explorer Oasis Petroleum Inc. (OAS) to own and operate a diversified portfolio of energy infrastructure assets. The 2019 Zacks Consensus Estimate for this Houston, TX-based partnership is $3.26, representing some 79.1% earnings per unit growth over 2018. Next year’s average forecast is $4.44 pointing to another 36.3% growth. Oasis Midstream Partners has a VGM Score of A. Legg Mason, Inc.LM: Legg Mason is a global asset management firm focused on the growth and preservation of its clients' capital through its proprietary mutual funds and separately-managed accounts (SMAs). Sporting a VGM Score of B, this Baltimore, MD-headquartered company’s expected EPS growth rate for three to five years currently stands at 16.3%, comparing favorably with the industry's growth rate of 8.8%. Casey’s General Stores, Inc.CASY: Founded in 1959 and headquartered in Ankeny, IA, Casey’s General Stores operates convenience stores under the Casey's and Casey's General Store names in 16 Midwestern states, mainly Iowa, Missouri and Illinois. The company has a VGM Score of A and an excellent earnings surprise history having surpassed estimates in each of the last four quarters. UniFirst CorporationUNF: One of the largest providers of workplace uniform rentals and protective work gear in North America, UniFirst has a VGM Score of A. Over 30 days, the Wilmington, MA-based company has seen the Zacks Consensus Estimate for FY 2019 and FY 2020 increase 9.2% and 8.9%, to $8.58 and $8.23 per share, respectively. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance. 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 reportLegg Mason, Inc. (LM) : Free Stock Analysis ReportArch Capital Group Ltd. (ACGL) : Free Stock Analysis ReportUnifirst Corporation (UNF) : Free Stock Analysis ReportCaseys General Stores, Inc. (CASY) : Free Stock Analysis ReportOasis Midstream Partners LP (OMP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Do You Know What DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's (FRA:DAM) P/E Ratio Means? 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 look at DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's (FRA:DAM) P/E ratio and reflect on what it tells us about the company's share price. Looking at earnings over the last twelve months,DATA MODUL Produktion und Vertrieb von elektronischen Systemen has a P/E ratio of 17.31. In other words, at today's prices, investors are paying €17.31 for every €1 in prior year profit. View our latest analysis for DATA MODUL Produktion und Vertrieb von elektronischen Systemen Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for DATA MODUL Produktion und Vertrieb von elektronischen Systemen: P/E of 17.31 = €73 ÷ €4.22 (Based on the trailing twelve months to March 2019.) The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. P/E ratios primarily reflect market expectations around earnings growth rates. Earnings growth means that in the future the 'E' will be higher. And in that case, the P/E ratio itself will drop rather quickly. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. In the last year, DATA MODUL Produktion und Vertrieb von elektronischen Systemen grew EPS like Taylor Swift grew her fan base back in 2010; the 52% gain was both fast and well deserved. The cherry on top is that the five year growth rate was an impressive 27% per year. So I'd be surprised if the P/E ratio wasnotabove average. The P/E ratio indicates whether the market has higher or lower expectations of a company. As you can see below DATA MODUL Produktion und Vertrieb von elektronischen Systemen has a P/E ratio that is fairly close for the average for the electronic industry, which is 18.6. DATA MODUL Produktion und Vertrieb von elektronischen Systemen's P/E tells us that market participants think its prospects are roughly in line with its industry. So if DATA MODUL Produktion und Vertrieb von elektronischen Systemen actually outperforms its peers going forward, that should be a positive for the share price. I would further inform my view by checkinginsider buying and selling., among other things. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. 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. Since DATA MODUL Produktion und Vertrieb von elektronischen Systemen holds net cash of €12m, it can spend on growth, justifying a higher P/E ratio than otherwise. DATA MODUL Produktion und Vertrieb von elektronischen Systemen has a P/E of 17.3. That's below the average in the DE market, which is 20. The net cash position gives plenty of options to the business, and the recent improvement in EPS is good to see. One might conclude that the market is a bit pessimistic, given the low P/E ratio. Given analysts are expecting further growth, one I would have expected a higher P/E ratio.So this stock may well be worth further research. When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. You might be able to find a better buy than DATA MODUL Produktion und Vertrieb von elektronischen Systemen. 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.
Lebanon dollar debt rises after Qatar says it bought bonds LONDON, July 1 (Reuters) - Dollar-denominated bonds issued by Lebanon's government rose on Monday after a Qatari official said on Sunday the Gulf state had bought some of the country's bonds. The 2037 issue jumped more than 3 cents to trade at 79.24 cents - its highest since early May, according to Refinitiv data. The bond buying had been part of a $500 million investment in the Lebanese economy, a Qatari government official said on Sunday. Lebanese Finance Minister Ali Hassan Khalil said the move showed Qatar's commitment to Lebanon's financial stability. "The purchase by Qatar is not very large, but supportive nonetheless," said Giyas Gokkent at J.P.Morgan. (Reporting By Tom Arnold, editing by Karin Strohecker)
You Might Like China XD Plastics Company Limited (NASDAQ:CXDC) 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! While small-cap stocks, such as China XD Plastics Company Limited (NASDAQ:CXDC) with its market cap of US$108m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Understanding the company's financial health becomes crucial, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, potential investors would need to take a closer look, and I suggest youdig deeper yourself into CXDC here. CXDC has built up its total debt levels in the last twelve months, from US$820m to US$928m , which accounts for long term debt. With this growth in debt, CXDC currently has US$79m remaining in cash and short-term investments , ready to be used for running the business. On top of this, CXDC has produced US$100m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 11%, signalling that CXDC’s current level of operating cash is not high enough to cover debt. Looking at CXDC’s US$1.6b in current liabilities, the company may not be able to easily meet these obligations given the level of current assets of US$1.5b, with a current ratio of 0.96x. The current ratio is the number you get when you divide current assets by current liabilities. With total debt exceeding equity, CXDC is considered a highly levered company. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In CXDC's case, the ratio of 1.95x suggests that interest is not strongly covered, which means that debtors may be less inclined to loan the company more money, reducing its headroom for growth through debt. CXDC’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. Though its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. Keep in mind I haven't considered other factors such as how CXDC has been performing in the past. I recommend you continue to research China XD Plastics to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for CXDC’s future growth? Take a look at ourfree research report of analyst consensusfor CXDC’s outlook. 2. Historical Performance: What has CXDC's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other 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.
Should You Be Tempted To Sell NBT Bancorp Inc. (NASDAQ:NBTB) Because Of Its P/E Ratio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll show how you can use NBT Bancorp Inc.'s (NASDAQ:NBTB) P/E ratio to inform your assessment of the investment opportunity. Based on the last twelve months,NBT Bancorp's P/E ratio is 14.18. That corresponds to an earnings yield of approximately 7.1%. See our latest analysis for NBT Bancorp Theformula for P/Eis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for NBT Bancorp: P/E of 14.18 = $37.51 ÷ $2.65 (Based on the year to March 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. And in that case, the P/E ratio itself will drop rather quickly. And as that P/E ratio drops, the company will look cheap, unless its share price increases. It's nice to see that NBT Bancorp grew EPS by a stonking 31% in the last year. And it has bolstered its earnings per share by 9.9% per year over the last five years. So we'd generally expect it to have a relatively high P/E ratio. 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, NBT Bancorp has a higher P/E than the average company (12.9) in the banks industry. Its relatively high P/E ratio indicates that NBT Bancorp shareholders think it will perform better than other companies in its industry classification. Clearly the market expects growth, but it isn't guaranteed. So investors should delve deeper. I like to checkif company insiders have been buying or selling. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in 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 is 33% of NBT Bancorp's market cap. You'd want to be aware of this fact, but it doesn't bother us. NBT Bancorp's P/E is 14.2 which is below average (18.1) in the US market. The company hasn't stretched its balance sheet, and earnings growth was good last year. If it continues to grow, then the current low P/E may prove to be unjustified. Investors have an opportunity when market expectations about a stock are wrong. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. You might be able to find a better buy than NBT Bancorp. 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.
RPT-Glencore's Congo tragedy highlights security conundrum for miners (Repeats story first published on Sunday) By Edward McAllister and Mitra Taj DAKAR/LIMA, June 30 (Reuters) - The deaths of 43 illegal miners at a Glencore facility in Congo last week highlighted a growing challenge for mining companies struggling to secure sites from small-scale prospectors digging for cobalt, copper and other minerals. Many mines span hundreds of square kilometers across rural terrains, a tantalizing prospect for illegal miners, also known as artisanal miners, who break into sites in search of metals, some of which end up in electric cars and other products. But even as last Thursday's tragedy ratcheted up pressure on companies to make changes to security and community outreach, industry consultants and analysts say the task will be difficult given the geographic constraints and economic challenges faced by the world's estimated 40 million artisanal miners. "If people do not have work or an industry, they rely on this activity," said Patrick Hickey, a mining industry consultant who has worked at mines across Africa. "Where you can fence off the mine site, you do. Where you can't, you try to use security. But it is difficult." Thursday's tragedy occurred in Democratic Republic of Congo's Kamoto Copper Company (KCC) concession, which spans kilometers of flat terrain on the outskirts of Kolwezi in the southern part of the country. The mine is operated by Kamoto Copper Company (KCC), a joint venture between Glencore-controlled Katanga Mining Ltd and the state-owned Gecamines. Only part of the perimeter, which abuts densely-populated residential areas, is protected by fencing, giving the local population easy access. Young men can often be seen just outside the mine carrying shovels and sacks brimming with freshly-mined ore to nearby trading depots dominated by Chinese buyers. Private contractors provide most of the security, but activists say they are often ineffective and easily bought off by the miners in exchange for ignoring trespassers. About 2,000 illegal miners regularly access the site, Glencore said. Congo's military plans to deploy troops to the KCC site, as it did in late June when it sent hundreds of soldiers to protect the Tenke copper and cobalt mine, which is owned by China Molybdenum Co Ltd. "Security is not a highly-paid profession, so if you can get kickbacks from turning a blind eye, it can make you money," said Nicholas Garrett of RCS Global, a consultancy which audits mining supply chains. In South Africa, there are an estimated 30,000 illegal miners providing one of the biggest sources of illicit gold on the continent, with an output of around 14 billion rand ($994.4 million) per year, according to ENACT, which conducts research into transnational organized crime. The illegal miners are known in Zulu as "zama-zamas," which loosely translates as "those who try to get something from nothing." Sibanye-Stillwater, which spent millions upgrading its security infrastructure, found almost 1,400 zama-zamas in its Cooke gold mine during a 2017 security sweep. "We have been continually arresting and trying to control access to the mines, but it's been difficult," said Sibanye-Stillwater spokesman James Wellsted. CONCESSIONS Governments and industry have been setting aside concessions for artisanal mining, but there are not nearly enough of those concessions to employ all the artisanal miners, many of whom continue to target larger deposits. Miners operating in risky jurisdictions, as a result, employ a variety of measures - ranging from antagonistic to collaborative - to safeguard operations. Such steps include the use of private security with military or police backgrounds; fences or other physical structures; regular border patrols; and even allowing artisanal miners access to certain areas of their operations, according to presentations from Barrick Gold Corp, Freeport-McMoRan Inc, Kinross Gold Corp and Newmont Goldcorp Corp . Even still, artisanal miners slip through surveillance. In 2013, two were killed at Barrick's Porgera mine in Papua New Guinea in a confrontation with police after a large crowd of illegal miners gathered at the mine, Barrick said at the time. A spokeswoman for Barrick declined to comment on the company's latest security measures. 'SHORT-TERM SOLUTION' Delphin Monga, provincial secretary of the UCDT union, which represents KCC employees, said police fired teargas a few months ago to try to chase off the diggers, but it was only a temporary deterrence. Asked whether deploying the army would be an effective deterrent, Monga said: "Maybe as a short-term solution. But the dissuasive measures taken by the police and army do not intimidate the diggers." Some human rights activists say that armed responses to artisanal miners only exacerbate tensions with locals and ignore the underlying problems, which include the failure of large-scale mines to meaningfully contribute to development gains for the impoverished communities. Artisanal miners "are the world's hidden suppliers, and they're working in horrible conditions," said Karen Hayes of Pact, an NGO working across Africa to bolster supply chain transparency. "We already buy their minerals, whether we recognize it or not." In South America, Fura Gems Inc says securing all of its rural land in Colombia would be virtually impossible, so the emerald miner allows access in some areas, though it has promised to close a network of illegal tunnels. "A mining company can't do the job police do," said Luis Rivera, an executive with Gold Fields Ltd and president of the Institute of Mining Engineers of Peru. ($1 = 14.0787 rand) (Reporting by Julia Symmes Cobb in Bogota, Tanisha Heiberg in Johannesburg, Ed McAllister and Aaron Ross in Dakar, Nichola Saminather in Toronto, Ernest Scheyder in Houston and Mitra Taj in Lima; Writing by Ernest Scheyder; Editing by Paul Simao)
Your July Horoscope Is Here Well be subject to some intense leonine energy this July, as the sign of the regal Lion is already playing host to Mercury, plus war planet Mars on the 5th, the sun on the 23rd, Venus on the 27th, and the new moon on the 31st. Youll want everyone to hear you roar, but dont act so emboldened that you wind up on others bad sides (because theyll be feeling just as fierce as you). You can temper your, well, temper by leaning into the placid energy of the two new moons bookending the month in addition to the one on the 31st, well see a new moon arrive in Cancer on July 2 . This rare occurrence, sometimes referred to as a black moon, presents us with the opportunity to hit pause as the month begins, and then again as it draws to a close. No matter how frenzied this month may feel (and, with an energizing full moon in corporate-climber Capricorn, a total solar eclipse, a partial lunar eclipse, and a Mercury retrograde to boot, its bound to), rest easy knowing that youll have a chance to recover before August begins. Whether your recovery involves ambitious plans for the future or damage control will all depend on how this month treats your sign. What if you were to tread lightly, rather than charge forward, dear Ram ? What if you were to stay in for a weekend, instead of burning the candle at both ends? These little experiments of will would normally test your patience, but this month youll feel the comfort of your home beckoning, and the memories of old friends compelling you to give them a call. Finding contentment exactly where you are will be enough of a task for you, but that wont be your only challenge in July. Mercurys retrograde on the 7th will come with a flurry of thoughts and ideas for you, particularly around how you make your feelings and desires known to others. Your signature straight-shooting style might not be so effective under these skies. No matter how badly you want something (and your wants are often great and immediate), you may need to find new or unconventional ways to ask for it. When the messenger planet goes direct on the 31st, you can return to your old ways unless you discover that the indirect approach has its benefits. Story continues RELATED: 6 Celebrities Who Embody Big Aries Energy Everyone who counts you as a sure friend (and there are even more than you think) will make that perfectly clear to you this month, Taurus . Youll be the guest of honor at your friends barbecues and your coworkers will tap you for sage advice over Slack. Prepare to be very busy. Some signs crave a packed schedule, but Bulls tend to dread a full calendar, even if its brimming with theoretically fun engagements. As if by clockwork, Mercury will begin its retrograde period on the 7th and call your routine into question. Its all too common for stubborn Taureans to impose unnecessary structures on their lives, thinking theyll lead to some unquantifiable sort of improvement, when theyre actually just adding one more thing to worry about. Needling Mercury wont just shake your faith in your current mode of living the communication planet could very well reveal that its fatally flawed. Dont be afraid to experiment with your schedule this month, Taurus, even if that simply amounts to waking up a little later. RELATED: Your 2019 Yearly Horoscope Is Here Youll feel a major boost in social motivation on the 1st, and your desire to be where the people are will stay with you all month long. This will make for a potent (and dangerous) combo when Mercury, your ruling planet, begins its retrograde and sets its sights on your communication sector. As accustomed as you may be to Mercurys shifting focus, dont let your confidence (and boundless energy) call all the shots this month. The wind in your sails may tell you to surge ahead and trust the current to carry you to shore, but youre better off dropping anchor and setting a clear route first. The full moon on the 16th, right in the thick of Mercurys retrograde, will all but beg you to avoid putting your foot in your mouth. Boundaries of all sorts are of the utmost importance under these skies, Gemini be wary of lending money and starting conversation with bits of gossip. You never know what you may receive in return. You tend to be particularly affected by the whims of the moon, Cancer . It is, after all, your ruling planet and this month, its activity will be nearly impossible to ignore. First, the new moon on the 2nd will arrive in your very own sign and bring any buried questions around your sense of self to the surface. Where have you lost your confidence, Cancer? Where can you go to regain it? A sensitive sign like yours is quick to doubt and slow to recognize where you really, truly, are powerful. RELATED: 6 Times the Full Moon Is Really Going to Mess Us Up in 2019 Reclaiming faith in yourself will be the key to success on the 16th, when the full moon reaches its peak in Capricorn. Theres a relationship that needs your attention, Cancer and it might not be the first one that comes to mind. Youre quick to act when you see something about to break, but how often do you acknowledge the things in your life that function smoothly? Dont spend this full moon reacting. Rather, spend time with the person in your life with whom you can simply enjoy the balance of your connection. The second new moon of the month on the 31st will ask you to look outside of yourself and cull your resources, amid the extravagant urges of Leo season. Should you stay or should you go, Leo ? Youre rapidly approaching your solar season, when the sun moves into your sign and hits you with the spotlight you know you deserve. But, you may need to tread lightly before you can tumble into your birthday season on the 23rd. On the first day of the month, aggressive Mars enters your house of self, urging you to chase your goals and give voice to your desires. Be careful, however, that you dont let your head get too big or too hot while riding these waves of motivation. Your ego and temper are powerful enough without Mars encouragement, Leo. While the red planet will be the fuel in your tank, Mercury and its impending retrograde on the 7th could make you hit the brakes, and thus dampen your plans to take over the world (or, you know, at least your small corner of it). Whats more, this planetary backspin will occur in your sign, directly muddling Mars message for you to get up and go. The solution? Remember the past when working toward future success, weigh your options carefully, and remember that second-guessing your decisions doesnt make you any less the Queen of the Jungle. RELATED: Kim and Kanye's Zodiac Signs Tell Us All We Need to Know About Their Relationship Your sign is known and often praised for its analytical ability to process information, but youre no slouch at sharing info, either, Virgo . And your communication skills will come to the forefront early this month, as you find yourself repeatedly in situations where collaboration is the key to success. Take time during the new moon on the 2nd to think how you can best connect with others and whom you ought to prioritize when forging these bonds. The full moon in your fellow earth sign, Capricorn, on the 16th will see you in a rare playful mood. Not that you dont know how to have fun, Virgo, its just that you so rarely allow yourself to do so. Feel free to kick up your heels during this lunar phase, and if you absolutely must feel productive in some way, focus on a personal project that satisfies your imaginative side and inner desires. Your budget and to-do list can wait its that journaling exercise and DIY wallpaper that need your attention now. Its time for a professional makeover, Libra . Starting with the new moon on July 2, your thoughts will turn toward your career path are you making steady, relatively straightforward progress or has it taken a long and winding route recently? Reflect on your trajectory and dont let the idea of a five-year plan intimidate you. During this lunar phase, that sort of long-term thinking may actually appeal to you. The following day, Venus, your ruling planet, will set its gaze on your work life, too. You could very well charm your way into accomplishing the first few steps of your new moon plan, as youll suddenly have the ear of both your peers and managers. An informal air may overtake the office. Theres nothing wrong with a little idle conversation, but your Venusian powers are strong, Libra. Be careful you dont mess with anyones heart while enjoying some innocent happy hour banter. The second new moon on the 31st will bring you some clarity around who, exactly, you should be glad-handing. The events of this month will ask you the following not-so-simple question, Scorpio : Can you maintain your mysterious, alluring facade while still projecting an accurate image of yourself? You tend to have an aloof, introspective air that attracts others yet affords you with plenty of precious alone time. The new moon on the 2nd will reward you for any you time spent on your passion projects, especially those that broaden your horizons or transform your world view. The Mercury retrograde that begins on the 7th, however, will not look kindly on you if youre acting one way in front of others, only to behave totally differently in private. This is not to say that you have to reveal your every secret to anyone who asks (truly, a Scorpio nightmare). Rather, this period will ask you if its time to reconsider how youve been presenting yourself, particularly at work. This could mean having to lift your ultra-cool veil, but your most valued partnerships could actually benefit when you allow those around you to glance behind the curtain. VIDEO: The Spending Habits of 5 Zodiac Signs Ready to make your escape, Sag ? This month will find you in overdrive, itching for new experiences and ready with another fun fact or idea at every turn. Youll be next to unstoppable while Mars is in fellow fire sign Leo, but what remains uncertain is how, exactly, youll channel all this energy. Consider planning a trip somewhere youve never been or pouring yourself into an activity in your own neighborhood. Invite whoever you wish along for the ride, but dont drag anyone into your harebrained schemes, no matter how fired up you feel. The full moon on the 16th will ask you to secure your resources and, once youre confident in that area, look beyond your wants and needs you might notice a friend who could use your support. Despite how it may feel at first, this lunar phase isnt actually scolding you for looking out for number one. Rather, its simply reminding you of the balancing act at the core of any important relationship. As a steadfast earth sign, you usually have a clear idea of what you want, Capricorn and you dont like to be held back from acquiring it. But this month could see you stepping away from purely self-serving actions to focus more on the goals you share with loved ones. The first week of the month will present you with ample opportunities to get on the same page as your partner or best pal, to make sure youre working toward the same milestone and in agreement about the current flow of your relationship. This wont necessarily be a businesslike check-in on the 3rd, in particular, sparks could fly and laughter will come easily. In order to know your needs and desires, sometimes you must look outside of yourself, to the people you value most. Nurture your most important partnerships this month, even if it means slowing down your personal progress. The full moon in your sign on the 16th could tempt you toward selfishness, but stay the course, Cap those who truly have your back will celebrate your many gifts in due time. RELATED: Why Kate Middleton Is a Textbook Capricorn You pride yourself on your selflessness, Aquarius , but when combative Mars enters your opposite sign, fiery Leo, on July 1, you could very easily lose sight of the greater good in exchange for petty battles of wills. You may even catch yourself squaring off some of your dearest friends and egos could end up bruised, even if youre only bickering over where to go for drinks. When Mercury, also camped out in Leo, begins its retrograde on the 7th, the temptation to burn some bridges could grow even stronger, but resist making any rash decisions. As is usually the case with Mercurys retrograde periods, slower is always better. In your case, that means sitting with and parsing out any conflicts that crop up, rather than breezing past them or worse still burying them altogether. Youll get a break from the drama when Mercury continues its reverse course and directs its focus toward your wellness routine on the 19th. Catch up on sleep and reconsider your scant hydration routine, Water Bearer. RELATED: Jennifer Aniston's Zodiac Sign Reveals a Whole Other Side to Her Personality Is there a spring in your step, Pisces ? Your sector of pleasure, imagination, and creativity is all lit up as July begins, and you should feel empowered to bask in this warmth to your hearts content get back into painting, convince your S.O. to play hooky for a day, even give lucid dreaming a try. Even as Mercury retrograde interrogates your current approach to structure and self-care from the 7th to the 31st, try to make time for a little carefree expression along the way. You often find it difficult to get out of your own head, Pisces, but the full moon on the 16th will drive you right out of it and ask you to, instead, join the community outside your front door. You may not be a fan of large groups, but you have so much to offer those around you. People will always need a shoulder to lean on and a bit of sage advice, Pisces, and if no one asks you outright for your intuitive support, seek out a friend and offer it up yourself. Was your June horoscope on point? Have a look back, here .
Is AMG Yacktman I (YACKX) a Strong Mutual Fund Pick Right Now? Having trouble finding an All Cap Value fund? Well, AMG Yacktman I (YACKX) would not be a good potential starting point right now. YACKX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance. Objective YACKX is one of many All Cap Value funds to choose from. All Cap Value mutual funds buy stakes in companies in all three valuation categories: small, medium, and large-cap. However, they end up focusing on bigger firms due to percentage of assets. Most importantly, these funds look for key value characteristics, targeting stocks that boast low P/E ratios, high dividend yields, and whose share prices do not reflect their worth. History of Fund/Manager AMG Funds is based in Norwalk, CT, and is the manager of YACKX. The AMG Yacktman I made its debut in July of 1992 and YACKX has managed to accumulate roughly $7.11 billion in assets, as of the most recently available information. The fund's current manager, Stephen Yacktman, has been in charge of the fund since December of 2002. Performance Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 7.73%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 10.79%, which places it in the top third during this time-frame. When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of YACKX over the past three years is 7.23% compared to the category average of 11.13%. The fund's standard deviation over the past 5 years is 8.59% compared to the category average of 11.6%. This makes the fund less volatile than its peers over the past half-decade. Risk Factors Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In YACKX's case, the fund lost 40.99% in the most recent bear market and outperformed its peer group by 8.39%. This makes the fund a possibly better choice than its peers during a sliding market environment. Nevertheless, investors should also note that the fund has a 5-year beta of 0.65, which means it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. YACKX's 5-year performance has produced a positive alpha of 1.12, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns. Expenses Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, YACKX is a no load fund. It has an expense ratio of 0.70% compared to the category average of 1.12%. YACKX is actually cheaper than its peers when you consider factors like cost. This fund requires a minimum initial investment of $100,000, and each subsequent investment should be at least $100. Bottom Line Overall, AMG Yacktman I ( YACKX ) has a low Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers. This could just be the start of your research on YACKXin the All Cap Value category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place. 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 reportGet Your Free (YACKX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Is Fidelity Advisor New Insights I (FINSX) a Strong Mutual Fund Pick Right Now? Any investors hoping to find a Global - Equity fund might consider looking past Fidelity Advisor New Insights I (FINSX). FINSX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance. Objective FINSX is classified in the Global - Equity segment by Zacks, an area full of possibilities. Even though Global - Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren't limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns. History of Fund/Manager Fidelity is responsible for FINSX, and the company is based out of Boston, MA. The Fidelity Advisor New Insights I made its debut in July of 2003 and FINSX has managed to accumulate roughly $13.56 billion in assets, as of the most recently available information. The fund is currently managed by William Danoff who has been in charge of the fund since July of 2003. Performance Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 10.26%, and is in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 13.59%, which places it in the middle third during this time-frame. When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FINSX's standard deviation comes in at 12.93%, compared to the category average of 9.63%. The standard deviation of the fund over the past 5 years is 12.36% compared to the category average of 9.96%. This makes the fund more volatile than its peers over the past half-decade. Risk Factors Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In the most recent bear market, FINSX lost 46.65% and outperformed its peer group by 2.21%. This makes the fund a possibly better choice than its peers during a sliding market environment. Nevertheless, with a 5-year beta of 1.01, the fund is likely to be as volatile as the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FINSX has generated a positive alpha over the past five years of 0.58, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns. Holdings Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States. This fund is currently holding about 89.57% stock in stocks, with an average market capitalization of $206.09 billion. The fund has the heaviest exposure to the following market sectors: 1. Technology 2. Finance 3. Retail Trade This fund's turnover is about 36%, so the fund managers are making fewer trades than the average comparable fund. Expenses Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FINSX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1.06%. From a cost perspective, FINSX is actually cheaper than its peers. While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment. Bottom Line Overall, Fidelity Advisor New Insights I ( FINSX ) has a low Zacks Mutual Fund rank, similar performance, average downside risk, and lower fees compared to its peers. This could just be the start of your research on FINSXin the Global - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank. 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 reportGet Your Free (FINSX): Fund Analysis ReportTo read this article on Zacks.com click here.
Is Vanguard Tax-Managed Small Cap Investor (VTMSX) a Strong Mutual Fund Pick Right Now? If you're looking for a Small Cap Blend fund category, then a potential option is Vanguard Tax-Managed Small Cap Investor (VTMSX). VTMSX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance. Objective We classify VTMSX in the Small Cap Blend category, an area rife with potential choices. Small Cap Blend mutual funds usually target companies with a market capitalization of less than $2 billion. A small-cap blend mutual fund allows investors to diversify their funds among various types of small-cap stocks, which can help reduce the volatility inherent in lower market cap companies. History of Fund/Manager VTMSX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. The Vanguard Tax-Managed Small Cap Investor made its debut in April of 1999 and VTMSX has managed to accumulate roughly $5.68 billion in assets, as of the most recently available information. The fund's current manager, William A. Coleman, has been in charge of the fund since April of 2016. Performance Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 7.78%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.39%, which places it in the top third during this time-frame. When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, VTMSX's standard deviation comes in at 17.39%, compared to the category average of 12.36%. The fund's standard deviation over the past 5 years is 16.27% compared to the category average of 12.57%. This makes the fund more volatile than its peers over the past half-decade. Risk Factors One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In the most recent bear market, VTMSX lost 50.89% and outperformed comparable funds by 1.4%. This might suggest that the fund is a better choice than its peers during a bear market. Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. VTMSX has a 5-year beta of 1.15, which means it is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -2.4, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns. Expenses As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VTMSX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 1.05%. From a cost perspective, VTMSX is actually cheaper than its peers. Investors should also note that the minimum initial investment for the product is $10,000 and that each subsequent investment needs to be at $1. Bottom Line Overall, Vanguard Tax-Managed Small Cap Investor ( VTMSX ) has a neutral Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers. Want even more information about VTMSX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank. 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 reportGet Your Free (VTMSX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Is Fidelity Balanced Fund K (FBAKX) a Strong Mutual Fund Pick Right Now? There are plenty of choices in the Allocation Balanced category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Balanced Fund K (FBAKX). FBAKX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance. Objective FBAKX is classified in the Allocation Balanced segment by Zacks, which is an area full of possibilities. Here, investors are able to get a good head start with diversified mutual funds, and play around with core holding options for a portfolio of funds. Allocation Balanced funds look to invest across a balance of asset types, like stocks, bonds, and cash, though including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. History of Fund/Manager Fidelity is based in Boston, MA, and is the manager of FBAKX. Fidelity Balanced Fund K made its debut in May of 2008, and since then, FBAKX has accumulated about $8.12 billion in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals. Performance Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 6.95%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 8.6%, which places it in the top third during this time-frame. When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 7.92%, the standard deviation of FBAKX over the past three years is 8.63%. Looking at the past 5 years, the fund's standard deviation is 8.59% compared to the category average of 8.34%. This makes the fund more volatile than its peers over the past half-decade. Risk Factors One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. Nevertheless, with a 5-year beta of 0.72, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -0.26, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns. Expenses Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FBAKX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.89%. Looking at the fund from a cost perspective, FBAKX is actually cheaper than its peers. Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount. Bottom Line Overall, Fidelity Balanced Fund K ( FBAKX ) has a high Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers. For additional information on the Allocation Balanced area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FBAKX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank. 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 reportGet Your Free (FBAKX): Fund Analysis ReportTo read this article on Zacks.com click here.
Is SWRSX a Strong Bond Fund Right Now? Government - Bonds: Misc fund seekers should consider taking a look at Schwab Treasury Inflation Protected Security (SWRSX). SWRSX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance. Objective We note that SWRSX is a Government - Bonds: Misc option, and this area is loaded with many different choices. Often seen as risk-free assets and described as extremely low-risk from a default perspective, Government - Bonds: Misc funds hold securities issued by the United States' federal government. This category stretches across the curve, meaning the yields and interest rate sensitivity will vary, but a mixed approach can typically result in a medium yield and risk profile. History of Fund/Manager SWRSX finds itself in the Schwab Funds family, based out of San Francisco, CA. The Schwab Treasury Inflation Protected Security made its debut in March of 2006 and SWRSX has managed to accumulate roughly $817 million in assets, as of the most recently available information. Matthew Hastings is the fund's current manager and has held that role since March of 2006. Performance Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 1.5%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.38%, which places it in the top third during this time-frame. When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, SWRSX's standard deviation comes in at 3.1%, compared to the category average of 3.33%. Looking at the past 5 years, the fund's standard deviation is 3.47% compared to the category average of 3.81%. This makes the fund less volatile than its peers over the past half-decade. Bond Duration Modified duration is a measure of a specific bond's interest rate sensitivity, and is an excellent way to judge how fixed income securities will respond to a shifting rate environment. If you believe interest rates will rise, this is an important factor to look at. SWRSX has a modified duration of 7.47, which suggests that the fund will decline 7.47% for every hundred-basis-point increase in interest rates. Income It is important to consider the fund's average coupon because income is often a big reason for purchasing a fixed income security. This metric calculates the fund's average payout in a given year. For example, this fund's average coupon of 0.82% means that a $10,000 investment should result in a yearly payout of $82. For those seeking a strong level of current income, a higher coupon is typically good news. However, it could pose a reinvestment risk if rates are lower in the future when compared to the initial purchase date of the bond. Investors also need to consider risk relative to broad benchmarks, as income is only one part of the bond picture. SWRSX carries a beta of 0.91, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -1.13, which measures performance on a risk-adjusted basis. Expenses For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, SWRSX is a no load fund. It has an expense ratio of 0.05% compared to the category average of 0.81%. SWRSX is actually cheaper than its peers when you consider factors like cost. Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount. Bottom Line Overall, Schwab Treasury Inflation Protected Security ( SWRSX ) has a high Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers. For additional information on the Government - Bonds: Misc area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into SWRSX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank. 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 reportGet Your Free (SWRSX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Gods Unchained has updated its XP system Blockchain-enabled trading game Gods Unchained has announced an upgrade to the current experience (XP) system to help fairly reward players and punish toxic quitters. The news was announced on the Gods Unchained blog page, which states the decision to upgrade and tweak the XP system was necessary as it is a fundamental component of the game and needs to be balanced in the interest of fairness. Part of balancing the game is knowing how blockchain can be used effectively to reward players as well as ensuring there are no clear-cut exploits for players to use as an advantage. One issue the team found was that previously any quitouts before round five resulted in nobody gaining XP. As a result, players who were losing would quit in round four just so their opponent (the winning player) would gain nothing. To remedy this, an upgrade has been implemented granting the winner XP if their opponent concedes prior to round five. Since the change, Gods Unchained has seen the percentage of games lasting until round five increase by 7%. Another issue was that the old XP system gave out the same amount of XP whether the game ended in round five or round 10. This in turn strongly rewarded players who used decks that can force a result early, allowing them to re-queue quickly and go again. The new system The new XP system is based on two components. The first is a constant value of XP is awarded per round completed, which rewards both players for the amount of time spent in-game. The second is a fixed bonus for winning, which rewards skilled play. As with the previous system, quitouts before round five result in no XP awarded to the player quitting the game, but XP is now awarded to victims of quitouts. There has been no change to the overall levelling rate, meaning it is exactly the same as the previous XP system. Interested in reading more Gods Unchained-related stories? Discover more about the previous update the game rolled out, which was dubbed as its “largest update ever”. The post Gods Unchained has updated its XP system appeared first on Coin Rivet .
The Buzz May Be Over for New Age Beverages Stock for Awhile The valuations of marijuana stocks are generally off the charts.Tilray(NASDAQ:TLRY) stock sports a market cap of $4.5 billion whileCronos Group(NASDAQ:CRON) is at $5.3 billion andCanopy Growth(NYSE:CGC) trades at a hefty $13.9 billion. These valuations are reminiscent of the wild dot-com days when companies with minimal revenues were speculatively bid up, based on their potential growth opportunities. Yet there are still relatively cheap cannabis producers. Just look atNew Age Beverages(NASDAQ:NBEV) stock. Consider that the market cap of NBEV stock is a mere $337 million. What’s more, NBEV is trading at a relatively reasonable 3.4 times its sales (by comparison, red-hot marijuana stocks can easily have multiples of over 50 times their sales). Since October, New Age Beverages stock actually has been in a downward trend, going from nearly $10 to $4.66. Founded in 2010, NBEV began with a focus on healthy brands. According to NBEV’swebsite,“While our core function is to deliver healthy alternatives to the planet, we believe companies have a responsibility to positively impact society and function as global agents of change. Our goal is to inspire positive shifts in the lives of those we reach by providing best-in-class ‘Better for You’ products & valuable content that motivates people to take ownership of their health and radically pursue their life’s purpose.” InvestorPlace - Stock Market News, Stock Advice & Trading Tips • 7 F-Rated Stocks to Sell for Summer That’s a lofty mission. NBEV has drawn on science and innovation, including 11 patents, as it looks to accomplish those goals. For example, its flagship product is ENHANCED Recovery, which is a hydration beverage that uses micronutrient science. NBEV has been transforming itself recently by investing aggressively in the development of CBD-infused drinks. These beverages feature cannabidiol, or CBD, from the cannabis plant, which is a component of marijuana that does not produce highs. There have been indications that CBD can alleviate a number of medical conditions, including pain. Late last year, the company launched its first drink, called Marley (it’s a reference to the legendary singer, Bob Marley). As should be no surprise, the launch supercharged NBEV stock. NBEV has also been aggressive when it comes to M&A. In December, the company acquired Morinda, which has a set of healthy beverages that are distributed across more than 60 countries. NBEV hopes that, by becoming a great platform for developing CBD drinks, Morinda will meaningfully boost NBEV stock. NBEV also bought Brands Within Reach, which has licensing and distribution rights to brands like Nestea, Volvic and Illy Ready to Drink Coffee. That deal will provide NBEV with exposure to large retail customers likeWalmart(NYSE:WMT) andCostco Wholesale(NASDAQ:COST). According to the pressrelease announcing the deal: “BWR and New Age together will have the most extensive one-stop-shop of healthy beverages available to any foodservice or retail customer in North America, with an extensive low-cost national distribution and logistics footprint.” There are severalanalystswho are upbeat on the prospects of NBEV stock.Roth Capitalhas an $11 price target on New Age Beverages stock, whileCompass Pointhas a $9 price target on the name. But I think the Street’s enthusiasm about NBEV stock may be overdone. Most of NBEV’s revenue comes from healthy/performance beverages, which is generally a relatively small, crowded niche. More importantly, the company’s CBD opportunity is still in the early stages, and the CBD market’s growth outlook is far from clear. Besides, large cannabis players like CGC, which is backed byConstellation Brands(NYSE:STZ), andHexo(NYSEAMERICAN:HEXO), whose main partner isMolson Coors(NYSE:TAP), are also looking to enter the space. If anything, these companies seem much better positioned -than NBEV and are likely better investment opportunities than NBEV stock. Tom Taulli is the author of the upcoming book,Artificial Intelligence Basics: A Non-Technical Introduction.Follow him on Twitter at@ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. Compare Brokers The postThe Buzz May Be Over for New Age Beverages Stock for Awhileappeared first onInvestorPlace.
Is China XD Plastics Company Limited (NASDAQ:CXDC) Struggling With Its 8.2% 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 China XD Plastics Company Limited (NASDAQ:CXDC) and reflect on its potential as an investment. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for China XD Plastics: 0.082 = US$104m ÷ (US$2.9b - US$1.6b) (Based on the trailing twelve months to March 2019.) So,China XD Plastics has an ROCE of 8.2%. Check out our latest analysis for China XD Plastics ROCE is commonly used for comparing the performance of similar businesses. In this analysis, China XD Plastics's ROCE appears meaningfully below the 16% average reported by the Auto Components industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Setting aside the industry comparison for now, China XD Plastics's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. It is possible that there are more rewarding investments out there. We can see that , China XD Plastics currently has an ROCE of 8.2%, less than the 12% it reported 3 years ago. So investors might consider if it has had issues recently. You can click on the image below to see (in greater detail) how China XD Plastics's past growth compares to other companies. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. If China XD Plastics is cyclical, it could make sense to check out thisfreegraph of past earnings, revenue and cash flow. Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. China XD Plastics has total liabilities of US$1.6b and total assets of US$2.9b. As a result, its current liabilities are equal to approximately 56% of its total assets. With a high level of current liabilities, China XD Plastics will experience a boost to its ROCE. Notably, it also has a mediocre ROCE, which to my mind is not an appealing combination. You might be able to find a better investment than China XD Plastics. 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). I will like China XD Plastics 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.
3 Ways You Could Be Sabotaging Your Social Security Benefits Social Security can be a lifeline in retirement, particularly if your savings are sparse. Considering 45% of baby boomers don't have anything saved for retirement, according to the Insured Retirement Institute, a lot of retirees are going to be depending on their Social Security benefits just to get by. If Social Security is going to be your primary source of income, it's important to ensure you're doing everything you can tomaximize your checks. However, there are a few common ways you may be sabotaging your benefits without realizing it. Image source: Getty Images Yourfull retirement age(FRA) is either age 66, 67, or somewhere in between, and claiming at this age is the only way to receive 100% of the benefits you're theoretically entitled to. Yet only 24% of those age 50 and over know what their FRA is, a survey from the Nationwide Retirement Institute and The Harris Poll found. Furthermore, the survey also noted that nearly 70% of soon-to-be retirees believe they're eligible to receive their full benefits before they really are, with the average person thinking they can claim benefits at age 63 to receive their full amount. However, if you claim before you reach your FRA, your benefits will be reduced by up to 30%. Given the fact that Social Security benefits alone may or may not cover all your expenses (the average beneficiary only receives around $1,400 per month, according to the Social Security Administration), a 30% reduction could make it even more challenging to make ends meet with just your benefits. While claiming benefits before you reach your FRA will result in smaller checks, waiting until beyond your FRA to claim will give you a boost in benefits. For those with a FRA of 66 years old, for example, waiting until age 70 can provide an additional 32% on top of your full amount. Some savvy workers, then, may think the best plan of action is tohold off on claiming benefits for as long as possible. A third of baby boomers say they plan to wait until past age 70 to retire, according to a survey from the Insured Retirement Institute, so on the surface, it makes sense to delay claiming benefits until past age 70 too. That sounds like a good idea in theory, but after you turn 70, you won't receive any additional benefits by waiting to claim. So for every month you wait past age 70, you're simply missing out on money. Even if you're still working at age 70 and beyond, it's a good idea to claim your benefits anyway. Because you've passed your FRA, the income you receive by workingwon't affect how much you receive in benefits-- so just consider the income you receive from Social Security icing on the cake. If you've been divorced and your previous marriage lasted at least 10 years, you or your ex-spouse may be eligible for additional Social Security benefits. There is a lot of fine print to comb through, however, which is why it's easy to get confused when figuring out whether you're eligible to claim benefits based on an ex-spouse's work record. For those who are eligible, though, you could be earning extra money each month with no extra effort. If you're receiving more in Social Security benefits than your ex-spouse, you're not eligible to receive any additional money based on your ex-spouse's employment record. In addition, even if your ex-spouse is claiming benefits based on your record, your benefits won't be affected. In other words, your ex-husband or ex-wife cannot "take" benefits from you. But if you're the lesser-earning ex-spouse, you may be eligible to receive money based on your ex's work record. There are some caveats, though. First, you have to be at least 62 years old. Second, you have to be unmarried. Third, if your ex-spouse is eligible to receive Social Security benefits but hasn't claimed them yet, you need to have been divorced for at least two years before you can file for benefits based on their work record. Also, if you're eligible for your own Social Security benefits but the amount you'd receive is less than what your spouse is entitled to, the Social Security Administration will pay out your benefits first. Then if you're also eligible to receive benefits based on your ex-spouse's record, you'll receive an additional amount on top of what you're already receiving based on your own work record. Confused yet? If so, it's understandable. Let's look at a hypothetical example for some clarity. Say you and your ex-spouse were married 20 years but have been divorced 10 years, you're 62 years old, and you're not married. By claiming your own benefits, you'd receive $750 per month, and your ex is entitled to receive $2,000 per month in benefits at FRA. Because you meet all the requirements to claim on your ex's work record, you'll receive the $750 per month you're entitled to, but you might also get an additional amount of up to $250 per month based on your ex's work record to get you up to the maximum of half of $2,000, or $1,000. Exactly what you'll get depends on your own FRA and the age at which you choose to claim. Social Security can be a confusing topic, but it's crucial to understand at least the basics of how the program works -- especially if you're expecting to depend on your benefits for a good portion of your retirement income. By ensuring you're maximizing your potential earnings, you'll be setting yourself up for a happier and less stressful retirement. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market The Motley Fool has adisclosure policy.
Brookfield, GIC to buy Genesee & Wyoming for about $6.4 billion (Reuters) - Canada's Brookfield Asset Management Inc and Singaporean sovereign wealth fund GIC on Monday agreed to buy U.S. freight railroad owner Genesee & Wyoming Inc for about $6.4 billion in cash. Brookfield and GIC's offer of $112 per share represents a premium of 12% to Genesee's closing price on Friday. Genesee shares were up 9%. Including debt, the deal is valued at about 8.4 billion, the companies said in a statement. Genesee & Wyoming's revenue have increased at a compound annual growth rate of 16.8% since it floated in the stock market in 1996, rising to $2.3 billion in 2018 from $77.8 million, according to Genesee & Wyoming's latest annual report. The company owns a portfolio of 120 short-line railroads, predominantly in North America, with operations in Europe and Australia. Reuters had reported on the deal on Sunday, citing sources. The deal, which is expected to close by year end or early 2020, would be the latest big leveraged buyout by Brookfield, which agreed last year to buy Johnson Controls International Plc's power solutions business for about $13 billion. Citigroup Global Markets Inc served as the financial adviser to Brookfield and GIC, while BofA Merrill Lynch and Morgan Stanley & Co LLC advised Genesee. (Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D'Silva)
Yuan, dollar gain and safe-haven currencies shrivel after U.S.-China trade truce By Tommy Wilkes LONDON (Reuters) - The dollar and offshore Chinese yuan rallied on Monday after the United States and China agreed to restart their troubled trade talks, while the Japanese yen and Swiss franc were the big casualties as investors sold safe-haven currencies. While reports of an agreement had been flagged ahead of U.S. President Donald Trump and his Chinese counterparty Xi Jinping's meeting on the sidelines of the G20 meeting, the outcome was more positive than investors had expected. Trump said he would hold back on new tariffs and that China will buy more farm products, and he offered to ease restrictions on tech company Huawei. Global stocks jumped and investors dumped safe-haven assets. China's offshore yuan rose more than 0.5% to as high as 6.8165 yuan per dollar, near a two-month high, before easing back to 6.8476 after disappointing factory activity data. The dollar, which has fallen in recent weeks on rising expectations for Federal Reserve interest rate cuts, rose 0.4% against a basket of currencies, its index hitting 96.611 and the highest since June 21. Versus the euro the greenback rose 0.4% to $1.1327. "The compromise reached between Trump and Xi at the week’s G20 meeting went further than most had expected, with Trump putting the next tranche of tariffs on hold and reopening US companies' ability to supply Huawei," said RBC's currency strategist Adam Cole. However, he cautioned that there remained "plenty of scope for trade talks to break down again in the future." The Japanese yen, which investors tend to buy when they are looking for safety, dropped 0.6% to as low as 108.53, its weakest since June 19, before settling at 108.31. The Swiss franc lost 0.4% versus the euro to 1.1142 francs. It also slumped 0.7% against the dollar to $0.9833. The Australian dollar, sensitive to the economic fortunes of China, the country's largest trading partner, dropped 0.4% at $0.6995, with the weaker-than-expected factory data out of China overshadowing the trade ceasefire. Sterling slipped 0.5% to $1.2638, hurt by the broad dollar rally and after a survey showed Britain's manufacturers suffering their sharpest fall in activity in more than six years in June. This week sees the release of crucial U.S. economic data including non-farm payrolls on Friday and non-manufacturing activity on Wednesday, which should help investors better assess whether the Federal Reserve will cut interest rates later this month. "Economic data will clearly have a more important role this week, and we can't help but think that Friday's US employment overview will be a defining moment for July Fed rate expectations," said BMO Capital Markets FX strategist Stephen Gallo. (Editing by Toby Chopra and Raissa Kasolowsky)
Why CTT - Correios De Portugal, S.A.’s (ELI:CTT) Use Of Investor Capital Doesn’t Look Great 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 CTT - Correios De Portugal, S.A. (ELI:CTT) and reflect on its potential as an investment. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. Firstly, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for CTT - Correios De Portugal: 0.094 = €47m ÷ (€1.8b - €1.3b) (Based on the trailing twelve months to March 2019.) Therefore,CTT - Correios De Portugal has an ROCE of 9.4%. See our latest analysis for CTT - Correios De Portugal ROCE is commonly used for comparing the performance of similar businesses. Using our data, CTT - Correios De Portugal's ROCE appears to be significantly below the 13% average in the Logistics industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Aside from the industry comparison, CTT - Correios De Portugal's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. It is possible that there are more rewarding investments out there. We can see that , CTT - Correios De Portugal currently has an ROCE of 9.4%, less than the 18% it reported 3 years ago. This makes us wonder if the business is facing new challenges. You can see in the image below how CTT - Correios De Portugal's ROCE compares to its industry. Click to see more on past growth. Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for CTT - Correios De Portugal. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counteract this, we check if a company has high current liabilities, relative to its total assets. CTT - Correios De Portugal has total liabilities of €1.3b and total assets of €1.8b. Therefore its current liabilities are equivalent to approximately 73% of its total assets. CTT - Correios De Portugal has a fairly high level of current liabilities, meaningfully impacting its ROCE. Despite this, the company also has a uninspiring ROCE, which is not an ideal combination in this analysis. Of course,you might also be able to find a better stock than CTT - Correios De Portugal. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Read This Before You Buy Bénéteau S.A. (EPA:BEN) Because Of Its P/E Ratio Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll apply a basic P/E ratio analysis to Bénéteau S.A.'s (EPA:BEN), to help you decide if the stock is worth further research.Bénéteau has a P/E ratio of 13.32, based on the last twelve months. In other words, at today's prices, investors are paying €13.32 for every €1 in prior year profit. See our latest analysis for Bénéteau Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Bénéteau: P/E of 13.32 = €9.68 ÷ €0.73 (Based on the trailing twelve months to February 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each €1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. Probably the most important factor in determining what P/E a company trades on is the earnings growth. Earnings growth means that in the future the 'E' will be higher. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. And as that P/E ratio drops, the company will look cheap, unless its share price increases. Bénéteau saw earnings per share decrease by 7.0% last year. But over the longer term (5 years) earnings per share have increased by 61%. One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. We can see in the image below that the average P/E (19.5) for companies in the leisure industry is higher than Bénéteau's P/E. Its relatively low P/E ratio indicates that Bénéteau shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with Bénéteau, it's quite possible it could surprise on the upside. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling. The 'Price' in P/E reflects the market capitalization of the company. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash). 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. Net debt totals 13% of Bénéteau's market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt. Bénéteau has a P/E of 13.3. That's below the average in the FR market, which is 18.1. The debt levels are not a major concern, but the lack of EPS growth is likely weighing on sentiment. Investors have an opportunity when market expectations about a stock are wrong. 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 Bénéteau. 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.
Here's What Datron AG's (ETR:DAR) ROCE Can Tell Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Datron AG (ETR:DAR) to see whether it might be an attractive investment prospect. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE. ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' 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 Datron: 0.16 = €4.9m ÷ (€35m - €4.7m) (Based on the trailing twelve months to December 2018.) So,Datron has an ROCE of 16%. View our latest analysis for Datron When making comparisons between similar businesses, investors may find ROCE useful. Datron's ROCE appears to be substantially greater than the 10% average in the Machinery 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 Datron sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look. You can see in the image below how Datron's ROCE compares to its industry. Click to see more on past growth. When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for Datron. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Datron has total liabilities of €4.7m and total assets of €35m. As a result, its current liabilities are equal to approximately 13% of its total assets. A fairly low level of current liabilities is not influencing the ROCE too much. This is good to see, and with a sound ROCE, Datron could be worth a closer look. Datron 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. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Data Respons ASA (OB:DAT): Time For A Financial Health Check Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While small-cap stocks, such as Data Respons ASA (OB:DAT) with its market cap of øre2.4b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Understanding the company's financial health becomes crucial, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. The following basic checks can help you get a picture of the company's balance sheet strength. Nevertheless, these checks don't give you a full picture, so I recommend youdig deeper yourself into DAT here. Over the past year, DAT has ramped up its debt from øre182m to øre354m , which includes long-term debt. With this growth in debt, DAT currently has øre81m remaining in cash and short-term investments , ready to be used for running the business. Moreover, DAT has generated cash from operations of øre136m during the same period of time, leading to an operating cash to total debt ratio of 38%, meaning that DAT’s current level of operating cash is high enough to cover debt. At the current liabilities level of øre521m, it seems that the business has been able to meet these commitments with a current assets level of øre552m, leading to a 1.06x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. For IT companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment. With a debt-to-equity ratio of 48%, DAT can be considered as an above-average leveraged company. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. We can test if DAT’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 DAT, the ratio of 7.09x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback. Although DAT’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. Keep in mind I haven't considered other factors such as how DAT has been performing in the past. I recommend you continue to research Data Respons to get a better picture of the small-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for DAT’s future growth? Take a look at ourfree research report of analyst consensusfor DAT’s outlook. 2. Valuation: What is DAT 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 DAT 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 Deutsche Börse AG (ETR:DB1) Could Be Your Next Investment Want to participate in a short 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 Deutsche Börse AG ( ETR:DB1 ), it is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Deutsche Börse here . Established dividend payer with adequate balance sheet DB1's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. DB1's has produced operating cash levels of 0.57x total debt over the past year, which implies that DB1's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. XTRA:DB1 Historical Debt, July 1st 2019 For those seeking income streams from their portfolio, DB1 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.2%. XTRA:DB1 Historical Dividend Yield, July 1st 2019 Next Steps: For Deutsche Börse, there are three important factors you should look at: Future Outlook : What are well-informed industry analysts predicting for DB1’s future growth? Take a look at our free research report of analyst consensus for DB1’s outlook. Historical Performance : What has DB1's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DB1? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
'Killing Eve' star Fiona Shaw: It was a shock to discover I am gay Fiona Shaw arrives at the season two premiere of "Killing Eve" on Monday, April 1, 2019, at ArcLight Hollywood in Los Angeles. (Photo by Richard Shotwell/Invision/AP) Killing Eve star Fiona Shaw has confessed she was shocked and full of self-hatred when she first realised she was gay. The 60-year-old actress - who is married to 56-year-old economist Sonali Deraniyagala - revealed she dated men for several years before discovering her sexuality - which came as a surprise to herself. Shaw told the Big Issue: I wasnt in any way gay until I was. One goes on developing. As a teenager, I was very modest in my romantic life. Read more: Fiona Shaw: I cant wait until a new generation is in charge I had this wonderful boyfriend, then another, then later I became gay. It was a shock. I was full of self-hatred and thought I would come back into the fold shortly. But I just didnt. Fiona Shaw, Writer Phoebe Waller-Bridge, and actress Jodie Comer pose at the 2019 BAFTA Television Awards in London, Sunday, May 12, 2019 (Photo by Grant Pollard/Invision/AP) The Harry Potte r star - who played the boy wizards aunt Petunia Dursley in the hit franchise - said she would now tell her younger self, You must be very gentle on yourself and that you are not in control of those aspects of yourself and you mustnt try to be. Shaw was introduced to her Sri Lankan wife Dr Deraniyagala after reading her memoir, Wave , which details how she lost her entire family in the 2004 Boxing Day Tsunami. Read more: Fiona Shaw Is More Than Happy With Being The Boss In Killing Eve The Fleabag actress said earlier this year: I married and that calms you down. I didnt really have a domestic life because I was always working. But I do have one now, which I love. Shaw was previously in a relationship with Mozart In The Jungle star Saffron Burrows. The 46-year-old actress now has two children with her wife Alison Balian who she married in 2013. Watch the latest videos from Yahoo UK
The Deutsche Börse (ETR:DB1) Share Price Has Gained 120%, So Why Not Pay It Some Attention? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price ofDeutsche Börse AG(ETR:DB1) stock is up an impressive 120% over the last five years. It's down 1.9% in the last seven days. View our latest analysis for Deutsche Börse 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, Deutsche Börse achieved compound earnings per share (EPS) growth of 7.7% per year. This EPS growth is slower than the share price growth of 17% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). Thisfreeinteractive report on Deutsche Börse'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Deutsche Börse, it has a TSR of 150% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! It's nice to see that Deutsche Börse shareholders have received a total shareholder return of 11% over the last year. That's including the dividend. However, the TSR over five years, coming in at 20% per year, is even more impressive. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. Before forming an opinion on Deutsche Börse you might want to consider these3 valuation metrics. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on DE 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.
Attention Biotech Investors: Mark Your Calendar For These July PDUFA Dates The FDA went overdrive in the month of June, deciding on several regulatory applications before the July 4 holiday. There were favorable outcomes as well as disappointments. Acer Therapeutics Inc(NASDAQ:ACER) went about a freefall, shedding about 79% in a single session after the FDA issued acomplete response letterto the NDA for its rare genetic disorder drug. Merck & Co., Inc.(NYSE:MRK)'sKeytrudasnagged two approvals in the month – for head and neck cancer as well as lung cancer. As the first half of the year winds down, new molecular entity approvals thus far totaled 12 compared to 20 approvals in the same time last year. PDUFA dates are deadlines for the FDA to review new drugs. The FDA is normally given 10 months to review new drugs. If a drug is selected for priority review, the FDA is allotted six months to review the drug. These time frames begin on the date that an NDA is accepted by the FDA as complete. Here are the key PDUFA dates to watch in July. Karyopharm Awaits Positive Verdict After Initial Hiccups • Company:Karyopharm Therapeutics Inc(NASDAQ:KPTI) • Type of Application:NDA • Candidate:Selinexor in combination with dexamethasone • Indication:Multiple myeloma • Date:July 6 Selinexor, an oral selective inhibitor of nuclear export compound, is being evaluated in combination with dexamethasone for treating patients with relapsed refractory multiple myeloma who have received at least three prior therapies and whose disease is refractory to at least one proteasome inhibitor, one immunomodulatory agent, and one anti-CD38 monoclonal antibody. FDA's Oncologic Drug Advisory Committee, which met in late February,voted8-5 recommending the FDA wait for results from a Phase 3 study dubbed BOSTON before making a final decision regarding approval. In mid-March, the company announced the FDA extended the review period by three months to July 6. Merck Seeks Approval For Antibiotic Combo Treatment • Company:Merck • Type of Application:NDA • Candidate:Combination of relebactam with imipenem/cilastatin • Indication:Complicated urinary tract infection and complicated intra-abdominal infections • Date:July 16 Merck communicated FDA acceptance of the application Feb. 5. The application is supported by the results of the pivotal Phase 3 RESTORE-IMI 1 trial. Celgene Knocks The FDA Altar For Expanded Indication Of Psoriasis Drug • Company:Celgene Corporation(NASDAQ:CELG) • Type of Application:sNDA • Candidate:Otezla • Indication:Behҫet's disease • Date:July 21 Otezla has been already been approved for psoriatic arthritis and plaque psoriasis. Incidentally,Bristol-Myers Squibb Co(NYSE:BMY), which has agreed to acquire Celgene, decided todivest Otezlain a bid to appease regulators. Bechet's disease is a rare disorder that causes blood vessel inflammation throughout the body, manifesting as mouth sores, eye inflammation, skin rashes and lesions. Biohaven's Neurological Disorder • Company:Biohaven Pharmaceutical Holding Co Ltd(NYSE:BHVN) • Type of Application:510(b)(2)NDA • Candidate:BHV-0223 • Indication:Amyotrophic lateral sclerosis • Date:July (date not specified) Adcom Calendar FDA's Psychopharmacologic Drugs Advisory Committee will discussIntra-Cellular Therapies Inc(NASDAQ:ITCI)'s NDA for lumateperone tosylate capsules for oral administration in treating schizophrenia. Related Links: FDA Type A Meetings: What You Need To Know 5 Most Expensive Drugs In US: What You Should Know See more from Benzinga • The Week Ahead In Biotech: Pending Clinical Readouts In Focus • The Daily Biotech Pulse: Chiasma To Join R3K Index, EU Rejects Amgen's Osteoporosis Drug Application, Karuna IPO • The Daily Biotech Pulse: Verrica Rallies, Aclaris Flunked Hair Loss Study, 3 Biotechs To IPO © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Should You Worry About Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft's (VIE:SBO) CEO Salary Level? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In 2001 Gerald Grohmann was appointed CEO of Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (VIE:SBO). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO. See our latest analysis for Schoeller-Bleckmann Oilfield Equipment At the time of writing our data says that Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft has a market cap of €1.2b, and is paying total annual CEO compensation of €821k. (This figure is for the year to December 2018). That's a fairly small increase of 7.9% on year before. While we always look at total compensation first, we note that the salary component is less, at €641k. When we examined a selection of companies with market caps ranging from €879m to €2.8b, we found the median CEO total compensation was €1.5m. This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business. You can see, below, how CEO compensation at Schoeller-Bleckmann Oilfield Equipment has changed over time. Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft has increased its earnings per share (EPS) by an average of 63% a year, over the last three years (using a line of best fit). It achieved revenue growth of 25% over the last year. This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested inthisfreevisualization of analyst forecasts. Most shareholders would probably be pleased with Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft for providing a total return of 42% 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. It appears that Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Gerald Grohmann deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. So you may want tocheck if insiders are buying Schoeller-Bleckmann Oilfield Equipment shares with their own money (free access). If you want to buy a stock that is better than Schoeller-Bleckmann Oilfield Equipment, 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.
Nuclear inspectors checking Iran's stock of enriched uranium -IAEA VIENNA, July 1 (Reuters) - Inspectors from the U.N. nuclear watchdog are verifying whether Iran has accumulated more enriched uranium than allowed under its deal with major powers, the agency said on Monday, after Iranian sources told Reuters and other media said this was the case. "We are aware of the media reports related to Iran's stockpile of low-enriched uranium (LEU)," an International Atomic Energy Agency spokesman said. "Our inspectors are on the ground and they will report to headquarters as soon as the LEU stockpile has been verified." (Reporting by Francois Murphy Editing by Raissa Kasolowsky)
BIS will support central banks that issue their own digital currencies The Bank for International Settlements (BIS) will support central banks trying to issue their own digital assets,The Financial Times writes,in a notable U-turn for the bank, which has previously shunned cryptocurrencies. According to the FT, central bank digital currencies (CBDC) could give the public direct access to central bank money, which previously has only been available to private sector lenders. “Many central banks are working on it; we are working on [] supporting them,” BIS general manager Agustín Carstens said. “And it 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.” Carstens argued however that there is not yet a clear use-case for CBDCs. "There needs to be evidence for demand... and it is not clear that the demand is there yet. Perhaps people can do what they want by using electronic wallets provided by banks or fintech companies. It depends on the development of payment systems," he said. The general manager also noted how Facebook’s announcement of Libra may contribute to central banks like the Swedish Riksbank speeding up their digital currency plans. Following the announcement of Libra, the BIS reported that Facebook's planned cryptocurrency project could potentiallyharm the banking sector.
Why You Should Like Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft’s (VIE:SBO) ROCE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (VIE:SBO) to determine whether it could have potential as an investment idea. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. First of all, we'll work out how to calculate ROCE. Next, we'll compare it to others in its industry. Then we'll determine how its current liabilities are affecting its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Schoeller-Bleckmann Oilfield Equipment: 0.12 = €77m ÷ (€936m - €296m) (Based on the trailing twelve months to March 2019.) So,Schoeller-Bleckmann Oilfield Equipment has an ROCE of 12%. See our latest analysis for Schoeller-Bleckmann Oilfield Equipment ROCE is commonly used for comparing the performance of similar businesses. In our analysis, Schoeller-Bleckmann Oilfield Equipment's ROCE is meaningfully higher than the 7.4% average in the Energy Services industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Independently of how Schoeller-Bleckmann Oilfield Equipment compares to its industry, its ROCE in absolute terms appears decent, and the company may be worthy of closer investigation. Schoeller-Bleckmann Oilfield Equipment delivered an ROCE of 12%, which is better than 3 years ago, as was making losses back then. That implies the business has been improving. You can click on the image below to see (in greater detail) how Schoeller-Bleckmann Oilfield Equipment's past growth compares to other companies. When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. Given the industry it operates in, Schoeller-Bleckmann Oilfield Equipment could be considered cyclical. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Schoeller-Bleckmann Oilfield Equipment. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counter this, investors can check if a company has high current liabilities relative to total assets. Schoeller-Bleckmann Oilfield Equipment has total liabilities of €296m and total assets of €936m. Therefore its current liabilities are equivalent to approximately 32% of its total assets. Schoeller-Bleckmann Oilfield Equipment has a medium level of current liabilities, which would boost the ROCE. With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better. There might be better investments than Schoeller-Bleckmann Oilfield Equipment out there,but you will have to work hard to find them. These promising businesses withrapidly growing earningsmight be right up your alley. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is It Too Late To Consider Buying Derichebourg (EPA:DBG)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Derichebourg (EPA:DBG), which is in the commercial services business, and is based in France, saw a double-digit share price rise of over 10% in the past couple of months on the ENXTPA. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Derichebourg’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Derichebourg Good news, investors! Derichebourg is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €5.08, but it is currently trading at €3.38 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Derichebourg’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Derichebourg’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?Since DBG is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor?If you’ve been keeping an eye on DBG for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DBG. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Derichebourg. You can find everything you need to know about Derichebourg inthe latest infographic research report. If you are no longer interested in Derichebourg, 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.
Bank ETF (KBWR) Hits New 52-Week High For investors seeking momentum,Invesco KBW Regional Banking ETF KBWRis probably on radar now. The fund just hit a 52-week high and is up about 43.7% from its 52-week low price of $42.21/share. But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed: KBWR in Focus The underlying KBW Nasdaq Regional Banking Index is a float-adjusted, equal capitalization-weighted index comprising securities of 50 mid-cap banking companies that are publicly listed in the United States. The fund charges investors 35 basis points a year in fees (see: all the Financial ETFs here). Why the Move? The banking corner of the financial space has been an area to watch lately especially after the Fed Stress Test. U.S. banking biggies have cleared the key Stress Test conducted by the Federal Reserve, barring the U.S. division of Credit Suisse. Regulators allowed majority of the 18 institutions to raise dividends and buy back shares. Encouraging stress test results and a string of announcements about shareholder value maximization bode well for the entire banking space. More Gains Ahead? Currently KBWR has a Zacks ETF Rank #2 (Buy) with a High-risk outlook.So, there is definitely still some promise for those who want to ride on this ETF a little longer. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInvesco KBW Regional Banking ETF (KBWR): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Is SIT S.p.A. (BIT:SIT) Potentially Underrated? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! SIT S.p.A. (BIT:SIT) 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 SIT, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on SIT here. SIT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SIT has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SIT appears to have made good use of debt, producing operating cash levels of 0.26x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. SIT's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of SIT's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, SIT's share price is trading below the group's average. This bolsters the proposition that SIT's price is currently discounted. For SIT, I've put together three relevant aspects you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for SIT’s future growth? Take a look at ourfree research report of analyst consensusfor SIT’s outlook. 2. Historical Performance: What has SIT's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of SIT? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Should We Expect From SIT S.p.A.'s (BIT:SIT) Earnings In The Next Couple Of Years? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The latest earnings announcement SIT S.p.A. (BIT:SIT) released in April 2019 showed that the company finally turned profitable after delivering losses on average over the past couple of years. Below, I've laid out key numbers on how market analysts perceive SIT's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for SIT Analysts' outlook for the coming year seems pessimistic, with earnings reducing by a double-digit -22%. In the next couple of years, earnings should continue to be below today's level, with a decline of -16% in 2021, eventually reaching €20m in 2022. Even though it is useful to be aware of the growth each year relative to today’s value, it may be more insightful determining the rate at which the business is growing on average every year. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of SIT's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -2.0%. This means that, we can expect SIT will chip away at a rate of -2.0% every year for the next couple of years. For SIT, there are three pertinent factors you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is SIT 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 SIT is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SIT? 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.
England's World Cup Lionesses are living proof that strong girls become strong women through sport “We play for a nation that doesn’t even know our names.” That’s the tagline of Germany’s Women’s football team in their official advert for this year’s World Cup. It's a shocking admittance of invisibility, given the team has eight European Cup victories, two world championships and has helped Germany achieve second-place in the FIFA Women World Rankings. These are women who play to win. They are smart, talented and undeniably competitive. But there is something deeply troubling about their own nation’s ignorance towards their work. Media attention is certainly part of this. Women in Sport research found that coverage dedicated to women’s sport amounts to less than 4 per cent of global sports media. And while initiatives like the BBC’s Change The Game commitment to broadcast more women’s sport challenges is welcome news, the overall attention to women’s athleticism is staggeringly low. We need another actor to take charge of the issue so that girls and women get the attention they deserve in athletics. Schools are poised to be the most influential actors in the fight for recognition of women in sport, encouraging girls to stay involved in sports as they get older and recognising how vital it is for female coaches to be positive, healthy role models. This call to action comes at a time when recent research on attitudes towards physical activity in teenagers showed that only 45 per cent of girls see the relevance of the skills they learn in Physical Education (PE) classes to their lives, as compared to 60 per cent of boys. Simultaneously, the research also shows the pressure of schoolwork, low confidence and body image issues are much larger barriers to taking part in physical activity for girls than boys. With this in this mind, PE and sports should be a priority for schools looking to empower girls so they develop a connection to physical activity that goes beyond performance and becomes an actual part of their toolkit. As teachers, we know that children are much happier after they’ve run around for an hour. Yet, according to the World Health Organisation, 84 per cent of girls aged 5-15 in England do not get their recommended 60 minutes of activity a day. Story continues We believe strongly that changing the attitudes towards girls’ sports involves nurturing their sporting careers from an early age. At Blackheath High School, where I work, we know there’s value in making sure our girls find the fun in being active by offering a diversity of opportunities. While the little ones make the memories of bonding with their teammates through circus-themed gymnastics days, Year 10 and 11 girls are introduced to the high-power, mentally strengthening attributes of rowing. We’ve also diversified the curriculum to ensure sports are viewed as legitimate paths for both health and as professions, by removing rounders and replacing it with cricket. Both physically and mentally, sport gives girls the chance to learn about themselves and their bodies in a safe, supportive way. Our school ensures that girls get that support by connecting them with professional and retired-professional athletes through a visiting series and by working with amazing female coaches. The hope is that creating role models and encouraging professional sports-playing will lead to girls wanting to excel and become elite players. Of course, we are not expecting every girl to be the next Nicola Adams OBE, but integrating professional sport into the daily lives of girls can set them up to learn about what makes them feel strong and competitive. At the forefront of this movement is the major point that sport and physical activity have too many benefits for girls to ignore as they grow up. Women who are physically active live longer, avoid cardiovascular diseases and have an easier time adapting to endocrine changes. Psychologically, girls who continue to play team sports as adults have a better time managing stress and are effective team players. A true increase in awareness of women’s sport must begin with girls at school. Strong girls become strong women. Now, more than ever, we must smash the stereotypes that male sport is the most fun to watch, play and support. Our girls need to know that their physical abilities are valued just as much as their male peers. As teachers, we are up to the challenge.
Does Dillard's, Inc.'s (NYSE:DDS) CEO Salary Reflect Performance? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! William Dillard became the CEO of Dillard's, Inc. (NYSE:DDS) in 1998. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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. Check out our latest analysis for Dillard's Our data indicates that Dillard's, Inc. is worth US$1.6b, and total annual CEO compensation is US$3.3m. (This is based on the year to February 2019). That'slessthan last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.0m. So William Dillard 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. The graphic below shows how CEO compensation at Dillard's has changed from year to year. Dillard's, Inc. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.8%. This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to checkthis free visual report onanalyst forecastsfor future earnings. With a total shareholder return of 4.1% over three years, Dillard's, Inc. has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size. William Dillard is paid around the same as most CEOs of similar size companies. Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Dillard's shares (free trial). If you want to buy a stock that is better than Dillard's, 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.
Crypto’s Been Going Crazy; Here’s Why By now we all know that crypto went on a true bull run last week, when Bitcoin broke above $13,500 for the first time since January 2018. With Bitcoin making up 61.5% of crypto’s total value, it was no surprise that the overall crypto market hit a 12-month high at the same time. PerCoinwatch.com, the total market cap of crypto peaked above $365 billion on June 26; it has since slipped to $316.50 billion. At this writing,BTCis trading at $11,075, and has a market cap of $196.21 billion. To make sense of everything, we’ll take a step back for a longer look. The three-month chart for BCT shows clearly that the coin has been on an upward trend since this past April 1, and equally clearly that this week’s volatility includes the steepest losses during that time. But BTC remains at 15-month highs, and the losses in recent days look like classic profit taking. The sharp peaks and valleys are reminiscent of Bitcoin’s chart pattern during the runup and dropdown from November 2017 to April 2018. So, volatility is baked into BTC, but we already knew that. As Forbes Magazine's Caitlin Long reminds us, Bitcoin is designed to present investors with a stable system, rather than stable prices. And this brings us to the second major point in to BTC’s recent price surge: as it rose in price, it attracted more miners as well as more buyers, and in blockchain, more miners means greater security. Bitcoin’s hashrate, the speed at which miners run calculations to open the next block, is at an all-time high. Back to Ms. Long, who points out, “The higher the hash power, the more secure Bitcoin becomes… simply because the cost to amass enough hash power to attack the network far exceeds the gain from doing so.” The gains in BTC’s hashrate have been making a splash in the crypto world, and feeding another important trend: Bitcoin has a distinctly positive news sentiment, as seen by the slant of articles published in the past week. We can turn back to Coinwatch, for a look atBitcoin’s News Sentiment: Coinwatch analyzes the cryptocurrency news channels in real-time, and presents the results. You can see here that in the last week BTC has gotten slightly more than the average number or write-ups, and the tone has been significantly more bullish than usual. The coin has been doing well in the markets, investors are interested in it, and it’s clearly reflected in the news. Which, of course, helps feed more favorable investor sentiment toward BTC. Three main topics are filling the headlines about BTC: the current bull run, the unveiling of Facebook’s (FB) Libra project, and, most recently, the surge in the hashrate. All three factors are pushing BTC to a positive trend: reporting on gains feeds a bullish narrative, reporting on Libra generates interest in cryptocurrency, and reporting on the hashrate and related security issues reassures the public. While there is reporting on BTC’s slips during the week, it’s overshadowed by the positive trends. Bitcoin is not the only crypto posting gains and positive news sentiment in the past week. Ethereum (ETH), the third-largest coin by market cap, has shown a similar pattern in recent days. ETH is up 110% in the past three months, and at this writing is trading just below $298. As with Bitcoin,ETH has a distinctly positive news sentiment. The number of articles featuring the coin is in line with the weekly average, while the tone of those articles is decidedly bullish – at 90%, even more bullish than Bitcoin’s tone. The most recent articles on ETH emphasize that the coin has stabilized at current trading levels, that transaction volumes are high, and that a 52-day bull run is in the realm of possibility. The third major cryptocoin, Ripple (XRP) has also posted gains in the April-May-June period, but not to the same extent as BTC or ETH. Where those coins are up 166% and 110% respectively, Ripple has only gained 27%, and has been in a ranging pattern since mid-May. In the last 7 weeks, XRP has stayed between 37 and 47 cents per coin. Where other cryptos have been showing sharp gains, XRP has simply failed to get traction. A look atRipple’s news sentimentshows the effect of this trading pattern on the general outlook toward the coin. Articles on XRP have trended decidedly bearish, far more than the average in the cryptocurrency industry. Reading the headlines in Ripple-related articles bears this out. Recent press mentions includeRipple Price Analysis: XRP Recovery Could Face Many Hurdles. It’s a tone that we just aren’t seeing in the Bitcoin and Ethereum articles. Ripple’s holding pattern, and recent losses among the smaller altcoins, are less significant to the overall cryptocurrency market than the gains in Bitcoin and Ethereum. With those two coins making up over 71% of the total market cap in crypto, we would expect to see the markets follow their lead, and we do. Again fromCoinwatch.com, the total market cap chart bears this out – it closely follows the pattern established by BTC and ETH. The general tenor of the crypto markets is optimistic now, despite a drop from last week’s high points. News and investor sentiment remain positive on two the three largest coins, and neither of those shows any sign of the bottom falling out. In ourlast article on this subject, we quoted investor and fund manager Mike Novogratz, who foresaw – during the recent price run-up – BTC stabilizing between $7,000 and $10,000. He’s a careful prognosticator, however, and he also said, “If I’m wrong on that, I think I’m wrong on the upside.” He appears to have been correct; BTC appears to be stabilizing, at least for now, near $11,000.
Who Has Been Buying Dillard's, Inc. (NYSE:DDS) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inDillard's, Inc.(NYSE:DDS). It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required. We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. Check out our latest analysis for Dillard's In the last twelve months, the biggest single purchase by an insider was when Director Warren Stephens bought US$764k worth of shares at a price of US$76.41 per share. That means that an insider was happy to buy shares at above the current price of US$62.28. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Happily, we note that in the last year insiders paid US$885k for 11800 shares. But insiders sold 1060 shares worth US$78k. In total, Dillard's insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction! There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them). There was some insider buying at Dillard's over the last quarter. Director Robert Connor purchased US$45k worth of shares in that period. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Dillard's insiders own 17% of the company, currently worth about US$272m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders. Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Dillard's insiders think the business has merit. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Dillard's. 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.
Alphabet's Google to Deploy Another Subsea Cable Equiano Alphabet Inc.’s GOOGL division Google recently announced that it will be commissioning a new subsea cable, namely Equiano, which will connect Africa and Europe. In regard to this project, Google signed a contract with Alcatel Submarine Networks in the fourth quarter of 2018. The first phase of the project, which connects South Africa and Portugal, is expected to be completed in 2021. Based on space-division multiplexing (SDM) technology, the Equiano cable will incorporate optical switching rather than traditional wavelength-level switching, making it easier to reallocate the same in different locations per requirement. Equiano will have approximately 20 times more network capacity than the last cable built to serve this region. Subsea cable networks help businesses to manage growing data consumption, given lesser costs and latency. Further, connectivity between these locations will be enhanced, which in turn, will boost growth of businesses. The latest move will further help to boost Google’s cloud computing infrastructure. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart \| Alphabet Inc. Quote Other Cable Investments Equiano will be completely funded by Google. This project is the company's third private international cable. This April, Google completed the Curie project that was announced last January. Curie is a 6,200-mile long cable that connects Los Angeles and Chile. With Curie, Google became the first non-telecom company to have a private intercontinental cable of its own. Last year, in addition to Curie, Google had announced other projects such as Havfrue, which will be a 4,500-mile cable connecting the east coast of the United States with Ireland and Denmark, and HK-G, which will be a 2,400-mile cable between Hong Kong and Guam. Moreover, Google Dunant transatlantic submarine cable project, which connects France and the United States, is expected to be operational in 2020. Expanding Cloud Infrastructure Boosts Google’s Position Google has been investing substantially to continuously improve its global technology infrastructure. Over the past three years, the search giant invested about $47 billion on infrastructure improvement. There is a significant boom in new subsea cable construction due to exponential rise in data, resulting from web browsing, e-commerce, video streaming and artificial intelligence. Total subsea cable bandwidth is projected to double by 2021. We believe Google remains well poised to cater to this fast-increasing requirement for subsea cables. According to Google, Equiano is its 14th subsea cable investment globally. The new regions and commissioned subsea cables will expand Google network across the globe. The company has a strong clientele that includes the likes of PayPal PYPL. Moreover, expanding infrastructure will eventually boost Google’s position in the cloud computing market, which is currently dominated by the likes of Amazon.com AMZN and Microsoft Corporation MSFT. Zacks Rank Currently, Alphabet has a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportPayPal Holdings, Inc. (PYPL) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Are Investors Undervaluing SPX FLOW, Inc. (NYSE:FLOW) By 31%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! How far off is SPX FLOW, Inc. (NYSE:FLOW) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. See our latest analysis for SPX FLOW We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF ($, Millions)", "2020": "$160.4m", "2021": "$169.9m", "2022": "$190.5m", "2023": "$207.4m", "2024": "$221.9m", "2025": "$234.6m", "2026": "$245.9m", "2027": "$256.3m", "2028": "$265.9m", "2029": "$275.1m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x4", "2021": "Analyst x2", "2022": "Analyst x1", "2023": "Est @ 8.85%", "2024": "Est @ 7.01%", "2025": "Est @ 5.73%", "2026": "Est @ 4.83%", "2027": "Est @ 4.2%", "2028": "Est @ 3.76%", "2029": "Est @ 3.45%"}, {"": "Present Value ($, Millions) Discounted @ 10.56%", "2020": "$145.1", "2021": "$139.0", "2022": "$141.0", "2023": "$138.8", "2024": "$134.3", "2025": "$128.5", "2026": "$121.8", "2027": "$114.8", "2028": "$107.8", "2029": "$100.8"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $1.3b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.6%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$275m × (1 + 2.7%) ÷ (10.6% – 2.7%) = US$3.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$3.6b ÷ ( 1 + 10.6%)10= $1.32b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $2.60b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $61.02. Relative to the current share price of $41.86, the company appears quite undervalued at a 31% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at SPX FLOW 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 10.6%, which is based on a levered beta of 1.313. 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 SPX FLOW, There are three pertinent factors you should further research: 1. Financial Health: Does FLOW 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 FLOW'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 FLOW? 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 NYSE 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.
Walmart to invest $1.2 billion in China to upgrade logistics BEIJING (Reuters) - Walmart Inc <WMT.N> plans to invest 8 billion yuan ($1.2 billion) in China over the next 10 years to upgrade logistics, the U.S. retail giant said on its social media account on Monday. The company will also set up or renovate more than 10 logistics centers in the country. The comments followed a meeting between President Donald Trump and his Chinese counterpart Xi Jinping over the weekend in Osaka, Japan that rekindled hope for a U.S.-China trade deal. Walmart has been pushing to integrate its retail network in China with the country's burgeoning "smart retail" movement, as retailers and tech giants such as Alibaba Group Holding Ltd <BABA.N> and Tencent Holdings Ltd <0700.HK> cut deals to combine online and high-street shopping. In China, the company last year opened its first small high-tech supermarket, where smartphones can be used to pay for items that are mostly available on the U.S. retailer's store on online platform JD Daojia, an affiliate of JD.com Inc <JD.O>. Walmart operates a number of formats in China, including hypermarket, Sam's Club and Walmart supermarket, with 400 retail units covering more than 180 cities nationwide. Last month, French retailer Carrefour agreed to sell 80% of its Chinese operations to electronics retailer Suning.com for 620 million euros. (Reporting by Pei Li and Ryan Woo in Beinjing and Nivedita Balu in Bengaluru; Editing by Susan Fentona, Edmund Blair and Maju Samuel)
WebBeds, Agoda Rush to Serve New Generation of Muslim Pilgrims to Saudi Major Asian players WebBeds and Agoda are making swift moves to disrupt Umrah pilgrimage travel bookings as Saudi Arabia unveils a vision to support millions more Muslim travelers to the kingdom. For one, WebBeds has formedUmrahHolidays Internationalin a joint venture with undisclosed partners in the Middle East. The bedbanks, part of Australian-listed company Webjet, has also announced UmrahHolidays’ two exclusive partnerships in China, with Mafengwo for direct online consumer sales and major wholesaler Haoqiao for retail agency distribution. Umrah refers to pilgrims visiting the two most sacred Muslim cities in the world, Mecca and Medina in Saudi Arabia, at any time of the year except during the compulsory Hajj. Agoda last December signed a Memorandum of Understandingwith Saudi Arabia’s Ministry of Hajj and Umrah “to explore ways to use technology to manage the anticipated increase in guests to the kingdom and make accommodation reservations more accessible, easier, faster and secure,” its statement said. Agoda has also launcheda dedicated multilingual and multicurrency Umrah sitethat has been certified by the ministry. Another online travel agency, Dubai-based Holidayme, whichraised $16 million in funding last November led by Malaysia’s Gobi Partners, has launchedUmrahme, which targets global visitors from 15 to 20 countries, particularly in Asia, to book Umrah tailored packages completely online, including visa processing. Players are turning their focus to Saudi Arabia for very good reasons. On the one hand, the kingdom hasannounced plans to increase the capacity and quality of servicesto support its target of more than 15 million Umrah visitors a year by 2020, and 30 million by 2030, from eight million in 2015. It says it will achieve this by automating visa application procedures, upgrading accommodation, improving hospitality and launching new services and attractions for pilgrims. For instance, an Islamic museum of the highest global standards will be built in Medina, where the first Islamic society was born, it says. A third expansion to the two holy mosques in Mecca and Medina has begun. Airports are being modernized and their capacities expanded. A Makkah Metro project has been launched to complement rail and train projects that will serve visitors to the holy mosques and other holy sites. The kingdom also aims to more than double the number of Saudi heritage sites registered with UNESCO by 2030. On the other hand, the Umrah market is totally underserved. In Asia in general, it is still largely group travel handled by travel agencies which have not caught up with technology and could get away with sub-standard services because their last generation clients aren’t used to having choices. But a new generation of tech-savvy Muslim travelers with the means to do Umrah on a free independent basis and include a pre- or post-trip covering Mecca, Medina, and Jeddah, is sprouting. Hence, the gold rush to “modernize” Umrah bookings. Asia, with huge Muslim populations in countries such as Indonesia, Malaysia and China, is everybody’s Umrah target market. China alone has more than 30 million Muslims, according to WebBeds. “We’re working on many markets but we’re excited about China,” Daryl Lee, WebBeds Asia-Pacific CEO based in Singapore, told Skift. “Everyone markets Thailand to Chinese outbound travelers, but there’s a huge Umrah travel market which people have neglected. We want to provide unique products and create new demand wherever possible, not grab existing market share.” Through its UmrahHolidays, WebBeds offers retail agents online instant visa processing for their clients, Umrah packages, standalone accommodation in more than 600 hotels in Mecca, Medina and Jeddah, sightseeing options, meet and greet transfers and 24/7 customer service contact, enabling agents to customize bookings for clients with ease and competitive prices. Lee would not share WebBeds’ sales targets from its partnership with Mafengwo and Haoqiao, saying the focus is to ensure that the business progresses strategically. It’s also why WebBeds decided to go in with two exclusive partners, rather than with everyone. “The awareness and domain knowledge of religious travel is relatively low in China, so rather than appoint everyone, we work with few players but those who are willing to invest with us in building the market. Haoqiao needs to train the retail agents on product information, for example. Mafengwo must build up direct content and traveler reviews. “There’s a lot to impart to consumers, even simple things like the geography of the destination, the climate, things to look out for, since 99 percent of them have not been there,” said Lee. Added Yu ZhangTao, CEO, Haoqiao, in a statement, “An Umrah pilgrimage is a major milestone in the lives of many Chinese Muslims, so it is vital that they are offered the face-to-face contact and personalized service that a traditional travel agency can provide. “At Haoqiao, we work with the largest network of retail agents in China. Our new partnership with UmrahHolidays will enable our clients and their customers to receive the best possible support from experts in the Umrah travel sector.” Yu HongShang, Mafengwo’s senior director, said, “China has a large and vibrant Muslim population, and an increasing number are now looking for opportunities to make their pilgrimages to the holy lands of Saudi Arabia. This is a growing sector of the market…We expect to see a sharp rise in online bookings for Umrah travel following this collaboration.” Meanwhile, HolidayMe’s CEO Geet Bhalla said the company’s new UmrahMe site, tested in the Middle East since February is “doing really well, growing 50 percent month on month.” He expects good growth figures in the next Umrah season in August, although he declined to share targets. Plans are afoot to launch the site soon in Southeast Asia, particularly Malaysia and Indonesia. “We are having some interesting discussions to grow the business through alliances and partnerships as well,” added Bhalla. “These could be other travel partners or partners who have access to the Muslim populations in the region. You’ll be hearing about these partnerships in the next few months.” Disruption in Umrah holiday bookings is accelerating. Subscribe to Skift newsletterscovering the business of travel, restaurants, and wellness.
Who Has Been Selling Silicon Laboratories Inc. (NASDAQ:SLAB) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inSilicon Laboratories Inc.(NASDAQ:SLAB). Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required. Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Silicon Laboratories In the last twelve months, the biggest single sale by an insider was when the Director, Sumit Sadana, sold US$526k worth of shares at a price of US$95.56 per share. That means that even when the share price was below the current price of US$103, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 61.2% of Sumit Sadana's holding. Sumit Sadana was the only individual insider to sell shares in the last twelve months. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Silicon Laboratories insiders own 2.0% of the company, worth about US$89m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. The fact that there have been no Silicon Laboratories insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Silicon Laboratories insiders. But it's good to see that insiders own shares in the company. Of course,the future is what matters most. So if you are interested in Silicon Laboratories, you should check out thisfreereport on analyst forecasts for the company. But note:Silicon Laboratories may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Celebrity dog owners slammed for owning pets with cruelly cut ears (Getty) Celebrity dog owners are in the doghouse for owning pets who have had their ears cut in the cruel procedure known as docking. Little Mix star Leigh-Anne Pinnock and footballer Andy Carroll are amongst the stars who have been called out for posting photos of their docked pooches on social media. Read more: Little Mix - ‘you can’t unfamous yourself’ Pinnock was blasted for owning a dog with clipped ears when she shared a photo on Instagram, but boyfriend Andre Gray jumped to her defence. He argued that the couple didn’t agree with docking, but that they shouldn’t be judged because he had bought the dog, which already had its ears cut, as a surprise for Pinnock. View this post on Instagram A post shared by Leigh-Anne Pinnock (@leighannepinnock) on Apr 11, 2019 at 12:38pm PDT When she shared some snaps of her dogs, someone commented on Pinnock’s post: “Oh no that poor dog has had his ears cut - that procedure is banned in the UK for good reason.” The cruel operation sees some breeds of dog have their ears cut into sharp points to make them look fiercer, but is painful and interferes with them being able to communicate. Read more: Perrie Edwards bookies’ favourite for X Factor judge role It is illegal to dock a dog’s ears in the UK, but those looking to own a docked dog get around the ban by importing animals from abroad. Other famous dog owners who own pets with cut ears include Carroll, who has shared photos of his dog, and Manchester United striker Marcus Rashford, who also faced a backlash when he showed off his dog who had clipped ears. View this post on Instagram A post shared by Marcus Rashford (@marcusrashford) on Jan 21, 2019 at 3:04am PST One person wrote: “WHY YOU CUT THE DOGS EARS??????” Others remarked on his clipped ears with crying emojis, and someone else added: “Beautiful dog - but who had that done to his ears.” Debbie Connolly, an expert on the subject, told The Sun: “It is irresponsible of these celebrities.”
Can You Imagine How Chuffed Silicon Laboratories's (NASDAQ:SLAB) Shareholders Feel About Its 115% Share Price Gain? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Silicon Laboratories Inc. ( NASDAQ:SLAB ) share price has soared 115% in the last three years. Most would be happy with that. It's also good to see the share price up 24% over the last quarter. Check out our latest analysis for Silicon Laboratories To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During three years of share price growth, Silicon Laboratories achieved compound earnings per share growth of 28% per year. Notably, the 29% average annual share price gain matches up nicely with the EPS growth rate. This suggests that sentiment and expectations have not changed drastically. Rather, the share price has approximately tracked EPS growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). NasdaqGS:SLAB Past and Future Earnings, July 1st 2019 It might be well worthwhile taking a look at our free report on Silicon Laboratories's earnings, revenue and cash flow . A Different Perspective Silicon Laboratories shareholders are up 3.8% for the year. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 16% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. Before spending more time on Silicon Laboratories it might be wise to click here to see if insiders have been buying or selling shares. Story continues Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Best Internet Banks, 2019 Getty Images According to the 2019 Direct Banking Satisfaction Study by J.D. Power, direct (or branchless) banks continue to beat traditional banks in overall customer satisfaction. Our picks have low fees, solid savings accounts and slick digital tools that make online-only banking easy. Take a look. SEE ALSO: The Best Banks for You, 2019 BEST: Ally Bank Courtesy Why it won: Customers earn interest on their accounts without maintaining a particular balance or paying monthly fees. Standout accounts: Interest Checking is fee-free and pays 0.1% on sums below $15,000, or 0.6% on balances of $15,000 or more. Online Savings pays a flat 2.2% on everything. Our online winner recently celebrated its 10th anniversary as Ally Bank , but its history stretches back to 1919 as the auto financing arm of General Motors. The J.D. Power study ranked Ally second in overall satisfaction, pointing to its competitive interest rates as one standout feature. Besides its free checking, savings and money market deposit accounts , you can open a high yield CD with any amount and rake in 2.55% for a one-year term or 2.85% for a five-year term. Alternatively, Ally offers an 11-month No Penalty CD , which pays up to 2.3%, depending on the size of your deposit, as well as a Raise Your Rate CD in two- and four-year terms. You won't pay a fee to withdraw cash at any Allpoint ATM in the U.S., and Ally will reimburse you up to $10 per month for fees triggered by other ATMs. Ally offers a multitude of ways to move your money into and out of your accounts at no cost, including expedited transfers, remote check deposits and the peer-to-peer payment system Zelle. Your debit card will fit into the digital wallets from Apple, Google, Microsoft and Samsung. Live customer service is available 24-7 by phone ( check wait times on the website or app) and online chat. Or you can seek answers via the bank's @AllyCare Twitter account on weekdays. SEE ALSO: 7 Habits of People With Excellent Credit Scores RUNNER-UP: Capital One 360 Courtesy Story continues Why it won: You get the benefits of an online bank but can still get customer service at a branch or in a hip Capital One Café . Standout accounts: 360 Checking returns 0.2% on amounts below $50,000, 0.75% on balances up to $100,000, and 1% on larger tallies. 360 Money Market pays 2% on balances of $10,000 and more (amounts less than $10,000 earn 0.85%). Where it is: About 500 branches in eight eastern and southern states and Washington, D.C. If you walk into a Capital One branch to open an account, the teller may hand you an iPad and steer you toward the online Capital One 360 products. Adults are limited to one choice per checking, savings and money market deposit account, but all are free to open and none charges monthly fees. You will earn different rates depending on the balance in your checking or money market deposit account, or a flat 1% on anything you stash in 360 Savings . Or you can open a CD for any amount and earn 2.9% for a five-year term. Cash withdrawals from Capital One and Allpoint ATMs are free. But Capital One won't charge 360 users to use ATMs in any network (you won't be reimbursed for surcharges that originate from the ATM operator). And Capital One doesn't levy a foreign-transaction fee on debit card purchases abroad. You can seek help by phone, via the @AskCapitalOne Twitter account or at a branch. Or drop by one of 37 Capital One Cafés scattered around the country to lounge or work remotely and have a Peet's coffee. The cafés also feature Capital One ATMs and "DIY Banking" terminals. SEE ALSO: 9 Things You'll Regret Keeping in a Safe Deposit Box The Best Banks and Credit Unions for You, 2019 Getty Images These stellar banks and credit unions are making all the right moves to win satisfied customers: Best National Banks Best Banks for High-Net-Worth Families Best Internet Banks Best Banks for Families With Students Best Banks for No-Fee, No-Fuss Best Credit Unions Best Banks for Frequent Travelers Best Regional Banks Best Banks for Retirees EDITOR'S PICKS The Best Banks for You, 2019 The Best Rewards Credit Cards, 2019 6 Ways to Boost Your Credit Score -- Fast Copyright 2019 The Kiplinger Washington Editors
Is JCDecaux SA (EPA:DEC) Worth €26.64 Based On Its Intrinsic Value? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll do a simple run through of a valuation method used to estimate the attractiveness of JCDecaux SA (EPA:DEC) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. Check out our latest analysis for JCDecaux 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. 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 (\u20ac, Millions)", "2019": "\u20ac291.0m", "2020": "\u20ac315.9m", "2021": "\u20ac346.8m", "2022": "\u20ac328.0m", "2023": "\u20ac315.9m", "2024": "\u20ac308.4m", "2025": "\u20ac304.0m", "2026": "\u20ac301.6m", "2027": "\u20ac300.7m", "2028": "\u20ac300.6m"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x7", "2020": "Analyst x8", "2021": "Analyst x5", "2022": "Analyst x1", "2023": "Est @ -3.69%", "2024": "Est @ -2.36%", "2025": "Est @ -1.43%", "2026": "Est @ -0.78%", "2027": "Est @ -0.33%", "2028": "Est @ -0.01%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 6.94%", "2019": "\u20ac272.2", "2020": "\u20ac276.2", "2021": "\u20ac283.6", "2022": "\u20ac250.8", "2023": "\u20ac225.9", "2024": "\u20ac206.3", "2025": "\u20ac190.1", "2026": "\u20ac176.4", "2027": "\u20ac164.4", "2028": "\u20ac153.7"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= €2.2b 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 0.7%. We discount the terminal cash flows to today's value at a cost of equity of 6.9%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €301m × (1 + 0.7%) ÷ (6.9% – 0.7%) = €4.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€4.9b ÷ ( 1 + 6.9%)10= €2.50b 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 €4.70b. 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 €22.06. Relative to the current share price of €26.64, the company appears slightly overvalued at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at JCDecaux as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.9%, which is based on a levered beta of 0.933. 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 JCDecaux, I've compiled three important factors you should further research: 1. Financial Health: Does DEC 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 DEC'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 DEC? 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 EPA 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.
Best Credit Unions, 2019 Getty Images Credit unions are not-for-profit financial institutions owned by their members, so they can reward account holders with higher rates and lower fees. Our top credit union picks are open to anyone in the U.S. Take a look. SEE ALSO: The Best Banks for You, 2019 BEST: Hanscom Federal Credit Union Courtesy Hanscom Federal Credit Union Why it won: It offers an array of free or low-cost accounts with strong rewards. Standout accounts: Free Kasasa Cash Checking yields 2.5% on balances up to $15,000 (0.4% thereafter). The CU Thrive share certificate (the credit union version of a CD) returns a fixed rate of 5% for its 12-month term with automatic transfers of $5 to $500 each month from your checking account. Where it is: 22 branches as of this summer, mostly in or near Boston. You can also access an additional 5,600 branches via the CO-OP Shared Branch network. Hanscom welcomes active-duty and retired military, employees of the federal government in Massachusetts and other eligible employers, as well as relatives of members. You can also join one of three partner organizations to qualify for membership, such as volunteer theater group Burlington Players ($12). You can open one of Hanscom's four checking accounts with as little as $1. The basic account and two options from rewards-account provider Kasasa don't charge monthly fees. To waive the $9.95 fee attached to the Premier Checking account (0.4% yield), you'll need to maintain an average daily balance of at least $2,000. For the Kasasa accounts, you'll have to make 12 or more debit or credit card purchases, have one direct deposit and accept e-statements each month to receive your rewards and up to $20 in ATM refunds (the account is free even if you fall short). You can choose from a variety of savings options, a money market deposit account that yields up to 1.15%, and share certificates that earn 3% on five-year terms. Members have also been granted an annual "loyalty dividend" for the past 22 years, most recently 2% of most consumer loan finance charges as well as 2% of dividends earned on savings at the end of 2018. Story continues SEE ALSO: 7 Habits of People With Excellent Credit Scores RUNNER-UP: Connexus Credit Union Courtesy Connexus Credit Union Why it won: Three free checking accounts come with out-of-network ATM perks. Standout accounts: Xtraordinary Checking pays 1.75% on all balances up to $25,000 (0.25% thereafter) and refunds up to $25 in ATM fees each month. The five-year share certificate recently yielded a hefty 3.35%. Where it is: 12 branches across Minnesota, New Hampshire, Ohio and Wisconsin. Connexus also participates in the CO-OP Shared Branch network. You can't go wrong with any of the three checking accounts offered by Connexus Credit Union, two of which offer high rates and $25 in ATM reimbursements as long as you meet a few conditions, such as receiving direct deposits and making frequent debit card transactions. Savings accounts require $100 to open and yield 0.25%. But if you're willing to lock up a chunk of cash for the long haul, look into Connexus's share certificates, which require $5,000 to open and pay spectacular rates. Connexus is open to employees of qualifying organizations, residents of eligible communities in the states where it has a physical presence, and relatives of members. Or you can join by donating $5 to the Connexus Association . SEE ALSO: 9 Things You'll Regret Keeping in a Safe Deposit Box The Best Banks and Credit Unions for You, 2019 Getty Images These stellar banks and credit unions are making all the right moves to win satisfied customers: Best National Banks Best Banks for High-Net-Worth Families Best Internet Banks Best Banks for Families With Students Best Banks for No-Fee, No-Fuss Best Credit Unions Best Banks for Frequent Travelers Best Regional Banks Best Banks for Retirees EDITOR'S PICKS The Best Banks for You, 2019 The Best Rewards Credit Cards, 2019 6 Ways to Boost Your Credit Score -- Fast Copyright 2019 The Kiplinger Washington Editors
Goldman Sachs (GS) to Foray Into Digital Currency Market Goldman SachsGS has plans to enter into the lucrative digital currency market. CEO David Solomon, in an interview to the French newspaper Les Echos last week, said that the company “absolutely” intends to launch its own cryptocurrency.Solomon further stated, “Assume that all major financial institutions are looking at the potential of tokenization, stable coins and frictionless payments.” This is expected to lower costs and help serve the clients better.Goldman is undertaking “extensive research” on tokenization and stable coins. Further, Solomon believes that the future of payment systems will likely be based on blockchains.Earlier in February, JPMorgan JPM became the first bank to launch its own cryptocurrency called the "JPM Coin", which will help its corporate clients to instantly settle payments between themselves. (Read more: JPMorgan Plans to Launch "JPM Coin" Using Blockchain).Additionally, last month, Facebook FB revealed its plan to create a new digital currency “Libra” and digital wallet Calibra. The social media giant expects to launch these in the first half of 2020.Notably, Solomon declined to comment on whether Goldman has been in talks with Facebook about the potential partnership between the two. He stated that it is too early to decide on which platform the company’s digital currency will be launched.During the interview, when asked about threat of other tech companies, including Apple AAPL and Amazon venturing in to the financial payments industry, Solomon commented that these tech companies will likely seek partnership with banks rather than entering the highly regulated banking sector.Hence, financial institutions are less likely to face competition from the entry of tech companies in the finance industry. Nonetheless, banks and other finance sector companies will have to remain innovative and align businesses according to client demand and upcoming new technological advancement.At present, regulators across the globe are divided on the role that cryptocurrency might play in the financial markets. There are several restrictions imposed on these. Nonetheless, with gradual entry of the banks in the crypto markets, regulators are expected to make changes in rules.Our TakeGoldman’s plan of launching cryptocurrency will likely further diversify its revenue base. The company has been trying to digitize operations for quite some time. In 2016, it had launched online bank – Marcus by Goldman – which has been delivering promising results.Amid disappointing capital markets performance, Goldman’s efforts to diversify will support profitability.The stock has rallied 19% over the past six months, outperforming the rise of 6.4% for the industry it belongs to. Goldman currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportJPMorgan Chase & Co. (JPM) : Free Stock Analysis ReportFacebook, Inc. (FB) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportThe Goldman Sachs Group, Inc. (GS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
3 IPOs That Have More Than Tripled in 2019 Investors are digging that new stock smell on Wall Street this year. We've seen 80 stocks hit the major U.S. exchanges in 2019, and nine of them have already more than doubled. Shareholders who got in early on those debutantes are sitting pretty right now, but some of the winners are faring even better than the others. Beyond Meat(NASDAQ: BYND),MMTec(NASDAQ: MTC), andShockWave Medical(NASDAQ: SWAV)are the biggest gainers among the IPO class through the first half of the year. They're the only three 2019 newbies to have more than tripled in value off their initial price tags. Let's see what's making these fresh market darlings click. Image source: Beyond Meat. It may seem odd that this year's hottest IPO is a distributor of veggie burgers, but it's hard to argue with Beyond Meat's torrid growth. Revenue soared 215% inits first quarteras a public company, as restaurant chains continue to add its plant-based namesake burger to their menus and more supermarkets stock the retail version of its products. Bears think the stock's overvalued, which a fair shot since it's trading at more than 85 times trailing revenue. Bulls will counter that looking back isn't a fair measuring stick for a fast-growing company, as Beyond Meat's top-line multiple drops below 50 if we go by its guidance, calling for at least $210 million in revenue for all of 2019. A thin float and freakishly high number of short positions relative to that float have made the stock volatile, and it will remain that way. The stock may seem to be due for a breather in the second half of 2019, but with so many people thinking exactly that, it becomes much easier said than done. This year's second biggest gainer is an obscure Beijing-based company that had the misfortune of going public in early January, just as investors were spitting out Chinese growth stocks. MMTec had to settle for an offering at $4, and it has more than quadrupled, with its stock price in the mid-teens. MMTec has developed products that let Chinese-speaking hedge funds, mutual funds, and other investing groups engage in global securities market transactions. This stock is risky, largely because the company is just getting started. The company was founded early last year, and it didn't start generating revenue until last summer. MMTec still has a lot to prove, but the stock has moved higher largely because the climate for Chinese growth stocks has improved since its depressed IPO nearly six months ago. Finally, we have ShockWave Medical aiming to improve the prospects of patients suffering from cardiovascular diseases. True to its name, the market darling's intravascular lithotripsy platform emits sonic waves that travel through arteries to break up calcium deposits. Revenue soared 450% in itsfirst quarter as a public company, a pace more than double Beyond Meat's torrid top-line surge. ShockWave's guidance calls for 169% to 194% in revenue growth for all of 2019. ShockWave Medical is still small, but bulls believe its platform can have applications in the larger markets for coronary artery disease and aortic stenosis in the future. 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 Rick Munarrizhas no position in any of the stocks mentioned. The Motley Fool recommends ShockWave Medical. The Motley Fool has adisclosure policy.
2Q Fixed-Income Index Overview Bond prices rose during the second quarter, spurred by the decline in interest rates across the entire yield curve. The Morningstar Core Bond Index, our broadest measure of the fixed-income universe, rose 2.92% in the second quarter. Underlying the Core Bond Index, the Short-Term Core Bond Index increased 1.67%, the Intermediate Core Bond Index rose 2.21%, and the Long-Term Core Bond Index surged 5.64% this past quarter. In the Treasury market, the Morningstar U.S. Government Bond Index increased 2.92%, and in the agency market, the Morningstar Agency Bond Index rose 2.52%. Even though inflation expectations dwindled over the past three months, the Morningstar TIPS Index gained 2.81%. The outsize gains in these indexes compared with the underlying yield carry were driven by the decline in interest rates across the entire yield curve. After hitting its highest yield since mid-2008 last November, the interest rate on the 2-year Treasury bond has been steadily declining. As contagion from slowing global economic growth seeps into the U.S. economy and global central banks are shifting their stance toward easy monetary policies, the market has priced in multiple cuts to the federal-funds rate this year, beginning at the July meeting of the Federal Open Market Committee. As recently as mid-December 2018, the market had priced in at least one more rate hike in 2019. Now investors expect the Federal Reserve to cut the fed-funds rate this summer and then two more times before the end of the year. This change in expectations drove demand for U.S. Treasury bonds, especially in the short end of the curve. Since the end of March, the yields on the 2-, 5-, 10-, and 30-year Treasury bonds have declined 51, 46, 40, and 28 basis points respectively, to 1.75%, 1.77%, 2.01%, and 2.53%. Even though many European sovereign bonds were already trading at negative yields at the beginning of the second quarter, the Morningstar Eurozone Bond Index was able to generate a return of 4.93%. The return was driven by the decline in underlying interest rates of benchmark German bonds into even greater negative yields. For example, the yield on Germany's 5-year bond declined 21 basis points and ended the quarter at a negative yield of 0.66%, while the yield on Germany's benchmark 10-year bond declined 26 basis points, ending the quarter at a negative yield of 0.33%. At these levels, the 5- and 10-years are trading at their most negative yield ever. Among the benchmark sovereign bonds, U.S. Treasuries are comparatively some of the highest-yielding options. For example, the Swiss 10-year bond is trading at a negative yield of 0.53% and Japanese 10-year bonds are at a negative 0.16%. Currently, there is reportedly almost $12 trillion worth of global debt trading at a negative yield. When a bond is trading at a negative yield, an investor who holds the bond to maturity is guaranteed to lock in a loss. The only way an investor can earn a positive return is to sell the bond at an even higher price to another investor, which means the second investor would be willing to lock in an even greater loss. In the corporate bond market, the Morningstar Corporate Bond Index (our proxy for the investment-grade bond market) rose 4.21% in the second quarter. In the high-yield market, the ICE BofAML High Yield Master Index rose only 2.58%. The main reason for the difference in the returns is that the investment-grade index has a much longer duration than the high-yield index and was more positively affected by the decline in interest rates. In addition, the average spread in the investment-grade market tightened 3 basis points to +119, but in the high-yield market, the average credit spread widened 8 basis points to +407. In Europe, with interest rates at already negligible levels, the gains were muted as the Morningstar Eurobond Corporate Index rose only 3.11%. Prices generally rose across all financial markets, all asset classes, and all over the world last quarter with only a few exceptions. Price action was mainly driven by global central banks' shift toward easy monetary policies. The rally began after European Central Bank President Mario Draghi recently said that the ECB was considering instituting new stimulus programs in July. These programs could include a cut in the ECB's already negative short-term interest rate, additional bond-buying programs, and/or additional forward guidance that the central bank could leave its short-term interest rate at a negative yield even longer. The rally then picked up steam after the June meeting of the Federal Reserve, which intimated to the markets that it too was shifting toward an easy monetary policy. According to the CME FedWatch Tool, a rate cut is all but assured following the FOMC's July meeting. Currently there is a 74% market-implied probability of a 25-basis-point rate cut and a 26% chance of a 50-basis-point cut. Even after a rate cut in July, the market expects additional rate cuts before the year is over. Following the December meeting, the market-implied probabilities that the fed-funds rate will fall from its current range of 2.25%-2.50% to the following ranges are: • 10% for 2.00%-2.25% • 34% for 1.75%-2.00% • 37% for 1.50%-1.75% • 19% for below 1.50% In the equity markets, the S&P 500 rose 3.79% last quarter and has risen 17.35% year to date. In Europe, where economic growth has been flagging, the equity market gains were magnified by the ECB's shift to ease monetary policy. For example, Germany's DAX rose 7.57% and the French CAC increased 3.52% during the second quarter. Thus far this year, these two indexes have gained 17.42% and 17.09%, respectively. Slowing economic growth weighed on the Shanghai Composite Index, which fell 3.62% this past quarter, but even including that pullback, the index is up 19.45% year to date. Weekly High-Yield Fund FlowsEven though we wrote last week that we suspected high-yield fund inflows would pick up, we were surprised by the volume of inflows. For the week ended June 26, high-yield inflows surged $3.1 billion, the third-highest weekly inflow over the past 52 weeks. Inflows were weighted toward exchange-traded funds as net unit creation among high-yield ETFs rose $1.9 billion. High-yield open-end mutual funds realized inflows of $1.2 billion. Considering the market action in the latter half of last week and positive momentum in trade negotiations, we expect that high-yield fund inflows will continue over the first half of this week. Year to date, inflows to the high-yield asset class total $14.4 billion, consisting of $9.7 billion of net unit creation among high-yield ETFs and $4.7 billion of inflows across high-yield open-end mutual funds. Morningstar Credit Ratings, LLC is a credit rating agency registered with the Securities and Exchange Commission as a nationally recognized statistical rating organization ("NRSRO"). Under its NRSRO registration, Morningstar Credit Ratings issues credit ratings on financial institutions (e.g., banks), corporate issuers, and asset-backed securities. While Morningstar Credit Ratings issues credit ratings on insurance companies, those ratings are not issued under its NRSRO registration. All Morningstar credit ratings and related analysis contained herein are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. Morningstar credit ratings and related analysis should not be considered without an understanding and review of our methodologies, disclaimers, disclosures, and other important information found athttps://ratingagency.morningstar.com.
American Water Arm Seeks Nod for 2020 Infrastructure Upgrade American Water Works ’ AWK arm, West Virginia American Water filed an application with the Public Service Commission of West Virginia, seeking approval of the 2020 infrastructure replacement program and associated Distribution System Improvement Charge (“DSIC”). West Virginia American Water aims to invest nearly $36 million to upgrade and improve the existing water system. Courtesy of the annual infrastructure upgrade program, the company has been able to lower its water main replacement cycle from 400 years to 100 years. The recent proposal includes a charge of 2.77%, which will result in an increase of $1.50 per month for the average residential customer using 3,132 gallons. The annual DSIC program entitles customers to receive a small monthly surcharge rather than experiencing higher rate increases several years later, which reflect multiple years of company investments. Rate Hikes are Essential Per a latest assessment from the U.S. Environmental Protection Agency, water utilities in the country will need to make infrastructure investment of more than $384 billion by 2030 to ensure public health. Water utilities are investing regularly to expand, upgrade, and maintain water and wastewater infrastructure. Revision in rates by the commission helps sustain regular investments. American Water aims to invest within $8-$8.6 billion from 2019 through 2023. The current investment target of West Virginia American Water is part of the company’s long-term investment plan. West Virginia American Water’s plans to replace water mains, repair water storage tanks, replace old water meters and improve water treatment will ensure increase in reliability of its services. Another water utility Aqua America Inc. WTR announced that it is going to invest more than $555 million in 2019 to strengthen its water and wastewater infrastructure. This will be part of Aqua America’s investment target of more than $1.4 billion in the 2019-2021 time period. Rate hikes assist this utility to recoup investments. Price Movement Year to date, shares of American Water have outperformed the industry. Story continues Zacks Rank and Other Key Picks Currently, American Water has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . ther top-ranked water utility stocks in the same space include Middlesex Water Company MSEX and Global Water Resources, Inc. GWRS. Middlesex Water, sporting a Zacks Rank #1, reported average positive earnings surprise of 19.72% in the last four quarters. The Zacks Consensus Estimate for 2019 and 2020 has moved up 5.8% and 4.7%, respectively, in the past 60 days. Global Water Resources, which has a Zacks Rank #2, reported average positive earnings surprise of 39.58% in the last four quarters. Its long-term (three to five years) earnings growth is pegged at 15%. The Zacks Consensus Estimate for 2019 has moved up 15.4% in the past 60 days. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aqua America, Inc. (WTR) : Free Stock Analysis Report Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report Middlesex Water Company (MSEX) : Free Stock Analysis Report American Water Works Company, Inc. (AWK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Is Genesee & Wyoming Inc.'s (NYSE:GWR) Balance Sheet A Threat To Its Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Stocks with market capitalization between $2B and $10B, such as Genesee & Wyoming Inc. (NYSE:GWR) with a size of US$5.7b, do not attract as much attention from the investing community as do the small-caps and large-caps. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. Let’s take a look at GWR’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Don’t forget that this is a general and concentrated examination of Genesee & Wyoming’s financial health, so you should conduct further analysisinto GWR here. See our latest analysis for Genesee & Wyoming Over the past year, GWR has ramped up its debt from US$2.4b to US$2.6b – this includes long-term debt. With this rise in debt, the current cash and short-term investment levels stands at US$70m , ready to be used for running the business. On top of this, GWR has generated cash from operations of US$555m during the same period of time, leading to an operating cash to total debt ratio of 22%, indicating that GWR’s debt is appropriately covered by operating cash. With current liabilities at US$542m, the company has been able to meet these obligations given the level of current assets of US$635m, with a current ratio of 1.17x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Transportation companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment. GWR is a relatively highly levered company with a debt-to-equity of 67%. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In GWR's case, the ratio of 3.97x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving GWR ample headroom to grow its debt facilities. GWR’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. Since there is also no concerns around GWR's liquidity needs, this may be its optimal capital structure for the time being. Keep in mind I haven't considered other factors such as how GWR has been performing in the past. I suggest you continue to research Genesee & Wyoming to get a more holistic view of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for GWR’s future growth? Take a look at ourfree research report of analyst consensusfor GWR’s outlook. 2. Valuation: What is GWR 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 GWR 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.
Best Banks for High-Net-Worth Families, 2019 Getty Images Banks court customers who can keep big balances by dangling lots of free and discounted benefits, preferred rates on loans and deposit accounts, and financial guidance, such as investment and wealth-management services. Here's a look at our top bank picks for high-net-worth families. SEE ALSO: The Best Banks for You, 2019 BEST: Citibank Courtesy Why it won: Customers who hold considerable cash with Citi enjoy unique and abundant perks. Standout account: The Citigold package , for those who keep at least $200,000 in deposit, retirement and investment accounts, is worth a look. And with a $25,000 minimum deposit, you could recently nab a 2.5% rate on a one-year CD./p> Where it is: Almost 700 U.S. branches in 10 states--with core markets of Chicago, Los Angeles, New York City, Miami, San Francisco and Washington, D.C.--and more than 1,800 overseas branches. Citigold customers get plenty of account freebies, including standard checks, stop payments, money orders, incoming wire transfers and overdraft-protection transfers; waived monthly fees on checking and other accounts in the Citigold package; and reimbursement of out-of-network ATM surcharges in the U.S. and abroad. Travelers will also appreciate waived foreign-transaction fees on debit card transactions; concierge services for travel, dining and other bookings; access to more than 100 Citigold lounges (attached to bank properties) worldwide; and delivery of foreign currency to their home, office or a nearby bank branch. Citigold clients work with a relationship manager and a financial adviser. Citigold's most interesting perks involve special experiences and insights. Last spring, for example, Citigold clients got premium seating and other benefits at the New York Mets home opener baseball game. Citigold's Culture Pass provides free or discounted admission to institutions such as the New York Philharmonic and Los Angeles Contemporary Museum of Art. And Citi regularly hosts market-outlook seminars for clients. Story continues SEE ALSO: 7 Habits of People With Excellent Credit Scores RUNNER-UP: BBVA Getty Images Why it won: BBVA's services for wealthy clients run the gamut, from an attractive relationship program to a well-regarded private bank. Standout accounts: The Premier Personal Banking program, for those who have a BBVA personal checking account and maintain at least $100,000 in deposits and investments, provides a well-rounded package of perks. The BBVA Money Market Account--free for Premier customers--recently yielded a healthy 2% on a balance of at least $10,000 (rates are for customers in Birmingham, Ala.). Where it is: 649 branches scattered across seven states, mostly in the Sunbelt. BBVA recently rebranded from its former name, BBVA Compass. The Premier Personal Banking program includes rebates of fees for out-of-network ATM withdrawals domestically and internationally and, upon request, refunds of fees for domestic and international wire transfers; free personal checks, cashier's checks, paper statements and a small safe-deposit box; increased limits for debit card purchases and ATM withdrawals; a waived $125 annual fee on the bank's Visa Select credit card ; discounts on a home-equity line of credit or personal loan; and free usage of the Premium checking account. You also get access to a financial adviser. BBVA offers a range of wealth-management services , including brokerage options, estate and insurance planning, and private banking (which requires a minimum $1 million in assets in most states). SEE ALSO: 9 Things You'll Regret Keeping in a Safe Deposit Box The Best Banks and Credit Unions for You, 2019 Getty Images These stellar banks and credit unions are making all the right moves to win satisfied customers: Best National Banks Best Banks for High-Net-Worth Families Best Internet Banks Best Banks for Families With Students Best Banks for No-Fee, No-Fuss Best Credit Unions Best Banks for Frequent Travelers Best Regional Banks Best Banks for Retirees EDITOR'S PICKS The Best Banks for You, 2019 The Best Rewards Credit Cards, 2019 6 Ways to Boost Your Credit Score -- Fast Copyright 2019 The Kiplinger Washington Editors

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