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Environmental group ends suit over land for endangered frog NEW ORLEANS (AP) An environmental group is dropping its legal fight over critical habitat for an endangered frog, with a settlement now proposed in the case, but the group also says the story isn't over. "It might not be 'that's it,' but it is for now. The decision will go back to the U.S. Fish and Wildlife Service," said Collette Giese, attorney for the Center for Biological Diversity. Dusky gopher frogs once were found in Louisiana, Mississippi and Alabama. They're now in the wild only in a few small parts of Mississippi, but the government designated 1,500 acres (610 hectares) in Louisiana as critical habitat for them. The decision to drop that tract from the government's critical habitat list cannot be considered as a precedent for any future court case, according to a proposed settlement made public Monday in federal court. It needs the judge's approval to become final. The agency could return the critical habitat designation after more scientific and public comment, Giese said. "We think the agency should have the chance to make the decision ... There's so many policy and science-based factors that weigh in, we don't think it's something the court should have for the first decision," she said. The frogs are dark, warty amphibians that make a snoring noise instead of a croak and put their forefeet over their eyes when picked up. They breed in ponds so shallow they dry up in the summer, limiting potential predators. Scientists say the land in St. Tammany Parish has five such ponds within hopping distance, while those that the animals once used in Alabama all are overgrown or developed. Environmentalists had backed the designation as a needed environmental protection. Opponents, including multiple landowners, called it an unjust land grab by an overreaching bureaucracy. Edward Poitevent, one of the landowners, has said it would halt his own plans to develop the land, currently used for timber. Poitevent, who is an attorney, did not immediately to calls and emails requesting comment Monday. Story continues Attorney Mark Miller of the Pacific Legal Foundation represents most of the family landowners in the case. "For the landowners, if the court does approve it, this is a big victory because their property is no longer restricted in favor of an endangered species that does not live on the property and can't live on the property without dramatic change," he said. The U.S. Supreme Court had unanimously overturned court decisions upholding the designation. The justices said courts must look at the meaning of "habitat" and consider whether the tract qualifies as habitat for frogs that haven't lived there for decades. The 8-0 ruling also said lower courts should have considered whether the benefits involved in designating the land as critical habitat outweighed the costs. Designation as critical habitat requires Fish and Wildlife Service consultation on any federal contracts but doesn't affect anything else, officials have said. The owners said it would have taken extensive work to make the land suitable for the frogs, and they wouldn't do it. Giese said, "I really did have hope the landowners would eventually come to see the importance of those Louisiana lands to frog recovery and they would look at what happened in Mississippi, and see that development could go hand in hand with frog conservation. It was difficult to come to the realization they were dead set against doing anything for the frog." Miller said his clients do see the frogs' importance, but believe there are other locations in Mississippi better suited for the animals. Whatever Fish and Wildlife decides next likely will wind up back in court. "If they go ahead and decide to redesignate that Louisiana land, the owners could sue again if they like," Giese said. "If the Fish and Wildlife Service decides against designating it as critical habitat, folks like the center could sue if they like."
Nordstrom Accelerates Store-Closure Activity Over the past five years, most department store chains have downsized substantially, reacting to falling mall traffic and the growth of e-commerce.Nordstrom(NYSE: JWN)has been one of the few exceptions. It has closed an average of two full-line stores a year recently, but it has also added a number of new ones, including expanding into Canada (with six full-line stores) and Puerto Rico (with one store). In total, Nordstrom's full-line square footage has increased modestly over the past five years. Nordstrom's last two new full-line stores -- for the foreseeable future, anyway -- will open this fall: a Manhattan flagship location and a store in anew mall in Norwalk, Connecticut. Meanwhile, Nordstrom has decided to start paring down its full-line store fleet more aggressively. Just in the past month, the upscale retailer has announced plans to close four more stores, with three of those store closures revealed last week. In recent years, Nordstrom has occasionally closed full-line stores: generally secondary locations in markets in which it could continue to serve customers in other full-line stores. As recently as last year, management noted that all of the company's stores were profitable. Furthermore, the presence of a full-line store can help spur online sales by making product discovery, returns, and alterations easier. All of Nordstrom's stores are profitable. Image source: Nordstrom. However, many Nordstrom stores areno longer generating enough sales and profitto justify further investment, as retail analyst Neil Saunders recently toldThe Seattle Times. That means a growing number of locations are falling short of the brand's lofty standards. As a result, Nordstrom has finally begun to close stores at a faster pace this year. Some of these have been locations near other full-line stores that will remain open. But in a handful of markets, Nordstrom has decided to close its only full-line store. In early January, Nordstrom closed its full-line store in Providence, Rhode Island. Three months later, itclosed full-line locationsin Wellington, Florida, and Norfolk, Virginia. While there are two other Nordstroms within 25 miles of the Wellington store, customers in Providence would have to drive 40 miles to the nearest full-line store -- and those in Norfolk would have to trek more than 100 miles to the Richmond suburbs. With three full-line Nordstrom stores having closed by early April, 2019 was already a relatively big year for closures (by Nordstrom standards) before the month of June. However, last month, the company announced that four more stores will close in the coming months. In early June, Nordstrom confirmed that it will close its full-line store at Northgate Mall in its hometown of Seattle in August. This closure was expected, as mall ownerSimon Property Groupis about to begin a massive redevelopment of that mall. Nordstrom's flagship store in downtown Seattle is just seven miles away. Nordstrom's flagship store will soon be its only full-line location in the city of Seattle. Image source: Nordstrom. Nordstrom announced three more store closures last week, all of which will be implemented in mid-September. In San Francisco, the company will close its full-line store at Stonestown Galleria. Like the Northgate store closure, this move was widely rumored in advance. Nordstrom has a flagship store at Westfield San Francisco Centre, less than 10 miles away. The company also decided to close its store at The Mall at Partridge Creek in Clinton Township, Michigan. Nordstrom operates a full-line store at The Somerset Collection -- the top-performing mall in the Detroit metro area -- less than 20 miles away. Finally, Nordstrom will shutter its only full-line store in Alaska, which is located in downtown Anchorage. It might seem odd for Nordstrom to close stores that are still profitable. However, the retailer has multiple full-line locations in markets like Seattle, San Francisco, and Detroit. When it closes a store that isn't performing well, Nordstrom can recapture a sizable proportion of that location's sales in nearby stores that offer a better customer experience, as well as online. Even in markets where Nordstrom doesn't have other full-line stores nearby, closing profitable stores can make sense. The stores have to carry inventory, tying up working capital. Moreover, if the inventory doesn't sell well, Nordstrom could be forced to offload it at a discount. Additionally, most of the company's full-line stores are owned or ground-leased, and Nordstrom typically can cash in on the real estate after closing a store. Importantly, Nordstrom has a strong e-commerce business, giving it a good chance to retain some business even in markets where it closes its only full-line store. Last year, digital sales accounted for 30% of the company's total sales, and that percentage has been rising quickly. Nordstrom finally seems to have recognized that low-performing stores are only going to get worse over time. By transitioning to a smaller full-line store portfolio centered on the most productive locations, Nordstrom should be able to deliver better financial results in the long run. 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 Adam Levine-Weinbergowns shares of Nordstrom. The Motley Fool recommends Nordstrom. The Motley Fool has adisclosure policy.
Elon Musk believes electric planes will become more practical in about 5 years Click here to read the full article. For as easy as it is to poke fun at Elon Musks online shenanigans, theres no denying that he was able to revolutionize the auto industry in a relatively short period of time. Thanks to the initial success of the Model S, Tesla was able to prove that electric cars didnt have to be clunky eyesores. Whats more, the popularity of the Model S along with the Model Y and the Model 3 definitively proved that demand for EVs was far greater than anyone could have anticipated even a few years ago. Teslas obsession with all things electric, of course, extends far beyond traditional four-door sedans, an assertion bolstered by Teslas acquisition of SolarCity and the companys plans to roll out an electric-powered semi-truck and pickup truck in the near future. Related Stories: Strong Model 3 demand helped Tesla set a new all-time record for quarterly deliveries Tesla provides update on the Model S that burst into flames for no apparent reason Tesla dashcam video helps prove that a reckless driver lied about causing an accident Beyond that, is it perhaps possible that Tesla will one day leverage its EV expertise to develop an airplane? It certainly sounds far-fetched, but as evidenced by Musks work with The Boring Company, its practically impossible to anticipate what Musk will get into next. That said, someone asked Musk via Twitter a few days ago about whether or not an electric powered plane would be feasible. Yes, Musk responded, but still a bit too limited on range. That will change in coming years as battery energy density improves. Jet A (kerosene) has much higher energy density than Li-ion, but electric motors weigh much less & convert stored energy to motion better than combustion engines, Musk later added. Lastly, Musk noted that he anticipates lithium-ion batteries will be able to compete with kerosene in about five years time. Story continues Of course, Musks comments on Twitter prompted many to wonder if Tesla might someday get into aviation. Personally, I dont think so, but stranger things have happened once Musk becomes fixated on an idea. BGR Top Deals: This $16 clip-on lens kit fits the iPhone or any Android phone, and its awesome Amazon deal offers a 7-inch Android tablet for under $43 See the original version of this article on BGR.com
‘Spider-Man: Far From Home’s Tom Holland, Zendaya, And Jake Gyllenhaal Swing Into Children’s Hospital Los Angeles To Surprise Kids Click here to read the full article. Spider-Man always has time for the kids. Spider-Man: Far From Home stars Tom Holland , Jake Gyllenhaal and Zendaya made a surprise visit to the kids at Children’s Hospital Los Angeles at an advance screening of the movie. The children had an opportunity to watch the Marvel movie ahead of its July 2 release date. The kids watched the film and had the opportunity to chat with Spidey (Holland), Mysterio (Gyllenhaal) and MJ (Zendaya) — all in costume! After Holland effortlessly did some backflips, the stars signed autographs, gave some high fives and chatted and took some pics with patients. Related stories New Hollywood Podcast: 'Spider-Man: Far From Home's Tony Revolori Talks Inclusive Casting And Being Mistaken For Different Ethnicities 'Spider-Man: Far From Home' Seeing Opening Day Around $43M+ - Midday B.O. Update 'Spider-Man: Far From Home' Zips To $120M In China Through Tuesday, Swings Past 'Homecoming' This isn’t the first time the web-slinger has paid a visit to Children’s Hospital Los Angeles. Holland paid a visit to the hospital in 2017 when Spider-Man: Homecoming was officially inducted into the Marvel Cinematic Universe. Even then, he was in full Spidey attire and doing flips and greeting patients with high fives and smiles. Watch the video of Holland, Gyllenhaal and Zendaya’s visit below. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Estimating The Intrinsic Value Of BOC Aviation Limited (HKG:2588) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll do a simple run through of a valuation method used to estimate the attractiveness of BOC Aviation Limited (HKG:2588) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. Check out our latest analysis for BOC Aviation We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF ($, Millions)", "2020": "$-222.0m", "2021": "$247.0m", "2022": "$400.7m", "2023": "$577.5m", "2024": "$759.5m", "2025": "$931.6m", "2026": "$1.1b", "2027": "$1.2b", "2028": "$1.3b", "2029": "$1.4b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 62.21%", "2023": "Est @ 44.15%", "2024": "Est @ 31.5%", "2025": "Est @ 22.65%", "2026": "Est @ 16.46%", "2027": "Est @ 12.12%", "2028": "Est @ 9.09%", "2029": "Est @ 6.96%"}, {"": "Present Value ($, Millions) Discounted @ 13.92%", "2020": "$-194.9", "2021": "$190.3", "2022": "$271.0", "2023": "$342.9", "2024": "$395.8", "2025": "$426.1", "2026": "$435.6", "2027": "$428.7", "2028": "$410.5", "2029": "$385.4"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $3.1b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2%) 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 13.9%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$1.4b × (1 + 2%) ÷ (13.9% – 2%) = US$12b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$12b ÷ ( 1 + 13.9%)10= $3.30b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $6.39b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. This results in an intrinsic value estimate in the company’s reported currency of $9.21. However, 2588’s primary listing is in Singapore, and 1 share of 2588 in USD represents 7.811 ( USD/ HKD) share of SEHK:2588,so the intrinsic value per share in HKD is HK$71.92.Relative to the current share price of HK$65.6, the company appears about fair value at a 8.8% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at BOC Aviation 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 13.9%, which is based on a levered beta of 2. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For BOC Aviation, There are three further aspects you should further research: 1. Financial Health: Does 2588 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 2588'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 2588? 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 HKG 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.
Should You Investigate Techtronic Industries Company Limited (HKG:669) At HK$59.80? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we're going to take a look at the well-established Techtronic Industries Company Limited (HKG:669). The company's stock led the SEHK gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Techtronic Industries’s outlook and valuation to see if the opportunity still exists. View our latest analysis for Techtronic Industries The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.36% above my intrinsic value, which means if you buy Techtronic Industries today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth HK$59.59, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Techtronic Industries’s share price may be more stable over time (relative to the market), as indicated by its low beta. 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. Techtronic Industries’s earnings over the next few years are expected to increase by 66%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder?669’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor?If you’ve been keeping tabs on 669, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Techtronic Industries. You can find everything you need to know about Techtronic Industries inthe latest infographic research report. If you are no longer interested in Techtronic Industries, 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.
Economists and markets disagree, and they are both right … for now Investors and traders celebrated on Monday the news that Presidents Trump and Xi had brokered over the weekend a ceasefire in the trade war between China and the United States. Judging from public comments, most economists seemed less excited, arguing little had changed. There is important information content in understanding why they differ, and what this implies going forward for the economy and markets. For investors, the weekend deal was a “goldilocks” outcome: good enough to stop a further escalation in the tariffs’ tit-for-tat that hampers trade and slows global growth; but not too good to dissuade the Federal Reserve from cutting interest rates. As such, investors feel comfortable putting more of their money at risk in surfing what has been a remunerative multi-year liquidity trade. Economists focus on the fact that the ceasefire doesn’t durably lift the trade policy cloud that has been hanging over the global economy. As such, it won’t encourage companies to invest more. At the same time, since the cost of borrowing is already low and hardly a hinderance for the bulk of corporate America, a Fed rate cut is unlikely to move the needle on growth and investment spending. And their relative pessimism about global economic prospects was reinforced by today’s poor data on manufacturing activity in China and Europe. Together, the two views highlight a phenomenon that has been going on for a while, courtesy of central banks: that is, the decoupling of elevated asset prices from more sluggish corporate and economic fundamentals. Together, they also point to major questions facing both policymaking and markets: How will the decoupling be resolved ultimately. Will improved fundamentals validate high asset prices and push them along further; or will the gravity of sluggish fundamentals prevail and pull asset prices down? And when will the convergence occur? For now, investors and traders are comfortable in continuing to bet on the beneficial market impact of liquidity, thus putting aside concerns about fundamentals; and central banks seem committed to inject more liquidity into the system even though the transmission mechanism to real economic liquidity (as opposed to asset prices) is weak. While careful not to opine on timing, and rightly so, most economists question the likelihood of sluggish fundamentals validating the elevated asset prices. And all hope that liquidity will buy enough time for politicians (especially in Europe) to get their act together on pro-growth policies. Where you should end up depends in large part on your time horizon. If you are investing for the short-term, continuing to benefit from the liquidity wave seems attractive. If you have a considerably-longer time horizon, however, this may be a good time to take advantage of the strong year-to-date performance to trade up in quality, be more selective in where and how you invest, and build a larger reserve cushion to take advantage of possible dislocations. And, whatever your time horizon, it’s not a good idea to fade relative portfolio positioning favoring the US assets versus those in the rest of the world (where economic and financial prospects are a lot trickier). — Mohamed A. El-Erian is the chief economic advisor to Allianz, the corporate parent of PIMCO where he served as CEO and co-CIO (2007-2014). A Bloomberg columnist and Financial Times contributing editor, he was Chair of President Obama’s Global Development Council and has authored two New York Times Best Sellers: the 2008 “When Markets Collide” and 2016 “The Only Game in Town.” Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Interested In Shenzhou International Group Holdings Limited (HKG:2313)? Here's What Its Recent Performance Looks Like Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Analyzing Shenzhou International Group Holdings Limited's (HKG:2313) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess 2313's recent performance announced on 31 December 2018 and compare these figures to its long-term trend and industry movements. View our latest analysis for Shenzhou International Group Holdings 2313's trailing twelve-month earnings (from 31 December 2018) of CN¥4.5b has jumped 21% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which 2313 is growing has accelerated. What's enabled this growth? Let's take a look at whether it is only a result of an industry uplift, or if Shenzhou International Group Holdings has experienced some company-specific growth. In terms of returns from investment, Shenzhou International Group Holdings has invested its equity funds well leading to a 20% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 16% exceeds the HK Luxury industry of 5.8%, indicating Shenzhou International Group Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Shenzhou International Group Holdings’s debt level, has increased over the past 3 years from 16% to 20%. Though Shenzhou International Group Holdings's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Shenzhou International Group Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Shenzhou International Group Holdings to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for 2313’s future growth? Take a look at ourfree research report of analyst consensusfor 2313’s outlook. 2. Financial Health: Are 2313’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Japanese whalers bring home 1st commercial catch in 31 years TOKYO (AP) — Japanese whalers returned to port Monday with their first catch after resuming commercial whaling for the first time in 31 years, achieving the long-cherished goal of traditionalists that is seen as largely a lost cause amid slowing demand for the meat and changing views on conservation. A fleet of five boats left the northern Japanese port of Kushiro earlier Monday and brought back two minke whales. A crane lifted them and slowly placed them on the back of a truck to be taken to a portside factory for processing. Workers in blue plastic overalls poured sake from paper cups onto the first whale to express thanks and celebrate the first catch. It was the first commercial hunt since 1988, when Japan switched to what it called research whaling after commercial whaling was banned by the International Whaling Commission. Japan gave six months' notice that it was withdrawing from the IWC, a move that took effect Sunday. The Fisheries Agency said the hunts will stay within the country's exclusive economic zone, and the catch quota for the rest of this year will be 227 whales, fewer than the 637 that Japan hunted in the Antarctic and the northwestern Pacific in its research program in recent years. The announcement of the quota, originally planned for late June, was delayed until Monday in an apparent move to avoid criticism during this past weekend's Group of 20 summit in Osaka. As the boats left port, whalers, their families and local officials in two major whaling towns, Shimonoseki in southwestern Japan and Kushiro in the north, celebrated the fresh start, hoping for their safe return and a good catch. Shimonoseki is Prime Minister Shinzo Abe's electoral constituency. "We hope commercial whaling will be on track as soon as possible, contribute to local prosperity and carry on Japan's rich whale culture to the next generation," Deputy Chief Cabinet Secretary Yasutoshi Nishimura told reporters in Tokyo. Story continues Officials said the catch of the two minke whales was a nice surprise because they were not thought to be in the area and whalers were expecting Monday's trip to be only ceremonial. Fisheries Agency officials said the whale meat will be auctioned at a local fish market Thursday and later hit stores, mainly in the region but possibly in Tokyo. Whalers are hoping for a special price for the historic meat that is higher than the average 2,000 yen per kilogram ($18 per 2.2 pounds) that their counterparts from Antarctic research whaling used to get. While the resumption of commercial whaling was condemned by many conservation groups, others see it as a face-saving way to let the government's embattled and expensive whaling program gradually succumb to changing times and tastes. Despite massive attention, tax money and political support from ruling party lawmakers, whaling in Japan involved only a few hundred people and accounted for less than 0.1% of the total meat consumption in fiscal 2017, according to government data. Whale meat was an affordable source of protein during the lean times after World War II, with annual consumption peaking at 223,000 tons in 1962. But whale was quickly replaced by other meats. The supply of whale meat fell to 6,000 tons in 1986, the year before the moratorium on commercial whaling imposed by the IWC banned the hunting of several whale species. Under its research whaling, which was criticized as a cover for commercial hunts because the meat was sold on the market, Japan caught as many as 1,200 whales a year. It drastically cut back its catch in recent years after international protests escalated and whale meat consumption slumped at home. Today, about 4,000-5,000 tons are supplied in Japan annually, or 30-40 grams (1-1.4 ounces) of whale meat per person a year, Fisheries Agency officials say. The research whaling program lost money for years — 1.6 billion yen ($15 million) in the last year alone. Japan will stick to a very strict catch quota and will continue conducting research, Hideki Moronuki, a Fisheries Agency official and the chief negotiator at the IWC, said in a recent interview. He said Japan's commercial whaling will never harm whale stocks. The commercial whaling will be carried out by two groups. The mother factory ship Nisshin-maru and two support boats that used to go to the Antarctic will travel as far as Japan's 200 nautical mile exclusive economic zone to catch minke, Bryde's and sei whales. Five other smaller ships will stay closer to the coast but also hunt minkes, in addition to 168 Baird's beaked and two other kinds of small whales they used to catch outside of IWC jurisdiction. Altogether, they are to catch 52 minkes, 150 Bryde's and 25 sei whales through Dec. 31. Whales caught in coastal waters will be brought back for fresh local consumption at any of six local whaling hubs that are mainly in northern Japan but include Taiji, the home constituency of ruling Liberal Democratic Party heavyweight Toshihiro Nikai. The town is also known for its dolphin hunts shown in the documentary movie "The Cove." Whale meat caught further off the coast will be frozen and distributed for wider consumption. Moronuki says the fate of commercial whaling depends on whether whale meat is widely accepted by consumers since it won't receive as many subsidies as before. The government, however, plans to provide as much as 5 billion yen ($46 million) for projects to help stabilize commercial whaling, including development of rich whale hunting grounds and research and development in the first few years, officials said. Moronuki said he hopes whale meat will be reasonably priced so it will gain long-term popularity instead of being an expensive delicacy for a limited clientele. The government used to sell whale meat caught in the scientific program for school lunch programs at discounted prices, he said. "The future of commercial whaling depends on how popular whale meat can be," he said. "Whale meat is a traditional food in Japan and I would like many people to try and develop a taste for it, especially younger people." A 2017 survey by the Japan Whaling Association showed about 64% of respondents said they have eaten whale meat, but most said they haven't had any in five years. Ultimately, the resumption of traditional whaling may end up saving large government subsidies and the lives of many whales, experts say. "What we are seeing is the beginning of the end of Japanese whaling," said Patrick Ramage, director of the International Fund for Animal Welfare. "It is a win-win solution that results in a better situation for whales, a better situation for Japan, a better situation for international marine conservation efforts and is therefore to be welcomed." Whaling is losing support in other whaling nations including Norway and Iceland, where whalers have cut back on catches in recent years amid criticism that commercial hunts are bad for their national image and tourism. Iceland caught only 17 whales, while Norway hunted 432 in the 2017-2018 season, way below their catch quota of 378 and 1,278 respectively, according to the IWC. Japanese are also beginning to see ecotourism as a better option for whales than hunting them for food. "People in coastal communities all do better when whales are seen and not hurt," Ramage said. ___ Follow Mari Yamaguchi on Twitter at https://www.twitter.com/mariyamaguchi
Judge: Rep. Duncan Hunter's trial can detail alleged affairs SAN DIEGO (AP) — Jurors can hear evidence of U.S. Rep. Duncan Hunter's alleged extramarital affairs when they consider charges the California Republican looted campaign cash to finance vacations, golf outings and other personal expenses, a judge said Monday. Prosecutors revealed salacious details about the married congressman's lifestyle in court filings last week, saying he used campaign money to illegally finance a string of romantic relationships with lobbyists and congressional aides. U.S. District Judge Thomas Whelan said the allegations were relevant to whether campaign money was spent illegally and spoke to motive and intent. Hunter's attorney, Gregory Vega, argued that any mention of extramarital affairs and "personal indiscretions" would be "extremely prejudicial" at a trial set for September. "I'm afraid that it will be the focus, instead of the evidence," Vega said. The judge acknowledged that the allegations were sensitive. He said prosecutors and Hunter's team could agree on mutual terms to describe the relationships. The judge was asked to determine if the value of testimony about Hunter's affairs outweighed any prejudice that jurors may have against the congressman. Shaun Martin, a law professor at University of San Diego who has followed the case, said the judge "got it right." "The evidence about the affair will definitely make Hunter look bad to the jury, but it's also relevant," Martin wrote in an email. "Defendants sometimes commit crimes for unseemly reasons, but those reasons get introduced at trial. ... It's a bad day for Duncan Hunter." Hunter's attorneys have suggested any expenses for alleged affairs had a professional purpose because the women were lobbyists and that the spending could be considered campaign-related. "The defense can argue to the jury that the expenses were legitimate payments to a lobbyist. But I wouldn't be surprised if a jury concluded that there were ulterior motives for payments to one's mistresses," Martin wrote. Story continues The judge, ruling on a flurry of procedural motions, didn't address Hunter's bid to dismiss charges or move the trial out of San Diego. Whelan said Hunter could keep speaking publicly about the case. The Republican congressman, an early supporter of President Donald Trump, sat quietly next to his attorney during the hearing. Outside, about two dozen protesters surrounded and shouted at him on his short walk to a car with a waiting driver. His father, former U.S. Rep. Duncan Hunter Sr., told reporters that the charges were politically motivated. Attorneys for the congressman have argued that prosecutors tied to the case were at a Hillary Clinton fundraiser in August 2015 and tried to get a photo with the Democrat, compromising their impartiality. The elder Hunter, who sat in the front row of the courtroom, gave reporters copies of an email from the U.S. Secret Service on how to get a photo taken with Clinton at the fundraiser. The email, part of a June 24 court filing, redacted the recipients' names but was a response to a Freedom of Information Act request for communications with two prosecutors involved in the case. "This is the smoking gun," Hunter Sr. told reporters. The government says the prosecutors attended the fundraiser in an official capacity to assist law enforcement. Hunter and his wife were indicted in August on charges that they used more than $250,000 in campaign funds for personal expenses ranging from groceries to golf trips and family vacations, then lied about it in federal filings. Margaret Hunter, who was not in court Monday, pleaded guilty last month to one corruption count and agreed to testify against her husband. In an interview with Fox News last year, Hunter said his campaign made mistakes, that he gave his wife power of attorney when he deployed as a Marine to Iraq in 2003 and that she handled his finances during his last five terms in office. Hunter, 42, was re-elected in his strongly Republican congressional district in San Diego County last year despite the indictment. The Hunter name represents something of a political dynasty in the area — his father captured the seat in 1980 and held it until his son was elected in 2008.
Australian dollar defies broader risk rally as RBA cut looms TOKYO (Reuters) - The Australian dollar nursed wounds on Tuesday, a day after it posted its biggest one-day fall in more than two months ahead of an expected central bank easing while improved risk appetite supported the greenback. The dollar index against a basket of six major currencies remained near its highest in a week as sentiment picked up following an agreement between the United States and China to resume talks to resolve their trade war. That left the euro mired at its lowest level in more than a week as disappointing economic data triggered a tumble in bond yields and boosted expectations for a central bank rate cut in the common currency bloc. In the Asian session, investor focus has shifted to the Reserve Bank of Australia (RBA), which is tipped to lower interest rates by 25 basis points to a record low of 1.00% at a meeting later on Tuesday. RBA Governor Philip Lowe will also speak to business leaders in Darwin after the meeting, which could provide clues on how much further interest rates could fall. A Reuters survey showed economists see a chance of another cut to 0.75% by year end. "Lowe is speaking in Darwin, and that is really where the market will be looking for clues... but our view is we will get at least one more follow-up cut," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. "The other story is the revival in the U.S. dollar's fortunes, which has surprised me a little bit, but you have the juxtaposition of Treasury yields backing up and new record lows from European yields." The Australian dollar was little changed at $0.6965 after slumping 0.9% on Monday, its biggest decline since April 24. The Aussie could dip below $0.6950 after the RBA's decision around 0430 GMT but would likely stabilise as traders await Lowe's comments expected 0930 GMT, Attrill said. The U.S. dollar index was up 0.5% at 96.809 on Tuesday, having posted its biggest gain since March 7 on Monday, bolstered by optimism over U.S.-China trade talks. The focus now shifts to U.S. non-farm payrolls data due on Friday, which economists expect to have risen by 160,000 in June, compared with a 75,000 increase in May. However, analysts expect the dollar will struggle to make substantial additional gains given expectations the Federal Reserve will cut rates due to low inflation and worries about the U.S.-China trade war. The euro limped into Asian trading on Tuesday, changing hands at $1.1286. The common currency fell 0.7% on Monday, its biggest-one day decline since March. (Reporting by Stanley White; Editing by Sam Holmes)
Demand for whale meat is down. Why did Japan just resume commercial whaling? Japanese commercial ships hunting whales for the first time in more than three decades caught at least two minke whales Monday and hoped to "hand over our country's rich whaling culture to the next generation." The nation's Fisheries Agency said it has set "extremely conservative" quotas designed to allow continuous whale hunting for the next 100 years with no harmful impact on the whale population. Renewing the practice is a win for traditionalists that also extricates the government from its costly and contentious "research" whaling program. It's just not clear who will actually eat the stuff. "My heart is overflowing with happiness," said Yoshifumi Kai, head of the Japan Small-Type Whaling Association. “This is a small industry, but I am proud of hunting whales. People have hunted whales for more than 400 years in my hometown." The Australian Marine Conservation society took a different tack. Darren Kindleysides, the group's CEO, called whaling "outdated and cruel" and noted that demand for whale meat has dwindled. “If the Japanese government thought that by leaving the IWC it could wash its hands of its duties under international law, then it was wrong," he said, adding that "today is a historic moment for all the wrong reasons." Retiring soon?3 spending habits that are ruining your chances at retirement The limits allow for harvesting of 227 minke, Bryde's and sei whales over the next six months in Japanese waters. Release of the quota had been planned for late June but apparently was withheld until completion of the Group of 20 summit held in Osaka over the weekend. "We will conduct commercial whaling based on scientific grounds and appropriate resource management," Deputy Chief Cabinet Secretary Yasutoshi Nishimura said. "We hope it will get on track as quickly as possible, rejuvenate the community and lead to the hand over of our country's rich whaling culture to the next generation." Whales caught in coastal waters are expected to be brought back for fresh local consumption at any of six local whaling hubs. Whale meat caught further off the coast will be frozen and distributed for wider consumption. The hunt began one day after Japan formally withdrew from the International Whaling Commission. While a member, Japan had drawn criticism for whaling it conducted under the guise of research. Under Japan's new guidelines, whaling in the Antarctic Ocean is banned and research whaling will halt. The Fisheries Agency said the whale haul is actually expected to decline under the new rules. Other whaling nations have seen catches fall well below quotas. Iceland, with a quota of 378, caught only 17 whales in the 2017-2018 season. Norway hunted 432, about one-third of its quota. Under its research hunts, Japan at its peak caught as many as 1,200 whales. It drastically cut back on its catch in recent years after international protests escalated and whale meat consumption slumped at home. The research whaling program lost money for years – $15 million in the last year alone. The annual domestic consumption of whale meat, about 200,000 tons in the 1960s, has fallen to around 5,000 tons in recent years, according to government data. In the northern city of Kushiro, whaling ship captain Takashi Takeuchi told Kyodo news service he "felt uneasy" about the outlook for commercial whaling in Japan. Hideki Abe, 22, works aboard a whaling ship, said the youth of Japan will be key to whaling's future. "I hope the younger generations will get accustomed to eating whale meat," he said. Contributing: The Associated Press Can't find good hires?:Try these 3 less-tapped resources This article originally appeared on USA TODAY:Demand for whale meat is down. Why did Japan just resume commercial whaling?
After Hours: Sarin Scare at Facebook, Gilead to Make Arthritis Drug Submission Soon In a movie we've seen before -- and recently -- the stock market tipped into all-time high territory... but the after-hours scene has been relatively tame. Perhaps traders are exhausted by the busy action during the day, or just weary from the summer heat. Some of them are up and dealing, though. Here are some late-breaking business items they're keeping an eye on just now. Image source: Facebook. Facebook(NASDAQ: FB)employees were evacuated today following the discovery of what appeared to be traces of the sarin nerve agent near the company's Menlo Park, California, campus, it was revealed after hours on Monday. The substance was discovered during a routine mail check. Following the discovery, Facebook evacuated people inside four of its buildings. The area was quarantined; as of press time, the evacuation had been lifted at three of the structures. Some media reports said that the substance tested positive for sarin. A Fox Business headline had it that this had been confirmed by local fire officials, who were not named. No official test results have yet been released. (Sarin is an extremely powerful and lethal nerve agent that's odorless, tasteless, and colorless, thus very difficult to detect without sensitive equipment.) Menlo Park fire marshal Jon Johnston went on record when interviewed for an article on the matter with the Associated Press. He said it was possible the mail check produced a false positive. The apparently contaminated piece of mail was delivered at approximately 11 a.m. local time. Two individuals may have come into contact with it, but no injuries were reported. The incident does not seem to be affectingsentiment on Facebook's stock, which has risen by nearly 50% so far this year. It's down only a few cents in after-hours trading. Top pharmaceutical companyGilead Sciences(NASDAQ: GILD)will submit its promising arthritis drug candidate filgotinib to the Food and Drug Administration (FDA) for approval this year. The announcement follows a pre-New Drug Application (NDA) meeting the company recently held at the FDA. Following these discussions, Gilead stated that "a path forward has been established to submit the NDA for filgotinib as a treatment for rheumatoid arthritis in 2019." Gilead previously said it plans to submit the drug for approval in Europe at some point this year. Its prospects look very good: It hassucceeded in a trio of phase 3 clinical tests. That said, the market for inflammation treatments like filgotinib is competitive, even for a company of the size and effectiveness of Gilead. Perhaps that's why investors seem to be trading the company's stock with caution this evening. It's up only marginally in post-market trading tonight. 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 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.Eric Volkmanowns shares of Facebook. The Motley Fool owns shares of and recommends Facebook and Gilead Sciences. The Motley Fool has adisclosure policy.
Oil dives 4% on demand worries even as OPEC, allies extend cuts By Stephanie Kelly NEW YORK (Reuters) - Oil prices fell more than 4% on Tuesday, even after OPEC and allies including Russia agreed to extend supply cuts until next March, as weak manufacturing data had investors worried that a slowing global economy could dent oil demand. Brent crude futures fell $2.66, or 4.1%, to settle at $62.40 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $2.84, or 4.8%, to settle at $56.25 a barrel, after touching their highest in more than five weeks on Monday. The Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices. The extension comes after Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to prolong the pact and continue to cut combined production by 1.2 million barrels per day, or 1.2% of world demand. Signs of a global economic slowdown, which could hit oil demand growth, means OPEC and its allies could face an uphill battle to shore up prices by reining in supply. "It was the bare minimum OPEC could agree on in order to prevent a major meltdown in prices. Member countries noted that global oil demand growth for this year has fallen to 1.14 mbpd (million barrels per day) while non-OPEC supply is expected to grow by 2.14 mbpd," PVM analyst Tamas Varga wrote in a note. "It appears that the supply side of the oil equation is supportive for oil prices but demand concerns are forcing oil bulls to keep at least part of their gunpowder dry." The United States and China agreed at the G20 summit to restart trade talks, but factory activity shrank across much of Europe and Asia in June while U.S. manufacturing activity slowed to near a three-year low. Further, U.S. President Donald Trump on Monday said any deal would need to be somewhat tilted in favor of the United States, which stoked doubt over prospects for a trade deal between the top two economies. "Increasing indications of global economic slowing remain as the larger negative pricing consideration to the energy complex and OPEC's need to extend production cuts even further would appear to attest to slowing economic growth paths," Jim Ritterbusch of Ritterbusch and Associates said in a note. Meanwhile, U.S. crude inventories fell by 5 million barrels in the week to June 28 to 469.5 million, industry group the American Petroleum Institute said on Tuesday. Analysts had expected a decrease of 3 million barrels. Government data is due to be released on Wednesday. (Reporting by Stephanie Kelly; Additional reporting by Noah Browning in London and Jessica Jaganathan in Singapore; Editing by Diane Craft, Lisa Shumaker and Susan Thomas)
Should We Worry About Asian Granito India Limited's (NSE:ASIANTILES) P/E Ratio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Asian Granito India Limited's (NSE:ASIANTILES), to help you decide if the stock is worth further research.Asian Granito India has a P/E ratio of 35.82, based on the last twelve months. In other words, at today's prices, investors are paying ₹35.82 for every ₹1 in prior year profit. View our latest analysis for Asian Granito India Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Asian Granito India: P/E of 35.82 = ₹248.6 ÷ ₹6.94 (Based on the year to March 2019.) The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation. That means unless the share price falls, the P/E will increase in a few years. Then, a higher P/E might scare off shareholders, pushing the share price down. Asian Granito India's earnings per share fell by 60% in the last twelve months. But over the longer term (5 years) earnings per share have increased by 5.3%. And EPS is down 6.9% a year, over the last 3 years. This growth rate might warrant a low P/E ratio. The P/E ratio indicates whether the market has higher or lower expectations of a company. As you can see below, Asian Granito India has a higher P/E than the average company (21.4) in the building industry. Asian Granito India's P/E tells us that market participants think the company will perform better than its industry peers, going forward. 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. Don't forget that the P/E ratio considers market capitalization. Thus, the metric does not reflect cash or debt held by the company. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context. Net debt is 39% of Asian Granito India's market cap. While that's enough to warrant consideration, it doesn't really concern us. Asian Granito India has a P/E of 35.8. That's higher than the average in the IN market, which is 15.3. With modest debt but no EPS growth in the last year, it's fair to say the P/E implies some optimism about future earnings, from the market. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' We don't have analyst forecasts, but you might want to assessthis data-rich visualizationof earnings, revenue and cash flow. You might be able to find a better buy than Asian Granito India. 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.
Stephen A. Smith hangs up on caller for suggesting Knicks grab Carmelo Anthony NBA free agency is here and, well, it hasn’t gone too well for the New York Knicks in many fans’ eyes . [Free agency updates: Keep track of the moves, rumors, cap space and more ] Rather than bringing in Kevin Durant, Kyrie Irving or any of the other available max stars, the Knicks ended up with Julius Randle and some spare parts . There might be a silver lining somewhere in there , but few expect the Knicks to be competitive next season. Stephen Smith isn’t loving the Knicks right now Among the Knicks’ disgruntled fans is ESPN professional opinion-haver Stephen A. Smith, who took to Twitter and the airwaves on Sunday to voice his displeasure with the team . When Smith signed onto his radio show the following day, the Knicks were naturally a point of discussion. That included one caller who suggested the team’s savior could be Carmelo Anthony. It’s unclear if the fan was being serious, but Smith wasn’t having it either way. knicks fan says melo can still sign back and @stephenasmith told him to go to hell 😂 pic.twitter.com/nhPVcvsiUt — Jordan Heck (@JordanHeckFF) July 1, 2019 “Oh, go to hell. Go to hell, bye,” Smith said before cutting off the call. Where will Carmelo Anthony land in NBA free agency? Anthony remains a free agent after a season in which he played only 10 games with the Houston Rockets before the team shelved him and eventually traded him to the Chicago Bulls, where he was immediately waived. The veteran scorer is probably looking at a veteran’s minimum deal for this year, possibly with the Los Angeles Lakers and his good friend LeBron James. Anthony has also indicated in the past he might be interested in a Knicks reunion , but the feeling reportedly isn’t mutual now. Carmelo Anthony, Knicks savior? Probably not. (AP Photo/Julie Jacobson, File) Per Ian Begley of SNY , the Knicks’ interest dried up as soon as any possibility of Durant playing for them went out the window: Story continues There may have been interest from New York in a reunion with Anthony if they had a roster with multiple stars ready to win immediately. But with Durant injured and the odds against the Knicks building that kind of team this summer, bringing Anthony back is not currently part of the team's thinking. We’ll see what city Anthony ends up “saving.” More from Yahoo Sports: Here's how Steph Curry found out where KD was signing Angels P Tyler Skaggs dead at 27 Wimbledon: Venus Williams loses to 15-year-old Police: Ortiz shooting was $30K hit gone wrong
Video game designer establishes lab for renewable energy KAILUA-KONA, Hawaii (AP) — A Dutch video game designer and entrepreneur has established a laboratory on the Big Island that is focused on developing alternatives to fossil fuels for energy, the Hawaii Tribune-Herald reported. Henk Rogers established the laboratory to test and develop renewable energy systems that he hopes will make the state's energy use 100% renewable by 2045, ending the state's reliance on fossil fuels that Rogers says is adding acid to the ocean and killing the coral reef, the newspaper reported Sunday. The laboratory, which is on a ranch, is currently focused on the use of hydrogen to create energy. The laboratory wants to use hydrogen energy cells to store the energy harnessed by the solar panels, to power the community water system, to create jobs and to cook food, the Tribune-Herald reported. The laboratory is run under the auspices of Rogers' Blue Planet Research. One of Rogers' software companies has the intellectual property rights to Tetris, according to the foundation's website. Blue Planet wants to combine the use of solar energy and hydrogen energy cells. Because solar is an intermittent power source, it's important to be able to store the energy to use during off-peak hours. There's usually 3.8 hours of quality sunshine in the mornings at the ranch, but the sky clouds over as the day progresses. "We knew storage was important and the key," said Paul Ponthieux, director and chief technology officer of Blue Planet Research. "We have to grab all our energy in the limited window." The laboratory uses solar energy to pass an electric current through water to create hydrogen gas and oxygen, the newspaper reports. The hydrogen is then stored under pressure in energy cells, similar to a battery. ___ The dateline of this story has been corrected to Kailua-Kona, Hawaii. This story has also been corrected to say the laboratory is run under the auspices of Blue Planet Research.
Do Insiders Own Shares In Sasken Technologies Limited (NSE:SASKEN)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to know who really controls Sasken Technologies Limited (NSE:SASKEN), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. With a market capitalization of ₹12b, Sasken Technologies is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about SASKEN. View our latest analysis for Sasken Technologies Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Sasken Technologies already has institutions on the share registry. Indeed, they own 9.8% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Sasken Technologies's earnings history, below. Of course, the future is what really matters. It would appear that 6.9% of Sasken Technologies shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. There is some analyst coverage of the stock, but it could still become more well known, with time. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. 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. It seems insiders own a significant proportion of Sasken Technologies Limited. Insiders have a ₹5.2b stake in this ₹12b business. 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 holds a 28% stake in SASKEN. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. We can see that Private Companies own 12%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free. Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Samsung sets a date for its big Galaxy Note 10 reveal We still aren't entirely sure what's going on with the Galaxy Fold, but we now know when Samsung will show off its next big flagship phone. The company sent out invitations for its next Unpacked event, set for Aug. 7, when Samsung is expected to reveal the Galaxy Note 10. The event will kick off at 4 p.m ET at the Barclays Center in Brooklyn, and will also be streamed on Samsung's website. The invitation itself features a stylus — an obvious reference to the Note's S Pen —and what appears to be a camera lens. It's less clear what the camera is supposed to hint at, but leaks and rumors suggest the Note 10 will haveno shortage of cameras.Read more... More aboutTech,Samsung,Smartphones,Galaxy Note 10, andTech
Samsung will unveil the Galaxy Note 10 on August 7th The rumorswere true -- Samsung hasannouncedthat it's holding its second Unpacked event of the year on August 7th at 4PM Eastern in Brooklyn's Barclays Center. The company hasn't said anything about what to expect, but the pen-centric teaser image (above) doesn't leave much to the imagination. The Galaxy Note 10 will clearly be the star of the show, and it's just a matter of pinning down the finer details. This could be one of the biggest Galaxy Note introductions yet. Currentrumors and leakssuggest the Note 10 will retain the harder-edged design of the Note line, but inheritGalaxy S10features like a hole-punch camera (this time at the top center), in-screen fingerprint readers and, crucially a wider selection of models. There may be two Note variants this year, a 6.3-inch base Note 10 and a nearly 6.8-inch Note 10+ (the larger of which would offer a 5G variant). You could expect upgrades to the pen experience, the camera and likely other traits. The Note 10 might be a step back for some, though. There are murmurs that none of the new models would include a headphone jack (making Samsung's previous bragging a bit awkward), and that only the Note 10+ would have a microSD slot. If so, some of the features Samsung owners have taken for granted are about to go away -- and there's no guarantee that theGalaxy Budsor increased storage will satisfy some fans.
Did You Manage To Avoid Singapore Telecommunications's (SGX:Z74) 16% Share Price Drop? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While not a mind-blowing move, it is good to see that theSingapore Telecommunications Limited(SGX:Z74) share price has gained 14% in the last three months. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 16% in the last three years, falling well short of the market return. See our latest analysis for Singapore Telecommunications 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. Singapore Telecommunications saw its EPS decline at a compound rate of 7.9% per year, over the last three years. This fall in the EPS is worse than the 5.6% compound annual share price fall. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It might be well worthwhile taking a look at ourfreereport on Singapore Telecommunications's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Singapore Telecommunications's TSR for the last 3 years was -2.0%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! We're pleased to report that Singapore Telecommunications shareholders have received a total shareholder return of 21% over one year. That's including the dividend. That gain is better than the annual TSR over five years, which is 2.7%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Importantly, we haven't analysed Singapore Telecommunications's dividend history. Thisfreevisual report on its dividendsis a must-read if you're thinking of buying. But note:Singapore Telecommunications 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 SG 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.
Xbox free Games with Gold for July 2019 Click here to read the full article. This month’s selection of free Xbox One and Xbox 360 titles for Xbox Live Gold members is about as mixed a bag as they come. The headliner of July is Inside , which is one of the most disturbing, fascinating, and engrossing games of the last five years. It’s a bit gruesome, but absolutely worth having in your library. The other game of note is Castlevania: Symphony of the Night , which first came out on the PlayStation in 1997, but is still one of the best games of its kind ever made. If you’re not quite ready to shell out the cash for spiritual successor Bloodstained: Ritual of the Night , you can grab the game that inspired it for free right now. Related Stories: Brilliant 'Stranger Things' theory explains Microsoft's puzzling Windows 1.0 teaser Microsoft is reportedly testing two exciting new Surface models Galaxy Note 10 might get an exciting iPhone feature, and it's all thanks to... Windows 10? Here are the details on the availability of all the Xbox One and Xbox 360 Games with Gold for July: Inside ($19.99 ERP): Available July 1 to 31 on Xbox One Big Crown: Showdown ($12.99 ERP): Available July 16 to August 15 on Xbox One Castlevania: Symphony of the Night ($9.99 ERP): Available July 1 to 15 on Xbox One and Xbox 360 Meet the Robinsons ($19.99 ERP): Available July 16 to 31 on Xbox One and Xbox 360 You’ll save about $63 if you pick up all four games, and can add up to 3200 points to your gamerscore. Also, keep in mind that each of the Xbox 360 titles are backward compatible with the Xbox One, so even if you don’t have an Xbox 360 on hand, you can still download all four games listed above. And as always, some of last month’s free games are still available if you hurry, so be sure to download them before they go back to being paid. BGR Top Deals: This $16 clip-on lens kit fits the iPhone or any Android phone, and it’s awesome Amazon deal offers a 7-inch Android tablet for under $43 See the original version of this article on BGR.com
Introducing Asia Commercial Holdings (HKG:104), A Stock That Climbed 75% In The Last Five Years Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Stock pickers are generally looking for stocks that will outperform the broader market. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, theAsia Commercial Holdings Limited(HKG:104) share price is up 75% in the last 5 years, clearly besting than the market return of around 5.2% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 13% in the last year, including dividends. View our latest analysis for Asia Commercial Holdings 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. During the five years of share price growth, Asia Commercial Holdings moved from a loss to profitability. That's generally thought to be a genuine positive, so we would expect to see an increasing share price. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Asia Commercial Holdings'searnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Asia Commercial Holdings, it has a TSR of 94% 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 good to see that Asia Commercial Holdings has rewarded shareholders with a total shareholder return of 13% in the last twelve months. That's including the dividend. However, that falls short of the 14% TSR per annum it has made for shareholders, each year, over five years. 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. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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.
Hurricanes win free agency with hilarious Twitter poll inspired by Aho offer sheet The opening wave of the 2019 edition of NHL free agency is in the books. With big-name players such as Artemi Panarin and Sergei Bobrovsky finding new homes, there were plenty of fireworks. Then, the Montreal Canadiens fired Sebastian Aho — a restricted free agent with the Carolina Hurricanes — an offer sheet and things escalated to a whole new level. However, the terms weren’t as appetizing as expected. At only five years at an average annual value of $8.454 million, the move by the Canadiens should make life for Hurricanes general manager Don Waddell and the rest of Carolina’s front office pretty easy. (Hint: They’re probably going to definitely match it instead of taking the compensation of a first-, second- and third-round pick if they don’t.) The Carolina Hurricanes' social team had some fun with the Montreal Canadiens sending a lacklustre offer sheet Sebastian Aho's way. (Photo by Gregg Forwerck/NHLI via Getty Images) With that in mind, the team’s social team had some fun at the expense of the Canadiens general manager Marc Bergevin and Montreal’s francophone roots with the following poll on Twitter. Will we match the offer sheet for Sebastian Aho? — Carolina Hurricanes (@NHLCanes) July 1, 2019 When it comes to being cheeky, they truly nailed this one. You just better hope that Waddell and Co. actually decides to match the offer sheet within the next week. If not, this will age worse than a glass of milk on a hot summer day. More NHL coverage on Yahoo Sports
Should You Be Tempted To Sell Mount Gibson Iron Limited (ASX:MGX) 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 Mount Gibson Iron Limited's (ASX:MGX) P/E ratio to inform your assessment of the investment opportunity. Looking at earnings over the last twelve months,Mount Gibson Iron has a P/E ratio of 16.79. That is equivalent to an earnings yield of about 6.0%. Check out our latest analysis for Mount Gibson Iron Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Mount Gibson Iron: P/E of 16.79 = A$0.98 ÷ A$0.058 (Based on the year to December 2018.) A higher P/E ratio means that buyers have to paya higher pricefor each A$1 the company has earned over the last year. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future. P/E ratios primarily reflect market expectations around earnings growth rates. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up. Mount Gibson Iron saw earnings per share decrease by 25% last year. And EPS is down 20% a year, over the last 5 years. This might lead to muted expectations. One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. The image below shows that Mount Gibson Iron has a higher P/E than the average (12) P/E for companies in the metals and mining industry. Its relatively high P/E ratio indicates that Mount Gibson Iron shareholders think it will perform better than other companies in its industry classification. Shareholders are clearly optimistic, but the future is always uncertain. So investors should delve deeper. I like to checkif company insiders have been buying or selling. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. So it won't reflect the advantage of cash, or disadvantage of debt. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. 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. Mount Gibson Iron has net cash of AU$431m. This is fairly high at 37% of its market capitalization. That might mean balance sheet strength is important to the business, but should also help push the P/E a bit higher than it would otherwise be. Mount Gibson Iron's P/E is 16.8 which is about average (15.9) in the AU market. While the lack of recent growth is probably muting optimism, the net cash position means it's not surprising that expectations put the company roughly in line with the market average P/E. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So 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 Mount Gibson Iron. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why Mount Gibson Iron Limited's (ASX:MGX) High P/E Ratio Isn't Necessarily A Bad Thing Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at Mount Gibson Iron Limited's ( ASX:MGX ) P/E ratio and reflect on what it tells us about the company's share price. What is Mount Gibson Iron's P/E ratio? Well, based on the last twelve months it is 16.79. In other words, at today's prices, investors are paying A$16.79 for every A$1 in prior year profit. Check out our latest analysis for Mount Gibson Iron How Do You Calculate A P/E Ratio? The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Mount Gibson Iron: P/E of 16.79 = A$0.98 ÷ A$0.058 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? A higher P/E ratio implies that investors pay a higher price for 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. How Growth Rates Impact P/E Ratios P/E ratios primarily reflect market expectations around earnings growth rates. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means unless the share price increases, the P/E will reduce in a few years. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. Mount Gibson Iron shrunk earnings per share by 25% over the last year. And it has shrunk its earnings per share by 20% per year over the last five years. This growth rate might warrant a below average P/E ratio. Does Mount Gibson Iron Have A Relatively High Or Low P/E For Its Industry? We can get an indication of market expectations by looking at the P/E ratio. The image below shows that Mount Gibson Iron has a higher P/E than the average (12) P/E for companies in the metals and mining industry. Story continues ASX:MGX Price Estimation Relative to Market, July 2nd 2019 Its relatively high P/E ratio indicates that Mount Gibson Iron shareholders think it will perform better than other companies in its industry classification. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should delve deeper. I like to check if company insiders have been buying or selling . A Limitation: P/E Ratios Ignore Debt and Cash In The Bank Don't forget that the P/E ratio considers market capitalization. So it won't reflect the advantage of cash, or disadvantage of debt. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth. Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context. So What Does Mount Gibson Iron's Balance Sheet Tell Us? Mount Gibson Iron has net cash of AU$431m. This is fairly high at 37% of its market capitalization. That might mean balance sheet strength is important to the business, but should also help push the P/E a bit higher than it would otherwise be. The Verdict On Mount Gibson Iron's P/E Ratio Mount Gibson Iron's P/E is 16.8 which is about average (15.9) in the AU market. Although the recent drop in earnings per share would keep the market cautious, the net cash position means it's not surprising that expectations put the company roughly in line with the market average P/E. 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 this free report on the analyst consensus forecasts could help you make a master move on this stock. Of course you might be able to find a better stock than Mount Gibson Iron . So you may wish to see this free collection of other companies that have grown earnings strongly. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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.
Ivanka’s North Korea Photobombs Perplex White House Officials Brendan Smialowski/AFP/Getty When Donald Trump and his advisers crossed over from South Korea into the heavily fortified demilitarized zone between North and South Korea over the weekend, the cameras were ready. Images of the president greeting North Korean dictator Kim Jong Un as “my friend” in a last-minute meetup streamed across televisions worldwide. Trump wasn’t alone. After a few snapshots, Ivanka Trump, along with her husband, Jared Kushner, followed the president into what’s known as the Freedom House—a building on the South Korean side of the zone. That’s when the cameras stopped. The media was reportedly blocked from entering and covering the historic event. It wasn’t until later that reporters learned Ivanka and Kushner did more than accompany the president into the Freedom House. They were reportedly present at a closed-door meeting between the two leaders, who ended up speaking about one of the most sensitive topics on the planet—North Korea’s nuclear-weapons program. (The White House did not immediately respond to a request for comment. After this story was published, an official reached out and said: “Although they met Kim, Jared and Ivanka did not participate in the closed-door meeting.” The official did not clarify which meeting Ivanka and Jared participated in or how many meetings were held on the border. But two other officials told The Daily Beast that Ivanka and Kushner were in the room for part of the conversations that pertained to nuclear weapons and sanctions. President Trump has long used his family, particularly his son-in-law, to run various foreign-policy projects, leading to investigations on Capitol Hill over security clearances and the administration’s circumvention of traditional foreign-policy procedure. Former Secretary of State Rex Tillerson said in a recent congressional interview that he was often left in the dark about various high-stakes foreign-policy decisions because Kushner at times ran his own shadow State Department, meeting secretly with world leaders from countries such as Mexico and Saudi Arabia. Story continues The meeting in the DMZ seemed to spur a new sense of frustration in Washington on Monday, this time directed in particular at the first daughter, who was also present—front and center—at the G-20 summit in Hamburg. She provided a video readout about the conversations Trump had with Indian Prime Minister Narendra Modi and took photo-ops with attendees. “Ivanka has participated in previous bilateral meetings, and on behalf of the White House at past G-20 summits,” said Garrett Marquis, a spokesperson for the National Security Council. “Issues of women’s empowerment are central to the president’s national-security and women’s peace and security strategies.” Photos and video footage from the conference emerged over the weekend, showing Ivanka mingling with some of the top world leaders, inserting herself into conversations with veterans of the foreign-policy world. The internet erupted, and lawmakers took to social media. “It may be shocking to some, but being someone’s daughter actually isn’t a career qualification,” Rep. Alexandria Ocasio-Cortez (D-NY) said on Twitter. “It hurts our diplomatic standing when the President phones it in & the world moves on.” One senior administration official told The Daily Beast that the Trump team often tries to find roles for Ivanka on travels overseas because she is a talented spokesperson. But it is unclear what Ivanka was doing in North Korea beyond the purely ceremonial. Two senior administration officials and one former one said they do not consider the president’s daughter a significant player on major foreign-policy initiatives, including on the Koreas, though they all acknowledged that President Trump will at least solicit her advice for gut checks on any manner of foreign-policy and national-security decision: striking other countries, climate agreements, and so on. “She matters because the president says she matters,” the former official said. “Who in their right mind would cross her knowing that?” A current official noted that Ivanka is often in the room during important policy discussions and read-into those matters specifically, and at times exclusively, because her father demanded it. It’s not only Trump’s aides and advisers who have taken note of that; foreign leaders have factored it into their diplomacy and flattery of Trump, as well. Prime Minister Shinzo Abe is known to go out of his way to ask the president how Ivanka is doing and ask about her interest in global women’s empowerment projects, another one of the current senior Trump administration officials said. "Japan's Prime Minister Shinzo Abe, advisor to the US President Ivanka Trump, US President Donald Trump and Indonesia's President Joko Widodo attend an event on women's empowerment during the G20 Summit in Osaka on June 29, 2019." Photo Illustration by The Daily Beast/Photo by Brendan Smialowski/Getty Still, Ivanka’s protected status in the Trump orbit has frustrated several high-ranking aides over the years, including the president’s one-time chief strategist Steve Bannon and former White House Chief of Staff John Kelly, the latter of whom reportedly complained in private that Ivanka is merely “playing government,” according to a CNN report early last year. That report came at a time when Ivanka’s trip to South Korea, as leader of a U.S. delegation at the closing ceremony of the Winter Olympics, perplexed, if not outright aggravated, several of her fellow senior colleagues, chief among them Kelly, a former White House official said. Lawmakers on Capitol Hill have looked into how and why the administration’s foreign policy has shifted at the hands of Trump’s family. The House Foreign Affairs Committee, in particular, has scrutinized Kushner’s relationship with Saudi Crown Prince Mohammed bin Salman. Tillerson, in his interview with the committee in May, said the inclusion of Ivanka and Kushner in the national-security process made his job more difficult. “One of the challenges I think that everyone had… to learn to deal with was the role, the unique situation with the president’s son-in-law [Kushner] and daughter [Ivanka] being part of the White House advisory team,” Tillerson said. “There was not a real clear understanding of the role, responsibilities, authorities… which made it challenging for everyone.” Read more at The Daily Beast. Got a tip? Send it to The Daily Beast here Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.
UPDATE 5-Facebook campus given all-clear after sarin scare (Adds Facebook comment) SAN FRANCISCO, July 2 (Reuters) - Facebook Inc's Silicon Valley campus received the all-clear on Tuesday after fears that a package at its mail facility contained the nerve agent sarin. Four of the social media company's buildings were evacuated on Monday and two people were checked for possible exposure to the compound that attacks the nervous system and can be fatal. But exhaustive testing by fire and hazardous material teams found no toxic material, said Jon Johnston, fire marshal for the city of Menlo Park in California where Facebook is based. "There is no sarin," he told Reuters, referring to the package that had erroneously tested positive on Monday morning. Facebook routinely checks all packages and had initiated a standard safety protocol, Johnston added, saying teams worked into the early hours of Tuesday to clear the scene. Federal Bureau of Investigation (FBI) agents also went to the scene, Facebook said. A Facebook spokesman confirmed the all-clear on Tuesday. "Authorities have confirmed test results were negative for any potentially dangerous substance and the buildings have been cleared for repopulation," said Anthony Harrison, Facebook's director of corporate media relations. With 2.3 billion monthly active users worldwide and more than $55 billion in revenue in 2018, Facebook faces criticism for its control of personal information and has been subject to cyber attacks. In December, a bomb threat at its main campus in Menlo Park forced the evacuation of several buildings. No bomb was found. Sarin was used in a 1995 attack by a Japanese cult on the Tokyo subway that killed 13 people and injured several thousand. Syria's government has denied recent accusations that it used sarin against insurgents during their civil war. (Reporting by Katie Paul in San Franciso; Andrew Hay in New Mexico, Dan Whitcomb in Los Angeles and Rich McKay in Atlanta; Editing by Richard Chang, Lisa Shumaker and Andrew Cawthorne)
Where Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) Stands In Terms Of Earnings Growth Against Its Industry Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Examining Shandong Weigao Group Medical Polymer Company Limited's (HKG:1066) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess 1066's latest performance announced on 31 December 2018 and weigh these figures against its longer term trend and industry movements. View our latest analysis for Shandong Weigao Group Medical Polymer 1066's trailing twelve-month earnings (from 31 December 2018) of CN¥1.5b has jumped 17% 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 18%, indicating the rate at which 1066 is growing has slowed down. Why could this be happening? Well, let's examine what's going on with margins and whether the entire industry is experiencing the hit as well. In terms of returns from investment, Shandong Weigao Group Medical Polymer has fallen short of achieving a 20% return on equity (ROE), recording 10.0% instead. However, its return on assets (ROA) of 6.5% exceeds the HK Medical Equipment industry of 5.9%, indicating Shandong Weigao Group Medical Polymer has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Shandong Weigao Group Medical Polymer’s debt level, has declined over the past 3 years from 11% to 8.8%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 4.4% to 35% over the past 5 years. Shandong Weigao Group Medical Polymer's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Shandong Weigao Group Medical Polymer to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for 1066’s future growth? Take a look at ourfree research report of analyst consensusfor 1066’s outlook. 2. Financial Health: Are 1066’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The Latest: 4 family members among Texas plane crash victims DALLAS (AP) — The Latest on a deadly small plane crash at a Dallas-area airport (all times local): 8 p.m. Church officials say two teenagers who attended Dallas-area Roman Catholic schools were among the 10 people killed in a fiery Texas plane crash along with their mother and stepfather. The Catholic Diocese of Dallas said Monday that 15-year-old Alice Maritato and 13-year-old Dylan Maritato were killed in the crash Sunday at Addison Municipal Airport in suburban Dallas along with their mother, Ornella Ellard, and stepfather, Brian Ellard. Dallas County confirmed the deaths of five victims on Monday, including the teens and Brian Ellard. But Ornella Ellard's name has not yet been released by the county. Alice Maritato would have been a sophomore at John Paul II Catholic High School in Plano, while Dylan Maritato was set to enter the eighth grade at All Saints Catholic School in Dallas. ___ 6:25 p.m. Dallas County officials have released the identities of five of the 10 people who died in a fiery Texas plane crash that killed everyone aboard Sunday. Clay Jenkins, the top county official who presides over the board of commissioners, said Monday evening that 52-year-old Brian Mark Ellard, 58-year-old Stephen Lee Thelen, 28-year-old Matthew Palmer, 15-year-old Alice Maritato and 13-year-old Dylan Maritato were among those killed. The small plane crashed soon after takeoff at a municipal airport in a north Dallas suburb. Jenkins said in a tweet that the names of the other five victims will be released after the medical examiner's office has identified their remains and informed their families. The Beechcraft BE-350 King Air's two crew members and eight passengers were all killed when it crashed into a hangar at Addison Municipal Airport. ___ 5:30 p.m. Federal officials investigating the crash of a small plane that killed 10 at a suburban Dallas airport say they've recovered the aircraft's cockpit voice recorder. National Transportation Safety Board Vice Chairman Bruce Landsberg said at a news conference Monday afternoon that the contents of the recorder are being downloaded in their Washington laboratory. He says they don't yet know what's on the recorder. He notes that the communications between the pilots and air traffic control appeared normal. Story continues Officials have not yet released the identities of the two crew members and eight passengers killed Sunday in the crash at the Addison Municipal Airport. NTSB officials have said local authorities will release the identities. A spokeswoman for the town of Addison says they won't be releasing that information and the Dallas County medical examiner's office referred questions on the identities to the NTSB. ___ 11:10 a.m. The former owner of a small plane that crashed at a suburban Dallas airport, killing 10, says he sold it this year to a Texas-based company. The Beechcraft BE-350 King Air crashed into a hangar and burst into flames Sunday after taking off from Addison Municipal Airport. Officials have said two crew members and eight passengers were killed, but haven't released their identities. Todd DeSimone, general manager of Chicago-based charter company Planemasters, said Monday that he sold the plane to a company based in Addison, Texas, called EE Operations. No one has responded to a message left at a phone number associated with EE Operations. EE Operations is registered in Delaware. The company's agent in Delaware said it would forward a request for comment.
China condemns violent Hong Kong protests as 'undisguised challenge' to its rule By Anne Marie Roantree BEIJING/HONG KONG (Reuters) - China on Tuesday condemned violent protests in Hong Kong as an "undisguised challenge" to the formula under which the city is ruled, hours after police fired tear gas to disperse hundreds of protesters who stormed and trashed the legislature. A representative of China's Hong Kong affairs office denounced the demonstrators, who are furious about proposed legislation allowing extraditions to China, and said Beijing supports holding criminals responsible, state media said. The former British colony of Hong Kong returned to China in 1997 under a "one country, two systems" formula that allows freedoms not enjoyed in mainland China, including freedom to protest and an independent judiciary. Monday was the 22nd anniversary of the handover. Beijing denies interfering, but for many Hong Kong residents, the extradition bill is the latest step in a relentless march toward mainland control. "Seriously violating the law, the act tramples the rule of law in Hong Kong, undermines social order and the fundamental interests of Hong Kong, and is an undisguised challenge to the bottom line of 'one country, two systems', Xinhua news agency quoted a Hong Kong affairs office spokesman as saying. "We strongly condemn this act." Debris including umbrellas, hard hats and water bottles was among the few signs left of the mayhem that had engulfed parts of the city on Monday and overnight after protesters stormed and ransacked the Legislative Council, or mini-parliament. Police cleared roads near the heart of the financial center, paving the way for business to return to normal. However, government offices, where protesters smashed computers and spray-painted "anti-extradition" and slurs against the police and government on chamber walls, were closed. The government's executive council meeting was due to be held in Government House, officials said, while the legislature would remain closed for the next two weeks. Story continues Millions of people have taken to the streets in the past few weeks to protest against the now-suspended extradition bill that would allow people to be sent to mainland China to face trial in courts controlled by the Communist Party. Lawyers and rights groups say China's justice system is marked by torture, forced confessions and arbitrary detention. China has been angered by Western criticism of the bill. The bill triggered a backlash against Hong Kong leader Carrie Lam, taking in the business, diplomatic and legal communities that fear corrosion of the legal autonomy of Hong Kong and the difficulty of guaranteeing a fair trial in China. She has suspended the bill and said it would lapse next year, but protesters want it scrapped altogether and have pressed her to step down. Lam, Hong Kong's self-styled Iron Lady, has created a fresh crisis for Chinese President Xi Jinping, who is already grappling with a trade war with Washington, a faltering economy and tension in the South China Sea. Regina Ip, chairwoman of Hong Kong's pro-China New People’s Party, said the protests had brought shame on Hong Kong. "In the long term, (this) will impact Hong Kong’s business environment. I believe various negative consequences of damages in our economy and prosperity will soon emerge." Starry Lee, chairwoman of the Democratic Alliance for the Betterment and Progress of Hong Kong, also condemned the violence. "This is an insult to LegCo (Legislative Council), an insult to Hong Kong rule of law," she said. Chinese censors have worked hard to erase or block news of the Hong Kong protests, wary that any large public rallies could inspire protests on the mainland. Screens went black on the BBC and CNN when they showed related reports in mainland China, as has happened during previous Hong Kong protests. Foreign news channels are only available in luxury hotels and a handful of high-end apartment complexes in China. State news agency Xinhua wrote an upbeat Chinese-language report about a government-arranged concert in Hong Kong to celebrate the handover anniversary, complete with descriptions of the audience singing the national anthem and how the performers showed their "ardent love of the motherland". A state newspaper in China called for "zero tolerance" after the violence in Hong Kong. "Out of blind arrogance and rage, protesters showed a complete disregard for law and order," the Global Times, published by the Communist Party's People's Daily, said in an editorial. The protests generated lively discussion on Chinese social media. "Hong Kong shows that China cannot follow a Western political system. It's too easy to be manipulated and to bring chaos," wrote one user of the Twitter-like Weibo. Another wrote, "When the children don't listen, their mothers should give them a smacked bottom." Britain warned China that there would be serious consequences if the Sino-British agreement on Hong Kong was not honored. China has dismissed Britain's concerns, saying Hong Kong was none of its business. The U.N. human rights office in Geneva called on all sides to avoid violence. "We ask protesters to demonstrate and express their grievances in a peaceful manner," spokeswoman Marta Hurtado said in an email. "We urge HK authorities to immediately open a proper channel for dialogue and for the police and other members of the security forces to manage demonstrations according to international human rights norms and standards." (Additional reporting by Twinnie Siu, Donny Kwok and Noah Sin in HONG KONG, Ben Blanchard in BEIJING, the Shanghai newsroom, Michael Holden and Alistair Smout in LONDON and Stephanie Ulmer-Nebehay in GENEVA; Writing by Nick Macfie; Editing by Clarence Fernandez)
Can Regis Resources Limited's (ASX:RRL) ROE Continue To Surpass The Industry Average? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Regis Resources Limited (ASX:RRL). Our data showsRegis Resources has a return on equity of 25%for the last year. One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.25 in profit. See our latest analysis for Regis Resources Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Regis Resources: 25% = AU$170m ÷ AU$673m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE 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, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Regis Resources has a better ROE than the average (14%) in the Metals and Mining industry. That is a good sign. In my book, a high ROE almost always warrants a closer look. One data point to check is ifinsiders have bought shares recently. Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Although Regis Resources does use a little debt, its debt to equity ratio of just 0.00062 is very low. When I see a high ROE, fuelled by only modest debt, I suspect the business is high quality. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is one way we can compare the business quality of different companies. 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 when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreereport on analyst forecasts for the company. Of courseRegis Resources 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.
U.S. Dollar Slips; AUD Gains After RBA Cuts Rate Investing.com - The U.S. dollar slipped on Tuesday in Asia despite a trade truce between the U.S. and China. The Aussie dollar gained after the Reserve Bank of Australia (RBA) cut interest rates. The U.S. dollar index that tracks the greenback against a basket of other currencies slipped 0.1% to 96.352 by 1:20 AM ET (05:20 GMT). U.S. President Donald Trump and his Chinese counterpart Xi Jinping have agreed during a bilateral meeting at the summit in Osaka, Japan, to hold off on imposing new tariffs on imports of each other’s goods and to move forward with trade negotiations. The trade agreement “has to be a deal that is somewhat tilted to our advantage” because of China’s large, long term trade surplus over the U.S. for years, Trump added. The news sent stocks higher, but investor sentiment was later hit by disappointing manufacturing data from the U.S., as it showed growth of the country’s manufacturing activities slowed last month and fell to its lowest level since September 2016. The U.S. jobs report is due Friday and is projected to show nonfarm payrolls rose by 164,000 in June, rebounding from 75,000 the month prior. Meanwhile, the AUD/USD pair rose 0.3% to 0.6982 after the RBA cut interest rates to 1%, which is the lowest rate in history. Philip Lowe, the RBA governor, said the cut was to “support employment growth” and generate “greater confidence” in the Australian economy. “Outlook for the global economy remains reasonable”, but uncertainty (in a large part due to the China-US trade dispute) had “affected investment”. “Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy,” he said. “It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target.” The USD/JPY pair was down 0.1% to 108.32. The USD/CNY traded 0.2% higher to 6.8620. Related Articles Labour's Corbyn calls for investigation over report he is 'too frail' to be UK PM Australian dollar defies broader risk rally as RBA cut looms Shorting Hong Kong's Dollar Has Suddenly Turned Unprofitable
Princess Diana Was the Best Part of Wimbledon in the '80s and '90s The main attraction at Wimbledon may be the action down on the grass, but fashion fans know that the big event is usually in the stands. With a guest list that includes Kate Middleton, Anna Wintour, and superstars like the actual Queen of England (she's attended just four times, even though she was a patron of the All England Lawn Tennis and Croquet Club until 2016, when she handed that responsibility over to the Cambridges), the stands are akin to the front row at a fashion show. Big names put on their best outfits because they know that the flashbulbs are aimed at them just as much as Cori Gauff and Yulia Putintseva, who happened to knock off bigger names like Venus Williams and Naomi Osaka . But the biggest name to attend the event, ever, may just be Princess Diana, who wore some unforgettable outfits that were the epitome of '80s and '90s glam. So, forget about grand slams, because Princess Diana brought her own kind of glam slam — and Wimbledon hasn't been the same since. 1981 Art SEITZ/Getty Images Back in '81, Diana was already giving the sidelines a dose of high fashion. Today, wearing a button-up under a dress is no big deal — which is why this particular outfit looks so current. 1991 Rebecca Naden - PA Images/Getty Images Did anyone in the '90s ever not wear a big ol' belt? Diana wore what could be the biggest one, ever, over a soft purple blazer. 1993 Tom Wargacki/Getty Images Before millennial pink was millennial pink, Diana wore the soft hue to Wimbledon in what would become her courtside signature: relaxed suiting. The gold buttons will become a style signature, too. 1994 Tom Wargacki/Getty Images When the temps rise, the sleeves disappear. Diana braved the heat in a sleeveless trench dress with bold gold buttons. Ross Kinnaird - EMPICS/Getty Images This is how you do business casual without looking like a corporate drone. Sure, it's black and white, but add some bling to look like a major boss. 1995 Clive Brunskill/Getty Images Princess Diana's pale yellow suit made just about everyone want to go out and get a pale yellow suit.
Plug Power's Management Forecasts an Electric 2nd Quarter Failing to meet analysts' expectations on both the top and bottom lines,Plug Power(NASDAQ: PLUG)left investors with little to be excited about following itsfirst-quarter earnings reportback in May. But people interested in fuel cells should come gather 'round, wherever they roam. According to Plug Power's management, the times are a-changin', and the company's second quarter is on track to be one of the largest second quarters in its history. Reporting record-setting performances is something familiar to Plug Power's investors as of late. InQ4 2018, the company, for the first time, reported positive adjusted EBITDA, while thethird quarter of 2018represented the company's best to date in terms of adjusted gross profit margin. Is management's excitement for Q2 2019 predicated on the company's progress toward profitability, or is there some other source for celebration? Let's take a closer look to see what management is charged up about, and how it should, likewise, affect investors' opinions about the business. Image source: Getty Images. How is management characterizing "largest" when referring to the second quarter? The answer: deployments. Plug Power says that it's poised to deploy approximately 2,000 fuel cell units in the second quarter, representing more than 70% growth over the same period in 2018. Speaking to the growth, Andy Marsh, Plug Power's CEO, said the company continues to "to further the commercial adoption of hydrogen and fuel cells in material handling applications, Plug Power's core market." Undoubtedly, investors will welcome news that the company is continuing to make progress in its core competency, but surely, they'd also like confirmation that the company's recent buying spree is yielding fruit. And to this end, Marsh provided some relief, stating that the company has "successfully moved the proven technology into adjacent applications with our ProGen fuel cell engine product line, namely on-road with StreetScooter, into small-scale robotics and UAVs through the acquisition of EnergyOr, and into telecommunication backup and remote village power with global channel partners like Chem." Although investors have a clear sense of what to look for regarding deployments when the company reports Q2 earnings later this summer, the company provided no guidance regarding the effects on the company's top line. Some investors may be tempted to do some back-of-the-envelope math -- calculating 70% growth over the $39.9 million in revenue the company reported inQ2 2018-- to arrive at an estimate of what Plug Power will report in terms of revenue next quarter. This would be unadvisable, though, since the company often doesn't recognize revenue from all of its shipments in a given quarter. In Q1 2019, for example, Plug Power shipped 526 GenDrive units, of which only 94 contributed to the company's top line. Instead, investors would be better advised to bear in mind the sales estimate of analysts, who are looking for the company to report revenue of $49.7 million. Although Plug Power refrained from providing guidance on revenue for the second quarter, the company did state that it remains on target to meet full-year guidance of $235 million to $245 million in gross billings (revenue before removing provisions for common stock warrants) and positive adjusted EBITDA for the full year of 2019. I'll be more interested to see what Plug Power reports in terms of its gross margin, considering the company acquired American Fuel Cell last year to assist in its production of fuel cells for on-road applications, and Marsh lauded the acquisition as a key element in helping the company to achieve "efficient volume ramps." 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 Scott Levinehas 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.
Tina Turner Says Loneliness Was a Big Factor in Her Son Craig's Suicide Tina Turner is opening up about the tragic death of her eldest son Craig, who died by suicide last year . Nearly a year after the tragedy, the 79-year-old rock music icon said that she thinks her son, who was 59 when he died, is in a “good place.” “I think Craig was lonely, that’s what I think really got him more than anything else,” Turner told CBS News ‘ Gayle King in an interview published Sunday. “I have pictures all around of him smiling, and I think I’m sensing that he’s in a good place. I really do.” This isn’t the first time Turner has spoken about the loss of Craig, who died from a self-inflicted gunshot wound in Studio City, California, last July, a spokesperson for the Los Angeles County Department of Medical Examiner-Coroner confirmed to PEOPLE at the time . Craig Turner and Tina Turner \| Craig Turner/Facebook “I still don’t know what took him to the edge ,” Turner told the BBC last October , saying that it was doubly confusing to her because he had recently started a new job and had found love. “At that stage he had said to me that he had never met a woman that he felt that way about.” “He was bringing her to meet me [for] his birthday in August. He had decorated his apartment, that I bought him years ago. He had gotten a new job with a prominent real estate company in California, [which] he was very happy with,” she added to the outlet. “I have no idea what pulled him down, except something that followed him with loneliness,” she continued, echoing her recent comments. “I think it was something with being alone. But when I think that, why didn’t he call the new girlfriend that gave him the lift?” Turner described her son as “an introverted person” and “very shy.” RELATED: Tina Turner Spreads Oldest Son’s Ashes from Boat in California: ‘My Saddest Moment as a Mother’ “I didn’t know either, except now when I listen back to our last conversations, I notice a change. The last few times we talked, the conversations were different, and I didn’t know that until after the suicide,” she said. Story continues After Craig’s death, Turner spread his ashes off the coast of California. “My saddest moment as a mother,” the singer wrote in a Twitter tribute to her son. “On Thursday, July 19 2018, I said my final goodbye to my son, Craig Raymond Turner, when I gathered with family and friends to scatter his ashes off the coast of California. He was 59 when he died so tragically, but he will always be my baby.” Turner reveals in her new memoir, titled “My Love Story,” that she has struggled with suicidal thoughts of her own during her life. Tina Turner \| BabiradPicture/REX/Shutterstock RELATED: Tina Turner Opens Up About Her Son’s Suicide: ‘I Still Don’t Know What Took Him to the Edge’ “At my lowest, I convinced myself that death was my only way out. I actually tried to kill myself,” she said, speaking of her relationship with abusive ex-husband Ike Turner. After taking dozens of sleeping pills and still waking up, Turner said that she “came out of the darkness believing I was meant to survive.” And survived, she has. In the interview with King, Turner said that now, she wants for nothing, and considers the troubles of her past behind her. “I have everything,” she said. “When I sit at the Lake Zurich in the house that I have, I am so serene. No problems. I had a very hard life. But I didn’t put blame on anything or anyone. I got through it, I lived through it with no blame. And I’m a happy person.” If you or someone you know is considering suicide, please contact the National Suicide Prevention Lifeline at 1-800-273-TALK (8255), text “help” to the Crisis Text Line at 741-741 or go to suicidepreventionlifeline.org .
Hope Education Group Co., Ltd. (HKG:1765): 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 Hope Education Group Co., Ltd. (HKG:1765) with its market cap of HK$7.4b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Assessing first and foremost the financial health is essential, 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. However, these checks don't give you a full picture, so I suggest youdig deeper yourself into 1765 here. Over the past year, 1765 has reduced its debt from CN¥2.9b to CN¥2.2b , which includes long-term debt. With this reduction in debt, 1765 currently has CN¥3.0b remaining in cash and short-term investments to keep the business going. On top of this, 1765 has produced CN¥802m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 36%, signalling that 1765’s debt is appropriately covered by operating cash. At the current liabilities level of CN¥1.9b, it appears that the company has been able to meet these obligations given the level of current assets of CN¥3.2b, with a current ratio of 1.71x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Consumer Services 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 53%, 1765 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 1765’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 1765, the ratio of 1.46x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default. 1765’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for 1765's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Hope Education Group to get a better picture of the small-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for 1765’s future growth? Take a look at ourfree research report of analyst consensusfor 1765’s outlook. 2. Valuation: What is 1765 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 1765 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.
Should You Think About Buying Sunny Optical Technology (Group) Company Limited (HKG:2382) Now? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we're going to take a look at the well-established Sunny Optical Technology (Group) Company Limited (HKG:2382). The company's stock received a lot of attention from a substantial price increase on the SEHK over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Sunny Optical Technology (Group)’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Sunny Optical Technology (Group) According to my valuation model, Sunny Optical Technology (Group) seems to be fairly priced at around 16% below my intrinsic value, which means if you buy Sunny Optical Technology (Group) today, you’d be paying a fair price for it. And if you believe the company’s true value is HK$95.6, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Sunny Optical Technology (Group)’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Sunny Optical Technology (Group)’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder?2382’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor?If you’ve been keeping tabs on 2382, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Sunny Optical Technology (Group). You can find everything you need to know about Sunny Optical Technology (Group) inthe latest infographic research report. If you are no longer interested in Sunny Optical Technology (Group), 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.
Alexandria Ocasio-Cortez Clapped Back at the Secret Border Patrol Facebook Group by Actually Visiting the Border I have put in place a zero-tolerance policy for illegal entry on our southwest border. If you cross the border unlawfully, then we will prosecute you. If you are smuggling a child, then we will prosecute you. And that child may be separated from you. The zero tolerance policy is intended to deter people from breaking the law, adults Adults. If they are accompanied by a child, that child is temporarily separated from them as they go through a judicial process. And that is no different from a United States citizen parent. . They call it zero. Tolerance, but a better name for it is zero humanity. And there's zero logic to this policy. The democrats gave us the laws. Now, I want the laws to be beautiful Aim but strong. I don't want bad people coming in, I don't want drugs coming in. And we can solve that problem in one meeting, tell the Democrats, your friends, to call me. We should not be using kids a deterrent policy. This is something I think is actually unacceptable and is something, that as Americans, we shouldn't be doing. He's gotta step in there, and he's gotta end this thing, cuz I think it's an atrocious policy, it's inhumane, it's offensive to the average American. We do not have the luxury of pretending that all individuals coming to this country as a family unit, Are in fact a family. We have to do our job, we will not apologize for doing our job. We have sworn to do this job. After ProPublica exposed a not-so-secret Border Patrol Facebook Group, which was filled with racist and misogynistic language about migrants, U.S. Representative Alexandria Ocasio-Cortez didn't just sit back and tweet out her responses to the Facebook posts — she took action and actually went to see the border crisis firsthand at a detention center in El Paso, Texas, and potentially the Border Patrol officers in that Facebook group. The group, which is called "I'm 10-15," in reference to the Border Patrol code for "aliens in custody," has about 9,500 members from all over the country. Members use the group to share gifs joking about the death of migrants, ridicule the conditions that the migrants live in, and to post photo manipulations showing AOC engaging in oral sex with the president. Ocasio-Cortez didn't waste any time after the report was published, gathering a group of congresspeople to see the conditions for themselves and to face the Border Patrol. Story continues LUKE MONTAVON/Getty Images RELATED: Alexandria Ocasio-Cortez Clapped Back at Her Sexist Bosses Back When She Was a Waitress There are 20,000 TOTAL Customs & Border Patrol agents in the US. 9,500 - almost HALF that number - are in a racist & sexually violent secret CBP Facebook group. They’re threatening violence on members of Congress. How do you think they’re treating caged children+families? https://t.co/AfDB50cgHQ — Alexandria Ocasio-Cortez (@AOC) July 1, 2019 “A cell meant for a maximum of 35 held 155 adult males with only one toilet and sink. The cell was so crowded the men could not lie down to sleep.” https://t.co/DFCvaQxHcw — Renato Mariotti (@renato_mariotti) July 1, 2019 AOC spoke with the people being held and witnessed the guards on "good behavior," but what she saw were women drinking out of toilets, people who hadn't showered or bathed for 15 days, and what the women in the cells called "psychological warfare." Just left the 1st CBP facility. I see why CBP officers were being so physically &sexually threatening towards me. Officers were keeping women in cells w/ no water & had told them to drink out of the toilets. This was them on their GOOD behavior in front of members of Congress. — Alexandria Ocasio-Cortez (@AOC) July 1, 2019 Now I’ve seen the inside of these facilities. It’s not just the kids. It’s everyone. People drinking out of toilets, officers laughing in front of members Congress. I brought it up to their superiors. They said “officers are under stress & act out sometimes.” No accountability. — Alexandria Ocasio-Cortez (@AOC) July 1, 2019 What’s haunting is that the women I met with today told me in no uncertain terms that they would experience retribution for telling us what they shared. They all began sobbing - out of fear of being punished, out of sickness, out of desperation, lack of sleep, trauma, despair. — Alexandria Ocasio-Cortez (@AOC) July 1, 2019 CBP made us check our phones. But one woman slipped me this packet to take with me. It says “shampoo,” but she told me that this is all they give women to wash their entire body. Nothing else. Some women’s hair was falling out. Others had gone 15 days without taking a shower. pic.twitter.com/OsaKS0YD9a — Alexandria Ocasio-Cortez (@AOC) July 1, 2019 RELATED: Someone Tried Clothes-Shaming Alexandria Ocasio-Cortez, and Twitter Isn't Having It Congresswoman Madeleine Dean confirmed AOC's reports, sharing many of the same terrifying things. She added that the group of congresspeople was met with hostility from the guards. She wrote that it was a "human rights crisis." Just left the first CBP facility. The conditions are far worse than we ever could have imagined. 15 women in their 50s- 60s sleeping in a small concrete cell, no running water. Weeks without showers. All of them separated from their families. This is a human rights crisis. — Congresswoman Madeleine Dean (@RepDean) July 1, 2019 "These comments and memes are extremely troubling," Daniel Martinez, a sociologist at the University of Arizona in Tucson, told ProPublica about the comments being circulated on Facebook. "They're clearly xenophobic and sexist." He added that it seems to be systemic, not just a few isolated people who are particularly vocal online. It "seems to be a pervasive culture of cruelty aimed at immigrants within CBP. This isn't just a few rogue agents or 'bad apples.'" In addition to sexual content, posts are violent in nature, with posters encouraging other members to harm visiting congresspeople. Vicki Gaubeca, the director of the Southern Border Communities Coalition, noted that the secret Facebook group was just more evidence of the sexism and misogyny associated with the Border Patrol. "That's why they're the worst at recruiting women," she told ProPublica. "They have the lowest percentage of female agents or officers of any federal law enforcement agency." After visiting the border, Ocasio-Cortez and the other representatives went to Clint, the site of another Border Patrol center with reports of children being treated like animals. Now I’m on my way to Clint, where the Trump admin was denying children toothpaste and soap. This has been horrifying so far. It is hard to understate the enormity of the problem. We’re talking systemic cruelty w/ a dehumanizing culture that treats them like animals. — Alexandria Ocasio-Cortez (@AOC) July 1, 2019 Congressman Joe Kennedy III told Vice that after seeing so many awful things, the whole situation was going "off the rails." He adds that there's little trust between Border Patrol and the public, noting that the breakdown in trust is an important thing to rectify as soon as possible. If there was one message @CBP needed to hear it's that trust is broken between the agency and Congress/the public. Leaking more misinformation won't fix that. — Rep. Joe Kennedy III (@RepJoeKennedy) July 1, 2019
Should You Be Impressed By China Railway Signal & Communication Corporation Limited's (HKG:3969) ROE? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine China Railway Signal & Communication Corporation Limited (HKG:3969), by way of a worked example. Our data showsChina Railway Signal & Communication has a return on equity of 13%for the last year. That means that for every HK$1 worth of shareholders' equity, it generated HK$0.13 in profit. Check out our latest analysis for China Railway Signal & Communication Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for China Railway Signal & Communication: 13% = CN¥3.5b ÷ CN¥30b (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. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. That means ROE can be used to compare two businesses. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. Pleasingly, China Railway Signal & Communication has a superior ROE than the average (9.8%) company in the Electronic industry. That's what I like to see. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently. Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used. While China Railway Signal & Communication does have a tiny amount of debt, with debt to equity of just 0.076, we think the use of debt is very modest. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company. Of courseChina Railway Signal & Communication 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.
'Emperor Is Buck-Ass Naked' After Trump Takes Ivanka To DMZ, Says Nicolle Wallace President Donald Trump ’s visit to North Korea on Sunday with daughter Ivanka and Fox News’ Tucker Carlson in tow was denounced Monday as a diplomatic “booty call” with no substance on MSNBC’s “Deadline.” Host Nicolle Wallace declared: “The emperor was buck-ass naked.” Trump’s trip to the DMZ, his step into North Korea and an hourlong meeting with dictator Kim Jong Un was characterized by a panel of journalists and former Republican Rep. David Jolly as “optics” like something out of a Trump reality show. It included the disconcerting appearance of the first daughter and White House aide instead of any experienced officials from the State Department. She called the experience “surreal.” The encounter leaves the “world to wonder: Are we less safe today than we were before Trump decided to play nuclear negotiator?” Wallace said. The New York Times reported Monday that Trump might actually end up greenlighting North Korea as a nuclear power by accepting the status quo. “Kim Jong Un has played President Trump beautifully,” said CNN’s Elise Lavin on the news show. “He knows exactly how to get what he wants from the president. ... all Kim has to do is show up and say nice things. I’m not someone who doesn’t think that these warming relations between the U.S. and North Korea are a bad thing — I think they’re a good thing.” But, Lavin added, “I think what the president is doing with what I call this diplomatic booty call ... [that] really doesn’t take the relationship very forward.” (Watch the segment in the video above at 4:02.) The “atmospherics” are “untethered from any policy, any discussion. ... meanwhile, the North Korea program is still continuing to develop.” Jolly quipped that Kim “swiped right” on Trump. The former Florida congressman found it especially concerning that Ivanka Trump was on the scene simply by dint of being the president’s daughter. But for all of her inexperience, she could have been the “most qualified” to be there, Jolly added in a slam at the president. Story continues The president “has no strategy” in North Korea, said Jolly. “He hasn’t brought the American people to this moment where we can embrace what we saw this weekend ... instead, this is seen as this very destabilizing moment.” Jolly said Trump has “no understanding of the complexities of geopolitical strategy or national security.” It’s all “about the ratings,” Jolly added. The only “case” Trump is making is: “I was the first.” Jolly also warned: “What I would say about this moment for the American people is that in times of international consequence, this is the best the nation has to offer under Donald Trump. This is what Donald Trump leads with in times of international consequence: Tucker Carlson, Ivanka Trump and Jared Kushner.” (Watch in the video below at 6:00.) Wallace asked: “Even if you’re a fan, I don’t think you think that Ivanka is the best person to negotiate with North Korea on nukes, do you? ... She’s not as qualified as the Secret Service agents, who are at least briefed on the security threats. I mean, what is she doing there?” (2:10 in the video.) This is “where the scam seems revealed,” she added. “This is where even his supporters have to look at these pictures and say, oh yeah, the emperor is buck-ass naked.” (6:48 below.) “And so are his kids,” Jolly added. Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
The Crypto Daily – The Movers and Shakers 02/07/19 Bitcoin saw red for a 3 rd consecutive day to kick off the 3 rd quarter on the back foot. Bitcoin fell by 1.48% on Monday. Following on from a 9.33% slide on Sunday, Bitcoin ended the day at $10,640. A relatively bullish start to the day saw Bitcoin rise from a morning low $10,641 to an early morning intraday high $11,231. While falling well short of the first major resistance level at $11,806, Bitcoin came up against the 23.6% FIB of $11,275 before hitting reverse. An afternoon sell-off saw Bitcoin slide to an early evening intraday low $10,088 before finding support. The reversal saw Bitcoin fall through the first major support level before recovering to $10,600 levels. The Rest of the Pack Across the rest of the top 10 cryptos, it was a sea of green across the crypto-board. Leading the way on the day was EOS, which rallied by 4.96%. Close behind was Bitcoin Cash ABC, which rose by 4.11%. Binance Coin and Ripple’s XRP also saw solid gains, rising by 3.86% and by 3.49% respectively. Bitcoin Cash SV (+1.00%), Ethereum (+1.25%), and Stellar’s Lumen (+2.04%) saw more modest gains on the day. With Bitcoin bucking the trend to see red on the day, Bitcoin’s dominance fell back to 60% levels. A choppy day for the crypto majors led the total crypto market cap to sub-$300bn levels before a late recovery. At the time of writing, the total crypto market cap stood at $303.56bn. Following a bullish month for Bitcoin, the pullback from $12,000 levels to test support at $10,000 will test investor resilience. It wouldn’t be the first time that Bitcoin slid back from a momentum driven rally… This Morning At the time of writing, Bitcoin was down by 3.44% to $10,274.4. An early morning high $10,719 came up short of the first major resistance level at $11,796 before hitting reverse. Bitcoin fell to a morning low $10,263 before steadying. In spite of the pullback, Bitcoin held above the first major support level at $10,075. Story continues It was a sea of red across the crypto majors. Litecoin and Binance Coin were alongside Bitcoin at the time of writing. The pair were down by 3.26% and $3.14% respectively. Bitcoin Cash SV saw a modest loss of just 0.48% through the early hours. For the Day Ahead Bitcoin would need to move back through to $10,700 levels to support a broad-based crypto market rebound. A move through to $10,700 levels would bring $11,000 levels into play before any pullback. Barring a broad-based crypto rally, the first major resistance level at $11,218 and 23.6% FIB of $11,275 would likely limit any upside. In the event of a rebound, Bitcoin could test the second major resistance level at $11,796 before any pullback. Failure to move back through to $10,700 levels could see Bitcoin struggle through the day. A slide through the morning low $10,263 would bring the first major support level at $10,075 into play. Barring a crypto meltdown, Bitcoin should steer clear of sub-$10,000 support levels on the day. In the event of a meltdown, the 38.2% FIB of $9,734 and second major support level at $9,510 should limit the damage. Get Into Cryptocurrency Trading Today This article was originally posted on FX Empire More From FXEMPIRE: Safe Haven Assets Restore Gains as Risk Appetite Falters Despite US-China Trade Truce USD/JPY Forex Technical Analysis – July 3, 2019 Forecast USD/CAD Daily Forecast – Bearish Rising Wedge Pattern Set into Action Economic Data, Brexit and Carney Line Up Against the Pound Asian Shares Lower, but Australian Market Bucks the Trend Ethereum Analysis – Support Levels in Play – 03/07/19
What Should We Expect From BAIC Motor Corporation Limited's (HKG:1958) Earnings In The Next 12 Months? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! After BAIC Motor Corporation Limited's (HKG:1958) earnings announcement in December 2018, analysts seem fairly confident, with earnings expected to grow by 19% in the upcoming year against the past 5-year average growth rate of 2.4%. Presently, with latest-twelve-month earnings at CN¥4.3b, we should see this growing to CN¥5.1b by 2020. Below is a brief commentary around BAIC Motor's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company shouldresearch its fundamentals here. View our latest analysis for BAIC Motor The longer term expectations from the 21 analysts of 1958 is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of 1958's earnings growth over these next few years. By 2022, 1958's earnings should reach CN¥6.3b, from current levels of CN¥4.3b, resulting in an annual growth rate of 12%. EPS reaches CN¥0.81 in the final year of forecast compared to the current CN¥0.55 EPS today. In 2022, 1958's profit margin will have expanded from 2.8% to 3.2%. Future outlook is only one aspect when you're building an investment case for a stock. For BAIC Motor, there are three important 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 BAIC Motor 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 BAIC Motor is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BAIC Motor? 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.
Is Joe Biden out of touch on race? The 360 is a feature designed to show you diverse perspectives on the days top stories. Speed read What's happening: Former Vice President Joe Biden is deflecting criticism for his handling of racial issues, both for his past policy positions and for comments hes made in recent weeks. Much of the pushback has come from his rivals for the 2020 Democratic presidential nomination. Sen. Corey Booker called for Biden to apologize for his comments about working with racist senators during the 1970s and 80s. Last week, Sen. Kamala Harris gave an emotional rebuke of his opposition to busing policies designed to desegregate schools. Biden has also faced criticism for supporting tough on crime bills during his Senate tenure that are seen by some as being a catalyst for the mass incarceration of people of color. Why there's debate: Biden's left-wing critics believe he holds antiquated views on race. And while his detractors have stopped short of calling Biden a racist, they argue that he routinely took policy positions that were motivated by white racial fears and that had a disproportionate negative impact on black and brown Americans. Some argue that, when given a chance to distance himself from his past positions, Biden has instead clumsily defended himself, bolstering the argument that he may be behind the times. Bidens words have been the source of frustration and even pain, Booker said . Bidens defenders contend he is being unfairly maligned for refusing to pander to the left wing of his party. His past positions, they say, were broadly popular at the time and his current views may in fact be more in line with the attitudes of mainstream Democrats. They also argue that Bidens record, when taken as a whole, shows him to be a champion of minority rights . As evidence, they point to his leadership in extending and expanding the Civil Rights Act in the 1980s and his work on a number of issues during his time as vice president. Story continues What's next: With Harris receiving a sizable boost after the first debate, Biden can expect she and other Democratic candidates will continue to come after him on the issue of race. Despite his perceived missteps, Biden has held a sizable lead in support among black voters and has recently secured the endorsement of prominent black leaders in key primary states . Whether the criticism will erode his standing in this crucial voting block won't likely be clear for some time. Perspectives Black voters no longer have to compromise in their choice of leaders. "The old days of black people putting up with questionable leaders because they felt like they had no other choice may be over. No more talk about trying to understand white people's racism, forgetting the impact of slavery, moving on from the past because 'this is a time of healing.'" John Blake, CNN Trump has caused the Democratic base to put much more weight on racial issues. "Stories that voters once heard as folksy tales of the last centurys Senate no longer sound so benign to an electorate convulsed by President Trumps blunt appeals to racial animus. A majority of Americans believe race relations have worsened under Mr. Trump, and liberal constituencies appear far less receptive to the idea that even the worst racists can be negotiated with." Alexander Burns, New York Times Biden still has ample time to prove himself on race. "But American politics being what it is, its a long and weary campaign trail yet, and Biden still has plenty of time to make his case to voters particularly the black voters that are the backbone of the Democratic party." Anne Branigin, The Root Biden views the 'glory days' of political compromise differently than many Americans. "If anything, Biden is appealing to an imaginary bygone American era that many Americans dont recognize. He sees chummy, Kumbaya-singing bipartisan cooperation with Republicans where many see the highly uncivil efforts of the right wing to strip minorities of their livelihoods and rights and to enshrine discrimination into law." Arwa Mahdawi, The Guardian Biden's views, then and now, are representative of popular opinion. "In the 1970s, Bidens views on mandatory busing brought him in line with arch-conservatives. But those views also placed Biden decidedly in the mainstream of public opinion. And thats where he has remained over the last half-century." Isaac Stanley-Becker, Washington Post Biden is sparking an important debate about what Democrats stand for. "The Democratic Party has kicked off a national conversation about where the United States has been, where we find ourselves now, what the future should bring and how to get there. It is a promising start." Editorial, Newsday Biden is reassuring moderates who are turned off by Democrats' swing to the left. "Bidens so-called 'gaffe' might be remembered as groundbreaking in its reassurance to persuadable swing voters, who fear that the Democrats have been taken over by Black Lives Matter, Rep. Alexandria Ocasio-Cortez and other far-left progressives in the way that President Donald Trumps erratic populism has gripped the Grand Old Party." Clarence Page, Chicago Tribune The average American won't be convinced by attacks against Biden on racial issues. "It just doesnt seem possible for people to believe Biden ever countenanced racism, in any way, shape, or form. It goes against his whole persona, and it also flies in the face of the fact that Americas first black president embraced him as his deputy." Quin Hillyer, Washington Examiner More candidates of color means Biden must answer questions he's never faced before. "Biden stood with a status quo that denied equal opportunity to black students, against the mandate of the Constitution. Whatever her faults as a public figure, it was good that Harris was onstage to confront Biden with what his choices meant for real people. It wasnt the politics of 'racial strife, it was the politics of accountability." Jamelle Bouie, New York Times Read more 360s Should the media publish graphic news images? Legal weed: Should past crimes be cleared? How can the U.S. avoid war with Iran?
BAIC Motor Corporation Limited (HKG:1958) Earns Among The Best Returns In Its Industry 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 BAIC Motor Corporation Limited (HKG:1958) 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, we'll go over how we calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE. ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. 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 BAIC Motor: 0.23 = CN¥21b ÷ (CN¥172b - CN¥80b) (Based on the trailing twelve months to December 2018.) Therefore,BAIC Motor has an ROCE of 23%. See our latest analysis for BAIC Motor ROCE can be useful when making comparisons, such as between similar companies. Using our data, we find that BAIC Motor's ROCE is meaningfully better than the 5.1% average in the Auto industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Putting aside its position relative to its industry for now, in absolute terms, BAIC Motor's ROCE is currently very good. In our analysis, BAIC Motor's ROCE appears to be 23%, compared to 3 years ago, when its ROCE was 7.4%. This makes us wonder if the company is improving. You can click on the image below to see (in greater detail) how BAIC Motor's past growth compares to other companies. Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is only a point-in-time measure. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for BAIC Motor. Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counter this, investors can check if a company has high current liabilities relative to total assets. BAIC Motor has total assets of CN¥172b and current liabilities of CN¥80b. Therefore its current liabilities are equivalent to approximately 47% of its total assets. BAIC Motor has a medium level of current liabilities, boosting its ROCE somewhat. Still, it has a high ROCE, and may be an interesting prospect for further research. BAIC Motor shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Have Insiders Been Buying FIH Mobile Limited (HKG:2038) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inFIH Mobile Limited(HKG:2038). It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market. Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. View our latest analysis for FIH Mobile While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading. Wen-Yi Kuo bought a total of 700k shares over the year at an average price of HK$0.91. 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! There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them). Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own HK$19m worth of FIH Mobile stock, about 0.3% of the company. I generally like to see higher levels of ownership. There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think FIH Mobile insiders are doubting the company, and they do own shares. Of course,the future is what matters most. So if you are interested in FIH Mobile, you should check out thisfreereport on analyst forecasts for the company. Of courseFIH Mobile may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Could MGM China Holdings Limited's (HKG:2282) 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! A look at the shareholders of MGM China Holdings Limited (HKG:2282) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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 HK$50b, MGM China Holdings is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about 2282. View our latest analysis for MGM China Holdings Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that MGM China Holdings does have institutional investors; and they hold 9.1% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 MGM China Holdings's historic earnings and revenue, below, but keep in mind there's always more to the story. We note that hedge funds don't have a meaningful investment in MGM China Holdings. 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. It seems insiders own a significant proportion of MGM China Holdings Limited. Insiders own HK$11b worth of shares in the HK$50b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You canclick here to see if those insiders have been buying or selling. The general public holds a 12% stake in 2282. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. We can see that public companies hold 56%, of the 2282 shares on issue. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can findhistoric 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.
Applied Materials Said to Buy Kokusai Electric (Bloomberg) -- Applied Materials Inc., the biggest maker of machines used to make semiconductors, is buying Kokusai Electric from KKR in a deal worth about 250 billion yen ($2.3 billion), a person with knowledge of the matter said, asking not to be identified because the details aren’t public. Investment firm KKR bought the Japanese mobile phone and wireless communication equipment manufacturer, a former unit of Hitachi, in a tender offer in 2017. A representative for KKR declined to comment. Representatives for Applied Materials didn’t immediately respond to requests for comment. Applied Materials sought to merge with Tokyo Electron in 2015, but the deal was scrapped amid opposition from the U.S. Department of Justice. The proposed deal by Applied Materials to buy Kokusai Electric, first reported by the Nikkei newspaper, is also seen facing scrutiny from regulators. (Corrects Kokusai Electric company name throughout.) To contact the reporter on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Tom Giles at tgiles5@bloomberg.net, Colum Murphy, Reed Stevenson For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
USD/JPY Forex Technical Analysis – July 2, 2019 Forecast The Dollar/Yen closed sharply higher on Monday after a “gap and go” opening. The rally was all about the widening of the interest rate differential between U.S. Government bonds and Japanese Government bonds and an easing of demand for safe-haven assets. U.S. Treasury yields rose sharply making the U.S. Dollar a more attractive asset. Stocks also rose as investors demanded more risk. The catalyst behind the price action was the resumption of trade talks between the United States and China. At 02:04 GMT, theUSD/JPYis trading 108.425, down 0.008 or -0.01%. The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 108.728 will change the main trend to up. A move through 108.805 will reaffirm the uptrend. A trade through 106.775 will signal a resumption of the downtrend. The minor trend is up. It turned up on Monday when buyers took out 108.161. This shifted momentum to the upside. A trade through 107.555 will change the minor trend to down. The main range is 110.677 to 106.775. Its retracement zone at 108.726 to 109.186 is the primary upside target. Changing the trend to up will drive the USD/JPY into this zone. Watch for aggressive counter-trend sellers on a test of this zone. Overtaking the upper or Fibonacci level at 109.186 will put the Dollar/Yen in a strong position. The rally in the USD/JPY is being driven by momentum. Since we’re essentially looking at the first leg up from a bottom, we could be looking at short-covering rather than aggressive buying. If the short-covering continues on Tuesday then look for the rally to possibly extend into the price cluster formed by the 50% level at 108.726 and the main top at 108.728. Another potential resistance cluster is formed by the downtrending Gann angle at 108.802 and the main top at 108.805. These two resistance clusters are today’s upside targets. Watch for sellers on the initial tests of these areas. The trigger point for an acceleration to the upside is 108.805. Taking out this top could create the momentum needed to challenge the Fibonacci level at 109.186 over the near-term. On the downside, the support angle is 108.025. If this fails to hold then look for the selling to possibly extend into the minor bottom at 107.555 and the next uptrending Gann angle at 107.400. We’re not going to be too worried if there is weakness the next two days. We know that during a transition phase from bearish to bullish, as may be in this case, the first leg up drives the short-sellers out. If the trend is getting ready to change to up then buyers will come in on the pullback. Thisarticlewas originally posted on FX Empire • AUD/USD Forex Technical Analysis – July 3, 2019 Forecast • AUD/USD and NZD/USD Fundamental Daily Forecast – US ADP Report Should Set the Tone Today • USD/JPY Forex Technical Analysis – July 3, 2019 Forecast • Crude Oil Pummeled, Where Is It Going Next? • Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 03/07/19 • It’s Risk Off Early as Focus Shifts to Service Sector PMIs Numbers
The Latest: 'Seriously?' Iran asks of White House's latest VIENNA (AP) — The latest on Iran's unraveling nuclear deal with world powers (all times local): 4:15 a.m. Iran's foreign minister is expressing his exasperation over a White House statement on his country's nuclear program. Mohammad Javad Zarif simply wrote early Tuesday on Twitter: "Seriously?" That was in response to a White House statement late Monday claiming: "There is little doubt that even before the deal's existence, Iran was violating its terms." The White House did not elaborate on how Iran could break the terms of the deal that had yet to be implemented. Iran's 2015 nuclear deal with world powers saw it limit its enrichment of uranium in exchange for the lifting of economic sanctions. President Donald Trump unilaterally withdrew the U.S. from the accord last year. On Monday, officials acknowledged Iran broke through the limit the deal placed on its stockpile of low-enriched uranium. ___ 3 a.m. Saudi Arabia says nine people, including one Indian, have been wounded in a drone attack on a southern airport by Yemen's Iranian-backed Houthi rebels. The kingdom announced the attack in a statement carried by its state-run Saudi Press Agency early Tuesday. It said the attack targeted the Abha regional airport, which has repeatedly been targeted by Houthi attacks in recent weeks that killed one person and wounded dozens more. The Houthi's Al-Masirah satellite news channel earlier claimed an attack on Abha's airport. The attacks come amid heightened tensions between Iran and the U.S. over Tehran's unraveling nuclear deal with world powers. On Monday, Iran announced it broke through the stockpile limitations of the deal, a year after President Donald Trump withdrew America from the accord. ___ 11:50 p.m. The White House says President Donald Trump spoke by phone Monday with French President Emmanuel Macron to discuss Iran's increased production of low-enriched uranium in excess of limits in the 2015 Iran nuclear deal. Story continues Trump pulled the U.S. out of the nuclear agreement in May and he told reporters at the White House on Monday that Iran is "playing with fire." Iran's move to follow through with its threat to increase the stockpiles raises the pressure on the other signatories — Russia, China, Germany, France and Britain, along with the European Union — to keep the deal in place. The White House says Trump and Macron also talked about the Group of 20 summit that just concluded in Japan, as well as Trump's meeting with North Korean leader Kim Jong Un. ___ 9:55 p.m. The U.S. says its maximum pressure campaign will continue until Iran's leaders change course. White House press secretary Stephanie Grisham issued a statement Monday in response to Iran's announcement that it will have more than 660 pounds (300 kilograms) of low-enriched uranium by Thursday, in violation of the 2015 nuclear deal. The statement added that the U.S. will never allow Iran to develop nuclear weapons. Grisham says the nuclear deal, which Trump pulled out of in May, should never have allowed Iran to enrich uranium at any level. She says the longstanding nonproliferation standard of "no enrichment for Iran" must be restored and says Tehran must end its nuclear ambitions and "malign" behavior. Iran denies it is seeking a nuclear bomb and says its program is for civilian purposes. ___ 8:10 p.m. The European Union is urging Iran abide by its 2015 nuclear deal with world powers, as Tehran breaches the stockpile limits of low-enriched uranium set under its terms. EU foreign policy chief Federica Mogherini's spokeswoman said Monday that the EU urges Iran "to reverse this step and to refrain from further measures that undermine the nuclear deal." Spokeswoman Maja Kocijancic underlined that Europe "remains fully committed to the agreement as long as Iran continues to fully implement its nuclear commitments." The EU has been struggling to keep the accord functioning, a year after President Donald Trump pulled the U.S. out unilaterally, and re-imposed heavy sanctions on Iran. ___ 7:45 p.m. The U.N. says Secretary-General Antonio Guterres is urging Iran to honor its commitments under the 2015 nuclear deal, following the U.N. nuclear agency's confirmation that Tehran has breached the limit for low-enriched uranium. U.N. spokesman Stephane Dujarric said Monday that Iran should follow the agreement, while the remaining signatories — which include Britain, France, Germany, Russia and China — look for ways to save the deal and deliver the sanctions relief it initially promised Iran. He said breaching the uranium limit would not help secure Iran "economic benefits." Dujarric said the U.N. continues to be in contact with Iranian officials at various levels. The U.S. imposed crippling sanctions on Iran's economy, after unilaterally withdrawing from the deal a year ago. ___ 6:20 p.m. Israeli Prime Minister Benjamin Netanyahu says Iran's move to break limits on its stockpile of low-enriched uranium is a "significant step toward making a nuclear weapon." Netanyahu said Monday that Israel would "soon unveil more proof that Iran was lying all the time" about its nuclear program. The Israeli prime minister has been an outspoken critic of Iran and has long accused Tehran of seeking to develop nuclear weapons. Iran has insisted that its nuclear program was for peaceful purposes. Last year Netanyahu presented what he said was a secret Iranian nuclear archive proving that Tehran had lied about pursuing nuclear arms. Netanyahu is calling upon European countries to "stand by your commitments" to impose sanctions against Iran if it violates the nuclear agreement reached with world powers in 2015. ___ 5:55 p.m. Britain is urging Iran to reverse course and stick to the terms of the nuclear deal it signed with world powers. Foreign Secretary Jeremy Hunt said he was "deeply worried" by Iran's announcement that it had surpassed the stockpile of low-enriched uranium allowed under the 2015 agreement, known as the Joint Comprehensive Plan of Action. In a tweet, he urged Tehran "to avoid any further steps away from JCPoA & come back into compliance." Prime Minister Theresa May's spokesman, James Slack, said the announcement was "extremely concerning." It comes after the U.S. unilaterally withdrew from the agreement and imposed heavy new sanctions on Iran. Slack said Britain will continue working with the remaining signatories, particularly France and Germany, to keep the deal in place. ___ 5:00 p.m. A senior Russian diplomat says that U.S. sanctions have provoked Iran's move to break the limit set on its uranium stockpiles. Iran acknowledged Monday it had exceeded the limit set on its low-enriched uranium stockpiles by a 2015 nuclear deal with world powers, its first major departure from the agreement a year after Washington unilaterally withdrew from it. Russia's Deputy Foreign Minister Sergei Ryabkov noted that Iran had warned of its move in advance. He urged all parties to "avoid escalation," saying that Iran's move "causes regret, but shouldn't be overdramatized." Ryabkov said the development is a "natural result" of the U.S.'s maximum pressure campaign. He added that Iran was facing "unprecedented and unthinkable" U.S. sanctions, including an oil trade embargo, which are an attempt to "strangle" the country. ___ 3:50 p.m. The United Nations' atomic watchdog agency is confirming Iran has surpassed the stockpile of low-enriched uranium allowed under the 2015 nuclear deal with world powers. The International Atomic Energy Agency said its director general, Yukiya Amano, has informed its board of governors that the organization had verified Monday Iran's stockpile of uranium enriched up to 3.67% had exceeded the 300 kilograms allowed. Iran earlier in the day had announced that it had exceeded the limit, as it threatened it would. Last year, the U.S. unilaterally pulled out of the nuclear deal known as the Joint Comprehensive Plan of Action. The other signatories — including the UK, France and Germany — involved have been struggling to keep Iran within the deal. The deal promises Iran economic and sanctions relief for limits on its nuclear program.
Japan Inc's inflation expectations stagnate, keep BOJ under pressure By Leika Kihara TOKYO (Reuters) - Japanese companies' expectations for inflation over the next year stagnated, a Bank of Japan survey showed on Tuesday, adding pressure on the central bank to expand stimulus as the bitter U.S.-China trade war clouds economic prospects. Companies expect consumer prices to have risen 0.9% a year from now, unchanged from their projection three months ago and well below the BOJ's 2% inflation target, according to the central bank's detailed "tankan" survey for June. Firms expect consumer prices to have risen by an annual 1.0% three years from now, down slightly from 1.1% in the previous survey. Companies also saw inflation at 1.1% five years ahead, unchanged from three months ago. The survey underscores the challenge of the BOJ's monetary experiment that aims to boost inflation expectations with heavy money printing, in hope of prodding companies and households to boost spending now rather than save. "Six years have past since the BOJ deployed a radical stimulus and there's no sign inflation expectations are approaching its 2% price target," said Yasunari Ueno, chief market economist at Mizuho Securities. "There's also no change to Japan's deflationary structure created by a mix of a lack of demand and excess capacity." The BOJ is maintaining a massive stimulus programme to sustain a moderate economic expansion, so that companies will gradually raise wages and help push up inflation to its target. But slowing global demand and simmering trade tensions have hurt Japan's exports. An abstract of the tankan on Monday showed big manufacturers' confidence hit a near three-year low in the quarter to June, in yet another sign of the toll exerted by the trade war. With capital expenditure holding up and non-manufacturers' sentiment improving, the BOJ likely sees few reasons to ramp up monetary support for the economy immediately, analysts say. But some say the BOJ could be forced to ease as early as this month if the U.S. Federal Reserve cuts interest rates and triggers an unwelcome yen spike against the dollar that hurts Japan's exports. The tankan showed big manufacturers base their earnings forecasts on the assumption the dollar/yen will average 109.35 during the current fiscal year ending in March 2020. The yen has strengthened above that level, now moving around 108.50. The BOJ's next policy meeting is July 29-30, when it will also conduct a quarterly review of its long-term economic and inflation forecasts. Core consumer prices rose an annual 0.8% in May, slowing slightly from April, in a sign the economy may be losing momentum to fire up inflation to the BOJ's elusive target. (Reporting by Leika Kihara; Editing by Sam Holmes)
Should You Investigate China Life Insurance Company Limited (HKG:2628) At HK$19.24? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! China Life Insurance Company Limited (HKG:2628) saw significant share price movement during recent months on the SEHK, rising to highs of HK$22.3 and falling to the lows of HK$17.64. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether China Life Insurance's current trading price of HK$19.24 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at China Life Insurance’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for China Life Insurance Good news, investors! China Life Insurance is still a bargain right now. According to my valuation, the intrinsic value for the stock is HK$29.11, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that China Life Insurance’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. China Life Insurance’s earnings over the next few years are expected to increase by 89%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder?Since 2628 is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation. Are you a potential investor?If you’ve been keeping an eye on 2628 for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 2628. But before you make any investment decisions, consider other factors such as the track record of its management team, 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 China Life Insurance. You can find everything you need to know about China Life Insurance inthe latest infographic research report. If you are no longer interested in China Life Insurance, 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.
Does Dhampur Sugar Mills Limited (NSE:DHAMPURSUG) Have A Place In Your Dividend Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could Dhampur Sugar Mills Limited (NSE:DHAMPURSUG) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. A high yield and a long history of paying dividends is an appealing combination for Dhampur Sugar Mills. We'd guess that plenty of investors have purchased it for the income. There are a few simple ways to reduce the risks of buying Dhampur Sugar Mills for its dividend, and we'll go through these below. Explore this interactive chart for our latest analysis on Dhampur Sugar Mills! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Dhampur Sugar Mills paid out 17% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. As Dhampur Sugar Mills has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. Dhampur Sugar Mills is carrying net debt of 3.68 times its EBITDA, which is getting towards the upper limit of our comfort range on a dividend stock that the investor hopes will endure a wide range of economic circumstances. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 4.29 times its interest expense, Dhampur Sugar Mills's interest cover is starting to look a bit thin. We update our data on Dhampur Sugar Mills every 24 hours, so you can always getour latest analysis of its financial health, here. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Dhampur Sugar Mills's dividend payments. During the past ten-year period, the first annual payment was ₹1.50 in 2009, compared to ₹6.00 last year. Dividends per share have grown at approximately 15% per year over this time. Dhampur Sugar Mills has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, but it might be worth considering if the business has turned a corner. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Dhampur Sugar Mills has grown its earnings per share at 51% per annum over the past five years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Firstly, we like that Dhampur Sugar Mills has low and conservative payout ratios. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. Dhampur Sugar Mills performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect. Now, if you want to look closer, it would be worth checking out ourfreeresearch on Dhampur Sugar Millsmanagement tenure, salary, and performance. We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Parag Milk Foods Limited (NSE:PARAGMILK) A Smart Choice For Dividend Investors? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like Parag Milk Foods Limited (NSE:PARAGMILK) 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. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With only a two-year payment history, and a 0.4% yield, investors probably think Parag Milk Foods is not much of a dividend stock. A low dividend might not be a bad thing, if the company is reinvesting heavily and growing its sales and profits. Some simple research can reduce the risk of buying Parag Milk Foods 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. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Parag Milk Foods paid out 6.9% of its profit as dividends. We'd say its dividends are thoroughly covered by earnings. We update our data on Parag Milk Foods 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 two-year period, the first annual payment was ₹0.50 in 2017, compared to ₹1.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 41% a year over that time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if 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. It's good to see Parag Milk Foods has been growing its earnings per share at 36% a year over the past 5 years. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. To summarise, shareholders should always check that Parag Milk Foods's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's great to see that Parag Milk Foods is paying out a low percentage of its earnings and cash flow. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Overall we think Parag Milk Foods scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look. Earnings growth generally bodes well for the future value of company dividend payments. See if the 8 Parag Milk Foods analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Parag Milk Foods Limited (NSE:PARAGMILK) A Smart Choice For Dividend Investors? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could Parag Milk Foods Limited (NSE:PARAGMILK) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With only a two-year payment history, and a 0.4% yield, investors probably think Parag Milk Foods is not much of a dividend stock. A low dividend might not be a bad thing, if the company is reinvesting heavily and growing its sales and profits. Some simple research can reduce the risk of buying Parag Milk Foods 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. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Parag Milk Foods paid out 6.9% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. Remember, you can always get a snapshot of Parag Milk Foods'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. During the past two-year period, the first annual payment was ₹0.50 in 2017, compared to ₹1.00 last year. Dividends per share have grown at approximately 41% per year over this time. Parag Milk Foods has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see Parag Milk Foods has been growing its earnings per share at 36% a year over the past 5 years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. To summarise, shareholders should always check that Parag Milk Foods's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's great to see that Parag Milk Foods is paying out a low percentage of its earnings and cash flow. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Overall we think Parag Milk Foods scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 8 analysts we track are forecasting for Parag Milk Foodsfor freewith publicanalyst estimates for the company. We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
3 Singapore Companies to Invest in During the US-China Trade War Amid the continuous uncertainty produced by the US-China trade tensions, investors are faced with a quandary on how to best utilize their investment war chest. It is always difficult to avoid complete exposure to the effects of strife between two of the largest economies in the world. With that said, though, here are three Singapore companies investors can consider that could help soften the blow should tensions escalate. Singapore Telecommunications Limited, also known as Singtel, is the largest telecommunications company in Singapore. With the recent Huawei debacle, investors are understandably concerned about how telecommunications companies like Singtel might be affected in the rollout of 5G technology. Fortunately, Singtel has mitigated this risk, having confirmed that it is working with multiple vendors – in addition to Huawei – in establishing its 5G networks. Apart from having the lion's share of the Singapore market, Singtel also has a large footprint in many Asia-Pacific countries. One noteworthy Singtel investment is Optus, a wholly owned subsidiary in Australia, which has a sizable market share of over 20% Down Under. Earlier this year, the company also invested in one of India's largest telecommunications company;Bharti Airtel. Through Bharti Airtel's own diversified assets, Singtel has by extension expanded its reach out west across the Indian Ocean to include African markets such as Uganda, Kenya, and Nigeria. Other noteworthy investments comprise direct ownership and joint ventures such as Globe Telecom in the Philippines, AIS in Thailand, and Telkomsel in Indonesia, further cushioning Singtel from US-China trade complications. Singtel is highly diversified in Asia. Additionally, it has low direct exposure to China, making it a strong investment to consider in a time of uncertainty. Koda Ltd is a Singapore manufacturing and retail furniture company, with factories in Malaysia and Vietnam. It also has retail stores in several Asia Pacific countries such as Australia, Singapore, and China. On the flip side of the coin, companies like Koda can actually benefit when their Chinese counterparts are experiencing rising tariffs. Koda's manufacturing facilities are largely based in Vietnam and Malaysia. This could prove to be an acceleration of growth for the company, as confirmed by Koda's CEO. He has stated that many of their customers are "looking into sourcing outside China as an alternative source to supply into the US market." Koda has been vertically integrating into retail by establishing Commune, its retail furniture brand, thereby reducing its dependence on the manufacturing sector and opening new doors for growth. This has allowed Koda to capitalize on the US-China trade war: Koda has seen its revenues rise by almost 6% in FY18, much of that increase due to higher sales from Commune – given its largest export market is the US. Overall, Koda is well-positioned to not only grow due to its diversification in the furniture retail sector but has also begun capitalizing on the US-China tariff war itself. Sheng Siong Group Ltd is the third-largest supermarket operator in Singapore, operating 46 supermarkets in many suburban areas of the island as of 2018. Sheng Siong has a low-cost business model which is an important driver in times of economic uncertainty. Its target customer segment is price-sensitive customers, who will only continue to purchase from them when the economy is weak. Because of this, most of the its supermarket stores are located in areas of public housing, therefore not only reducing operating costs but also providing ease of access to its target customers. In times of economic uncertainty, Sheng Siong's zero debt balance sheet can prove to be much sought-after by investors. It reflects a financially conservative management team, which gives you confidence if you are looking to pad your portfolio with risk-averse investments in time of uncertainty. Sheng Siong Group is a solid company. With its low-cost business model and risk-averse financial management, Sheng Siong could still potentially experience decent growth despite the ongoing trade tensions. Overall, investors who are concerned about a drawn-out and persistent trade ware between the US and China could look to Singtel, Koda and Sheng Siong as reliable shelters from the tensions. All three offer growth, income, and diversification while also being relatively well-shielded from the fallout of any trade issues between the two world's largest economies. A version of article originally appeared on our Fool Asia site. For more coverage like this head over toFool.hk.en The Motley Fool recommends Sheng Siong Group Ltd. The Motley Fool has adisclosure policy.
Larsen & Toubro Infotech Limited (NSE:LTI): Poised For Long-Term Success? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The most recent earnings release Larsen & Toubro Infotech Limited's (NSE:LTI) announced in June 2019 revealed that the business benefited from a strong tailwind, eventuating to a double-digit earnings growth of 36%. Below, I've laid out key numbers on how market analysts perceive Larsen & Toubro Infotech's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Larsen & Toubro Infotech Analysts' outlook for this coming year seems optimistic, with earnings growing by a robust 10%. This growth seems to continue into the following year with rates arriving at double digit 25% compared to today’s earnings, and finally hitting ₹22b by 2022. Even though it is useful to be aware of the rate of growth each year relative to today’s figure, it may be more beneficial estimating the rate at which the earnings are rising or falling every year, on average. The benefit of this approach is that we can get a bigger picture of the direction of Larsen & Toubro Infotech's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I 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 11%. This means that, we can assume Larsen & Toubro Infotech will grow its earnings by 11% every year for the next couple of years. For Larsen & Toubro Infotech, I've put together three important aspects you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is LTI 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 LTI is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LTI? 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.
Heavy rains in India kill 30, cripple financial capital By Rajendra Jadhav MUMBAI (Reuters) - Wall collapses in Mumbai and nearby towns, caused by the worst monsoon rains in a single day in 14 years, killed 30 people on Tuesday and disrupted rail and air traffic, prompting officials to shut schools and offices. Financial markets were open in the city of 18 million touted as a potential rival to the Chinese city of Shanghai, but hampered by poor infrastructure like many other Indian cities. During every monsoon season, which runs from June to September, India experiences fatal incidents of building and wall collapses as rainfall weakens the foundations of poorly-built structures. Heavy rain brought a wall crashing down on shanties built on a hill slope in Malad, a western suburb of Mumbai, a fire brigade official said, killing 21 people. Three people died when a school wall collapsed in the city of Kalyan, 42 km (26 miles) north of Mumbai. In the nearby western city of Pune, six people were killed in a wall collapse on Tuesday, a fire brigade official said, after a similar incident on Saturday killed 15. Mumbai is looking to turn itself into a global financial hub but large parts of the city struggle to cope with annual monsoon rains, as widespread construction and garbage-clogged drains and waterways make it increasingly vulnerable to chaos. As much as 375 mm (14.8 inches) of rain fell over 24 hours in some areas of Mumbai, the highest in 14 years, flooding streets and railway tracks, forcing the suspension of some suburban train services which millions of commuters ride to work each day. About 1,000 people stranded in low-lying areas of the city were rescued by naval personnel using rubber boats after a swollen river began to overflow, municipal authorities said. As weather officials forecast intermittent heavy showers and isolated extremely heavy rainfall, authorities called a holiday for government offices and educational institutions. "Rain is expected to remain intense even today," city authorities said on Twitter. "We request you to stay indoors unless there's an emergency." Story continues UNPREPARED Indian television showed images of flooded homes and people walking through waist deep water, stoking criticism of city authorities. "Every year, the first spell of rainfall throws normal life out of gear in Mumbai. An inquiry is needed into why this happens despite claims of preparations," said Ajit Pawar, a state opposition leader. Devendra Fadnavis, chief minister of Maharashtra state which includes Mumbai, said the city's infrastructure cannot handle excessive rainfall in a short period of time, but new pumping stations would be operational soon. Many firms asked employees to work from home. The main runway at Mumbai airport, India's second biggest, was closed from midnight after a SpiceJet flight overshot the runway while landing, an airport spokeswoman said. The secondary runway is operational, but 55 flights were diverted and another 52 were canceled due to bad weather, she said. "Our team is trying their best to bring the main runway back in operation and this may take up to 48 hours," airport authorities said later on Twitter. (Reporting by Rajendra Jadhav; Editing by Sanjeev Miglani and Darren Schuettler)
What Should You Know About The Future Of Larsen & Toubro Infotech Limited's (NSE:LTI)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As Larsen & Toubro Infotech Limited (NSE:LTI) announced its earnings release on 31 March 2019, analyst consensus outlook appear cautiously subdued, as a 10% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 15%. Presently, with latest-twelve-month earnings at ₹15b, we should see this growing to ₹17b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Larsen & Toubro Infotech in the longer term. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here. See our latest analysis for Larsen & Toubro Infotech Over the next three years, it seems the consensus view of the 21 analysts covering LTI is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of LTI's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. By 2022, LTI's earnings should reach ₹22b, from current levels of ₹15b, resulting in an annual growth rate of 11%. EPS reaches ₹123.2 in the final year of forecast compared to the current ₹87.67 EPS today. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 16% to 15% by the end of 2022. Future outlook is only one aspect when you're building an investment case for a stock. For Larsen & Toubro Infotech, I've put together three important aspects you should look at: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is Larsen & Toubro Infotech 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 Larsen & Toubro Infotech is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Larsen & Toubro Infotech? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Investors Should Know About Konecranes Plc's (HEL:KCR) Financial Strength Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Investors are always looking for growth in small-cap stocks like Konecranes Plc (HEL:KCR), with a market cap of €2.7b. However, an important fact which most ignore is: how financially healthy is the business? Understanding the company's financial health becomes vital, 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, this is not a comprehensive overview, so I suggest youdig deeper yourself into KCR here. KCR's debt levels surged from €723m to €854m over the last 12 months , which includes long-term debt. With this increase in debt, KCR currently has €204m remaining in cash and short-term investments , ready to be used for running the business. On top of this, KCR has produced €136m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 16%, meaning that KCR’s debt is not covered by operating cash. Looking at KCR’s €1.4b in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.2x. The current ratio is calculated by dividing current assets by current liabilities. For Machinery companies, this ratio is within a sensible range since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments. With a debt-to-equity ratio of 71%, KCR 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 check to see whether KCR is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In KCR's, case, the ratio of 8.62x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving KCR ample headroom to grow its debt facilities. KCR’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 KCR'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 KCR has been performing in the past. I suggest you continue to research Konecranes to get a better picture of the small-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for KCR’s future growth? Take a look at ourfree research report of analyst consensusfor KCR’s outlook. 2. Valuation: What is KCR 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 KCR 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.
Should Konecranes Plc (HEL:KCR) Be Part Of Your Dividend Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Konecranes Plc (HEL:KCR) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With Konecranes yielding 3.5% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. 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, Konecranes paid out 89% of its profit as dividends. It's paying out most of its earnings, which limits the amount that can be reinvested in the business. This may indicate limited need for further capital within the business, or highlight a commitment to paying a dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Konecranes paid out 98% of its free cash flow last year, which we think is concerning if cash flows do not improve. Konecranes 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 Konecranes to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign. As Konecranes has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). With net debt of 2.30 times its EBITDA, Konecranes has a noticeable amount of debt, although if business stays steady, this may not be overly concerning. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Konecranes has EBIT of 8.62 times its interest expense, which we think is adequate. We update our data on Konecranes every 24 hours, so you can always getour latest analysis of its financial health, here. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Konecranes has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was €0.90 in 2009, compared to €1.20 last year. Dividends per share have grown at approximately 2.9% per year over this time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is unappealing. 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. Konecranes has grown its earnings per share at 9.7% per annum over the past five years. EPS have been growing at a reasonable rate, although with most of the profits being paid out to shareholders, we question if the company will be able to keep growing its dividends in the future. Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, we think Konecranes has an acceptable payout ratio, although its dividend was not well covered by cashflow. Next, growing earnings per share and steady dividend payments is a great combination. Ultimately, Konecranes comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Earnings growth generally bodes well for the future value of company dividend payments. See if the 10 Konecranes analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Terry Crews says White Chicks 2 is officially in the works Back in March, Terry Crews said hes been staying in shape just in case the Wayans brothers move forward with a sequel to their cult hit White Chicks . It looks like Crews and his chiseled pecs will get their wish White Chicks 2 is officially in the works. The Brooklyn Nine-Nine star confirmed the news on Sundays episode of Watch What Happens Live with Andy Cohen . You know what, I actually got with Shawn, and he was like man we doing it, we getting it going, Crews recounted. In the original 2004 White Chicks movie, both Shawn and Marlon Wayans starred as two white, female undercover FBI agents. Crews portrayed Latrell Spencer, a super buff basketball player who falls in love with Marlons female alter ego Tiffany. (Read: The Top 25 Films of 2018 ) Earlier this year, Marlon, too, predicted that a White Chicks sequel could be in the cards. Theres been some rumblings happening, and a lot of people want us to do it, so me and my brothers have been talking, he told MTV . (Marlon and Shawns older brother, Keenan Ivory Wayans, directed the original.) While no details regarding the White Chicks 2 storyline have been divulged, Crews jokingly told CBS that the sequel will see him deliver a pop song performance. I think the modern day equivalent to that might be Carly Rae Jepsen Call Me Maybe,' he said on The Talk on Monday. But I would definitely do the whitest white girl song you would ever see. But white girls are singing gangster right now, you know what I mean? So it might be a little different, it might have a little rap thing in there. How ever we would do it, itd be great. Check out both the Andy Cohen and Talk interview segments below. [youtube https://www.youtube.com/watch?v=4zTUGgvqYKQ?version=3&rel=1&fs=1&autohide=2&showsearch=0&showinfo=1&iv_load_policy=1&wmode=transparent&w=806&h=454] Story continues [youtube https://www.youtube.com/watch?v=94MFN1873gI?version=3&rel=1&fs=1&autohide=2&showsearch=0&showinfo=1&iv_load_policy=1&wmode=transparent&w=806&h=454] Revisit a trailer for the original White Chicks : [youtube https://www.youtube.com/watch?v=aeVkbNka9HM?version=3&rel=1&fs=1&autohide=2&showsearch=0&showinfo=1&iv_load_policy=1&wmode=transparent&w=806&h=454] Terry Crews says White Chicks 2 is officially in the works Lake Schatz
Should You Be Excited About Orion Oyj's (HEL:ORNBV) 31% Return On Equity? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Orion Oyj (HEL:ORNBV). Our data showsOrion Oyj has a return on equity of 31%for the last year. One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.31 in profit. View our latest analysis for Orion Oyj Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Orion Oyj: 31% = €187m ÷ €607m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the 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. The higher the ROE, the more profit the company is making. So, all else equal,investors should like a high ROE. 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. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Orion Oyj has a better ROE than the average (12%) in the Pharmaceuticals industry. That's what I like to see. In my book, a high ROE almost always warrants a closer look. For exampleyou might checkif insiders are buying shares. Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first 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. Orion Oyj has a debt to equity ratio of 0.26, which is far from excessive. Its ROE is very impressive, and given only modest debt, this suggests the business is high quality. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is 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 around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Should Investors Know About Orion Oyj's (HEL:ORNBV) Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In March 2019, Orion Oyj (HEL:ORNBV) released its earnings update. Generally, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 5.4% in the upcoming year compared with the past 5-year average growth rate of -1.0%. With trailing-twelve-month net income at current levels of €197m, we should see this rise to €208m in 2020. Below is a brief commentary on the longer term outlook the market has for Orion Oyj. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here. View our latest analysis for Orion Oyj The 7 analysts covering ORNBV view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. From the current net income level of €197m and the final forecast of €226m by 2022, the annual rate of growth for ORNBV’s earnings is 6.0%. This leads to an EPS of €1.5 in the final year of projections relative to the current EPS of €1.4. In 2022, ORNBV's profit margin will have expanded from 20% to 21%. Future outlook is only one aspect when you're building an investment case for a stock. For Orion Oyj, I've put together three fundamental aspects you should look at: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is Orion Oyj 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 Orion Oyj is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Orion Oyj? 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.
How to Invest in Biotech Stocks Exciting. Scary. Lucrative. Risky. All of these adjectives apply to investing in biotech stocks. The excitement and the prospects for generating huge profits make biotech stocks appealing to many investors. On the other hand, the fear of big losses that stem from the high risk levels associated with many biotech stocks causes other investors to stay away. How should you go about investing in biotech stocks? There are seven key steps to follow that should improve your chances of success: 1. Know which stocks are biotech stocks -- and which aren't. 2. Determine your risk tolerance. 3. Understand the risks specific to biotech stocks. 4. Know what to look for in a biotech stock. 5. Evaluate the top biotech stocks and biotechexchange-traded funds (ETFs). 6. Invest cautiously. 7. Monitor changing dynamics. Here's what you need to know about each of these seven steps for investing in biotech stocks. Image source: Getty Images. First, you'll want to know which stocks actually are biotechs and which aren't. It's not as easy as you might think. Biotech is short for biotechnology, a term that references any technology that incorporates biological organisms. Companies that make genetically modified foods fall into this category, as do drugmakers that developbiologic drugs-- large, complicated molecules that are manufactured within a living organism. But while many big pharmaceutical companies develop biologic drugs now, they aren't usually viewed as biotechs. That's primarily because these companies make most of their revenue from sources other than biologic drugs. Also, some drugmakers are typically classified as biotechs even though they don't make most of their money from biologic drugs. Why? A lot of people call any small drugmaker a "biotech" regardless of whether the drugs it develops use living organisms. Even when these small companies grow to be large, they're still called biotechs. If you're looking to invest in biotech stocks, there is one quick way to determine which stocks are biotechs and which aren't. You can check out the industry designation for the company on investing sites. OnFool.com, for example, enter the ticker symbol for a given stock and then click on the "Profile" link. If the industry in the company info section is "Med-Biomed/Genetics," it's a biotech stock. Perhaps the most important step of all with investing in biotech stocks is to determine your risk tolerance. Some investors are aggressive and can tolerate higher levels of risk. Others are more conservative and seek to minimize their risk levels. There's a big reason you'll want to know your risk tolerance: It will help you determine which biotech stocks are good investing candidates for you and which aren't. If you already know your risk tolerance, great. If you don't, you might want to complete arisk-tolerance questionnaireto help you determine your investing style. All stocks have risks. But biotech stocks have some specific risks that aren't applicable to stocks in many other industries. These risks include clinical failures, regulatory approval setbacks, commercialization problems, and loss of exclusivity/patent expiration. The risk of clinical failure.Probably the most critical of these biotech-specific risks is the potential of failures in clinical trials. All biotech companies must thoroughly test their experimental drugs to assess the drugs' safety and efficacy in treating the targeted condition. This process starts with preclinical testing. Some preclinical testing is conductedin vitro, which literally means "in the glass." That's a reference to lab testing in test tubes, culture dishes, and other ways that don't involve animals or humans. Other preclinical testing is donein vivo, which means "within the living." This kind of preclinical testing is performed using laboratory animals. Biotechs that only have experimental drugs in the preclinical stage are especially risky. Most drugs never advance from preclinical testing into clinical studies. If a drug looks promising in preclinical testing, though, the biotech can seek regulatory approval from the Food and Drug Administration (FDA) in the U.S. or the European Medicines Agency in Europe to begin aphase 1 clinical study. The primary purposes of phase 1 clinical studies are to evaluate the safety of an experimental drug, including identifying possible side effects, and to determine the ideal dosage range for the drug. Around 37% of drugs that are evaluated in phase 1 clinical studies fail, according to the Biotechnology Innovation Organization (BIO). The successful drugs advance tophase 2 clinical studies. These studies test the efficacy and appropriate dosage levels of the drugs. Most drugs -- nearly 70%, based on BIO's analysis of historical data -- aren't successful in phase 2 clinical testing. The ones that are move tophase 3 clinical studies, large clinical trials needed to assemble sufficient statistical data that the drugs are both safe and effective. Almost 42% of drugs fail in phase 3 testing. Overall, only 11% of experimental drugs that begin clinical studies jump all the hurdles needed to file for regulatory approval. Regulatory approval setbacks.Biotechs still face the risk that drugs that have been successful in clinical studies won't win regulatory approval. Nearly 15% of drugs submitted for approval get a thumbs-down from the FDA, according to BIO. In some cases, the biotech can conduct additional clinical studies to persuade regulatory agencies to approve an experimental drug. However, frequently a regulatory rejection means the end of the road for a drug. Commercialization problems.You might think that once its drug wins regulatory approval, a biotech has it made. Not necessarily. Companies must persuade insurers and government healthcare programs to pay for a new drug. In the U.S., this process involves working with all of the major insurers and pharmacy benefit managers, as well as Medicare and Medicaid, to provide coverage for a new drug. In Europe, biotechs must negotiate with each country individually for a new drug to be covered. On top of these negotiations, biotechs must build sales teams to promote new drugs to prescribers. In many cases, companies also market directly to consumers via online, print, and TV advertising. Despite all of these efforts, there are significant risks that a biotech will be unsuccessful in achieving commercial success for a new product. Loss of exclusivity/patent expiration.While biotechs often compete against other drugmakers, they enjoy protection for a while from potential rivals seeking to market generic orbiosimilarversions of their drugs. Biologic drugs receive a 12-year period of exclusivity from biosimilar competition, while non-biologic drugs typically have a five-year exclusivity period. In addition to the exclusivity periods, biotechs usually secure patents on their drugs. These patents expire 20 years after the filing date. Once a biotech's drug loses exclusivity and patent protection, rival companies can legally launch "copycat" versions of the drug. This nearly always causes a sharp decline in sales for the biotech's drug. The perfect biotech stock to buy would be one that has a broad lineup of approved drugs on the market. Each of these drugs would generate billions of dollars in annual sales. They would have a long way to go before the loss of exclusivity or patent expiration. And they would enjoy virtual monopolies for the conditions they treat. This perfect biotech stock would also have a deep pipeline with a lot of candidates in phase 3 testing. The company would be super-profitable with fast-growing revenue and a mountain of cash built up to use in rewarding investors through share buybacks and dividends. And the stock would be dirt cheap. Unfortunately, such a biotech stock doesn't exist. However, these ideal qualities of a perfect biotech stock represent the things you should look for, and they fall into four main categories: current product lineup, pipeline, financial position, and valuation. The closer a given biotech stock rates on each measure, the better investment choice it should be. Many small biotechs won't have any approved drugs yet. For the biotechs that do, companies with multiple drugs with strong and growing sales will be less risky than others. It's also a good sign when a biotech has best-selling drugs in multiple therapeutic areas. Diversified revenue sources are nice to have with any stock. Pipelines can be difficult to evaluate. However, a pipeline that has several drugs in late-stage testing is preferred because they have less risk than experimental drugs in earlier-stage development. You can also check out what analysts and other industry observers have to say about early stage clinical results to get a sense of whether there are any yellow flags with what might otherwise seem to be positive results. Established biotechs will have stronger financial positions than small clinical-stage biotechs. Strong revenue and earnings growth is a big plus. Regardless of the size of the biotech, though, look at the company's cash position. A small biotech with no approved products could have to issue new shares if it doesn't have enough cash, which causesdilution in the value of existing shares. (Think of a pizza with eight slices that's cut into 16 slices. Anyone who had a slice initially has less pizza to eat after the second slicing.) With larger biotech stocks, you can use traditional metrics such as price-to-earnings and price-to-earnings-to-growth (PEG) ratios to assess valuations. The key here is to compare these valuation metrics for a given biotech stock against its peers to determine whether it's relatively cheap or relatively expensive. The valuations of smaller biotech stocks with no approved drugs are tied to what investors think about the biotechs' pipeline prospects. It's difficult to know how reasonable the growth prospects are for pipeline candidates that haven't been approved yet. One important thing you can look at with small biotechs, though, is any partnerships that they have established with larger drugmakers. A major drugmaker wouldn't partner with a smaller biotech without performing due diligence on its pipeline candidates. Having a big partner doesn't mean that a small biotech's pipeline isn't risky, but investors can usually have more confidence in a small biotech's pipeline candidate when a major drugmaker has put significant money on the line betting on the success of the experimental drug. The10 biggest biotech stocksclaimmarket caps(the total market value of a company's outstanding shares) of at least $30 billion, with several having market caps of more than $100 million. These are the exceptions, though. There are hundreds of biotech stocks with much smaller market caps. In addition,several biotech ETFs are availablethat hold positions in many individual biotech stocks. Your risk tolerance will dictate which of these biotech investment alternatives are the best fits for you. To give you a sense of how to evaluate biotech stocks and ETFs, we'll look at a few examples that might appeal to investors with different risk tolerances. Note that there are no options provided for investors with low-risk tolerances. Why? Biotech stocks and ETFs probably wouldn't be well suited for these investors. [{"Biotech Stock/ETF": "Alexion Pharmaceuticals(NASDAQ: ALXN)", "Risk Tolerance Level of Investors Who Might Like the Stock/ETF": "Moderate"}, {"Biotech Stock/ETF": "Amgen(NASDAQ: AMGN)", "Risk Tolerance Level of Investors Who Might Like the Stock/ETF": "Moderate"}, {"Biotech Stock/ETF": "Editas Medicine(NASDAQ: EDIT)", "Risk Tolerance Level of Investors Who Might Like the Stock/ETF": "Very high"}, {"Biotech Stock/ETF": "Vertex Pharmaceuticals(NASDAQ: VRTX)", "Risk Tolerance Level of Investors Who Might Like the Stock/ETF": "High"}, {"Biotech Stock/ETF": "SPDR S&P Biotech ETF(NYSEMKT: XBI)", "Risk Tolerance Level of Investors Who Might Like the Stock/ETF": "Moderate"}] Alexion Pharmaceuticals.Alexion currently has four approved products, all of which target rare diseases. The biotech's biggestblockbuster, Soliris, recently won FDA approval for treating another condition, neuromyelitis optica spectrum disorder. Sales are climbing for all four of Alexion's drugs, with tremendous growth for its newest product, Ultomiris, which market researcher EvaluatePharma thinks will be thebiggest new drug launch of 2019. The biotech's pipeline includes three late-stage programs targeting rare diseases. In addition, Alexion has four early stage clinical programs. Alexion appears to be in a strong financial position. Its revenue and earnings continue to grow rapidly. The company also has a substantial cash stockpile that it can use to reward shareholders through stock buybacks or to make strategic business development deals to fuel growth. While many biotech stocks have sky-high valuations, Alexion is one of the most attractively valued biotechs on the market. Its forward price-to-earnings multiple, which uses estimated earnings rather than historical earnings, and PEG ratio are both low compared with most other biotech stocks. Alexion faces some risks, including key patents for Soliris beginning to expire in 2021 and the possibility that its clinical programs won't be successful. Amgen.Amgen currently claims 18 approved products. Seven of these generated sales of more than $1 billion in 2018. At least two more of the biotech's approved drugs, Kyprolis and Aimovig, appear to be on the way to becoming blockbusters. The company's pipeline includes six late-stage programs, including the pursuit of additional approved indications for three already-approved drugs, plus three biosimilars in development. Amgen also has 26 programs in phase 1 and phase 2 testing. Amgen generates tremendous cash flow and has one of the largest cash stockpiles in the industry. The company also pays a dividend with an attractiveyield. This strong financial position is a key reason investors with moderate risk tolerances might like Amgen. The biotech's forward P/E ratio is low. However, some investors might be leery of Amgen's high PEG ratio. However, several of Amgen's top drugs face intense competition. This situation is likely to weigh on Amgen's growth in the coming years. Amgen's pipeline is also risky, with 23 programs in phase 1 clinical studies. Editas Medicine.Editas Medicine is by far the riskiest of the biotech stocks on our list. The company has no approved products and is a long way from even the possibility of launching a drug commercially. The attraction for Editas is its pipeline. The biotech plans to begin the firstin vivotesting of aCRISPR gene editingtherapy in humans in 2019. This phase 1 study will evaluate Editas' lead candidate, EDIT-101, in treating Leber congenital amaurosis type 10, the leading genetic cause of blindness.Allerganis partnering with Editas on developing EDIT-101. Other than EDIT-101, though, Editas' pipeline consists only of preclinical programs. Editas has to rely largely on collaboration revenue from Allergan and its other big partner,Celgene, to fund operations. The biotech could have to raise additional cash through issuing new stock in the future. For a company with no product revenue, Editas' market cap is quite high. However, the market cap reflects the tremendous excitement among investors about the potential for the biotech's gene-editing candidates. But although CRISPR gene editing could be a game-changer in treating diseases, it remains a technology in its infancy. Editas faces considerable challenges in advancing its pipeline candidates. Vertex Pharmaceuticals.Vertex Pharmaceuticals has three approved drugs on the market, all of which treat the underlying cause of cystic fibrosis (CF). The biotech essentially enjoys a monopoly in CF right now. It's likely that Vertex's pipeline will fuel more growth. The biotech hopes to win approval for a triple-drug CF combo in 2020. This regimen would dramatically increase Vertex's target patient population. In addition, the biotech's pipeline includes an experimental pain drug that's in phase 2 testing and a couple of early stage programs targeting rare diseases. Vertex's financial position continues to look better and better as its revenue and profitability increase. The company has a significant amount of cash built up that it plans to use in adding more programs to its pipeline. While Amgen has a low forward P/E multiple and a high PEG ratio, it's the opposite case for Vertex. The biotech's attractive PEG ratio is a sign of the tremendous growth expected for Vertex, with the anticipated launch next year of its triple-drug combo for treating CF. There is a risk, though, that Vertex could run into regulatory approval problems. The biotech's pipeline candidates also face risks of failure in clinical studies. SPDR S&P Biotech ETF.You might wonder why the SPDR S&P Biotech ETF isn't more suitable for investors with low risk tolerances. Although the ETF holds positions in over 100 biotech stocks, many of these stocks have high or very high risk levels. For moderately aggressive investors, though, this ETF could be a smart way to profit from growth in the biotech industry. While some of the biotechs among the fund's holdings could experience pipeline setbacks or other issues, not all of them will. The primary downside to buying the SPDR S&P Biotech ETF, other than risk, is that the fund has an annual expense ratio of 0.35%. However, that's not unreasonable, considering the broad basket of biotech stocks the ETF provides. Whichever biotech stock or ETF you buy, invest cautiously. Don't put too much of your portfolio in biotech stocks, because of the risk and volatility associated with the industry. If you're buying the stock of a small clinical-stage biotech, you'll want to be even more cautious. You might consider investing a small amount initially. If clinical study results increase your confidence in the biotech's prospects, you could then increase your position in the stock. The last step for investing in biotech stocks is to monitor changing dynamics. Bad news doesn't necessarily mean you should sell your biotech stocks, but it could prompt you to do so. Horrible results from a clinical study, for instance, could completely change your entire investing thesis -- especially for a clinical-stage biotech. Keep your eyes on the competition, too. The emergence of new drugs could threaten even a big biotech's sales. There's also the possibility that the reimbursement environment changes dramatically. For example, major changes to the U.S. healthcare system that limit the ability of biotechs to set drug prices would probably negatively affect stock prices. Yes, investing in biotech stocks can be scary and risky. However, following these seven steps should increase the odds that your experience in investing in biotech stocks is both exciting and lucrative over the long run. 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 Keith Speightsowns shares of Celgene, Editas Medicine, SPDR S&P Biotech, and Vertex Pharmaceuticals. The Motley Fool recommends Amgen, Celgene, Editas Medicine, and Vertex Pharmaceuticals. The Motley Fool has adisclosure policy.
Should You Be Impressed By Valmet Oyj's (HEL:VALMT) ROE? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Valmet Oyj (HEL:VALMT), by way of a worked example. Our data showsValmet Oyj has a return on equity of 20%for the last year. One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.20 in profit. See our latest analysis for Valmet Oyj Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Valmet Oyj: 20% = €174m ÷ €876m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the yearly profit. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Valmet Oyj has a higher ROE than the average (14%) in the Machinery industry. That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. For exampleyou might checkif insiders are buying shares. 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 case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. Valmet Oyj has a debt to equity ratio of 0.35, which is far from excessive. The fact that it achieved a fairly good ROE with only modest debt suggests the business might be worth putting on your watchlist. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREEvisualization of analyst forecasts for the company. But note:Valmet Oyj 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.
Do Directors Own Verkkokauppa.com Oyj (HEL:VERK) Shares? 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 Verkkokauppa.com Oyj (HEL:VERK) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.' Verkkokauppa.com Oyj is a smaller company with a market capitalization of €163m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about VERK. See our latest analysis for Verkkokauppa.com Oyj 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. Verkkokauppa.com Oyj already has institutions on the share registry. Indeed, they own 34% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Verkkokauppa.com Oyj, (below). Of course, keep in mind that there are other factors to consider, too. We note that hedge funds don't have a meaningful investment in Verkkokauppa.com Oyj. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders own more than half of Verkkokauppa.com Oyj. This gives them effective control of the company. That means they own €84m worth of shares in the €163m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You canclick here to see if those insiders have been buying or selling. The general public, with a 14% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. It's always worth thinking about the different groups who own shares in a company. But to understand Verkkokauppa.com Oyj better, we need to consider many other factors. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should We Be Delighted With Verkkokauppa.com Oyj's (HEL:VERK) ROE Of 24%? 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. To keep the lesson grounded in practicality, we'll use ROE to better understand Verkkokauppa.com Oyj (HEL:VERK). Over the last twelve monthsVerkkokauppa.com Oyj has recorded a ROE of 24%. That means that for every €1 worth of shareholders' equity, it generated €0.24 in profit. Check out our latest analysis for Verkkokauppa.com Oyj Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Verkkokauppa.com Oyj: 24% = €9.0m ÷ €37m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the 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. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Verkkokauppa.com Oyj has a better ROE than the average (13%) in the Online Retail industry. That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Verkkokauppa.com Oyj is free of net debt, which is a positive for shareholders. Its high ROE indicates the business is high quality, but the fact that this was achieved without leverage is veritably impressive. After all, when a company has a strong balance sheet, it can often find ways to invest in growth, even if it takes some time. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company. Of courseVerkkokauppa.com Oyj 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.
Does Century Enka Limited (NSE:CENTENKA) Have A Good P/E Ratio? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical, we'll show how Century Enka Limited's ( NSE:CENTENKA ) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months, Century Enka has a P/E ratio of 6.19 . That corresponds to an earnings yield of approximately 16%. Check out our latest analysis for Century Enka How Do I Calculate A Price To Earnings Ratio? The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Century Enka: P/E of 6.19 = ₹216.95 ÷ ₹35.05 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? A higher P/E ratio means that investors are paying a higher price for each ₹1 of company earnings. That is not a good or a bad thing per se , but a high P/E does imply buyers are optimistic about the future. How Growth Rates Impact P/E Ratios Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. 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. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. Century Enka increased earnings per share by 9.3% last year. And earnings per share have improved by 4.0% annually, over the last five years. Does Century Enka Have A Relatively High Or Low P/E For Its Industry? We can get an indication of market expectations by looking at the P/E ratio. If you look at the image below, you can see Century Enka has a lower P/E than the average (10.6) in the luxury industry classification. NSEI:CENTENKA Price Estimation Relative to Market, July 2nd 2019 Century Enka's P/E tells us that market participants think it will not fare as well as its peers in the same industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to check if company insiders have been buying or selling . Story continues Don't Forget: The P/E Does Not Account For Debt or Bank Deposits Don't forget that the P/E ratio considers market capitalization. So it won't reflect the advantage of cash, or disadvantage of debt. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores. How Does Century Enka's Debt Impact Its P/E Ratio? Century Enka has net cash of ₹1.3b. This is fairly high at 25% of its market capitalization. That might mean balance sheet strength is important to the business, but should also help push the P/E a bit higher than it would otherwise be. The Bottom Line On Century Enka's P/E Ratio Century Enka has a P/E of 6.2. That's below the average in the IN market, which is 15.3. Earnings improved over the last year. And the net cash position gives the company many options. So it's strange that the low P/E indicates low expectations. Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow. You might be able to find a better buy than Century Enka. If you want a selection of possible winners, check out this free list of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Kind Of Investor Owns Most Of Westgold Resources Limited (ASX:WGX)? 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 Westgold Resources Limited (ASX:WGX) can tell us which group is most powerful. 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. Westgold Resources is a smaller company with a market capitalization of AU$730m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about WGX. Check out our latest analysis for Westgold Resources 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 56% of Westgold Resources. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Westgold Resources's earnings history, below. Of course, the future is what really matters. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Westgold Resources. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage. 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. We can see that insiders own shares in Westgold Resources Limited. In their own names, insiders own AU$11m worth of stock in the AU$730m company. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling. With a 21% ownership, the general public have some degree of sway over WGX. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It seems that Private Companies own 16%, of the WGX stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research. It appears to us that public companies own 6.2% of WGX. 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 Westgold Resources 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. But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Worry About Zip Co Limited's (ASX:Z1P) 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! The CEO of Zip Co Limited (ASX:Z1P) is Larry Diamond. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels. Check out our latest analysis for Zip Co At the time of writing our data says that Zip Co Limited has a market cap of AU$1.2b, and is paying total annual CEO compensation of AU$338k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$292k. When we examined a selection of companies with market caps ranging from AU$570m to AU$2.3b, we found the median CEO total compensation was AU$1.4m. 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 Zip Co has changed over time. Zip Co Limited has reduced its earnings per share by an average of 8.1% a year, over the last three years (measured with a line of best fit). Its revenue is up 123% over last year. Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Shareholders might be interested inthisfreevisualization of analyst forecasts. Boasting a total shareholder return of 356% over three years, Zip Co Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size. It looks like Zip Co Limited pays its CEO less than similar sized companies. It's well worth noting that while Larry Diamond is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. So you may want tocheck if insiders are buying Zip Co shares with their own money (free access). Important note:Zip Co may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
You Have To Love China Maple Leaf Educational Systems Limited's (HKG:1317) Dividend 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 China Maple Leaf Educational Systems Limited (HKG:1317) 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. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if China Maple Leaf Educational Systems is a new dividend aristocrat in the making. It sure looks interesting on these metrics - but there's always more to the story . Some simple analysis can reduce the risk of holding China Maple Leaf Educational Systems for its dividend, and we'll focus on the most important aspects below. Click the interactive chart for our full dividend analysis Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. 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. China Maple Leaf Educational Systems paid out 43% of its profit as dividends, over the trailing twelve month period. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Of the free cash flow it generated last year, China Maple Leaf Educational Systems paid out 41% as dividends, suggesting the dividend is affordable. It's positive to see that China Maple Leaf Educational Systems's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Consider gettingour latest analysis on China Maple Leaf Educational Systems's financial position here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. China Maple Leaf Educational Systems has been paying a dividend for the past four years. During the past four-year period, the first annual payment was CN¥0.02 in 2015, compared to CN¥0.084 last year. This works out to be a compound annual growth rate (CAGR) of approximately 43% a year over that time. The dividend has been growing pretty quickly, which could be enough to get us interested even though the dividend history is relatively short. Further research may be warranted. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see China Maple Leaf Educational Systems has grown its earnings per share at 56% per annum over the past five years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Firstly, we like that China Maple Leaf Educational Systems has low and conservative payout ratios. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. China Maple Leaf Educational Systems performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect. Earnings growth generally bodes well for the future value of company dividend payments. See if the 17 China Maple Leaf Educational Systems analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Investors Who Bought China Maple Leaf Educational Systems (HKG:1317) Shares A Year Ago Are Now Down 56% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Investing in stocks comes with the risk that the share price will fall. And unfortunately forChina Maple Leaf Educational Systems Limited(HKG:1317) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 56% in that time. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 14% in three years. Furthermore, it's down 18% in about a quarter. That's not much fun for holders. View our latest analysis for China Maple Leaf Educational Systems 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. During the unfortunate twelve months during which the China Maple Leaf Educational Systems share price fell, it actually saw its earnings per share (EPS) improve by 17%. It's quite possible that growth expectations may have been unreasonable in the past. It's surprising to see the share price fall so much, despite the improved EPS. So it's easy to justify a look at some other metrics. China Maple Leaf Educational Systems managed to grow revenue over the last year, which is usually a real positive. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). 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. So it makes a lot of sense to check out what analysts think China Maple Leaf Educational Systems willearn in the future (free profit forecasts). Investors should note that there's a difference between China Maple Leaf Educational Systems's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that China Maple Leaf Educational Systems's TSR, which was a 55%dropover the last year, was not as bad as the share price return. The last twelve months weren't great for China Maple Leaf Educational Systems shares, which performed worse than the market, costing holders 55%, including dividends. The market shed around 3.5%, no doubt weighing on the stock price. The three-year loss of 2.8% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. 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. China Maple Leaf Educational Systems 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 HK 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.
World UFO Day 2019: These Videos of UFOs Around the World Will Make You Believe in Aliens Are you keenly interested in life outside this planet? Do alien theories and conspiracy feed your knowledge, then its a day you'll likely enjoy celebrating. Every year July 2 marks the World UFO Day! This day is marked to create more awareness about the spottings and invite fellow enthusiasts to share their insights about UFOs and extra-terrestrial life. There have been numerous alien object or unidentified flying objects that have been recorded seen by people. Meanwhile, scientists are looking for definite proof to show their existence. On this World UFO Day 2019, we give you some videos about UFO spottings around the world, which might make you want to believe in aliens.Aliens To Contact in the Next 15 Years? Watch the Video of 7 Recent UFO Sightings. Also Read \|World UFO Day 2019 Date: History and Significance of Celebrating ‘Existence of Aliens and Unidentified Flying Objects’ in Outer Space One of the latest reports about UFO sightings came fromUS Navy pilots who claimed seeing UFOs almost dailyin the summer of 2014 to March 2015 in the East Coast. Lieutenant Ryan Graves and four other US Navy pilots they saw unidentified objects during training manoeuvres. There have been numerous such reports about seeing such objects. We give you more such videos of UFO spottings around the world. UFO Spotted by Police in Lebanon: Also Read \|'Aliens' Take Over Argentina as Part of Annual Alien Festival 2019, Watch Video Manitoba is UFO Hotspot? There have been not one but close to thousand spottings of alien objects in the skies here. Over the years, people have recorded UFOs in the sky. Rise in UFO Sightings over the world The above video gives a lowdown on the number of UFO sightings that have been reported over the years, and it shows a definite rise. When NASA Astronaut Spotted one in Space Top 10 UFO Sightings on Camera The above videos show how people across the world have had some kind of encounter with a UFO. However, while it may give a hint of other life forms in the universe, there is still no definite 'yes or no' to it. Have you ever spotted an alien object? Or do you believe in the existence of aliens? Don't forget to share your thoughts or any theories that you have about the subject with us. Wish you all a Happy World UFO Day!
Could The WuXi Biologics (Cayman) Inc. (HKG:2269) Ownership Structure Tell Us Something Useful? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of WuXi Biologics (Cayman) Inc. (HKG:2269) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned. WuXi Biologics (Cayman) is a pretty big company. It has a market capitalization of HK$87b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about 2269. View our latest analysis for WuXi Biologics (Cayman) Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that WuXi Biologics (Cayman) does have institutional investors; and they hold 25% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 WuXi Biologics (Cayman)'s earnings history, below. Of course, the future is what really matters. We note that hedge funds don't have a meaningful investment in WuXi Biologics (Cayman). Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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. 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 most recent data indicates that insiders own some shares in WuXi Biologics (Cayman) Inc.. It is a very large company, and board members collectively own HK$3.5b worth of shares (at current prices). It is good to see this level of investment. You cancheck here to see if those insiders have been buying recently. The general public, with a 20% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Our data indicates that Private Companies hold 50%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. 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. 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.
Is Zydus Wellness Limited's (NSE:ZYDUSWELL) High P/E Ratio A Problem For Investors? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can use Zydus Wellness Limited's ( NSE:ZYDUSWELL ) P/E ratio to inform your assessment of the investment opportunity. Zydus Wellness has a P/E ratio of 33.46 , based on the last twelve months. That is equivalent to an earnings yield of about 3.0%. See our latest analysis for Zydus Wellness How Do You Calculate Zydus Wellness's P/E Ratio? The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Zydus Wellness: P/E of 33.46 = ₹1341.8 ÷ ₹40.1 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? A higher P/E ratio means that buyers have to pay a higher price for each ₹1 the company has earned over the last year. 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.' How Growth Rates Impact P/E Ratios Earnings growth rates have a big influence on P/E ratios. 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. It's great to see that Zydus Wellness grew EPS by 17% in the last year. And its annual EPS growth rate over 5 years is 10%. With that performance, you might expect an above average P/E ratio. Does Zydus Wellness Have A Relatively High Or Low P/E For Its Industry? One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. You can see in the image below that the average P/E (16.7) for companies in the food industry is lower than Zydus Wellness's P/E. Story continues NSEI:ZYDUSWELL Price Estimation Relative to Market, July 2nd 2019 Its relatively high P/E ratio indicates that Zydus Wellness shareholders think it will perform better than other companies in its industry classification. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should delve deeper. I like to check if company insiders have been buying or selling . Remember: P/E Ratios Don't Consider The Balance Sheet Don't forget that the P/E ratio considers market capitalization. So it won't reflect the advantage of cash, or disadvantage of debt. 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. How Does Zydus Wellness's Debt Impact Its P/E Ratio? Zydus Wellness's net debt is 18% of its market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt. The Verdict On Zydus Wellness's P/E Ratio Zydus Wellness trades on a P/E ratio of 33.5, which is above the IN market average of 15.3. Its debt levels do not imperil its balance sheet and it is growing EPS strongly. Therefore, it's not particularly surprising that it has a above average P/E ratio. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold. You might be able to find a better buy than Zydus Wellness. If you want a selection of possible winners, check out this free list of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Calculating The Intrinsic Value Of Zydus Wellness Limited (NSE:ZYDUSWELL) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In this article we are going to estimate the intrinsic value of Zydus Wellness Limited (NSE:ZYDUSWELL) by taking the expected future cash flows and 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. 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 Zydus Wellness 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 (\u20b9, Millions)", "2020": "\u20b93.8b", "2021": "\u20b94.2b", "2022": "\u20b95.2b", "2023": "\u20b95.9b", "2024": "\u20b96.6b", "2025": "\u20b97.3b", "2026": "\u20b98.0b", "2027": "\u20b98.8b", "2028": "\u20b99.5b", "2029": "\u20b910.3b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x2", "2021": "Analyst x2", "2022": "Analyst x1", "2023": "Est @ 13.66%", "2024": "Est @ 11.83%", "2025": "Est @ 10.55%", "2026": "Est @ 9.65%", "2027": "Est @ 9.02%", "2028": "Est @ 8.58%", "2029": "Est @ 8.27%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 14.43%", "2020": "\u20b93.3k", "2021": "\u20b93.2k", "2022": "\u20b93.5k", "2023": "\u20b93.5k", "2024": "\u20b93.4k", "2025": "\u20b93.3k", "2026": "\u20b93.1k", "2027": "\u20b93.0k", "2028": "\u20b92.8k", "2029": "\u20b92.7k"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= ₹31.7b 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 (7.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 14.4%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹10b × (1 + 7.6%) ÷ (14.4% – 7.6%) = ₹161b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹161b ÷ ( 1 + 14.4%)10= ₹41.89b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is ₹73.62b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹1277.66. Relative to the current share price of ₹1342.75, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the 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 Zydus Wellness 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 14.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Zydus Wellness, I've compiled three fundamental factors you should look at: 1. Financial Health: Does ZYDUSWELL 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 ZYDUSWELL'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 ZYDUSWELL? 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 NSE 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.
What Is Bingo Industries Limited's (ASX:BIN) Share Price Doing? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Bingo Industries Limited (ASX:BIN), which is in the commercial services business, and is based in Australia, led the ASX gainers with a relatively large price hike in the past couple of weeks. 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 take a look at Bingo Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Bingo Industries Bingo Industries appears to be overvalued according to my relative valuation model. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Bingo Industries’s ratio of 31.47x is above its peer average of 21.22x, which suggests the stock is overvalued compared to the Commercial Services industry. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Bingo Industries’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. 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. Bingo Industries’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder?BIN’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe BIN should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor?If you’ve been keeping an eye on BIN for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for BIN, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Bingo Industries. You can find everything you need to know about Bingo Industries inthe latest infographic research report. If you are no longer interested in Bingo Industries, 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.
Lindsay Lohan Posts a Naked Selfie on Eve of Her 33rd Birthday Lindsay Lohan is celebrating her birthday in, well, her birthday suit. The actress, musician and reality star took to Instagram on Monday evening to share a sexy snap ahead of marking her 33rd birthday on Tuesday. The naked mirror selfie showed the Mean Girls star sitting on the floor, with her legs crossed and arms placed in a way that hid her private parts. While she didn't appear to be wearing any clothing, she did don a blingy ring on her finger as well as a bangle and earrings. She captioned the photo with emojis of a bowtie and birthday cake. “🎀 🎂.” View this post on Instagram 🎀 🎂 A post shared by Lindsay Lohan (@lindsaylohan) on Jul 1, 2019 at 7:47pm PDT Lohan , who posed for Playboy in 2011, also posted two videos on her Instagram Story from a “pre-birthday” dinner celebration at a restaurant with friends. “How cool is this? I love it,” she said panning her camera around the table. Lohan's coming year will likely see her release new music, having tweeted in June that she was "hard at work" -- presumably in the studio. Hard At Work https://t.co/pXpdSYW3YZ — Lindsay Lohan (@lindsaylohan) June 2, 2019 Happy birthday Lindsay! See more on the star below. RELATED CONTENT: The Truth Behind Those 'Simple Life' Revival Rumors With Paris Hilton and Lindsay Lohan Lindsay Lohan Reacts to Claims Her Club Is Shutting Down and Her Reality Show Is Canceled Lindsay Lohan Randomly Comments on Taylor Swift's Album Announcement Livestream Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear ---Watch the latest videos from Yahoo UK---
Is Gérard Perrier Industrie S.A. (EPA:PERR) A Smart Choice For Dividend Investors? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Gérard Perrier Industrie S.A. (EPA:PERR) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. In this case, Gérard Perrier Industrie likely looks attractive to investors, given its 3.4% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Some simple analysis can reduce the risk of holding Gérard Perrier Industrie for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on Gérard Perrier Industrie! Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Gérard Perrier Industrie paid out 49% 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. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Gérard Perrier Industrie paid out 59% of its cash flow as dividends last year, which is within a reasonable range for the average corporation. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. We update our data on Gérard Perrier Industrie 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. Gérard Perrier Industrie has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was €0.57 in 2009, compared to €1.75 last year. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. So, its dividends have grown at a rapid rate over this time, but payments have been cut in the past. The stock may still be worth considering as part of a diversified dividend portfolio. 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. Earnings have grown at around 8.0% a year for the past five years, which is better than seeing them shrink! Earnings per share have been growing at a credible rate. What's more, the payout ratio is reasonable and provides some protection to the dividend, or even the potential to increase it. To summarise, shareholders should always check that Gérard Perrier Industrie's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Firstly, we like that Gérard Perrier Industrie pays out a low fraction of earnings. It pays out a higher percentage of its cashflow, although this is within acceptable bounds. Second, earnings growth has been ordinary, and its history of dividend payments is chequered - having cut its dividend at least once in the past. In sum, we find it hard to get excited about Gérard Perrier Industrie from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria. You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Gérard Perrier Industrie stock. 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.
GLOBAL MARKETS-Asian markets waver amid global growth, trade uncertainty * MSCI Asia ex-Japan up 0.41% as HK plays catch-up * Trump says trade deal should favour U.S. * Global PMIs show manufacturing weakness * RBA set to cut benchmark cash rate * Asian stock markets: https://tmsnrt.rs/2zpUAr4 By Andrew Galbraith SHANGHAI, July 2 (Reuters) - Asian shares wobbled on Tuesday, U.S. Treasury yields fell and gold rose as weak global manufacturing activity reinforced worries about slowing growth while uncertainties over the prospect of a Sino-U.S. trade deal also hurt sentiment. President Donald Trump said on Monday that any trade deal with China would need to be "somewhat tilted" in favour of the United States. The U.S. government also threatened tariffs on $4 billion of additional European Union goods in a long-running dispute over aircraft subsidies. U.S. S&P 500 e-mini futures were up 0.1% and MSCI's broadest index of Asia-Pacific shares outside Japan added 0.41%, helped by a 1.38% gain in Hong Kong shares as investors caught up to Monday's global rally. Markets in Hong Kong had been closed on Monday for a public holiday. But Chinese blue-chips dipped 0.05% and Korean shares lost 0.27%. "Euphoria that the trade negotiations are back on the table has probably waned and again the cautious tone is getting hold of the markets going forward," said Prakash Sakpal, an economist with ING in Singapore, adding that a stronger recovery would require more support. "We need to see a great deal of negotiation progress on the China-U.S. trade war. And we should also see more regional policy stimulus actually kicking in to prevent any further deterioration in economic activity across the region," he said. Australian shares managed to push up 0.29% on expectations that the Reserve Bank of Australia will cut its benchmark cash rate by 25 basis points to a record low of 1.0% at a meeting later in the day. The central bank's decision is expected at 0430 GMT. Japan's Nikkei was up 0.11%. Global shares had rallied strongly on Monday after the United States and China agreed on the weekend to restart trade negotiations aimed at resolving their year-long trade war and Washington said it would postpone further tariffs. U.S. President Donald Trump also offered concessions, including an easing of restrictions on tech company Huawei . Yet, with the previous rounds of Sino-U.S. negotiations breaking down in acrimony, investors were now turning to the prospects of actual progress in talks to settle the dispute that has dented global trade, business investment and economic growth. The fresh U.S. tariff threats against Europe also point to a worrisome prospect of a broadening trade dispute, said Michael McCarthy, chief markets strategist at CMC Markets in Sydney, in a note to clients. "The problem is the widening of the dispute. Europe, the U.S. and China account for almost two thirds of global GDP," he said. "An ongoing disruption to trade between these three major economies, prosecuted for domestic political purposes, could sink global growth." WEAK MANUFACTURING Manufacturing surveys over the past 24 hours underscored those risks. Factory activity in the euro zone shrank faster last month than previously thought, and U.S. manufacturing activity slowed to a near three-year low in June. "Global manufacturing PMI took the wind from the sails of risk assets outside of those which are stock related as it becomes apparent this is a real and genuine slowdown the world is experiencing," Greg McKenna, strategist at McKenna Macro, said in a note to clients. While stocks on Wall Street ended higher, they pared early gains that had seen the benchmark S&P 500 index briefly surpass its previous record high. The Dow Jones Industrial Average rose 0.44% to 26,717.43, the S&P 500 gained 0.77% to 2,964.33 and the Nasdaq Composite added 1.06% to 8,091.16. Over recent trading sessions, risk assets have also been held back by a tempering of expectations by U.S. Federal Reserve policymakers for aggressive rate cuts at this month's meeting. "With the easing of Sino-U.S. trade frictions there will certainly be an improvement in downward pressure on the U.S. economy, and the need for the Fed to ease will clearly lessen," analysts at Jianghai Securities said in a note. Market expectations that the Fed would implement a relatively large rate cut in July have fallen, with the probability of a 50 basis-point cut at 17.5%, from close to 50% last week. The cautious market mood pushed the yield on benchmark 10-year Treasury notes lower to 2.0171%, compared with its U.S. close of 2.033% on Monday, while the two-year yield, watched as a gauge of rate expectations, edged down to 1.7751% from a U.S. close of 1.787%. But the safe-haven yen was flat in a quiet currency market, with the dollar buying 108.42, and the euro lost just 0.05% to $1.1279. The dollar index, which tracks the greenback against major rivals was unchanged at 96.847. In commodity markets, worries over the outlook for the global economy weighed on oil. U.S. crude dipped 0.39% to $58.86 a barrel and global benchmark Brent crude was down 0.23% at $64.91 per barrel. But spot gold gained 0.33% to trade at $1,388.65 per ounce. (Reporting by Andrew Galbraith; Additional reporting by David Randall in NEW YORK Editing by Shri Navaratnam and Jacqueline Wong)
Holmen Aktiebolag (publ.) (STO:HOLM B): Commentary On Fundamentals Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Holmen Aktiebolag (publ.) (STO:HOLM B) 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 HOLM B, it is a financially-healthy , dividend-paying company with an impressive history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on Holmen Aktiebolag (publ.) here. HOLM B delivered a bottom-line expansion of 34% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did HOLM B outperformed its past performance, its growth also surpassed the Forestry industry expansion, which generated a 12% earnings growth. This is an optimistic signal for the future. HOLM B's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that HOLM B manages its cash and cost levels well, which is a crucial insight into the health of the company. HOLM B appears to have made good use of debt, producing operating cash levels of 0.53x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. Income investors would also be happy to know that HOLM B is a great dividend company, with a current yield standing at 3.4%. HOLM B has also been regularly increasing its dividend payments to shareholders over the past decade. For Holmen Aktiebolag (publ.), I've put together three essential factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for HOLM B’s future growth? Take a look at ourfree research report of analyst consensusfor HOLM B’s outlook. 2. Valuation: What is HOLM B 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 HOLM B is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of HOLM B? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should Holmen Aktiebolag (publ.) (STO:HOLM B) Be Part Of Your Dividend Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could Holmen Aktiebolag (publ.) (STO:HOLM B) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. In this case, Holmen Aktiebolag (publ.) likely looks attractive to investors, given its 3.4% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Explore this interactive chart for our latest analysis on Holmen Aktiebolag (publ.)! Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 50% of Holmen Aktiebolag (publ.)'s profits were paid out as dividends in the last 12 months. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Holmen Aktiebolag (publ.) paid out 121% of its free cash flow last year, which we think is concerning if cash flows do not improve. While Holmen Aktiebolag (publ.)'s dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Holmen Aktiebolag (publ.)'s ability to maintain its dividend. Consider gettingour latest analysis on Holmen Aktiebolag (publ.)'s financial position here. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Holmen Aktiebolag (publ.)'s dividend payments. During the past ten-year period, the first annual payment was kr4.50 in 2009, compared to kr6.75 last year. Dividends per share have grown at approximately 4.1% per year over this time. It's good to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth, anyway. We're not that enthused by this. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if 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. It's good to see Holmen Aktiebolag (publ.) has been growing its earnings per share at 26% a year over the past 5 years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. To summarise, shareholders should always check that Holmen Aktiebolag (publ.)'s dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we like Holmen Aktiebolag (publ.)'s low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. In sum, we find it hard to get excited about Holmen Aktiebolag (publ.) from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria. Earnings growth generally bodes well for the future value of company dividend payments. See if the 6 Holmen Aktiebolag (publ.) analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Columnist Richard Heydarian publishes blank editorial as commentary on Duterte’s independent foreign policy It’s uncommon to find a blank page in a newspaper, which is why many were shocked to see that political analyst Richard Heydarian’s column in The Philippine Daily Inquirer today was empty. Heydarian posted a copy of his Inquirer column on his Facebook account today, which was titled Duterte’s independent foreign policy . Below the title is his byline but nothing else followed. His post has gone viral and has been shared almost 1,600 times as of this writing. The Inquirer also created a graphic to showcase Heydarian’s column. Today’s #Horizons by Richard Heydarian (July 2, 2019). Read: https://t.co/51gIxjBQAG pic.twitter.com/xS5BgE4oQV — Inquirer Opinion (@Inq_Opinion) July 2, 2019 In a phone interview with Coconuts Manila, Heydarian said that this was his way of paying tribute to former Inquirer columnist Conrado de Quiros, who wrote for the newspaper until 2014. De Quiros had to go on medical leave due to a stroke. De Quiros did the same twice in 2004: first to criticize then-presidential candidate Fernando Poe Jr . and later former president Gloria Macapagal-Arroyo, who was running for re-election against Poe. But Heydarian said his column today was mostly in reaction to Duterte’s refusal to call out the Chinese government in connection with the West Philippine Sea boat sinking incident . “T he Reed bank incident exposed the degree in which his foreign policy is extremely hollow. At the time when he was needed the most by the fishermen, by the Filipinos, he chose silence,” Heydarian said. “When he spoke up in an event in front of the navy, he essentially parroted the same line that China uses, that it was a maritime incident.” Story continues “It was what nailed it for me. He let us down and broke our hearts. That was the last straw for me,” he said. On June 9, a Chinese-owned vessel hit a Filipino boat and abandoned 22 Filipino fishermen at sea near Recto Bank (aka Reed Bank). According to the Filipino boat’s captain Junel Insigne, the Chinese crew members turned their lights on after hitting their boat, saw the Filipinos in the water screaming for help, then sped away without doing anything. The Filipinos were later rescued by Vietnamese fishermen . Duterte was silent for several days after the incident went public. When he first spoke about it during an event in front of the Philippine Navy, he downplayed what occurred and said it was just “a maritime incident.” Last week, he downplayed it again by saying that the Filipinos’ boat was just “sideswiped” and that he believed the collision was just accidental. Duterte’s take on the incident echoed the same explanation given by Chinese foreign ministry spokesman Geng Shuang, who said that the boat sinking incident was “an ordinary maritime traffic accident.” Heydarian said he submitted his blank editorial last night, believing that “ omission is a more powerful expression of truth.” His Inquirer editors did not reject his idea of running an empty column. “My Inquirer editors have always been supportive of me. They know that this is not a cheap publicity stunt and that I’m a very serious writer,” he said. Reactions on Heydarian’s Facebook page were mostly positive. Jason Gutierrez wrote that he was “very eloquent.” “[S]ays so much without saying anything,” Gutierrez added. Photo: Richard Heydarian’s Facebook page Over on Twitter, @ItsmeDaines said in Filipino: “Prof Richard Heydarian’s article was very interesting today!” Napaka interesting Ng article ni Prof Richard Heydarian today o! pic.twitter.com/W9tqLuX0vy — Daines (@ItsmeDaines) July 2, 2019 But the column had its share of critics. Writer Timothy Dimacali (@tjdimacali) said running blank editorials have been “done to death.” JSY, “blank editorials” like Heydarian’s are nothing new and have been absolutely done to death. pic.twitter.com/1vlU9xXvbb — TJ Dimacali (@tjdimacali) July 2, 2019 @MiaMagdalena called it “lame.” Heydarian attempts a de Quiros. Lame. Tell us, Richard. How does it feel to always be one step behind? pic.twitter.com/l1c6WDevd2 — Miss Maggie (@MiaMagdalena) July 2, 2019 What do you think of Heydarian’s column today? Tell us by leaving a comment below or tweeting to @CoconutsManila. This article, Columnist Richard Heydarian publishes blank editorial as commentary on Duterte’s independent foreign policy , originally appeared on Coconuts , Asia's leading alternative media company. Want more Coconuts? Sign up for our newsletters!
Can You Imagine How Chuffed BKW's (VTX:BKW) Shareholders Feel About Its 103% 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! When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long termBKW AG(VTX:BKW) shareholders would be well aware of this, since the stock is up 103% in five years. It's down 1.7% in the last seven days. View our latest analysis for BKW 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 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 the last half decade, BKW became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It might be well worthwhile taking a look at ourfreereport on BKW's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, BKW's TSR for the last 5 years was 140%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted thetotalshareholder return. BKW shareholders are up 3.3% for the year (even including dividends). But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 19% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. Before deciding if you like the current share price, check how BKW scores on 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 CH 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.
World Bank unit implicated in Latin America graft scandal BOGOTA, Colombia (AP) — María Victoria Guarín was a key adviser on Colombia's biggest-ever transportation project: a 1,000-kilometer (620-mile) highway across mountainous terrain connecting the capital to busy Caribbean ports. As an investment officer for a World Bank unit, it was her job to help the government set the terms for competitive bidding by contractors. It turns out she was also married to a senior executive of a company that won part of the very contract she helped to oversee. That apparent conflict of interest has now dragged the bank into the edges of Latin America's biggest corruption scandal, as revealed in a little-noticed report issued last year by Colombia's anti-trust agency. The Grupo Aval conglomerate that employed Guarín's husband was partnered with Odebrecht, the Brazilian construction giant that has admitted to paying $6.5 million in bribes to seal the deal — one of dozens of projects it now acknowledges winning through illegal payments. The scandal upended the region's politics, leading to the jailing of dozens of senior politicians. But the role played by the World Bank in advising governments during the graft-ridden infrastructure boom of the past decade has received far less attention. The private-sector arm of the World Bank, known as the International Finance Corporation, or IFC, is supposed to reduce poverty in the developing world by promoting private investment. In an antitrust administrative complaint filed in September against Guarín and several others, the IFC is accused of failing to act on Guarín's potential conflict of interest for nearly two years, even as she allegedly tilted the bidding process for part of the $2.6 billion contract in favor of her husband's employer. Her husband, Diego Solano, who was also implicated, is now the chief financial officer of the New York Stock Exchange-traded company. If the civil charges of taking advantage of a conflict of interest and improper contacts are sustained, Guarín faces a fine of up to $1 million. Aval and its subsidiaries are on the hook for $150 million. Story continues "There's no doubt that the IFC conspired against free competition and transparency," Pablo Robledo, the former antitrust regulator who led the probe, said in an interview. No one has been criminally charged, nor are there any indications that Guarín and Solano financially benefited. But a judge in April asked Colombia's attorney general to investigate the couple in handing down an 11-year sentence against José Melo, the CEO of the Aval unit in the consortium. During Melo's trial, a former deputy transportation minister jailed for accepting bribes testified that he was led to believe by Odebrecht's country manager that the company had already influenced the structuring of the bidding terms through Guarín. In a 2016 plea agreement with the U.S. Justice Department, Odebrecht admitted to paying almost $800 million in bribes to win contracts in 12 mostly Latin American countries. At the time of the highway project, multinational companies were recovering from the global financial crisis and wary of investing in a country where an armed conflict with leftist rebels was still raging. The IFC's mission was to help the government attract as much interest as possible. The IFC allegedly stood by as the husband's employer actively sought to take advantage of the conflict of interest, according to the antitrust agency's findings. Among other alleged improprieties was the organizing of a lunch between Guarín, her husband and Melo. The meeting was to take place in January 2009 — weeks before the bidding conditions were made public. The contacts continued after the monthslong tender process officially got underway. That's when, according to the antitrust regulator, strict rules were in place to make sure communications with the government or its advisers were transparent and all bidders had equal access to information. It was during this period that Guarín in an email urged the government to lower the collateral requirements for bidders. She argued that she was informed privately by an Odebrecht executive that the high amounts represented a "deal breaker." A month later, the requirements were changed. "The gold standard that should characterize the IFC's behavior in accordance with the World Bank's code of ethics clearly was not followed," said Camilo Enciso, a criminal lawyer and director of the International Anti-Corruption Institute, who reviewed the documents in the case at the AP's request. "The couple had a clear stake for their careers in the success or failure of this project." Potential conflicts of interest "were everywhere," he added, citing the use of confidential information, influence peddling and favoritism, among others. "The IFC should have known better." Guarín and Solano declined to comment. But in case filings both rejected the allegations of a conflict of interest. While Solano argued that he took steps to insulate himself from the bidding process, Guarín said the lowering of the financial guarantees benefited all bidders and reflected longstanding concerns across the sector. Aval said it was cooperating with authorities but declined to comment further. The IFC also rejected the accusations, saying that Guarín was hired before it was known who the bidders would be and because of her expertise in the infrastructure sector. She was member of an extensive team and did not have a managerial role. The IFC also said it notified the government and put in place safeguards to prevent any conflict of interest once news reports in July 2009 indicated Aval would take part in the bidding process. That was more than 20 months after the IFC started advising the government. "As it is the norm in these projects, IFC only served in an advisory capacity while the ultimate decisions regarding the project structure and the awarding of the concession contract rested exclusively with the Colombian government," the IFC said in a statement. The safeguards included preventing Guarín from playing any role in the bid evaluation process. But in a September 2009 public hearing, Colombia's then-Transportation Minister expressed surprise upon hearing of Guarín's marriage to an Aval executive in an anonymously written complaint that described the relationship as a "perfectly camouflaged conflict of interest." Richard Cabello, head of the IFC's advisory services in Latin America, said the organization had taken unspecified steps from the outset to mitigate any possible negative effects arising from Guarin's marriage, according to a transcript of the hearing. He also vowed to answer the "innuendo" in writing — although there's no record the IFC did so publicly until almost eight years later, in response to a magazine column. In the 2017 statement, the IFC said it flagged the issue to the government a month before the hearing in coordination with an IFC department charged with managing potential conflicts. Cabello, like the IFC, "downplayed what took place and provided impertinent excuses that didn't address the heart of the complaint," the antitrust agency said in the 168-page report issued in September. The antitrust agency said the IFC refused to cooperate with its investigation, citing its immunity from judicial processes as an international organization. As such, it concluded that no action was taken to address the conflict. The IFC claims it volunteered to work with the government to clarify circumstances related to the project. Meanwhile, an attorney for Aval has accused the regulator of abusing its authority by accessing company emails without a court order and questioning Solano without a lawyer present. Colombia's ombudsman has launched an investigation against Robledo in response. Two days after the hearing, Aval sent a letter to the government stating that Solano, then a senior executive, did not play any role in the process, despite emails suggesting he had had. Solano in a filing said his involvement was limited to helping structure a memorandum of understanding with Odebrecht and measuring the potential impact of a winning bid on Aval's finances. He also said the antitrust regulator ignored an August 2009 email in which he explicitly asked Melo to refrain from sending him confidential information about the offer. Nonetheless emails show that Aval's president, Luis Sarmiento, the son of Colombia's wealthiest man, was aware of the issue and urged caution so that a winning bid would not be undone by a lawsuit. Despite the risks, the lobbying effort appeared to pay off, according to the antitrust regulator. When the results of the bidding were announced Dec. 14, 2009, the only two other competitors were disqualified on technical grounds. The Odebrecht-Aval consortium was awarded the contract for about $1 billion, just below the maximum allowed, suggesting it did not fear being outbid. Years later when Melo retired, he sent a farewell email to his colleague Solano. "Please send my regards to Maria Victoria," he wrote, "she's secretly always been our booster." ___ Joshua Goodman on Twitter: https://twitter.com/apjoshgoodman
What Are Analysts Saying About bioMérieux S.A.'s (EPA:BIM) Earnings Trend? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! bioMérieux S.A.'s (EPA:BIM) announced its latest earnings update in March 2019, which showed that the business gained from a slight tailwind, leading to a single-digit earnings growth of 7.8%. Below, I've presented key growth figures on how market analysts view bioMérieux's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for bioMérieux Market analysts' consensus outlook for the coming year seems rather muted, with earnings rising by a single digit 8.2%. The growth outlook in the following year seems much more positive with rates arriving at double digit 20% compared to today’s earnings, and finally hitting €348m by 2022. Even though it’s informative knowing the growth each year relative to today’s level, it may be more insightful to determine the rate at which the company is growing on average every year. The pro of this method is that we can get a bigger picture of the direction of bioMérieux's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 10%. This means, we can assume bioMérieux will grow its earnings by 10% every year for the next couple of years. For bioMérieux, there are three key aspects you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is BIM 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 BIM is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BIM? 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.
Amazon to create 1,800 jobs in France, Conforama to cut jobs By Dominique Vidalon PARIS (Reuters) - U.S. online retail giant Amazon <AMZN.O> said on Tuesday it will create 1,800 permanent contract positions this year in France, its largest European market after Britain and Germany, although furniture retailer Conforama went the other way in cutting jobs. The increase will bring Amazon's total number of permanent staff to 9,300 by end 2019 and reflects the group's commitment to the French market where it has invested over 2 billion euros ($2.26 billion) since 2010, the statement said. Amazon's plan comes as Conforama, the French unit of South African retailer Steinhoff <SNHJ.J> which is in the midst of a financial restructuring, plans to cut 1,900 jobs in France. Deputy finance minister Agnes Pannier-Runacher told Sud Radio that "traditional retail faces a very deep transformation. It is true that the coincidence of these two figures - 1,800 hires at Amazon and 1,900 job cuts at Conforama - reflects this transformation." She said the French government will be "extremely vigilant" regarding Conforama and would look to limit its impact. Amazon has been expanding steadily in France where it has 20 sites, including six logistics centers, the most recent slated to open over summer in Bretigny-Sur-Orge near Paris. Amazon is the e-commerce leader in France with a market share of 17.3 percent, but its grocery market share stands at just 2 percent, according to Kantar data. The U.S. group, which has run its Amazon Prime express delivery service in Paris since 2016, has made no secret of its desire to launch a grocery delivery service in France as part of its ambitions to expand in food retail. In April, it expanded its partnership with French food retailer Casino <CASP.PA> with Amazon installing pick-up lockers in Casino stores and making more of the French company's products available on Amazon. (Reporting by Dominique Vidalon; Editing by Leigh Thomas)
Estimating The Fair Value Of MIPS AB (publ) (STO:MIPS) 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 MIPS AB (publ) (STO:MIPS) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! 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 MIPS 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. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF (SEK, Millions)", "2019": "SEK96.6m", "2020": "SEK136.3m", "2021": "SEK175.7m", "2022": "SEK211.6m", "2023": "SEK242.0m", "2024": "SEK266.7m", "2025": "SEK286.2m", "2026": "SEK301.1m", "2027": "SEK312.5m", "2028": "SEK321.2m"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 58.61%", "2020": "Est @ 41.16%", "2021": "Est @ 28.94%", "2022": "Est @ 20.39%", "2023": "Est @ 14.4%", "2024": "Est @ 10.21%", "2025": "Est @ 7.28%", "2026": "Est @ 5.23%", "2027": "Est @ 3.79%", "2028": "Est @ 2.78%"}, {"": "Present Value (SEK, Millions) Discounted @ 6.16%", "2019": "SEK90.9", "2020": "SEK120.9", "2021": "SEK146.9", "2022": "SEK166.6", "2023": "SEK179.5", "2024": "SEK186.3", "2025": "SEK188.3", "2026": "SEK186.6", "2027": "SEK182.5", "2028": "SEK176.6"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= SEK1.6b 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 0.4%. We discount the terminal cash flows to today's value at a cost of equity of 6.2%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = kr321m × (1 + 0.4%) ÷ (6.2% – 0.4%) = kr5.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= SEKkr5.6b ÷ ( 1 + 6.2%)10= SEK3.10b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is SEK4.72b. 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 SEK156. Compared to the current share price of SEK185.2, the company appears around fair value 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. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the 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 MIPS 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 6.2%, which is based on a levered beta of 0.961. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For MIPS, I've put together three pertinent factors you should further examine: 1. Financial Health: Does MIPS 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 MIPS'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 MIPS? 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 STO 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.
UPDATE 5-China pledges to scrap financial sector ownership limits in 2020, one year early * China to ease financial sector foreign ownership limits earlier - Li * To keep reducing negative list for foreign investment * To further open up manufacturing and auto industries - Li * Policy steps needed to cope with global risks, domestic problems - Li (Adds comments from Li on fiscal and monetary measures) By Kevin Yao DALIAN, China, July 2 (Reuters) - China will end ownership limits for foreign investors in its financial sector in 2020, a year earlier than scheduled, to show the world it will keep opening up its markets, Premier Li Keqiang said on Tuesday. China will also further open its manufacturing sector, including the auto industry, while reducing its negative investment list that restricts foreign investment in some areas, Li told the World Economic Forum in the northeastern Chinese port city of Dalian. Beijing's signal that it is quickening the pace of opening up came after the presidents of China and the United States agreed over the weekend to restart trade talks in another attempt to strike a deal and end a bruising tariff war. But analysts doubt the ceasefire will lead to a sustained easing of tensions, and warn lingering uncertainty could dampen corporate spending and global growth. "We will achieve the goal of abolishing ownership limits in securities, futures, life insurance for foreign investors by 2020, a year earlier than the original schedule of 2021," Li said. Foreign investment banks such as Morgan Stanley are looking to join HSBC Holdings PLC, JPMorgan Chase & Co , Nomura Holdings Inc and UBS Group AG in owning controlling stakes in onshore securities joint ventures in China under liberalised rules announced in 2017. "JPMorgan welcomes any decision made by the Chinese government that looks to liberalise its financial sector further," said JPMorgan China CEO Mark Leung. Citigroup, which is in the process of setting up a majority-owned securities joint venture in China, also applauded the news. "Citi welcomes any move that leads to the further opening up of the Chinese financial system," said a Hong Kong-based spokesman. The United States and other countries in the West have long complained that Beijing is blocking foreign access to its fast-growing financial markets and not allowing a level playing field when multinational companies are allowed in. But in recent months, China has allowed many foreign financial firms to either set up new businesses onshore or expand their presence through majority ownership in domestic joint ventures across mutual funds, insurance and brokerage businesses. Sources with direct knowledge of the matter previously told Reuters that Morgan Stanley is likely to get regulatory approval for owning a majority stake in the second half of this year. Li also said the government will reduce restrictions next year on market access for foreign investors in the value-added telecoms services and transport sectors. On Sunday, China cut the number of sectors subject to foreign investment restrictions, a widely expected move, to 40 from 48 in the previous version, published in June last year. GLOBAL RISKS On Saturday, leaders of the Group of 20 major economies warned of growing risks to the global economy but stopped short of denouncing protectionism, calling instead for a free and fair trade environment after talks some members described as difficult. Echoing the sentiment, Li said protectionism is rising, but did not make references to specific economies. "In the face of pressure from a slowing global economy, I believe people are all in the same boat. We should promote the spirit of partnership, carry out equal consultations, seek common ground while reserving differences and manage and control disputes," Li said. The U.S.-China trade war has hit business confidence worldwide, disrupted supply chains and shaken financial markets, adding to worries about a global economic slowdown. Fallout from the dispute is spreading. Business surveys this week showed factory activity shrank in China and much of the rest of Asia in June, as well as in Europe, while manufacturing growth cooled in the United States, keeping pressure on policymakers to shore up growth. Rising worries over global growth have compelled some central banks, such as those in Australia, New Zealand, India and Russia to cut interest rates. "Currently, global economic risks are rising somewhat, international investment and trade growth is slowing, protectionism is rising and unstable and uncertain factors are increasing," Li said. "We should actively cope with this. Some countries have taken measures including cutting interest rates, or sent clear signals on quantitative easing." But China will not resort to competitive currency devaluation, Li said, and will keep the yuan exchange rate basically stable at a reasonable and balanced level. China is likely to hit its economic growth target of 6%-6.5% this year provided the trade dispute with the United States does not worsen, and hence will not need "very big" stimulus measures to prop up growth, a central bank adviser said on Monday. The People's Bank of China (PBOC) has already slashed the amount of cash banks must hold as reserve six times since early 2018 to help turn around soft credit growth, and more cuts in banks' reserve requirement ratios (RRRs) are widely expected in coming months. China has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower, while ramping up infrastructure spending and cutting taxes. "The strength of the tax cuts on the fiscal side is unprecedented, and this measure is the most fair, direct and effective," Li said in a meeting with business executives in Dalian. "As for monetary policy, we will make appropriate fine-tuning while keeping it prudent." "We can say that money supply is reasonably ample, but the question is how to make SMEs and private firms feel a significant drop in real interest rates by the end of this year through effective transmission measures." (Reporting by Kevin Yao; Additional reporting by Sumeet Chatterjee in HONG KONG; Writing by Ryan Woo; Editing by Jacqueline Wong & Kim Coghill)
Iran rejects U.S. accusation it long violated nuclear deal DUBAI (Reuters) - Iran rejected on Tuesday a White House accusation that Tehran was long violating the terms of its nuclear deal with world powers, after the Islamic Republic said it had amassed more low-enriched uranium than permitted under the accord. "Seriously?" Foreign Minister Mohammad Javad Zarif said in a message on social network Twitter, after a statement by White House press secretary Stephanie Grisham that said, "There is little doubt that even before the deal’s existence, Iran was violating its terms." Tehran's announcement drew a warning from President Donald Trump that Tehran was "playing with fire." The move marked Iran's first major step beyond the terms of the pact since the United States pulled out of it more than a year ago. However, Zarif said the move was not a violation of the accord, arguing that Tehran was exercising its right to respond to the U.S. walkout. The step, however, could have far-reaching consequences for diplomacy at a time when European countries are trying to pull the United States and Iran back from confrontation. It comes less than two weeks after Trump said he ordered air strikes onIran, only to cancel them minutes before impact. Iran's semi-official Fars news agency reported that the country's enriched uranium stockpile has now passed the 300-kg(661 lb) limit allowed under the deal. The U.N. nuclear watchdog, the International Atomic Energy Agency (IAEA), which monitors Iran's nuclear program under the deal, confirmed in Vienna that Tehran had breached the limit. Trump, asked if he had a message for Iran, said, "No message to Iran. They know what they're doing. They know what they're playing with, and I think they're playing with fire. So, no message to Iran whatsoever." European powers, which remain party to the accord and have tried to keep it in place, urged Iran not to take further steps that would violate it. But they held off on declaring the agreement void or announcing sanctions of their own. Story continues The White House charge that Iran probably was in violation of the nuclear deal before and after it was reached in 2015 sharply contrasts with CIA Director Gina Haspel’s testimony in January to the Senate Intelligence Committee saying, "At the moment, technically, they are in compliance." Daryl Kimball, the executive director of the Arms Control Association, said the White House charge was "illogical". He pointed out that at the time the nuclear deal was concluded, Tehran and the IAEA agreed on a "roadmap" through which Iran is addressing the nuclear watchdog’s unanswered questions about the nuclear weapons research program that the IAEA and the U.S. intelligence community assessed ended in 2003. "The process is still underway," he said. He also said there was no international standard prohibiting Iran from enriching uranium, as asserted by Pompeo. "That is not the case. That is an American position," he said. The six U.N. Security Council resolutions that Pompeo asserted established that standard were superseded by Resolution 2231 enshrining the nuclear deal and allowing Iran to enrich uranium within the agreement's restrictions. While Iran announced on Monday that it breached the deal's restriction on storing more than 300 kg (661 lb) of low-enriched uranium, Kimball said the issue would be adjudicated through the accord’s dispute resolution mechanism. It was the United States, he said, that first violated the deal when Trump withdrew from it while Iran still was in compliance and then re-imposed harsh U.S. sanctions that had been suspended by the nuclear agreement. Iran’s breach, he said, does not affect the deal’s central target of extending to a year the time in which Iran could "breakout" and produce enough highly enriched uranium for a warhead. The breach is a political move aimed at pressuring the European Union, China and Russia to compensate Iran for the serious damage to its economy from U.S. sanctions, he said. (Reporting by Dubai newsroom and Jonathan Landay in Washington)
MLB: Tampa Bay Rays leave fans wallowing in embarrassment The thing that still confuses me, after a week of interrogations and investigations of the Rays’ potential international future, is how Rob Manfred and Rays’ principal owner Stuart Sternberg thought the public would or should react. Almost immediately the plan to split time between Tampa Bay and Montreal was called out for being wholly unrealistic as anything other than just another craven stadium fund grab — punched up with a dash of characteristic Rays innovation. I’m sympathetic to the predicament that the team finds itself in — games at the Trop do have a ghost-town feel that hasn’t gone unnoticed by the players — but it’s still strange that in addressing a situation defined by the lack of fans, no one seems to have considered the public reception. The Rays are really good at outsmarting the parts of baseball that can be quantified, and in this instance that applies to tax dollars, but if the current iteration of the team has taught us anything it’s that being really good doesn’t always translate to participatory engagement from the fan base. Even before the Rays threatened to take half their home games 1,500 miles north, there was a media obsession with cracking the code behind Tampa’s disappointing attendance. The scrutiny, which has been there for years, intensified this season as a hot start hasn’t helped their ticket sales rank any better than 29th out of 30 teams. When the Rays won a game in late May to pull within one of the division-leading Yankees, it was in front of a franchise-record low 5,786 fans . The Tampa Bay Times summarized the five possible causes (and five lousy ones ) for the paltry ticket sales earlier this season on the same day they implored fans to “get the story right.” This followed a similar story by Deadspin from the offseason that included many of the same explanations plus a sixth additional one: “Everything sucks.” More recently, Jayson Stark of The Athletic spoke to a number of anonymous executives and Tampa business mavens about the failed move into the titular city that officially died last December, stuck somewhere between speculation on Sternberg’s ulterior motives and the city’s unwillingness to foot the bill for a billionaire’s new stadium (good job, Tampa). Story continues And I get it. If we can diagnose it, perhaps we can solve it — if not in Tampa Bay, then wherever the team ends up — and in doing so, avoid the looming existential question: Why should anyone go to a baseball game? In almost every other city, just as in St. Petersburg, the experience can be expensive and inconvenient and uncomfortable. A version of the game is accessible at home or at a local bar or literally wherever you take your phone. Of course if you start down that path, most of the modern human existence is open to nihilist disregard, especially forms of entertainment. But while music and movies and books and the like have a first-order obligation to be engaging, sports are built on the collective willful delusion that winning has inherent value which supersedes all else. But the Rays represent a particularly uncomfortable inherent quandary. Namely, what is winning worth? Tampa Bay Rays Principal Owner Stuart Sternberg reacts while answering questions at a press conference at the Dali Museum in St. Petersburg, Fla., Tuesday, June 25, 2019. Sternberg spoke about exploring the prospect of playing some future home games in Montreal. At left is Rays President of Baseball Operations Matthew Silverman. (Scott Keeler/Tampa Bay Times via AP) Why does no one go to see the Rays? Earlier this month, before the split-season scheme was announced, Shohei Ohtani hit for the cycle — the first time a Japanese-born player had done so in Major League Baseball — in a game against the Rays. I was in Tampa while this happened, but rather than witnessing the historic event in person, I watched it on TV (from my hotel room, where I was staying for the Association for Women in Sports Media conference). And in this way, I experienced what it’s like to be a Rays fan. Cab drivers as the conduit for the pathos or ethos of a given city is a crutch for writing faux-knowingly about somewhere that you’ve never lived. But frankly I haven’t ever lived in Tampa (and I don’t have a driver’s license anyway) and before I could even tell him why I was in town, Alex — who picked me up at the airport with a septum piercing and a series of fatalistic proclamations about his home state revolving around an all-nude strip club-slash-diner where the girls aren’t much to look at but the chicken fingers aren’t half bad — started talking about how no one goes to see the Rays. Like many locals, Alex blames the bridges. Tropicana Field, the home of the Tampa Bay Rays, is actually in St. Petersburg, a daunting drive from downtown Tampa, especially during rush hour. The two bridges that connect the Pinellas County peninsula where the Rays play to their nominal home are narrow and prone to heavy congestion. Leaving from the suburban side of Tampa’s downtown, the drive to the Trop can take over an hour in the early evening. The bridges, Howard Frankland and Gandy, are each around three miles long and low to the water. Recently, a grant from the Florida Department of Transportation made the streetcar system in downtown Tampa free to use for the next few years — this could have been a boon to the proposed stadium in the Ybor City neighborhood that never materialized. But as it stands there’s no real viable way to access St. Petersburg on public transportation. Everyone who goes from Tampa to the Trop has to face the bridge traffic first. Alex insisted that people do like the Rays — although not as much as they like the Bucs or the Lightning, who have sold out 201 consecutive games — they just can’t get there. Within the organization, several people cited to me a 2011 study which put the Rays in dead last for population within a 30-minute radius from the stadium. It’s a compellingly simple answer to the complicated question facing the coastal team: too much water in the immediate vicinity, and fish don’t go to games. This is a common explanation for the Rays’ lack of attendance, but it’s not the only one. The general population has other theories. Thomas, a security guard at the stadium, blames the enclosed Trop’s utter lack of appeal in comparison to the beach attractions that generally lure people to Florida. Casey, a young transplant from Plattsburgh, New York, hasn’t been persuaded to abandon his Yankees fandom with their spring training facility so close. Other people cite the poor perks for season ticket holders or the economic precarity of the area. In Tampa proper, one-fifth of the population lives below the poverty line, compared to 12.3 percent nationally. Trevor, a University of Florida student who was born and raised in Tampa, said it’s just hard to be a Rays fan, even when they’re winning. “There was a period from 2008-2010 when everyone was diehard Rays fans,” he said, “but then they got rid of the manager and fired all the players.” Even if that’s not quite right — baseball teams rarely fire their players — it’s indicative of the perception in Tampa Bay that the Rays’ desire to win while sticking to their self-imposed budget trumps their desire to field a team of exciting talent. It’s why they were one of the teams that Players Association filed a grievance against last year for failing to spend sufficiently. This last point is key. Some people have argued that the Rays’ ability to win games the past two seasons undermines the grievance, but that presumes winning supersedes your fans’ ability to remain invested in the team. The opener works — unless the metric is whether anyone in the city can name your starting rotation. Most accounts of the attendance problem in Tampa start with a stipulation that the Rays get strong television ratings, indicating a fan base exists, just not at the Trop. The ratings are better than the ticket sales. Lately, however, those numbers are trending in the wrong direction, as well. The Rays ranked 13th overall in primetime regional ratings in 2016 , a year they finished at the bottom of the AL East with only 68 wins. Last year, they won 90 games and dropped to 20th in ratings . In terms of household viewers per game, that’s a drop from 55,000 in 2016 to 46,000 in 2018. Since 2015, when they finished fourth but averaged 75,000 household viewers per game, primetime regional ratings have dropped about 40 percent. Maybe people are watching them less and less on TV because they can’t go to the games — or maybe they’re not trying that hard to go to the games because the team on their television at home feels increasingly disassociated from the city itself. Tampa Bay Rays officials and grounds crew talk under emergency lightning after lightning strikes knocked out power inside Tropicana Field before the start of a game with the New York Yankees Monday, Sept. 24, 2018, in St. Petersburg, Fla. (AP Photo/Steve Nesius) What if Rays are the canary in the coal mine? It’s tempting to explain the Rays’ attendance problems through a Tampa Bay-specific lens — after all, their dismal rankings compared to less successful teams underscores a seemingly immutable situation. But attendance is down all around baseball and trying to figure out what differentiates the Rays obscures the ways in which they epitomize league-wide problems. Maybe the Rays aren’t an aberration; they’re the logical extreme of small-market teams who are all trying to hack the system for cheap talent and a dispassionately replicable winning formula. They’re what happens when a stadium built in the wrong place (Atlanta) meets a lack of public transportation (D.C.) meets an inhospitable atmosphere (Oakland) meets the baseball-as-business roster construction and overly analytical strategy that has come to define the modern game. What if the Rays are the canary in the coal mine about how easy it is these days — an age of distractions and savvy consumers — to lose fans to at-home viewership and then altogether if franchises refuse to consider what’s best for them first and foremost? So, what is winning worth? Which brings me back to the split-season announcement and the prevailing interpretation of it as an attempt to extort somewhere into paying for a new ballpark — whether that’s Tampa or Montreal or a different city entirely. This comes after years of Sternberg trying to get Tampa to pay for a stadium the old fashioned way (by asking for it) and failing because the city couldn’t or wouldn’t afford it and Sternberg refused to make up the difference. "We are focused on how the Rays can thrive here in Tampa Bay,” Sternberg said in a press conference. And also, “To be clear, this is not a staged exit.” Does it matter if that is perceived to be a boldfaced lie? Depends on what you mean by matters. The Rays are really good at innovative money-saving success and the leverage they’ve loopholed their way into here will likely work to get a new stadium built somewhere that Sternberg doesn’t have to dedicate too much of his own money. It’ll be another win for the Rays. But again, what is winning worth? I understand why players and anyone associated with the team wants to win — an intrinsic need to define ourselves as superior to those around us has driven most of human history. And I even understand how that translates into impassioned tribalism among fan bases — an ability to satiate that base desire to dominate vicariously through typically non-violent competition is one of the few good human adaptations. That sense of community and catharsis, though, is not just a byproduct, it’s the underlying force that propels the entire industry. Sports are a tenuous cycle because the benefits (money, a personally fulfilling career) for the players and people professionally associated with the game are tangible, but the whole thing falls apart if the people who are not directly impacted by the outcome — after last season, Bostonians didn’t annex Los Angeles or any of the other cities the Red Sox bested en route to a world championship — stop buying in. To disregard fans’ feelings — about roster constructions, stadium financing, or the way all of that is communicated to the public — isn’t just unkind, it’s unsavvy. If that sounds sort of naively idealistic consider that so is the cultish ritual of attending a baseball game and deriving a sense of meaningful communion from the arbitrary athletic feats of strangers. What I’m saying is that baseball has no inherent value beyond the cultural construct, by which I mean whether or not people give a crap. If the fans aren’t showing up, and the touted TV numbers are slipping, then how can we call a baseball team “good?” The bigger picture isn’t really about the Rays — and their prohibitive geographical limitations. It’s about the rise of three true outcomes, the other sports leagues that have gotten good at marketing their players’ personalities, the alienating predominance of analytics, cities wising up to the scam that is publicly funded stadiums, owners cheaping out on retaining marquee talent. Major League Baseball and the Rays had to do something to address the reality of Tampa Bay’s attendance problem, and they are. But they aren’t really reckoning with it. More from Yahoo Sports: Here's how Steph Curry found out where KD was signing Angels P Tyler Skaggs dead at 27 Wimbledon: Venus Williams loses to 15-year-old Police: Ortiz shooting was $30K hit gone wrong
Is GHP Specialty Care AB (publ)'s (STO:GHP) High P/E Ratio A Problem For Investors? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to GHP Specialty Care AB (publ)'s (STO:GHP), to help you decide if the stock is worth further research. Based on the last twelve months,GHP Specialty Care's P/E ratio is 25.65. That corresponds to an earnings yield of approximately 3.9%. See our latest analysis for GHP Specialty Care Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for GHP Specialty Care: P/E of 25.65 = SEK14.05 ÷ SEK0.55 (Based on the year to March 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each SEK1 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. Earnings growth rates have a big influence on P/E ratios. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. And as that P/E ratio drops, the company will look cheap, unless its share price increases. GHP Specialty Care's earnings made like a rocket, taking off 286% last year. Even better, EPS is up 17% per year over three years. So you might say it really deserves to have an above-average P/E ratio. The P/E ratio essentially measures market expectations of a company. As you can see below, GHP Specialty Care has a higher P/E than the average company (15) in the healthcare industry. GHP Specialty Care's P/E tells us that market participants think the company will perform better than its industry peers, going forward. 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. So it won't reflect the advantage of cash, or disadvantage of debt. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof). GHP Specialty Care has net debt worth just 2.9% of its market capitalization. So it doesn't have as many options as it would with net cash, but its debt would not have much of an impact on its P/E ratio. GHP Specialty Care's P/E is 25.7 which is above average (17) in the SE market. While the company does use modest debt, its recent earnings growth is superb. So on this analysis a high P/E ratio seems reasonable. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. But note:GHP Specialty Care 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.
What Investors Should Know About Equinor ASA's (OB:EQNR) Financial Strength Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The size of Equinor ASA (OB:EQNR), a øre577b large-cap, often attracts investors seeking a reliable investment in the stock market. One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. However, the key to their continued success lies in its financial health. This article will examine Equinor’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto EQNR here. See our latest analysis for Equinor EQNR's debt levels surged from US$28b to US$30b over the last 12 months , which accounts for long term debt. With this rise in debt, EQNR's cash and short-term investments stands at US$16b , ready to be used for running the business. On top of this, EQNR has produced cash from operations of US$18b during the same period of time, leading to an operating cash to total debt ratio of 60%, signalling that EQNR’s debt is appropriately covered by operating cash. With current liabilities at US$19b, it seems that the business has been able to meet these commitments with a current assets level of US$29b, leading to a 1.48x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Oil and Gas 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 55%, EQNR can be considered as an above-average leveraged company. This is not unusual for large-caps since debt tends to be less expensive than equity because interest payments are tax deductible. Accordingly, large companies often have an advantage over small-caps through lower cost of capital due to cheaper financing. We can test if EQNR’s debt levels are sustainable by measuring interest payments against earnings of a company. As a rule of thumb, a company should have earnings before interest and tax (EBIT) of at least three times the size of net interest. For EQNR, the ratio of 177x suggests that interest is comfortably covered. High interest coverage is seen as a responsible and safe practice, which highlights why most investors believe large-caps such as EQNR is a safe investment. Although EQNR’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 EQNR has been performing in the past. I suggest you continue to research Equinor to get a more holistic view of the large-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for EQNR’s future growth? Take a look at ourfree research report of analyst consensusfor EQNR’s outlook. 2. Valuation: What is EQNR 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 EQNR 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.
Asian stocks rise after Wall Street record on trade truce BEIJING (AP) — Most Asian stock markets rose Tuesday after Wall Street's benchmark hit a new high following the latest truce in the costly U.S.-Chinese trade war. Tokyo and Sydney rose, while Shanghai was unchanged. Hong Kong rose strongly in early trading despite protests over a proposed extradition law that prompted police to use tear gas to clear streets. Investors were encouraged by the agreement between Presidents Donald Trump and Xi Jinping of China at a weekend meeting of the Group of 20 major economies to resume trade negotiations. That optimism came despite forecasters' warnings the two sides still face the same differences that caused talks to break down in May. Also Monday, the Trump administration ratcheted up tensions with the European Union by proposing additional tariffs on $4 billion of European imports in a dispute over subsidies to aircraft manufacturers. Investors "may find this optimism cooling," Jingyi Pan of IG said in a report. "The sustainability of this upward movement remains in question with the uncertainty continuing for geopolitical tensions." Tokyo's Nikkei 225 rose 0.1 percent to 21,754.38 and Hong Kong's Hang Seng gained 1.2 percent to 28,899.10. Sydney's S&P-ASX 200 advanced 0.3 percent to 6,667.80. The Shanghai Composite Index was off 2 points at 3,042.98 and Seoul's Kospi shed 0.2 percent to 2,124.94. New Zealand and Southeast Asian markets also advanced, while Taiwan declined. On Wall Street, the Standard & Poor's 500 index rose 0.8 percent after Trump's agreement to hold off imposing new tariffs on $300 billion of Chinese imports put investors in a buying mood. Investors worry the fight over Beijing's technology ambitions will drag on global economic growth. Those concerns prompted the Federal Reserve last month to declare its willingness to cut interest rates if the dispute hurts the U.S. economy. The S&P 500 index rose to 2,964.33. The Dow Jones Industrial Average gained 0.4% to 26,717.43. The Nasdaq composite rose 1.1% to 8,091.16. The trade truce leaves 25% import taxes imposed by the U.S. on $250 billon of Chinese imports in place. And China maintains the tariffs it placed on $110 billion in American goods, primarily agricultural products. Trump also said he would allow U.S. companies to sell some components to Chinese telecommunications giant Huawei, which last month was placed on an American blacklist as a national security threat. Technology stocks and banks accounted for much of Monday's gains Monday as traders turned their backs on more defensive holdings. Utilities and real estate stocks lagged the market in a sign of Wall Street's bigger appetite for risk. Chipmakers rallied on plans by the U.S. to loosen some restrictions on sales to Huawei. Broadcom climbed 4.3% and Micron Technology gained 3.9%. Apple and Microsoft also rose. ENERGY: Benchmark U.S. crude fell 24 cents to $58.85 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 62 cents on Monday to close at $59.09. Brent crude, used to price international oils, lost 16 cents to $64.90 per barrel in London. It gained 32 cents the previous session to $65.06. CURRENCY: The dollar declined to 108.41 yen from Monday's 108.44 yen. The euro fell to $1.1278 from $1.1285.
Should You Be Holding Equinor ASA (OB:EQNR)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of Equinor ASA (OB:EQNR), there's is a company with an impressive track record of performance, trading at a great value. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on Equinor here. EQNR is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if EQNR's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the market, EQNR is also trading below other listed companies on the NO stock exchange, relative to earnings generated. This bolsters the proposition that EQNR's price is currently discounted. For Equinor, there are three key factors you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for EQNR’s future growth? Take a look at ourfree research report of analyst consensusfor EQNR’s outlook. 2. Financial Health: Are EQNR’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 Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of EQNR? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Worry About VBG Group AB (publ)'s (STO:VBG B) CEO Pay? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Anders Birgersson has been the CEO of VBG Group AB (publ) (STO:VBG B) since 2001. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally 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 VBG Group At the time of writing our data says that VBG Group AB (publ) has a market cap of kr4.1b, and is paying total annual CEO compensation of kr7.1m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at kr3.8m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of kr1.9b to kr7.4b. The median total CEO compensation was kr3.7m. Thus we can conclude that Anders Birgersson receives more in total compensation than the median of a group of companies in the same market, and of similar size to VBG Group AB (publ). However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see, below, how CEO compensation at VBG Group has changed over time. VBG Group AB (publ) has increased its earnings per share (EPS) by an average of 7.4% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 20%. I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. Boasting a total shareholder return of 129% over three years, VBG Group AB (publ) has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size. We compared total CEO remuneration at VBG Group AB (publ) with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group. While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Shareholders may want tocheck for free if VBG Group insiders are buying or selling shares. Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Interested In VBG Group AB (publ) (STO:VBG B)? Here's What Its Recent Performance Looks Like Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Understanding how VBG Group AB (publ) (STO:VBG B) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how VBG Group is doing by comparing its latest earnings with its long-term trend as well as the performance of its machinery industry peers. Check out our latest analysis for VBG Group VBG B's trailing twelve-month earnings (from 31 March 2019) of kr298m has jumped 37% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 26%, indicating the rate at which VBG B is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is merely owing to industry tailwinds, or if VBG Group has experienced some company-specific growth. In terms of returns from investment, VBG Group has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. Furthermore, its return on assets (ROA) of 7.5% is below the SE Machinery industry of 8.1%, indicating VBG Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for VBG Group’s debt level, has increased over the past 3 years from 11% to 14%. While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as VBG Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research VBG Group to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for VBG B’s future growth? Take a look at ourfree research report of analyst consensusfor VBG B’s outlook. 2. Financial Health: Are VBG B’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Are Investors Undervaluing Voestalpine AG (VIE:VOE) By 30%? 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 Voestalpine AG (VIE:VOE) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. 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 Voestalpine 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. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (\u20ac, Millions)", "2020": "\u20ac373.1m", "2021": "\u20ac473.6m", "2022": "\u20ac539.0m", "2023": "\u20ac661.8m", "2024": "\u20ac695.6m", "2025": "\u20ac720.9m", "2026": "\u20ac740.3m", "2027": "\u20ac755.4m", "2028": "\u20ac767.3m", "2029": "\u20ac777.0m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x6", "2021": "Analyst x9", "2022": "Analyst x5", "2023": "Analyst x2", "2024": "Analyst x2", "2025": "Est @ 3.63%", "2026": "Est @ 2.7%", "2027": "Est @ 2.04%", "2028": "Est @ 1.58%", "2029": "Est @ 1.26%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 9.87%", "2020": "\u20ac339.5", "2021": "\u20ac392.3", "2022": "\u20ac406.3", "2023": "\u20ac454.1", "2024": "\u20ac434.4", "2025": "\u20ac409.7", "2026": "\u20ac383.0", "2027": "\u20ac355.7", "2028": "\u20ac328.8", "2029": "\u20ac303.0"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= €3.8b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 0.5%. We discount the terminal cash flows to today's value at a cost of equity of 9.9%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €777m × (1 + 0.5%) ÷ (9.9% – 0.5%) = €8.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€8.3b ÷ ( 1 + 9.9%)10= €3.25b 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 €7.06b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of €39.55. Compared to the current share price of €27.49, the company appears quite undervalued at a 30% 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. 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 Voestalpine as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.9%, which is based on a levered beta of 1.438. 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 Voestalpine, I've compiled three important factors you should further research: 1. Financial Health: Does VOE 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 VOE'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 VOE? 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 VIE 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.
Are Insiders Buying Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (BME:BME) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inBolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A.(BME:BME). It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required. We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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.' Check out our latest analysis for Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Antonio Jose Zoido Martínez bought €202k worth of shares at a price of €22.76 per share. That means that an insider was happy to buy shares at above the current price of €22.22. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Happily, we note that in the last year insiders bought 14239 shares for a total of €333k. Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying. Over the last three months, we've seen significant insider buying at Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros. In total, insiders bought €290k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros insiders own 0.2% of the company, worth about €3.0m. I generally like to see higher levels of ownership. It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros insiders are reasonably well aligned, and optimistic for the future. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros. Of courseBolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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