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Do You Know What Peach Property Group AG's (VTX:PEAN) P/E Ratio Means? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll apply a basic P/E ratio analysis to Peach Property Group AG's (VTX:PEAN), to help you decide if the stock is worth further research.Peach Property Group has a P/E ratio of 4.56, based on the last twelve months. That corresponds to an earnings yield of approximately 22%. See our latest analysis for Peach Property Group Theformula for P/Eis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Peach Property Group: P/E of 4.56 = CHF34.1 ÷ CHF7.48 (Based on the year to December 2018.) A higher P/E ratio means that buyers have to paya higher pricefor each CHF1 the company has earned over the last year. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future. Probably the most important factor in determining what P/E a company trades on is the earnings growth. Earnings growth means that in the future the 'E' will be higher. And in that case, the P/E ratio itself will drop rather quickly. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. Peach Property Group saw earnings per share improve by -2.1% last year. And it has bolstered its earnings per share by 93% per year over the last five years. The P/E ratio indicates whether the market has higher or lower expectations of a company. We can see in the image below that the average P/E (15.9) for companies in the real estate industry is higher than Peach Property Group's P/E. This suggests that market participants think Peach Property Group will underperform other companies in its industry. Since the market seems unimpressed with Peach Property Group, it's quite possible it could surprise on the upside. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. 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. Peach Property Group's net debt is considerable, at 219% of its market cap. If you want to compare its P/E ratio to other companies, you must keep in mind that these debt levels would usually warrant a relatively low P/E. Peach Property Group has a P/E of 4.6. That's below the average in the CH market, which is 18.5. While the recent EPS growth is a positive, the significant amount of debt on the balance sheet may be contributing to pessimistic market expectations. Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
At €20.30, Is It Time To Put Revenio Group Oyj (HEL:REG1V) On Your Watch List? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Revenio Group Oyj (HEL:REG1V), which is in the medical equipment business, and is based in Finland, saw a significant share price rise of over 20% in the past couple of months on the HLSE. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine Revenio Group Oyj’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Revenio Group Oyj According to my valuation model, Revenio Group Oyj seems to be fairly priced at around 1.8% below my intrinsic value, which means if you buy Revenio Group Oyj today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €20.68, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Revenio Group Oyj’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Revenio Group Oyj. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder?REG1V’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor?If you’ve been keeping an eye on REG1V, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Revenio Group Oyj. You can find everything you need to know about Revenio Group Oyj inthe latest infographic research report. If you are no longer interested in Revenio Group Oyj, 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.
Investors Who Bought Paramount Communications (NSE:PARACABLES) Shares Five Years Ago Are Now Up 236% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Paramount Communications Limited(NSE:PARACABLES) shareholders have seen the share price descend 12% over the month. But that doesn't change the fact that the returns over the last five years have been very strong. It's fair to say most would be happy with 236% the gain in that time. To some, the recent pullback wouldn't be surprising after such a fast rise. Of course, that doesn't necessarily mean it's cheap now. View our latest analysis for Paramount Communications To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During the five years of share price growth, Paramount Communications moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here.. Investors in Paramount Communications had a tough year, with a total loss of 19%, against a market gain of about 4.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 27%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Is Paramount Communications cheap compared to other companies? These3 valuation measuresmight help you decide. 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 IN exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Pfizer Limited (NSE:PFIZER) A Great Dividend Stock? 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 take a closer look at Pfizer Limited ( NSE:PFIZER ) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. 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. A 0.7% yield is nothing to get excited about, but investors probably think the long payment history suggests Pfizer has some staying power. Some simple research can reduce the risk of buying Pfizer for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Pfizer! NSEI:PFIZER Historical Dividend Yield, July 2nd 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Pfizer paid out 24% of its profit as dividends. Given the low payout ratio, it is hard to envision the dividend coming under threat, barring a catastrophe. Remember, you can always get a snapshot of Pfizer's latest financial position, by checking our visualisation of its financial health . Dividend Volatility 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. Pfizer 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 ₹12.50 in 2009, compared to ₹22.50 last year. Dividends per share have grown at approximately 6.1% per year over this time. Story continues Dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. Dividend Growth Potential 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 4.8% a year for the past five years, which is better than seeing them shrink! So, we know earnings growth has been thin on the ground. However, at least the payout ratio is conservative, and there is plenty of potential to increase this over time. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. It's great to see that Pfizer is paying out a low percentage of its earnings and cash flow. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. Overall we think Pfizer is an interesting dividend stock, although it could be better. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for Pfizer for free with public analyst estimates for the company . If you are a dividend investor, you might also want to look at our curated 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 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.
'Gremlins' is coming back as an animated series Gremlins, the 1984 comedy horror film that famouslyspawnedthe PG-13 rating, is coming back. WarnerMedia hasconfirmedthat it will produce an animated series calledGremlins: Secrets of the Mogwai. Set in 1920s Shanghai, the 10-episode prequel, written by Tze Chun, will tell the story of the mysterious shop owner Mr. (Sam) Wing. The plot will follow 10-year-old Sam and street thief Elle, and detail how he met Gizmo, the adorable Mogwai who can morph into a not-so-adorable army of evil Gremlins. The trio will go on a fraught journey through the Chinese countryside on a quest to return Gizmo to his family and find a treasure. They'll find and fight monsters and spirits from Chinese folklore, while fending off a greedy industrialist and, naturally, a whole bunch of bloodthirsty gremlins. Steven Spielberg was the executive producer of the both the original film and the 1990 sequel, and his company Amblin Television will produce the WarnerMedia animated prequel, according toDeadline. AGremlins 3film sequel from Warner and Amblin has been rumored for years, but until it makes a splash and emerges in the sunlight, the streaming animated series will have to do.
Vietnam says will have African swine fever vaccine 'soon', experts sceptical * Vietnam has lost 10% of pig herd to African swine fever * Says vaccine has protected 31 of 33 pigs in initial trials * Other experts wary of Vietnam's claims, say more trials needed * Global efforts on vaccine have met little success so far HANOI, July 2 (Reuters) - Vietnam said on Tuesday it has had initial success in creating a vaccine to fight African swine fever, which has infected farms throughout the Southeast Asian country and prompted the culling of around 10% of its pig herd. African swine fever - which has spread to Laos and North Korea as well after being detected in China in August 2018 - was first detected in Vietnam in February and has spread to farms in 61 of the country's 63 provinces. More than 2.9 million pigs have been culled in Vietnam, Agriculture Minister Nguyen Xuan Cuong said on Tuesday, out of a hog population of about 30 million. "I think we're on the right track, and we will soon have a vaccine," Cuong said, according to the official Vietnam News Agency (VNA). The vaccine, developed at the Vietnam National University of Agriculture, has been tested in its laboratory and at three farms in northern Vietnam, state broadcaster Vietnam Television (VTV) said in a separate report on Tuesday. Experts on vaccines and African swine fever, though, were sceptical over the claims of progress and said there needed to be much more research to prove the viability of any vaccine. "We need different phases of clinical trials, first in an experimental setting with controlled exposure, and then a field trial with natural exposure to the virus, and that cannot be a small trial," said Dirk Pfeiffer, a professor of veterinary epidemiology at the City University of Hong Kong. The complex nature of the virus and gaps in knowledge concerning infection and immunity have so far hindered other global efforts to develop a vaccine against the disease, which is harmless to humans but deadly to pigs. Researchers elsewhere have abandoned attempts to use a killed virus for a vaccine and teams in the United States, Europe and China have been working on live vaccines instead, which carry higher safety risks. Story continues In Vietnam's initial trials, 31 out of 33 pigs injected with the test vaccine are still healthy after receiving two shots over a period of months, according to the VTV report. Other pigs at the farms have died from the virus, the report said, without giving specific figures. No further details were given about the vaccine or the trials. The agricultural university's director, Nguyen Thi Lan, said the vaccine still needed further research, and required testing on a larger scale. Lan declined to comment on the report and referred questions from Reuters to the agricultural ministry, which did not immediately respond to a request for comment. Pork makes up three-quarters of total meat consumption in Vietnam, a country of 95 million people where most of its farm-raised pigs are consumed domestically. The country's pork industry is valued at 94 trillion dong ($4 billion) a year, and accounts for nearly 10% of Vietnam's agricultural sector. African swine fever was first detected in Asia last year in China, the world's largest pork producer. As many as half of China's breeding pigs have died or been slaughtered because of the disease, twice as many as officially reported. (Reporting by Khanh Vu and Phuong Nguyen in HANOI; Additional reporting by Dominique Patton in BEIJING; Editing by James Pearson and Tom Hogue)
Bulgaria's Borissov says hopes for deal in EU top job summit fight BRUSSELS, July 2 (Reuters) - Prime Minister Boyko Borrisov said disagreement over the EU's top jobs had pitted nations against each other but that he hoped that EU leaders would find a way to unite behind a deal at a third day of talks on Tuesday. Borissov said that Eastern Europe countries had born the brunt of criticism in Brussels, but he hoped for a compromise. "For the time being we know who are we against - which is everyone. Let's hope today we will find a ground to unite," Borrisov told reporters in Brussels. "They often like to criticize the countries from Eastern Europe, here we see it in full volume. They have mocked us enough so I hope today there will be a decision," he said. He said he would back Kristalina Georgieva, a Bulgarian chief executive of the World Bank, to head the European Commission but that for the time being she was not getting enough support from others leaders. (Reporting by Tsvetelia Tsolova; Editing by Alissa de Carbonnel)
Do You Like Rudrabhishek Enterprises Limited (NSE:REPL) At This P/E Ratio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it practical, we'll show how Rudrabhishek Enterprises Limited's (NSE:REPL) P/E ratio could help you assess the value on offer. Based on the last twelve months,Rudrabhishek Enterprises's P/E ratio is 7.23. That means that at current prices, buyers pay ₹7.23 for every ₹1 in trailing yearly profits. See our latest analysis for Rudrabhishek Enterprises Theformula for P/Eis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Rudrabhishek Enterprises: P/E of 7.23 = ₹37.65 ÷ ₹5.21 (Based on the trailing twelve months to March 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each ₹1 the company has earned over the last year. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future. When earnings fall, the 'E' decreases, over time. That means even if the current P/E is low, it will increase over time if the share price stays flat. Then, a higher P/E might scare off shareholders, pushing the share price down. Rudrabhishek Enterprises increased earnings per share by a whopping 32% last year. And it has bolstered its earnings per share by 2.7% per year over the last five years. With that performance, I would expect it to have an above average P/E ratio. Unfortunately, earnings per share are down 5.5% a year, over 3 years. We can get an indication of market expectations by looking at the P/E ratio. The image below shows that Rudrabhishek Enterprises has a lower P/E than the average (23.5) P/E for companies in the professional services industry. Rudrabhishek Enterprises's P/E tells us that market participants think it will not fare as well as its peers in the same industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. The extra options and safety that comes with Rudrabhishek Enterprises's ₹60m net cash position means that it deserves a higher P/E than it would if it had a lot of net debt. Rudrabhishek Enterprises's P/E is 7.2 which is below average (15.3) in the IN market. Not only should the net cash position reduce risk, but the recent growth has been impressive. The relatively low P/E ratio implies the market is pessimistic. Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' We don't have analyst forecasts, but you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow. Of courseyou might be able to find a better stock than Rudrabhishek Enterprises. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Do Insiders Own Lots Of Shares In ORPEA Société Anonyme (EPA:ORP)? 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 ORPEA Société Anonyme (EPA:ORP) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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. ORPEA Société Anonyme is a pretty big company. It has a market capitalization of €6.9b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about ORP. Check out our latest analysis for ORPEA Société Anonyme 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. ORPEA Société Anonyme already has institutions on the share registry. Indeed, they own 51% 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. 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 ORPEA Société Anonyme'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. ORPEA Société Anonyme is not owned by hedge funds. 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 ORPEA Société Anonyme. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around €419m worth of shares (at current prices). If you would like to explore the question of insider alignment, you canclick here to see if insiders have been buying or selling. The general public, with a 43% 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. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Do Institutions Own RIB Software SE (FRA:RIB) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in RIB Software SE (FRA:RIB) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I 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.' With a market capitalization of €871m, RIB Software is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows 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 RIB. View our latest analysis for RIB Software 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. RIB Software already has institutions on the share registry. Indeed, they own 55% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see RIB Software's historic earnings and revenue, below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It would appear that 5.6% of RIB Software shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders maintain a significant holding in RIB Software SE. It has a market capitalization of just €871m, and insiders have €175m worth of shares in their own names. 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, with a 10% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It seems that Private Companies own 8.6%, of the RIB stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It's always worth thinking about the different groups who own shares in a company. But to understand RIB Software 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.
Are Orient Refractories Limited’s (NSE:ORIENTREF) High Returns Really That Great? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Orient Refractories Limited (NSE:ORIENTREF) to see whether it might be an attractive investment prospect. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First of all, we'll work out how to calculate ROCE. Then we'll compare its ROCE to similar companies. Last but not least, we'll look at what impact its current liabilities have on its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Generally speaking a higher ROCE is better. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. 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 Orient Refractories: 0.32 = ₹1.2b ÷ (₹5.1b - ₹1.3b) (Based on the trailing twelve months to March 2019.) Therefore,Orient Refractories has an ROCE of 32%. View our latest analysis for Orient Refractories ROCE can be useful when making comparisons, such as between similar companies. Orient Refractories's ROCE appears to be substantially greater than the 9.2% average in the Basic Materials industry. We consider this a positive sign, because it suggests it uses capital more efficiently than similar companies. Regardless of the industry comparison, in absolute terms, Orient Refractories's ROCE currently appears to be excellent. You can click on the image below to see (in greater detail) how Orient Refractories's past growth compares to other companies. When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is, after all, simply a snap shot of a single year. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for Orient Refractories. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counter this, investors can check if a company has high current liabilities relative to total assets. Orient Refractories has total liabilities of ₹1.3b and total assets of ₹5.1b. Therefore its current liabilities are equivalent to approximately 26% of its total assets. The fairly low level of current liabilities won't have much impact on the already great ROCE. With low current liabilities and a high ROCE, Orient Refractories could be worthy of further investigation. Orient Refractories shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Influencers Are Now Buying Virtual Clothes They Will Wear On IG But Never Touch IRL Photo credit: Getty Images From ELLE Picture this: you’re browsing online and a statement jacket suddenly catches your eye. Metallic, with flashes of lime green; it's unlike anything you’ve seen before. After some umming and ahhing, you decide to buy it. Instead of ever seeing it in person, though, you supply a photo of yourself and the same image is then sent back with your newly purchased jacket edited onto you. Yep, you read that right. You will never touch that jacket, or try it on, but you can wear it 'digitally' and rake in the likes all the same. This might sound like the premise of a Black Mirror episode, but, thanks to Norwegian company Carlings, it's very much a reality. And as a practice, it's becoming increasingly popular. In reaction to reports of influencers buying one-off outfits solely for Instagram, Carlings launched its first digital-only collection last November. Titled ‘Neo-Ex’, the collection was inspired by video games like Tekken, and featured a bright yellow crocodile skin coat, blue latex chaps covered in computer code print and a black visor emblazoned with the slogan ‘Eat The Glitch’. Photo credit: Carlings After you purchase an outfit from the 19-piece collection for £9-30, a group of 3D designers will digitally ‘fit’ the look onto a photo of the buyer, ready to post on social media. Kicki Perrson, marketing manager at Carlings, says the response has been overwhelmingly positive and the company plans to drops its second digital-only collection this summer. 'In real life, these types of designer clothes cost thousands of pounds and will usually be worn on social media once because of their distinct design,' says Persson. 'By selling the digital collection at £15 per item, we’ve sort of democratised the economy of the fashion industry and at the same time opened up the world of taking chances with your styling, without leaving a negative carbon footprint.' View this post on Instagram wearing World’s first digital clothes by @carlings_official ⛓ (если вы не знаете онгелеский, то это первая в мире 3D одежда для инфлюенсеров мяувыучите онглеский) A post shared by Daria Simonova (@higherthanfashion) on Nov 29, 2018 at 6:15am PST Influencer Daria Simonova , who modelled the collection’s puffer jacket and lightning bolt-embellished jeans to her 58k followers, said she would definitely buy more digital clothing in the future. Story continues 'I really love this idea because firstly, it’s environmentally-friendly and secondly, clothing nowadays is more like an art form for social media. Digital clothing is super convenient, and the design potential is huge because it’s way cheaper.' Could virtual luxury fashion ever take off? It's no secret that our fast fashion habit is causing irreparable damage. The industry contributes more to climate change than the yearly emissions of air travel and sea travel combined. While we should all be aiming to consume less, and recycle more, what if you could buy a look that had zero environmental impact? The concept might seem outlandish, but the fashion industry is actually late to the party. Gamers have been spending real money for years. As Matthew Drinkwater, head of the Fashion Innovation Agency at London College of Fashion points out, Fortnite fans rack up millions of dollars on skins for their avatars. 'The money being spent on virtual content in the gaming industry is huge,' explains Drinkwater, 'and the fashion industry is only just beginning to realise that there might be an opportunity there.' One such brand is Moschino, who recently launched a Sims-inspired capsule collection complete with green diamond-printed swimsuits. The launch was also accompanied by the release of a virtual version of the capsule’s Freezer Bunny hoodie for all of the current Sims titles, so that your Sims can be kitted out in Moschino too. Kerry Murphy, founder of The Fabricant - an Amsterdam-based ‘digital fashion house’ that creates hyper-real virtual clothing for fashion brands and retailers - thinks it won’t be long until we see a luxury brand do a completely digital collection. 'We’re already in talks with some brands who are thinking about digital-only drops and starting to adopt this digital-only way of thinking,' Murphy says. But could virtual luxury fashion ever take off? Last May, in New York, the world’s first piece of ‘digital couture’ was sold at a charity auction for £7,500 ($9,500). The iridescent, translucent one-piece was designed by Amber Jae Slooten, creative director at The Fabricant, to be fitted onto a photo of the owner. 'As technology improves and the photo-realism of what you can create gets better, you start getting to the possibility where the desirability of digital clothing could become on a par with the real thing,' says Drinkwater. Photo credit: The Fabricant 'People might even be prepared to spend more - or as much - money on digital clothing as they would do for real, physical clothing.' Creative possibilities begin to spring up, too. For designers and brands stuck in specific way of creating, you can push the boundaries without the anxiety of blowing a budget. 'Suddenly those harnesses are released and you can begin to go beyond what anyone has ever seen before,' adds Drinkwater. Slooten, whose background is in fashion design, says she became acquainted with 3D modelling five years ago and fell in love with it. 'It’s fantastic. There’s no material wastage, you can create anything and as a designer, it's a very new way of working,' she says. 'It's like sculpting your way around the body instead of creating a pattern and then sewing and putting it together.' The tangible joy of fashion While Drinkwater thinks we are still at least five to 10 years away from digital clothing being commonplace, we have a long way to go. Despite offering a possible solution to our culture of disposable fashion, doesn't digital fashion fall into the same trap? You'll not only (likely) post once before relegating that over-sized blue puffer jacket to the back of your virtual wardrobe, but are actively encouraged to do so. And then there are the influencers. While the proposition of designer-worthy outfits that can be fitted to your particular body regardless of its shape is no doubt a tantalising one for people with giant followings (and the compulsion to post new like-garnering content on a daily basis), it's hard to imagine it having the same pull for people who don't spend every waking minute on Instagram. View this post on Instagram @fashionwithfaith is wearing #Stuhf Jon shades 🔥 #carlings A post shared by Carlings (@carlings_official) on May 16, 2019 at 7:00am PDT 'As a regular punter, surely you really want to wear [your clothes] because nobody really sees your pictures on Instagram?' asks Shonagh Marshall, London-based fashion curator. Really, though, when so much of the joy of fashion is in dressing up, could we really have the same emotional connection with something that doesn't even exist? The tactile experience of running your fingers over a satin dress is what makes it so joyous. Instead, Drinkwater thinks we'll start to build an 'entirely different' relationship with our clothes. 'With the proliferation of high street stores where everybody is pumping out huge volumes, but every store is the same, it’s made the world very boring. I think the element of exclusivity that you could create through digital clothing is something that could build that desire and actually return a sense of how we used to shop.' View this post on Instagram We all know my heart belongs to LA, but polyamory is a thing so that means I’m also allowed to have a crush on NYC ok 😹🗽 The story of Stonewall Inn is one big reason why I love this place. Nowadays in a lot of cities it’s not too hard to find a cute gay bar or queer party, but back in 1969, there weren’t a lot of places where LGBTQIA+ folks could express themselves how they wanted and hang out with each other without str8/cis ppl being all annoying and judgy (or worse). In the early morning hours of June 28, police raided the Inn bc homophobia/transphobia/racism, and things escalated after the police started to, well, do the things cops do 🙅🏻♀😒 BUT despite the chaos and danger the crowd fought back!! And drove the police away. This was a defining moment in the history of LGBTQIA+ rights 💪🏿💪🏾💪🏽💪🏼💪🏻💪 On that day and during later riots, it was black trans women like Marsha P. Johnson (RIP) who led the fight to reclaim space for gay, queer, and trans folks of all origins and walks of life ~ which is still true today. Being at Stonewall was humbling to say the least, and as I learn more about who I am and who I like to love, I’m immensely grateful for the brave folks at Stonewall and 💫ESPECIALLY💫 to black trans women ~ because of their bravery I’m able to feel safe being who I am today 🌈💖 and I guess it’s #NationalSelfieDay but MORE importantly it’s ~ and I cannot stress this enough ~ #PRIDEMONTH so here I am being who I am xx Miquela A post shared by Miquela (@lilmiquela) on Jun 21, 2019 at 3:26pm PDT Still, Murphy believes that digital clothing is inevitably the next frontier in fashion. 'It's crazy to deny that our lives are becoming more virtual and that we are moving towards a more digital existence, especially with the popularity of virtual influencers like Lil Miquela (with 1.6 million Instagram followers),' he says. 'People are following her like any soap opera on TV, but two years ago, everybody was saying that’s ludicrous as well!” However you might feel about virtual clothes, there’s no ignoring that the industry needs a serious overhaul. Digital fashion could potentially pave the way for a more sustainable business model – one where our overconsumption of worn-once clothing is drastically diminished. Post and save the planet at the same time? We're here for it - whether we actually get there remains to be seen. ('You Might Also Like',) Pyjamas You Can Wear All Day 10 Hand Soaps To Make Your Bathroom Feel Like A Fancy Hotel 8 Of The Best Natural Deodorants
Heartbreaking pictures show schoolgirl's prom night ruined by bully Emilee Perry, left, anticipating her school formal and, right, in tears after a bully threw juice over her. Source: Facebook/ Tracy Perry Photos of a teenage girl’s traumatic experience at her prom night have highlighted the challenges of adolescent anxiety and school bullying. Tracy Perry, from Doncaster, wrote on Facebook she had to beg her daughter Emilee, 16, to go to the school prom last week adding she suffers from anxiety. Emilee donned a sequin dress and went to the dance, but two hours later her mum had to come and pick her up. “Two hours later I collect her from the prom like this, heartbroken and in a state,” Ms Perry wrote. “This 'person' thought it a good idea to pour a full jug of juice over her and soak her from head to toe.” Pictures show Emilee before and after the cruel prank – smiling ahead of her arrival and in tears, soaked with stains on her dress following the drenching. The pictures were shared more than 1200 times and attracted hundreds of comments. Emilee in a stained dress after her mum picked her up. People have called the bully's actions 'vindictive and nasty'. Source: Facebook/ Tracy Perry “Such a beautiful girl and she deserves so much more,” one woman wrote. Another woman added the prank was “absolutely disgusting” but Emilee “still looks beautiful”. “This honestly broke my heart,” another woman wrote. “Your daughter is gorgeous inside and out. I hope something is done about this. It’s disgusting behaviour and it deserves to be punished.” Others called the bully’s actions, “vindictive and nasty”. Inspired by the encouragement of strangers Emilee has since responded to the support she’s received on Facebook. The teen wrote she’s “eternally grateful”. “The way that people have responded has absolutely overwhelmed me and has proven to me that I can get through everything and it hope that this makes me a stronger person,” she wrote. “I'm personally making the decision to keep the name of the girl anonymous because I would hate to be spreading her name around and causing her more hate and stress.” Watch the latest videos from Yahoo UK
AB InBev seeks $9.8 billion for Asia stake in world's largest 2019 IPO By Sumeet Chatterjee and Alun John HONG KONG (Reuters) - Brewing giant Anheuser-Busch InBev NV (AB InBev) is seeking to raise up to $9.8 billion by listing its Asia-Pacific business in Hong Kong, marking what would be the world's largest initial public offering this year. Budweiser Brewing Company APAC, whose portfolio of more than 50 beer brands includes Stella Artois and Corona, is selling 1.6 billion primary shares at between HK$40-$47 ($5.13-$6.02) apiece, according to termsheets seen by Reuters. The deal will raise between $8.3 billion and $9.8 billion for heavily-indebted AB InBev before any over-allocation option is included, giving Budweiser Asia a market capitalisation of up to $63.7 billion after the IPO. The world's largest brewer has been working to reduce a debt pile of over $100 billion following the purchase of rival SABMiller in late 2016. The company has said the main merit of a Hong Kong listing would be to create a champion in the Asia-Pacific region, where sales are still growing and increasingly wealthy consumers are trading up to higher margin premium beers. "In addition to paying down debt, the deal provides AB InBev with a 'platform for M&A' whereby local brewers such as ThaiBev might prefer to tie up with a locally focused player in an Asian currency," said Nico von Stackelberg of Liberum. Shares in Belgium-based AB InBev traded 1.4% higher at 79.36 euros by 0925 GMT. WORLD'S BIGGEST Even at the low end of the price range, the IPO will be the biggest globally this year, outstripping the $8.1 billion raised in New York by Uber, data from Refinitiv shows. Global share listings hit their lowest level in three years in the first half of the year, with a slowdown in Europe counteracting a stronger U.S. showing. The IPO pricing values Budweiser Asia at 16-18 times its enterprise value (EV) to EBITDA (earnings before interest, tax, depreciation and amortisation) ratio, one termsheet shows. EV-EBITDA is a common valuation metric that seeks to help investors compare companies' operations and strip out the different effects of financing costs. Story continues Budweiser Asia's ratio compares with an EV-EBITDA value of 11 for AB InBev itself, according to Refinitiv data, 15 for China-focused Tsingtao and 10 for Japan's Kirin, another Asia-centric brewing giant. The deal will be a welcome boost to Hong Kong, which is lagging behind the New York Stock Exchange and Nasdaq in terms of IPOs this year, with $8.9 billion to its credit compared with $14.9 billion and $17.5 billion raised by its U.S. rivals. The biggest listing in the Asian financial hub so far in 2019 has been that of Chinese securities firm Shenwan Hongyuan HK Ltd which raised $1.2 billion in April. The investor response to the offering will also act as a barometer for other large share sales in the near future, with Alibaba Group Holding Ltd considering raising as much as $20 billion through a listing in Hong Kong. Budweiser Asia's deal is expected to price in New York on July 11 and the stock will debut in Hong Kong on July 19, the term sheet showed. A spokeswoman for AB InBev declined to comment. JPMorgan and Morgan Stanley are the joint sponsors of the float. Bank of America Merrill Lynch and Deutsche Bank are the joint global coordinators for the offering. ($1 = 7.8015 Hong Kong dollars) (Reporting by Sumeet Chatterjee, Alun John and Julie Zhu; Editing by Himani Sarkar and Keith Weir)
Should RKEC Projects Limited (NSE:RKEC) 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 RKEC Projects Limited (NSE:RKEC) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. RKEC Projects has only been paying a dividend for a year or so, so investors might be curious about its 3.6% yield. There are a few simple ways to reduce the risks of buying RKEC Projects for its dividend, and we'll go through these 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. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 21% of RKEC Projects's profits were paid out as dividends in the last 12 months. We'd say its dividends are thoroughly covered by earnings. Consider gettingour latest analysis on RKEC Projects's financial position here. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Its most recent annual dividend was ₹2.00 per share, effectively flat on its first payment one years ago. It's good to see at least some dividend growth. Yet with a relatively short dividend paying history, we wouldn't want to depend on this dividend too heavily. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see RKEC Projects has been growing its earnings per share at 76% 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. We'd also point out that RKEC Projects issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, we like that RKEC Projects has low and conservative payout ratios. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. Overall we think RKEC Projects scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look. Now, if you want to look closer, it would be worth checking out ourfreeresearch on RKEC Projectsmanagement tenure, salary, and performance. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Orient Paper & Industries Ltd.'s (NSE:ORIENTPPR) CEO Paid Enough Relative To Peers? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Manohar Pachisia became the CEO of Orient Paper & Industries Ltd. (NSE:ORIENTPPR) in 1991. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid. View our latest analysis for Orient Paper & Industries According to our data, Orient Paper & Industries Ltd. has a market capitalization of ₹6.1b, and pays its CEO total annual compensation worth ₹51m. (This figure is for the year to March 2019). We note that's an increase of 46% above last year. We think total compensation is more important but we note that the CEO salary is lower, at ₹15m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m. As you can see, Manohar Pachisia is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Orient Paper & Industries Ltd. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance. The graphic below shows how CEO compensation at Orient Paper & Industries has changed from year to year. Over the last three years Orient Paper & Industries Ltd. has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). In the last year, its revenue is up 7.4%. Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested inthisfreevisualization of analyst forecasts. Given the total loss of 39% over three years, many shareholders in Orient Paper & Industries Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously. We examined the amount Orient Paper & Industries Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group. However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Orient Paper & Industries shares (free trial). Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Kind Of Shareholder Owns Most Rottneros AB (publ) (STO:RROS) Stock? 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 Rottneros AB (publ) (STO:RROS) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned. Rottneros is not a large company by global standards. It has a market capitalization of kr1.8b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about RROS. Check out our latest analysis for Rottneros Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Rottneros does have institutional investors; and they hold 16% 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. 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 Rottneros's earnings history, below. Of course, the future is what really matters. We note that hedge funds don't have a meaningful investment in Rottneros. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own some shares in Rottneros AB (publ). As individuals, the insiders collectively own kr43m worth of the kr1.8b company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling. The general public, with a 23% 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. We can see that Private Companies own 58%, 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. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free. If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Where RSA Insurance Group plc (LON:RSA) 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! Measuring RSA Insurance Group plc's (LON:RSA) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess RSA's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements. See our latest analysis for RSA Insurance Group RSA's trailing twelve-month earnings (from 31 December 2018) of UK£326m has jumped 21% 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 71%, indicating the rate at which RSA is growing has slowed down. To understand what's happening, let's look at what's transpiring with margins and if the entire industry is experiencing the hit as well. In terms of returns from investment, RSA Insurance Group has fallen short of achieving a 20% return on equity (ROE), recording 8.8% instead. However, its return on assets (ROA) of 1.7% exceeds the GB Insurance industry of 1.3%, indicating RSA Insurance Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for RSA Insurance Group’s debt level, has increased over the past 3 years from 3.0% to 3.7%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 53% to 13% over the past 5 years. While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as RSA Insurance Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research RSA Insurance Group to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for RSA’s future growth? Take a look at ourfree research report of analyst consensusfor RSA’s outlook. 2. Financial Health: Are RSA’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.
One Direction's Louis Tomlinson responds to Harry Styles gay fan fiction Louis Tomlinson and Harry Styles at the Capital FM Summertime Ball 2015 (Credit: PA) One Direction Louis Tomlinson has said he did not “approve” an animated sex scene between him and Harry Styles which featured un US TV show Euphoria . The HBO teen drama, starring Zendaya, follows a group of high school students, including Kat, played by Barbie Ferreira, who publishes Larry Stylinson fan fiction online - fictional stories about a love affair between 1D members Tomlinson and Styles. Responding to one Twitter user’s comment that they did not think Tomlinson would like the scene in the show, the 27-year-old singer replied: “I can categorically say that I was not contacted nor did I approve it.” I can categorically say that I was not contacted nor did I approve it. — Louis Tomlinson (@Louis_Tomlinson) July 1, 2019 @backtoyoulouis had written: “Just going to sit and hope that they for some reason approved it because surely they had to to get it aired harry seems quite friendly with the people involved but u can just TELL louis’ not gonna like it [sic]” Larry Stylinson fan fiction has been around since 2011, but in the Euphoria storyline teenager Kat was credited with starting the movement. The Larry Stylinson animation from Euphoria (Credit: HBO) Zendaya narrated animated scenes from the story The First Night , set during the first night of the Take Me Home tour in 2013, and putting on a fake British accent to voice the parts of Tomlinson and Styles. In the story Tomlinson is nervous about going onstage and so Styles approaches him and begins to pleasure him in a bid to relax him. Tomlinson’s animated character asks,"But Harry, what if someone sees?", to which Styles replies, "Let them!" One Direction fans have come out in support of Tomlinson on social media, calling the Euphoria scenes and invasion of privacy. One wrote: “Seriously. He is a person. He is not just an Idol. Harry and Lou, both deserve some respect amf privacy. [sic]” Another commented: “Some people are calling Louis homophobic because he doesn’t want anyone to see that scene, imagine someone made you an animated character to do a sexual scene without contacting you and asking for your approval, how would you feel?” Story continues View this post on Instagram A post shared by JECE (@itscalledgayhoney) on Jul 1, 2019 at 6:25pm PDT But others are rejoicing at the revival of Larry Stylinson fan fiction which first began in 2011. One tweeted: “I don’t know anything about this Euphoria show except that is has Larry Stylinson stuff in it and that’s enough for me to watch.” idk ANYTHING about this euphoria show except that it has larry stylinson stuff in it and tbh that's enough for me to watch — Carrie Murphy 🌙 (@carriemurph) July 1, 2019 Styles, 25, has not commented on the show.
Does Groupe Open's (EPA:OPN) P/E Ratio Signal A Buying Opportunity? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at Groupe Open's (EPA:OPN) P/E ratio and reflect on what it tells us about the company's share price. Based on the last twelve months,Groupe Open's P/E ratio is 13.54. That is equivalent to an earnings yield of about 7.4%. View our latest analysis for Groupe Open Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Groupe Open: P/E of 13.54 = €17.76 ÷ €1.31 (Based on the trailing twelve months to December 2018.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future. Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. Earnings growth means that in the future the 'E' will be higher. And in that case, the P/E ratio itself will drop rather quickly. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. Groupe Open increased earnings per share by 6.6% last year. And it has bolstered its earnings per share by 25% per year over the last five years. We can get an indication of market expectations by looking at the P/E ratio. We can see in the image below that the average P/E (16.6) for companies in the it industry is higher than Groupe Open's P/E. Its relatively low P/E ratio indicates that Groupe Open shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with Groupe Open, it's quite possible it could surprise on the upside. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued. 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. 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). Groupe Open has net cash of €12m. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options. Groupe Open has a P/E of 13.5. That's below the average in the FR market, which is 18. EPS was up modestly better over the last twelve months. And the healthy balance sheet means the company can sustain growth while the P/E suggests shareholders don't think it will. Since analysts are predicting growth will continue, one might expect to see a higher P/E soit may be worth looking closer. Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So 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 Groupe Open. 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.
Australian Parliament resumes for first time since election CANBERRA, Australia (AP) The Australian government returned to Parliament on Tuesday claiming a new mandate from the May election to pass 158 billion Australian dollars ($110 billion) in tax cuts into law. Prime Minister Scott Morrison won a surprise third three-year term at elections on May 18. The conservative government is giving priority to passing tax cuts that will cost AU$158 billion over a decade. The government doesn't hold a majority in the Senate, so it will need either the support of the center-left opposition Labor Party or at least four of six unaligned senators to make the tax cuts law. The opposition is divided on whether they should pass the cuts. Treasurer Josh Frydenberg said the tax cuts were needed to stimulate a slowing economy. "We are focusing on delivering these tax cuts for the Australian people as they endorsed at the most recent election," Frydenberg told Australian Broadcasting Corp. "The Australian people spoke with a very clear voice just six weeks ago," he added. The government was returned to office with a relatively narrow majority, holding 78 seats in the 151-seat House of Representatives where parties need a majority to form government. Australia's central bank last month last month cut its benchmark interest rate by a quarter of a percentage point to a record low of 1.25% in the first rate change in almost three years. The Reserve Bank of Australia on Tuesday reduced the rate further to 1%. View comments
Should You Be Tempted To Sell The Restaurant Group plc (LON:RTN) 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! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to The Restaurant Group plc's (LON:RTN), to help you decide if the stock is worth further research.Restaurant Group has a P/E ratio of 55.61, based on the last twelve months. That corresponds to an earnings yield of approximately 1.8%. See our latest analysis for Restaurant Group Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Restaurant Group: P/E of 55.61 = £1.34 ÷ £0.024 (Based on the trailing twelve months to December 2018.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation. Therefore, even if you pay a low multiple of earnings now, that multiple will become higher in the future. Then, a higher P/E might scare off shareholders, pushing the share price down. Restaurant Group saw earnings per share decrease by 73% last year. And EPS is down 39% a year, over the last 5 years. This might lead to muted expectations. The P/E ratio indicates whether the market has higher or lower expectations of a company. You can see in the image below that the average P/E (18.1) for companies in the hospitality industry is a lot lower than Restaurant Group's P/E. Restaurant Group's P/E tells us that market participants think the company will perform better than its industry peers, going forward. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should delve deeper. I like to checkif company insiders have been buying or selling. The 'Price' in P/E reflects the market capitalization of the company. So it won't reflect the advantage of cash, or disadvantage of debt. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth. 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). Net debt is 44% of Restaurant Group's market cap. You'd want to be aware of this fact, but it doesn't bother us. Restaurant Group's P/E is 55.6 which suggests the market is more focussed on the future opportunity rather than the current level of earnings. With some debt but no EPS growth last year, the market has high expectations of future profits. Investors have an opportunity when market expectations about a stock are wrong. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Should You Know About Gilead Sciences, Inc.'s (NASDAQ:GILD) 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, Gilead Sciences, Inc. (NASDAQ:GILD) announced its earnings update. Overall, analysts seem cautiously optimistic, with earnings expected to grow by 18% in the upcoming year against the past 5-year average growth rate of -15%. Currently with trailing-twelve-month earnings of US$5.5b, we can expect this to reach US$6.5b by 2020. Below is a brief commentary on the longer term outlook the market has for Gilead Sciences. For those interested in more of an analysis of the company, you canresearch its fundamentals here. See our latest analysis for Gilead Sciences The view from 24 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of GILD's earnings growth over these next few years. By 2022, GILD's earnings should reach US$6.5b, from current levels of US$5.5b, resulting in an annual growth rate of 2.3%. EPS reaches $5.6 in the final year of forecast compared to the current $4.2 EPS today. In 2022, GILD's profit margin will have expanded from 25% to 29%. Future outlook is only one aspect when you're building an investment case for a stock. For Gilead Sciences, I've put together three fundamental 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 Gilead Sciences 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 Gilead Sciences is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Gilead Sciences? 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 Kind Of Shareholders Own Schlumberger Limited (NYSE:SLB)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Schlumberger Limited (NYSE:SLB) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership. Schlumberger has a market capitalization of US$54b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it's seems 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 SLB. See our latest analysis for Schlumberger 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 80% of Schlumberger. 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 Schlumberger's earnings history, below. Of course, the future is what really matters. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Schlumberger. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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 Schlumberger Limited insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$83m of stock. Arguably recent buying and selling is just as important to consider. You canclick here to see if insiders have been buying or selling. The general public, with a 20% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand Schlumberger 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. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
When is the real Independence Day: July 2 or July 4? There’s no doubt the Founding Fathers signed the Declaration of Independence in July 1776. But which date has the legitimate claim on Independence Day: July 2 or July 4? indhall1 If John Adams were alive today, he would tell you July 2. Other Founders would say July 4, the day that is currently recognized as a federal holiday by our national government. And still, other Founders would say, “what Independence Day?” since the holiday wasn’t widely celebrated until many of the Founders had passed away. Here is the evidence, so you can decide which Independence Day is the real Independence Day! Officially, the Continental Congress declared its freedom from Great Britain on July 2, 1776, when it voted to approve a resolution submitted by delegate Richard Henry Lee of Virginia, declaring “That these United Colonies are, and of right ought to be, free and independent States, that they are absolved from all allegiance to the British Crown, and that all political connection between them and the State of Great Britain is, and ought to be, totally dissolved.” John Adams thought July 2 would be marked as a national holiday for generations to come: “[Independence Day] will be the most memorable Epocha, in the History of America. I am apt to believe that it will be celebrated, by succeeding Generations, as the great anniversary Festival… It ought to be solemnized with Pomp and Parade with shews, Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this continent to the other from this Time forward forever more,” Adams wrote. After voting on independence on July 2, the Continental Congress then needed to draft a document explaining the move to the public. It had been proposed in draft form by the Committee of Five (John Adams, Roger Sherman, Robert Livingston, Benjamin Franklin, and Thomas Jefferson) and it took two days for the Congress to agree on the edits. Once the Congress approved the actual Declaration of Independence document on July 4, it ordered that it be sent to a printer named John Dunlap. About 200 copies of the “Dunlap Broadside” version of the document were printed, with John Hancock’s name printed at the bottom. Today, 26 copies remain. Story continues That is why the Declaration has the words, “IN CONGRESS, July 4, 1776,” at its top, because that is the day the approved version was signed in Philadelphia. On July 8, 1776, Colonel John Nixon of Philadelphia read a printed Declaration of Independence to the public for the first time on what is now called Independence Square. (Most of the members of the Continental Congress signed a version of the Declaration on August 2, 1776, in Philadelphia. The names of the signers were released publicly in early 1777.) The late historian Pauline Maier said in her 1997 book, American Scripture: Making the Declaration of Independence, that no member of Congress recalled in early July 1777 that it had been almost a year since they declared their freedom from the British. They finally remembered the event on July 3, 1777, and July 4 became the day that seemed to make sense for celebrating independence. Maier also said that arguments over the how to celebrate the Declaration arose between the Federalists (of John Adams) and the Republicans (of Thomas Jefferson) and that the Declaration and its anniversary day weren’t widely celebrated until the Federalists faded away from the political scene after 1812. In an 1826 letter – the last he ever wrote—Thomas Jefferson spoke of the importance of Independence Day. “For ourselves, let the annual return of this day forever refresh our recollections of these rights, and an undiminished devotion to them,” he said. Jefferson and Adams both passed away two days later, on the Fourth of July. Scott Bomboy is the editor in chief of the National Constitution Center.
5 Things Constellation Brands Just Said About Canopy Growth -- Good and Bad Constellation Brands(NYSE: STZ)announced its first-quarter earnings resultslast Friday, and they were better than Wall Street's expectations. The alcoholic beverage maker's results were dragged down, though, by its investment in cannabis producerCanopy Growth(NYSE: CGC). Without the Canopy investment, Constellation would have posted a nice profit. With Canopy, the company reported a $245 million loss in the quarter. You might think that Constellation Brands' executives would have some negative comments about Canopy Growth. And they did. But they also expressed a lot of optimism about their cannabis partner. Here are five important things they had to say about Canopy Growth duringtheir Q1 conference call. Image source: Getty Images. No, CEO Bill Newlands didn't call Canopy Growth a cannabis albatross hanging around his company's neck. However, he did say that Constellation was "not pleased with Canopy's recent reported year-end results." Canopyposted a huge net loss in fiscal 2019 Q4, along with a quarter-over-quarter decline in Canadian recreational and medical cannabis sales, and lower international medical cannabis sales. About the only truly good news from Canopy's Q4 results was that its total revenue increased. But that increase resulted primarily from the acquisition of German vaporizer device maker Storz & Bickel. Constellation CFO David Klein said that "we're very happy with [Canopy's] investment in Storz & Bickel." He noted the positive impact from this acquisition in Canopy's latest results, but Constellation sounded even more positive aboutCanopy's deal to acquire U.S.-based cannabis operatorAcreage Holdings. Newlands brought up Canopy's agreement to buy Acreage in his introductory comments in the earnings call, saying, "We're excited about this opportunity, as it provides a path for Canopy to have a leading position in the U.S. upon federal cannabis reform." He added that the transaction extends the duration of Constellation's Canopy warrants, a plus that he said "provides long-term financial flexibility for cash deployment to our shareholders." Despite Canopy's weaker-than-expected sales in its fiscal Q4, Constellation remains confident in the cannabis producer's long-term potential. In fact, Newlands said that his company continues to expect that Canopy will deliver an annualized top-line run rate of around $1 billion by the end of its next fiscal year, which ends on March 31, 2020. In Canopy's Q4 conference call, co-CEO Bruce Linton stated that he thinks the $1 billion annualized revenue rate is achievable as well. There are variables that could impact hitting this goal, though, including how quickly retail stores open in Canadian provinces (especially Ontario) and how smoothly the launch goes for cannabis edibles and other derivative products. While Constellation looks forward to working with Canopy to introduce new higher-margin form factors -- including vapes, beverages, and edibles -- in Canada later this year, the company also eagerly anticipates Canopy's entrance into the U.S. hemp cannabidiol (CBD) market. Canopy is building a large-scale hemp production center in New York state. Newlands echoed the comments from Bruce Linton in Canopy's Q4 conference call that Canopy will market CBD products in the U.S. by the end of 2019. In his remarks about Canopy's entrance into the U.S. hemp CBD market, Constellation's Klein said, "We think that's a good place for them to focus their money and resources to really take advantage of what could be a very large and profitable market in the U.S." adding that his company is "really happy with how they're positioning themselves there." Could Constellation regret its decision to invest over $4 billion in Canopy Growth? Its executives say they don't. Newlands stated that Constellation "remain[s] happy with our investment in the cannabis space and its long-term potential." Klein seconded this, saying, "We still are very bullish on our Canopy investment, and we're very happy we made the investment when we did into this space." While Canopy is hurting Constellation's bottom line right now, it's a leader in the global cannabis market. And that market is likely to grow exponentially over the next decade. Also, Constellation has recognized a pre-tax net gain of $1.6 billion since its first investment in Canopy in November 2017. That's a pretty good return so far -- and likely a key reason Constellation continues to be happy overall with Canopy Growth. 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 Speightshas no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has adisclosure policy.
Despite Rough Seas, Value Expert Sticks with Carnival The last week was not smooth sailing for cruise lineCarnival Corp(CCL), even as the company posted earnings of $0.66 per share in Q2 2019 (vs. $0.62 est.), explains value investorJason Clark, contributing editor toThe Prudent Speculator. The company had revenue of $4.8 billion, versus the $4.5 billion estimate. Shares slid nearly 12% following the announcement, which came ahead of schedule, as the company’s gloomy full-year forecast troubled analysts. More from Jason Clark:Corning: The Technology of Glass Carnival CEO Arnold Donald commented, “We have the foundation and we remain steadfast in our commitment to consistently deliver double-digit earnings growth and growth in return on invested capital over time." Looking ahead, Mr. Donald added, “We’re updating our adjusted earnings guidance range, previously $4.35 to $4.55, now $4.25 to $4.35.” The cruise operator has been on the receiving end of a lot of flack lately, earlier in the month having agreed to pay $20 million for environmental-related violations. The judge in the case chided Mr. Donald and chairman Micky Arison for the company’s third conviction of this type of crime, reminding them that without the environment, CCL would have nothing to sell. In addition, MSC Opera crashed heavily into its dock in Venice, prompting much blow back from locals, some of whom would like to see cruise ships docked elsewhere. Although CCL does not own the MSC Opera, it does sail to Venice and changes to docking there or elsewhere could have significant impact on the business. See also:Look at Loews: An Under the Radar Conglomerate Analysts had been expecting the company's earnings per share midpoint for 2019 to be around $4.55, but the actual guidance had a midpoint of $4.30. A confluence of mostly unrelated events have put a damper on CCL’s ability to execute over the near term and it’s unclear when geopolitical headwinds will abate (particularly in relation to the inability to dock in Cuba), but we maintain our long-term optimism on CCL. We also remains optimistic on the the overall cruise industry space, given favorable demographic trends and the fact that there are still meaningful growth opportunities in emerging economies, which are encouraging for global revenue diversification and the ability to rapidly reach a new customer base. While near-term headwinds will continue to blow, Carnival Cruise shares now sport a 4.3% dividend yield and a forward P/E ratio of 10.2. Our target price has been trimmed to $75 per share. More From MoneyShow.com: • 3 "Autopilot" Funds with 8% Yields • Visa Charges Ahead of the Competition • Two Perfect REITs for a Dovish Fed • Real Estate Funds for a Retirement Portfolio
IBM-Maersk Shipping Blockchain Gains Steam With 15 Carriers Now on Board IBM has recruited two more major shipping carriers to join the blockchain platform it co-owns with container giant Maersk. Announced Tuesday, Hapag-Lloyd and Singapore-based Ocean Network Express (ONE) – the world’s fifth and sixth largest carriers respectively – are the latest ocean carriers to join the TradeLens blockchain. They follow top-five carriers CMA CGM and MSC, which joined TradeLenslast month. Related:Walmart China Teams with VeChain, PwC on Blockchain Food Safety Platform Aside from Maersk and its subsidiary Hamburg Süd, TradeLens was launched in early 2018 with just one other shipping carrier, Asia’s Pacific International Lines (PIL), 17th in the world based on cargo volumes. Over the course of last year, IBM’s TradeLens struggled to sign up Maersk’s competitors; as CoinDeskreported,rival carriers were put off by IBM and Maersk essentially owning the platform. One way or another, those concerns seem to have dissipated as far as competing shipping lines are concerned. TradeLens now boasts 15 ocean carrier lines, including ZIM, KMTC, Safmarine, Sealand, Seaboard Marine, Namsung, Boluda and APL. Todd Scott,vice president of supply chain solution sales at IBM Blockchain,said a lot of work had gone into getting the governance right, ensuring data privacy, publishing APIs, and aligning with common standards, known to the shipping and supply chain industry. Related:IBM Unveils Upgraded 2.0 Version of Enterprise Blockchain Asked if there had been any other fundamental changes to the ownership of the platform, Scott told CoinDesk: “The ownership has not changed. TradeLens is still a jointly-owned product, asset, IP etc between IBM and Maersk. That has not changed at all.” In a statement, Martin Gnass, managing director information technology at Hapag-Lloyd, said: “TradeLens has made significant progress in launching a much-needed transformation in the industry, including its partnership model.” A spokesman for Hapag-Lloyd told CoinDesk via email: “Concerning TradeLens, we (like other major carriers) were not happy with the initial governance model proposed by IBM and Maersk. In the meantime, they have changed their approach and made it acceptable for us (and other major carriers like CMA CGM, MSC) to participate in the platform.” The spokesman said he could not comment on the details of the new approach as they are“commercially confidential”. Scott offered another theory behind Tradelens’s recent growth spurt. He said players in the shipping and logistics world may have kicked the tires of other proposed solutions and seen that IBM’s Blockchain Platform (built on the Hyperledger Fabric blockchain foundation) offered the best results. “There were some other projects that I think that some of the carriers had engaged in that may not have produced the same kind of results [as TradeLens]. So I think that may have played a role as well,” said Scott. An obvious example of this could be the shipping blockchain pilot run by Accenture, which included Singapore-based shipping carrier APL (American President Lines, 12th largest by cargo volume) and freight forwarding giant Kuehne + Nagel. APL and its parent company CMA CGM have both now chosen to join TradeLens. (Neither CMA CMG, APL nor Accenture replied to requests for comment by press time.) Now that IBM’s major supply chain distributed ledgers – Walmart-backed Food Trust and TradeLens – are both live and processing a ton of data, when will the effort start pay off with revenues for Big Blue? “The expectation is that we will start to turn the corner on this,” Scott said. “Without getting into specifics and timing, we believe that as the ecosystem sees value, commercialization will come – certainly in the not too distant future.” Shipping portimage via Shutterstock • Retail Giant Walmart Enters Second Drug-Tracking Blockchain Trial • IBM, Maersk’s Blockchain Platform TradeLens Is Shipping to Russia
Should You Be Excited About Netflix, Inc.'s (NASDAQ:NFLX) 22% Return On Equity? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Netflix, Inc. (NASDAQ:NFLX). Netflix has a ROE of 22%, based on the last twelve months. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.22 in profit. View our latest analysis for Netflix Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Netflix: 22% = US$1.3b ÷ US$5.7b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. 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. That means that the higher the ROE, the more profitable the company is. So, all else equal,investors should like a high ROE. That means ROE can be used to compare two businesses. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. Pleasingly, Netflix has a superior ROE than the average (16%) company in the Entertainment industry. That's what I like to see. We think a high ROE, alone, is usually enough to justify further research into a company. For example,I often check if insiders have been buying shares. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. Netflix clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.81. There's no doubt the ROE is respectable, but it's worth keeping in mind that metric is elevated by the use of debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. 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. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreereport on analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Latest Bitcoin Cash price and analysis (BCH to USD) Last week , Bitcoin Cash (BCH) was slowly recovering from a substantial dip earlier in the month that saw its price plummet from around $440 to $389, representing an 11% drop. Having reached $420 at the start of this week, price again dropped to around $390 last night. BCH has since made a speedy recovery and is now hovering around the 20-day EMA at $401 – a great signal of support. Will BCH maintain its current momentum and fly even higher? Let’s take a look at the latest BCH price action. Looking at the chart above, we can clearly see BCH has broken through some important resistance barriers. Bitcoin Cash broke the $330 level around its 200-day EMA in early May, and the 10-day EMA has now moved above the 200-day EMA – a clear bullish signal. Moreover, volumes have remained strong since mid-May, helping BCH to break key levels and find support initially around $360 and later around $400. Last week, I mentioned how I expected BCH to find support around $475. This did not happen as price declined accompanying the rest of the altcoin market, with people moving their profits into Bitcoin instead . Be aware that we may experience close to 60% drops, as this did happen in a similar situation during 2015 prior to the last massive bull run, meaning BCH could still touch the 20-day or 100-day EMA around $345. For the time being, I expect BCH to settle above the $500 level with minimal hassle once Bitcoin gets a push. There is a high probability price will accumulate for a few more days/weeks before making a move upwards, as we’ve seen in past bull runs. Safe trades! BCH fundamentals I recently spoke with Bitcoin Cash’s strongest advocate, Roger Ver, and discussed the most recent developments on the horizon for BCH. You can find all the details here , but the most juicy news seems to be the recent spike in adoption due to the implementation of smart contracts. Roger, like myself, believes key components for mass adoption are speed and flexibility. What Bitcoin Cash Oracles offers is a way for any user to easily deploy an “escrow” transaction that can be used to trade globally – without the hassle of trusting the other party. Story continues I personally think these “trade escrows” will be key in terms of adoption, especially for work-related tasks. In a way, they do enable milestone-based funding, which may be the new and better way of conducting ICOs instead of simply creating an extra layer of complexity with STOs that require KYC and accreditation – something that goes against what we should be promoting within the crypto ecosystem. Current live BCH pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest BCH price. Pricing is also available in a range of different currency equivalents: US Dollar – BCHtoUSD British Pound Sterling – BCHtoGBP Japanese Yen – BCHtoJPY Euro – BCHtoEUR Australian Dollar – BCHtoAUD Russian Rouble – BCHtoRUB Bitcoin – BCHtoBTC About Bitcoin Cash Bitcoin Cash was born out of the idea of making Bitcoin more practical for small, day-to-day payments. In May 2017, Bitcoin payments took about four days unless a fee was paid, which was proportionately too large for small transactions. A change to the code was implemented and Bitcoin Cash was born on 1st August 2017. More Bitcoin Cash news and information If you want to find out more information about Bitcoin Cash or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started: Kraken launches Bitcoin Cash and Ripple margin trading By Scott Thompson – July 2, 2019 As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not. You may be interested in our range of cryptocurrency guides along with the latest cryptocurrency news . The post Latest Bitcoin Cash price and analysis (BCH to USD) appeared first on Coin Rivet .
Cash This Check for $250, and Sign Away Your Right to Sue (Bloomberg) -- The perennial issue in the gig economy is whether workers should be classified as employees. Uber Technologies Inc., Lyft Inc. and other companies that rely on contract work have dealt with this question in a number of ways: staging PR campaigns, hiring lobbyists and arguing in court that they’re software platforms, not employers. At Getaround Inc., which helps people rent out their personal cars online, the startup is employing an uncommon legal tactic in the hope of defeating a class-action lawsuit before it starts. As lawyers were working on one such case, Getaround preemptively sent dozens of checks to people who have worked with the company, attached to paperwork asking them to sign away their legal rights. According to a provision within the documents, depositing the money, even without signing the contract, would count as an agreement to waive their rights to sue. And almost everyone did. The technique, which has been used selectively by companies in other industries, may prove to be particularly effective in the gig economy, where workers lack financial stability, said Bryan Schwartz, a Bay Area attorney who’s not involved in the case. It’s an “insidious” move, he said, because recipients likely can’t afford to seek legal counsel and weigh the benefits of holding out for a potentially larger payout from a lawsuit. “Low-wage workers, who are trying to make ends meet, are especially vulnerable,” said Schwartz, who serves on the board of the California Employment Lawyers Association, a worker advocacy group. “They’re going to sign and take the pittance to waive all their claims.” Getaround’s legal strategy in this case, which involves whether contract workers should be treated as regular employees, highlights the creative measures gig companies will take to avoid scrutiny of their use of contractors. Many of these businesses are unprofitable and would lose even more money if they were forced to reclassify workers and pay employment benefits. In California, where Getaround and its ilk are based, companies are reeling from last year’s sweeping ruling by the state’s supreme court that limits the scope of work companies can classify as contracted. Lyft, Uber and Postmates Inc. have been lobbying lawmakers and publishing op-eds, hoping to find a workaround. And all these companies have faced lawsuits from contractors claiming they should get the same benefits and protections as employees. A spokeswoman for Getaround said the company denies the allegations in the suit and will continue to defend itself. She wrote in an email that Getaround has a commitment to “fairly value the contributions of our employees.” The legal gambit is known among employment lawyers as “Pick Up Stix.” The name is a reference to a 2009 case involving a fast-casual restaurant chain that used the strategy to secure settlements with workers seeking overtime pay. Recipients may not realize that accepting the check means they’re giving up a chance at a bigger payout down the line—or they may not be able to afford to wait. Last year, a former Getaround worker, Amanda Ponciano, sued the company, saying her work as a “fleet associate” qualified as that of an employee but she was paid like a contractor. She and other fleet associates were paid around $15 an hour to move cars around the city and help prep vehicles to be rented. She said they went through a two-week training program administered by Getaround, were assigned shifts by the company, wore Getaround hats and jackets and used mostly company-provided equipment—details that she said support her misclassification claim. In October, while her attorney worked to get class-action certification for the suit, Getaround sent out letters and emails to the 61 people in California who had worked the same job as Ponciano in recent years. In the envelope was a check and a message saying the money is theirs if they sign a settlement waiving their right to sue Getaround for anything that happened in the past. It also said they could simply deposit the check to indicate their consent. All but four took the offer. The checks ranged from $250 to about $9,000, depending on how long the person had worked for Getaround, said Ramsey Hanafi, the attorney working on the suit. The company spent about $145,000 on this initial round of settlements, according to a legal filing. Around the same time, Getaround made its fleet associates employees. The company declined to explain its reasoning for the change. Then, in May, Getaround sent a new settlement offer. It needed to amend its previous contracts because it had actually asked its fleet associates to sign away more rights than was legally tenable. (Though, in general, collecting preemptive settlements is considered a viable strategy.) In the new letter, Getaround told the workers that they could either sign the new agreement and get an additional $100 check mailed to them, or they could return the money they had previously accepted in the first agreement, Hanafi said. If they did neither, Getaround wrote in the emails, the company could sue them for the money. The most recent settlements were due in June. The case, which is ongoing, has yet to achieve class-action status. Its next court date is in August. Hanafi estimated Getaround owes $1.6 million for wages and penalties, far more than the company will pay in settlements. His client, Ponciano, doesn’t fault her former colleagues for taking the cash from Getaround. “I wasn’t surprised when Getaround said, ‘Hey, take this money,’ and they all said, ‘Yes,’” Ponciano said. “A lot of the people I worked with were really pressed for money.” Getaround, on the other hand, isn’t hurting for cash. SoftBank Group Corp.’s Vision Fund led a $300 million investment in the company last year. Getaround has been on a spending spree since then. It bought Drivy, which operates a car-sharing service in Europe, for $300 million in April, and Nabobil, a similar business in Norway, for $12 million last week. Settling worker claims the way Getaround did is unusual among gig-economy companies but only because most of them already require workers to sign class-action waivers as part of their arbitration agreements, said Christian Schreiber, an attorney who has handled worker misclassification cases against Lyft. Getaround declined to specify whether it has asked workers to sign arbitration agreements. The ease with which these companies can communicate with workers en masse through an app means they can easily change the rules at any time, Schreiber said. He expects they’ll continue to update the terms of service to minimize liability in the future. Either way, the outcomes are the same. “These employers can just blast out a communication that either changes the terms of service of employment,” Schreiber said, “or they can offer settlements to wipe out claims going backward in time.” To contact the author of this story: Ellen Huet in San Francisco at ehuet4@bloomberg.net To contact the editor responsible for this story: Mark Milian at mmilian@bloomberg.net, Anne VanderMey For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
What the Ending of Spider-Man: Far From Home Means for the Future of the Marvel Cinematic Universe Warning: This post contains spoilers for Spider-Man: Far From Home . Avengers: Endgame marked an end, if not necessarily a permanent one, to the Avengers storyline and the biggest movie franchise ever created. Spider-Man: Far From Home , the first Marvel Cinematic Universe film to drop after Endgame , hints at what comes next for Marvel movies. Far From Home introduces audiences to a post-Thanos universe. Peter Parker ( Tom Holland ) is struggling to move past the death of his mentor, Tony Stark (Robert Downey Jr.), and the world is seeking out new heroes to fill the vacuum left by the Avengers, all of whom have died or retired . Marvel Studios has remained tight-lipped about what movies will follow Far From Home . They have not yet officially announced any dates for their future films, though sequels for Spider-Man , Black Panther , Captain Marvel and Doctor Strange are definitely in the works. Still, Far From Home , and particularly the movies two post-credit scenes, suggests that Spider-Man will take on a bigger role in the Avengers team or whatever superhero conglomerate takes its place. The movie also suggests that the Marvel movies will become increasingly galactic. Heres everything that Spider-Man: Far From Home tells us about the future of the Spider-Man movies and the Marvel Cinematic Universe . The world is still adjusting to the blip Michelle (Zendaya) catches a ride from Spider-Man (Tom Holland) in Spider-Man: Far From Home \| JoJo WhildenSony Pictures At the end of Avengers: Infinity War , Thanos (Josh Brolin) used the Infinity stones to snap his fingers and eliminate half of all life in the universe. Five years pass in Avengers: Endgame before the Avengers concoct a plan to travel through time, collect the Infinity Stones themselves and bring back the people who disappeared. Hulk (Mark Ruffalo) uses the Infinity Stones to do just that. (They decide, however, not to rewind time, because that would eliminate children like Tony Starks daughter who were born in the intervening years.) Peter Parker briefly confronts the awkward results of this move at the end of Avengers: Endgame when he returns to school and sees a sea of faces he does not recognize. In the past five years, the half of his classmates who did not disappear have graduated high school, and middle schoolers have aged up. Luckily for Peter, his best friend Ned (Jacob Batalon) and crush MJ (Zendaya) disappeared, which means they can all complete high school together. Story continues Spider-Man: Far From Home reckons with the consequences of what they call the blip, or the return of half the Earths population five years later. One kid observes that his younger brother is now older than him: How weird is that? We also see a shot of band members who have disappeared from a gym reappearing in the middle of a basketball game. And as Peter embarks on a Eurotrip with his classmates, he and Ned complain about a once-awkward middle schooler who has grown into a buff teenager while they were away, attracting all the girls attention. Obviously the age jump is most dramatic for kids, but it will be interesting to see how the blip affects other aspects of life on Earth and in space, post-Thanos. Spider-Man is taking over for Iron Man sort of (l to r) Jon Favreau, Robert Downey Jr. and Tom Holland in Spider-Man: Homecoming \| Chuck ZlotnickSony Pictures Entertainment Far From Home confirms that the Avengers have disbanded: Iron Man and Black Widow (Scarlett Johansson) have died, Thor (Chris Hemsworth) has decamped to space and Captain America (Chris Evans) has traveled back in time to live out a tranquil life with his first love Peggy Carter (Hayley Atwell). The citizens of the world are in mourning, and Peter Parker is haunted by Tonys sacrifice in particular. Every blank wall that Peter passes in New York, Venice, Prague and London seems to be covered with a gigantic mural of Iron Man. (Does anyone else find it a bit rude that nobody has painted any murals of Black Widow?) During a question-and-answer session with the press, a reporter asks Spider-Man whether he will be the new leader of the Avengers. Peter panics and swings away. Though Uncle Ben is long gone, Peter is still struggling with the notion that with great power comes great responsibility: When the likes of Nick Fury (Samuel L. Jackson), Ned and Happy (Jon Favreau) suggest that Spider-Man needs to step up to a leadership role now that the key Avengers are all gone, Peter complains that he just wants to enjoy his vacation and share his first kiss with MJ on top of the Eiffel Tower. (Nick Fury, or the person who turns out to be the shape-shifting alien Talos disguised as Nick Fury, gives a yada-yada speech about how there are certainly other superheroes who could protect Earth, including Black Panther, Captain Marvel and Doctor Strange, but theyre all indisposed.) Peter suffers the consequences of his immaturity when he hands off dangerous technology he inherited from Tony to Mysterio ( Jake Gyllenhaal ), a supposed superhero who claims hes from a parallel universe. The whole parallel universe thing turns out to be a ruse, and Mysterio is actually a man whose scientific developments were once spurned by Tony Stark. (Mysterio joins a long line of men who seek vengeance against the Avengers after the egotistical Tony ticked them off, including Whiplash in Iron Man 2 , Aldrich Killian in Iron Man 3 and Vulture in Spider-Man: Homecoming. ) Mysterio creates fake monsters called the Elementals in order to seemingly fight them and position himself as the next Iron Man. Spider-Man eventually discovers his plot and defeats him. In the process, Peter dons Tonys old glasses in order to use the computer program EDITH (which stands for Even Dead Im The Hero). He builds a new Spider-Man suit to the tune of AC/DCs Back in Black, which opened the very first Iron Man movie. The end of Spider-Man: Far From Home parallels the end of Iron Man : In Iron Man , Tony Stark reveals his secret identity to the world; in a post-credits scene for Far From Home , the Daily Bugle releases a video in which Mysterio reveals Peter Parkers real identity to the world. In both cases, the revelation puts the heroes loved ones in danger. The implication of all these visual and thematic parallels is that, to some extent, Spider-Man is taking over for Iron Man in the Marvel Cinematic Universe. Peter Parker is certainly still a kid, but (for better or worse) hes not just your friendly neighborhood Spider-Man anymore. Hes a globetrotting hero who, as Nick Fury points out, has even fought in space. If some second iteration of the Avengers comes together, hes the most likely candidate to lead the Earth-bound group, especially since Captain Marvel (Brie Larson) is preoccupied in space, Black Panther (Chadwick Boseman) with his country of Wakanda and Doctor Strange (Benedict Cumberbatch) with mystical threats (more on those later). Vulture, Scorpion, The Prowler, the Sinister Six and Miles Morales could all still show up Michael Keaton as Vulture in Spider-Man: Homecoming \| Chuck ZlotnickSony Pictures Entertainment Remember during the post-credits scene to Spider-Man: Homecoming when Vulture (Michael Keaton) encounters a criminal named Mac Gargan (Michael Mando) in prison? Mac asks Vulture whether he knows Spider-Mans identity, and Vulture lies and says he does not. The movie never explains why Vulture would conceal Peters identity whether it was because he wanted to kill the boy himself or had some good left in him and wanted to protect the teen. Either way, Peters identity is now public information, and its likely that both Vulture and Mac will return to fight him. In the comics, Mac becomes a villain named the Scorpion, and he and Vulture both become a part of a super-villain team called the Sinister Six. Spider-Man: Homecoming set up another potential member of that team: Prowler. Donald Glover plays thief Aaron Davis in that film. Fans of the Miles Morales Spider-Man comics and the recent animated film Spider-Man: Into the Spider-verse will know that Aaron Davis operates as a thief called Prowler. Hes also the uncle to the eventual Spider-Man Miles Morales. Its possible that if the MCU is setting up Peter Parker to graduate to a role as the next Iron Man (or Iron Spider), then Miles Morales could get bitten by a radioactive Spider and take Peters place as protector of New York City. Marvel is headed to space, and Captain Marvel has a big role to play Captain Marvel (Brie Larson) \| Marvel Studios Captain Marvel appeared only sparingly in Avengers: Endgame , in part because its pretty clear she is so powerful, she could take on Thanos one-on-one. (Why she didnt snap her fingers while wearing the Infinity Stones instead of Tony is somewhat unclear.) But shes also MIA because shes busy saving space: When the Avengers complain that she doesnt spend enough time on Earth, she fires back that while Earth has the Avengers, the rest of the universe needs her to protect them. Marvel Studios head Kevin Feige has hinted multiple times that the MCU saga is going to become increasingly galactic. A third Guardians of the Galaxy movie is in the works, and the last Guardians seemed to set up a spinoff starring Michelle Yeoh and Sylvester Stallone. Plus, Marvel has announced a movie about a celestial set of beings called the Eternals starring Angelina Jolie and Kumail Nanjiani . The second post-credits scene for Spider-Man: Far From Home confirms that even our earthling characters are headed into space. In the scene, we find out that shape-shifting Skrull alien Talos (Ben Mendelsohn) from the Captain Marvel movie has been impersonating Nick Fury. Talos calls the real Fury to inform him of events on Earth, and we see that Fury is in fact working on a space station with hundreds of other Skrulls. It seems that Fury has aligned himself with the Skrulls, and after the death of Thanos he has refocused the American governments attention on threats coming from space. The inclusion of the Skrulls in the scene, plus Nick Furys migration from earth to a space station, suggests that Captain Marvel will be the central figure in whatever story comes next in the Marvel Cinematic Universe. Here are all of the movies Marvel has announced after Spider-Man: Far From Home None of these movies have dates yet, but these are the films confirmed or heavily rumored to be on Marvels future slate: Doctor Strange 2 Walt Disney Studios Motion Pictures Doctor Strange 2 is almost certainly in the works. At the end of the first Doctor Strange movie, Chiwetel Ejiofors Mordo, once an ally of Strange, decided that there were too many wizards in the world and was taking back magical powers from those who possessed them. Hes likely the villain in the next film. Black Panther 2 Walt Disney Co. Black Panther s blockbuster success guaranteed a sequel, and both writer-director Ryan Coogler and star Chadwick Boseman have signed on to return for a second installment. Rumor has it that Marvel is eager to find a way to bring back Michael B. Jordans villainous Killmonger in some capacity. Captain Marvel 2 Brie Larson as Carol Danvers/Captain Marvel in 'Captain Marvel.' \| Walt Disney Co. If the Avengers turn their attention toward space (and rebrand with a different name), Brie Larsons Captain Marvel is likely to lead that team. Captain Marvel who technically has not even received her name yet in the movies will get another solo outing as well, probably either set between the events of the 90s-set Captain Marvel and Endgame or after Endgame . Spider-Man 3 Tom Holland as Spider-Man in Spider-Man: Far From Home \| Sony Pictures When Marvel and Sony negotiated to share the rights to the webslinger, they agreed to produce three solo Spider-Man outings together with Tom Holland as the star. The two studios will either need to renegotiate their contract to make more Spidey movies or else Sony will take Spider-Man and all his foes back to their studio. That means that Spider-Man would no longer appear in team-up movies like the Avengers. Given the build-up of Spider-Mans role after Iron Mans death in Far From Home , its likely that the two will reach an agreement. Guardians of the Galaxy Vol. 3 Walt Disney Co. Guardians of the Galaxy Vol. 3 is back on Marvels schedule after the firing and re-hiring of director James Gunn . This movie wont hit theaters anytime soon: Gunn has to film Suicide Squad 2 before he turns to the next Guardians film. But when it does premiere, the movie will likely include Chris Hemsworths Thor, who set out into space with Chris Pratts Star-Lord and the rest of the Guardians team in search of Gamora (Zoe Saldana) at the end of Endgame . Black Widow Scarlett Johansson in 'Avengers: Age Of Ultron' \| Jay MaidmentMarvel/Walt Disney/Shutterstock Marvel has officially announced a Black Widow prequel film starring Scarlett Johansson, to be directed by Cate Shortland. The character was a Russian spy before she became an Avenger, and the movie will likely focus on her pre-SHIELD years. The Eternals Harold CunninghamGetty Images Angelina Jolie, Kumail Nanjiani and Bodyguard star Richard Madden have all signed on to star in The Eternals . In the comics, god-like beings called the Celestials create the Eternals by imbuing early humans with immense powers. Shang-Chi Destin Daniel Cretton attends Director Destin Daniel Cretton will helm Marvel Studios first Asian superhero film based on the comics about a superhero who is a master of martial arts.
‘Best banks’ of 2019 revealed: Kiplinger Less than a week after theFederal Reservecompleted the second round of its annualstress testsfor the country’s top 18 banks, Kiplinger Personal Finance unveiled its 2019 rankings of the nations’ ‘best banks’ Monday. The rankings, in its third annual edition of its “The Best Bank for You", identifies top picks among national, regional and internet banks, as well as credit unions, that offer the best combination of high rates, low fees, and a customer-friendly focus. The magazine also selected other ‘standout institutions’ in five different categories aimed at specific audiences: ‘No-Fee, No-Fuss;’ ‘Retirees;’ ‘Families with Students,’ ‘High-Net-Worth Families’ and ‘Frequent Travelers.’ “We’ve crunched the data on interest rates, fees, minimum balance requirements, free perks and other features for a variety of deposit accounts to see which banks rise to the top,” said Mark Solheim, editor, Kiplinger’s. FOX Business takes a look at the 2019 results. Best National Bank Winner: TD Bank TD Bank won for the third year in a row as the best National Bank. It has more 1,400 branches in 15 eastern and southern states, as well as Washington, D.C. TD Bank offers low-minimum accounts ‘that should make any customer happy.’ According toKiplinger, the company’s standout account is its Beyond Checking account, which offers an array of perks that can be especially appealing to travelers. Runner-up: PNC PNC has nearly 2,400 branches in 21 states across the country, and Washington. D.C. It has accounts that allow customers to either stick to the basics or integrate budgeting into banking.Kiplingerranks PNC's Standard Checking account as the bank’s standout account. TheStandard Checkingoffers free ATM usage, up to certain limits, and it’s easy to avoid minimum-balance fees. Promotional CD rates (you must have a linked checking account) recently included 2.25 percent on a 13-month term with a $25,000 minimum deposit. A perk as the Federal Reserve mulls an interest rate cut. Best Internet Bank Winner: Ally Bank Kiplingerdubbed Ally bank the winner of this category because customers earn interest on their accounts without paying monthly fees or having a particular balance. The standout account is itsInterest Checkingis fee-free and pays 0.1 percent on sums below $15,000, or 0.6 percent on balances of $15,000 or more.Online Savingspays a flat 2.2 percent on everything. Runner-up: Capital One 360 Capital One has nearly 500 branches across the country and a branch in Washington, D.C. With Capital One, customers can get the benefits of online banking while still having the option to get customer service at a branch. The bank’s standout account is its360 Checkingit returns 0.2 percent on amounts below $50,000, 0.75 percent on balances up to $100,000, and 1 percent on larger tallies.360 Money Marketpays 2 percent on balances of $10,000 and more (amounts less than $10,000 earn 0.85 percent). Best Regional Banks Fifth Third Bank There are nearly 1,200 branches across Midwestern and southern states. Fifth Third won this category because it offers customers various ways to avoid monthly fees under its basic checking account. The bank also has a good account for customers with bigger balances. The company’s standout account is it'sPreferred Checkingwhich is free if your deposit and investment balance reaches $100,000 at least once in a month, and it’s packed with perks. Promotional CD rates are attractive—2 percenton CDs with a nine- or 15-month term ($5,000 minimum deposit). People’s United Bank People’s United Bank has more than 400 branches across New England and New York. The bank has a wide variety of account options across income levels.Kiplinger picksthe ePlus Checking account to be the bank's standout account. If you make 10 or more electronic payment transactions monthly,ePlus Checkinglevies no service charge. Some recent rates on CDs opened online were compelling, such as 2.1 percent for a six-month-plus CD and 2.3 percent for an 11-month term ($500 minimum; checking account required). Union Bank Union Bank has nearly 330 branches in California, Oregon and Washington. The bank one in this category because of its new free checking account it offers. The standout accounts here is Union Bank's Bank Freely.Bank Freelyis a free, no-minimum checking account that offers two monthly rebates of out-of-network ATM surcharges. Best Bank for No-Fee, No Fuss Winner: Ally Bank Ally Bank won this category for the same reasons it won the best Internet Bank category. Runner-up: Discover Bank Discover already offered a wide arrange of accounts, but after it eliminated a variety of fees, its accounts became even more appealing. Standout accounts:Cashback Debitpays 1% cash back on up to $3,000 in purchases each monthOnline Savingsyields 2.1 percent on all balances. Best Bank for Retirees Winner: TD Bank TD Bank offers a standout account for customers 60 and older. Standout account:60 Plus Checkingcomes with complimentary services well-aimed at retirees. The six-monthChoice Promotional CDrecently offered a 2 percent rate on a deposit of at least $100,000 or 1.65 percent on $50,000 (you must have an active personal checking account). Runner-up: Fidelity Investments Fidelity Investments is a good option for retirees who are comfortable with online banking. Customers can choose from an array of checking, investment and advisory services. According toKiplinger,Fidelity Investments' standout account is the Cash Management account. The no-fee Cash Management account holds a lot of appeal for retirees looking to earn respectable interest on big balances. Fidelity also offers brokered CDs with a $1,000 minimum deposit. Best Bank for Families with Students Winner: Capital One 360 Capital One offers several easy to-manage, no-fee accounts for family members of all ages. The various accounts allow teenagers to begin learning how to manage their finances, while parents can offer help and keep tabs as joint owners of accounts. After a customer turns 18, the account can easily be switched to a regular 360 checking account. Capital One’s standout account in this category is itsMoney Teen Checkingyields 0.25 percent on all balances.Kids savingsyields 1 percent on all balances. Runner-up: Alliant Credit Union Alliant Credit Union is primarily an online banking service with one branch in Chicago. It tailors accounts specifically to children and teenagers, meanwhile offering them the same high rates as adults.Teen Checkingpays 0.65 percent on any balance.Kids Savingsyields 2.1 percent on $100 or more. Best Bank for High-Net-Worth Families Winner: Citibank Citibank has nearly 700 branches across 10 states, primarily in larger cities such as New York, Chicago and Los Angeles, as well as Washington, D.C. It also has more than 1,800 branches overseas. Citibank offers an abundance of perks for its customers who hold large amounts of cash in Citibank accounts. Standout account: TheCitigold package, for those who keep at least $200,000 in deposit, retirement and investment accounts, is worth a look. And with a $25,000 minimum deposit, you could recently nab a 2.5 percent rate on a one-year CD. Runner-up: BBVA BBVA has 649 branches scattered across seven states, primarily located in the sunbelt.Kiplinger's standout account for BBVA goes to the Premier Personal Banking account. ThePremier Personal Bankingprogram, for those who have a BBVA personal checking account and maintain at least $100,000 in deposits and investments, provides a well-rounded package of perks. The BBVA Money Market Account—free for Premier customers—recently yielded a healthy 2 percent on a balance of at least $10,000 (rates are for customers in Birmingham, Ala.). Best Bank for Frequent Travelers Winner: Charles Schwab Bank While customers have to do their banking online at Charles Schwab Bank, customer’s will be delighted to find there are no strings attached to Schwab’s travel-friendly perks. The standout account is theHigh Yield Investor Checkingwhich yields 0.4 percent with no minimum balances or monthly fees.High Yield Investor Savingsreturns 0.5 percent and is also free. Runner-up: Radius Bank Radius Bank has one branch in Boston, but consumers outside of the area can do their banking online. Several of Radius Bank’s accounts offer unlimited ATM rebates worldwide. The standout accounts here goes to Radius Bank'sHybrid Checkingwhich yields 1 percent on balances of $2,500 or more.High-Yield Savingsreturns a rate of 1.5 percent on holdings of $2,500 or more (2.05 percent once your balance hits $25,000). Related Articles • How Much is Michael Phelps Worth? • Ryan Lochte's Brand Value Sinks Amid Rio Scandal • Here's How You Get a Body Like An Olympian
Bank of Canada survey suggests business sentiment improving slightly A new Bank of Canada survey suggests business sentiment has improved slightly in Canada, with many businesses expecting an increase in sales growth over the next year. The central bank’s business outlook survey indicator turned positive in the second quarter of 2019, edging up slightly above zero, following a period of steady decline that sent the indicator into negative territory. The survey of executives, which was conducted from May 7 to June 3, found that expectation for foreign demand remains positive, suggesting that export sales growth will pick up modestly over the next year. “The balance of opinion on future sales growth has moved up and is positive, pointing to a faster pace of sales growth in the next 12 months,” the bank said. When it comes to sales outlook, 44 per cent of the companies surveys expect volumes to increase at a greater rate than the last year while 21 per cent expect a lesser rate of sales growth. At the same time, 36 per cent of companies say investment spending will be higher over the next year than the last year, while 16 per cent expect to spend less. Still, weakness in Western Canada tied to languishing oil prices remains. “Sales optimism is concentrated in Central Canada and includes positive expectations for housing activity,” the bank said. “Nevertheless, firms anticipate weakness in sales tied to the Western Canadian oil industry to persist.” BMO senior economist Robert Kavcic wrote in a report Friday that the survey “came back a little bit stronger that most were expecting.” “It is consistent with GDP data in suggesting that the weakness in the Canadian economy was temporary with (the second quarter) looking much better,” Kavcic wrote. “For the Bank of Canada, this is one more reason to sit back and just listen while other central banks sing more dovish tunes. Had this survey deteriorated further, that might have been harder to do, but that wasn’t the case.” The business outlook survey involves interviewing business leaders from approximately 100 companies to gauge economic perspectives on topics such as demand and capacity pressure. Download the Yahoo Finance app, available forAppleandAndroid.
Cannabis 'value play' stock could become a top five Canadian producer: GMP Securities Investors who missed out on the dramatic run-up in cannabis stocks might want to take a look at Zenabis Global Inc. (ZENA.TO) The small Surrey, B.C.-based licensed producer has the potential to rub shoulders with Canada’s biggest cannabis players, according to GMP Securities analyst Justin Keywood. “ZENA is a Canadian LP that has an opportunity to become a top five supplier, but valuation is well below most peers,” Keywood wrote in a note to clients on Thursday. “With initiate on ZENA with a BUY rating and a $3.25 per cent target, implying almost 100 per cent return.” Shares climbed 2.31 per cent to $1.77 at 12:15 p.m. ET on Friday. “ZENA currently trades at 7x our 2020 EBITDA forecasts, which is below all senior LPs and most comparable junior LPs. For our $3.25 target, we assign a 12x EBITDA multiple for ZENA’s propagation business and 15x multiple for cannabis,” Keywood wrote. “The 15x multiple for cannabis is below a broad group of peers at 20x and much lower than some of the senior LPs.” Zenabis Global was formed in January through the combination of privately-held licensed producer SunPharm Investments Ltd. and Bevo Agro Inc., a provider of propagated vegetables and flowers. Its predecessor, Zenabis Ltd., was a licensed medical cannabis producer with operations in British Columbia and New Brunswick. The new Zenabis has had a busy 2019, up-listing from the venture exchange to the TSX in late May, securing a supply agreement with Shoppers Drug Mart in February, and inking supply arrangements with Alberta, Manitoba, Quebec and Prince Edward Island. The company’s supplier network currently extends to eight provinces and one territory. Keywood struck an upbeat tone on the quality of Zenabis Global’s production facilities, and said meetings with several of the companies partners, including government contacts, were “unanimously positive.” He also expressed approval ofchief executive Andrew Grieve’s decision to link his compensation to the company’s financial performance. Zenabis currently has licensed production capacity of 23,100 kilograms, and has submitted amendments to increase its run-rate to 32,900 kilograms in the third quarter of this year. Expansion plans anticipate a total run-rate increasing to 131,200 kilograms going into 2020, and include an option to expand capacity to 478,800 kilograms. For comparison, Aurora Cannabis Inc. (ACB.TO) currently has a total funded capacity of more than 500,000 kilograms per year. Keywood believes Zenabis Global shares are oversold. Shares have fallen more than 70 per cent year-to-date. “Although a short-term financing overhang exists, we see the stock as being oversold for the current capital structure with a clear path to our $3.25 target. Exceptional partner feedback also lowers the risk to our investment thesis, and we see a compelling entry point at about seven times EBITDA,” he wrote. Keywood expects Zenabis to generate fiscal 2019 revenue and EBITDA of $100.1 million and negative $9.4 million, respectively. He is calling for the company to book fiscal 2020 revenue and EBITDA of $261.6 million and $51.5 million, respectively. “A unique investment opportunity exists for a value play in cannabis with ZENA,” Keywood wrote. Download the Yahoo Finance app, available forAppleandAndroid.
Banking apps are disappointing Canadians: study A growing number of Canadians are fed up with their mobile banking apps, according to a new survey. Marketing information firm J.D. Power found while 90 per cent of participants said they interact with their banks digitally, satisfaction with app-based banking declined by three points year-over-year. Scotiabank’s (BNS.TO) app ranked highest with a score of 834 points out of 1,000, followed by CIBC (CM.TO) (832), Royal Bank (RY.TO) (826), TD Bank (TD.TO) (812), and Bank of Montreal (BMO.TO) (807). “It is critical that banks and credit cards get the formula right, delivering the resources customers need, but also organizing it in a way that it is user-friendly,” Bob Neuhaus, vice president of financial services intelligence at J.D. Power, wrote in a news release on Thursday. “In fact, nearly 40 per cent of banking customers conduct all of their interactions digitally without ever setting foot in a bank branch.” The ranks shifted when participants evaluated overall online banking satisfaction. TD took the top spot with a score of 821 out of 1,000, followed by CIBC (813), Scotiabank (813), Royal Bank (812), and BMO (802). The findings are based on responses from 8,409 retail bank and credit card customers nationwide. Participants were asked to consider ease of navigation, appearance, clarity of information, range of services, and availability of key information.
How Much Of uniQure N.V. (NASDAQ:QURE) Do Institutions Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in uniQure N.V. (NASDAQ:QURE) 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. Companies that have been privatized tend to have low insider ownership. uniQure isn't enormous, but it's not particularly small either. It has a market capitalization of US$2.9b, which means it would generally expect to see some institutions on the share registry. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about QURE. Check out our latest analysis for uniQure 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. As you can see, institutional investors own 62% of uniQure. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see uniQure's historic earnings and revenue, below, but keep in mind there's always more to the story. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Our data indicates that hedge funds own 5.3% of uniQure. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can see that insiders own shares in uniQure N.V.. The insiders have a meaningful stake worth US$67m. Most would see this as a real positive. It is good to see this level of investment by insiders. You cancheck here to see if those insiders have been buying recently. The general public, with a 13% 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. With an ownership of 12%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public. Public companies currently own 6.3% of QURE stock. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. 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 Zynerba Pharmaceuticals's (NASDAQ:ZYNE) 102% Share Price Increase Well Justified? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you canmorethan double your money. For instance theZynerba Pharmaceuticals, Inc.(NASDAQ:ZYNE) share price is 102% higher than it was three years ago. Most would be happy with that. Also pleasing for shareholders was the 91% gain in the last three months. View our latest analysis for Zynerba Pharmaceuticals With just US$86,000 worth of revenue in twelve months, we don't think the market considers Zynerba Pharmaceuticals to have proven its business plan. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Zynerba Pharmaceuticals will significantly advance the business plan before too long. We think companies that have neither significant revenues nor profits are pretty high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). Some Zynerba Pharmaceuticals investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital. When it last reported its balance sheet in March 2019, Zynerba Pharmaceuticals had cash in excess of all liabilities of US$61m. While that's nothing to panic about, there is some possibility the company will raise more capital, especially if profits are not imminent. Given the share price has increased by a solid 26% per year, over 3 years, its fair to say investors remain excited about the future, despite the potential need for cash. You can see in the image below, how Zynerba Pharmaceuticals's cash levels have changed over time (click to see the values). You can see in the image below, how Zynerba Pharmaceuticals's cash levels have changed over time (click to see the values). Of course, the truth is that it is hard to value companies without much revenue or profit. One thing you can do is check if company insiders are buying shares. If they are buying a significant amount of shares, that's certainly a good thing. Luckily we are in a position to provide you with thisfreechart of insider buying (and selling). Pleasingly, Zynerba Pharmaceuticals's total shareholder return last year was 47%. So this year's TSR was actually better than the three-year TSR (annualized) of 26%. Given the track record of solid returns over varying time frames, it might be worth putting Zynerba Pharmaceuticals on your watchlist. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid. There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Hapag-Lloyd, ONE join peers in shipping blockchain platform COPENHAGEN (Reuters) - German container group Hapag-Lloyd and Singapore-based Ocean Network Express (ONE) are to join peers in a blockchain platform aimed at limiting the industry's costly paper trail. The two companies will join market leaders Maersk, Mediterranean Shipping Co (MSC) and French-based CMA CGM on the platform, meaning that more than half of all cargo shipped by sea will be tracked using it. The participation of key players in the platform, launched last year in a collaboration between Maersk and IBM, is seen as crucial for cutting costs in an industry that has seen little innovation since the container was invented in the 1950s. The platform, named TradeLens, helps customers, shipping lines, freight forwarders, port authorities and customs authorities by digitizing the supply chain process. Blockchain technology powers the digital currency bitcoin and enables data sharing across a network of individual computers. (Reporting by Jacob Gronholt-Pedersen; Editing by Mark Potter)
3 Ultra-High-Yield Dividend Stocks to Buy for the Second Half of 2019 No matter how volatile the stock market might appear at times, there are a few constants that investors should keep in mind. For starters, whatever the depth of a correction is, or the length of time it takes to arrive at the trough, the market has always puteach and every one of its drops in the rearview mirrorby eventually marching to new highs. In other words, the companies that make up the major stock market indexes generally rise in value over time, which is why long-term investors with diversified portfolios are often rewarded handsomely for their patience. Image source: Getty Images. Another oft-overlooked fact about the stock market is that, over the long haul, dividend-paying stocks handily outperform their counterparts that don't pay dividends. Companies that pay out a dividend are almost always profitable and typically have time-tested business models. What's more, investors have the opportunity to reinvest their payouts into more shares of dividend-paying stock, which has the effect of compounding their returns over time. This is the tactic most professional money managers employ to really deliver market-topping returns for their clients. But there's anunder-the-radar dark side to dividend stocks. Namely, the higher the yield, more often the riskier the investment. Since yield is simply a function of share price, a rapidly declining share price indicative of a struggling business model could pump up a company's yield and offer false hope to prospective investors of substantial income and returns. In short, high-yield (4%-plus) dividend stocks require extra research and caution if they're being used for their supposedly superior income potential. As the stock market enters the second half of 2019 with its foot mashed against the gas pedal, I view three ultra-high-yield dividend stocks as attractive buy candidates. Image source: Getty Images. If I could hand out an award for the most stable ultra-high-yield stock on the planet, it would go to telecom and content giantAT&T(NYSE: T). Though I still consider myself relatively young and with many years of investing ahead of me, even I grabbed shares of AT&T for my personal portfolio because of its can't-miss dividend and the ability to reinvest that payout over time. The investment thesis on AT&T breaks down into three parts, as I see it. First, there's the company wireless division, which appears set for multiyear gains from theongoing rollout of 5G networks. Although smartphone providers are the ones that'll initially see the benefits of 5G rollouts, wireless-service providers like AT&T are the real beneficiaries of the upgrade cycle, since they reap substantial margins from data usage. As consumers' appetite for data grows with 5G, the company should see notable increases in average revenue per wireless subscriber. Second, I view the acquisition of Time Warneras a long-term positive. AT&T is making a play to be a major content provider, and bringing the TBS, TNT, and CNN networks under its umbrella is a sizable dangling carrot for the company. These networks have the capacity to lure streaming consumers away from rivals, and give more pricing power when dealing with advertisers. Third and finally, don't overlook what the recent decline in bond yields could mean for AT&T. As a telecom and content provider, it regularly uses debt to finance infrastructure upgrades. As bond yields fall, signaling an eventual drop in interest rates, it allows AT&T's expansion to become less costly from the perspective of interest paid. AT&T looks as solid as it's ever been, which makes its ultra-high-yield payout practically a must-have for income seekers. Image source: Getty Images. Coal might be a dirty word to most folks, but it doesn't have to be. It has certainly taken a back seat to natural gas and renewable energies like solar and wind in terms of electrical generation in the U.S. in recent years, but it's still the nation's second-largest producer of electricity. That's whyAlliance Resource Partners(NASDAQ: ARLP)and its nearly 13% dividend yield deserve a look. Alliance Resource Partners is nothing like its peers. Whereas most coal producers have gone bankrupt this decade under the weight of falling coal prices and high debt levels, Alliance's management team never allowed the company to get too deeply into debt. Even today, it has $547 million in net debt and a debt-to-equity ratio of 42%, which places very minimal financial constraints (if any) on the company's long-term growth strategy. For those of you worried about the rise of solar and wind in the U.S., don't be. Alliance hasdramatically stepped up its export gameover the past couple of years. After exports accounted for less than 5% of total sales in 2016, they now account for close to a quarter of annual revenue. Even with international pricing pressures on coal in 2019, the longer-term outlook for demand from fast-growing emerging markets like India and China is a positive for coal and Alliance Resource Partners. This is also a company that prides itself onsecuring volume and price commitments well in advance. Nearly 39 million tons of the 43.5 million to 45 million tons of coal it expects to produce in 2019 were locked in via price and volume commitments through March, with another 21.6 million tons committed domestically in 2020. Having little exposure to the volatile wholesale market is a good thing, and yet another reason its cash flow and dividend are highly predictable. Suffice it to say this coal producer is a diamond in the rough among dividend stocks. Image source: Getty Images. A third ultra-high-yield dividend stock that I believe investors should consider for the second half of 2019 is tobacco giantPhilip Morris International(NYSE: PM). It's a stone's throw away from generating 6% a year for its shareholders, which is more than triple the U.S. inflation rate at the moment. Generally speaking, tobacco has the same reputation as coal: avoid, avoid, avoid! But unlike many of its peers, Philip Morris Internationalhas a few tricks up its sleeve. To begin with, the company's name says it all: "International." It sells its productsin more than 180 countries worldwide, and the anti-tobacco United States isn't one of those countries. Even if the company faces more stringent regulations in certain developed markets, Philip Morris can lean on emerging market economies with burgeoning middle classes for future profits. Furthermore, don't overlook the pricing power inherent with the tobacco industry. Nicotine is an addictive chemical that has allowed tobacco companies to offset declines in cigarette shipping volumes by consistently raising their prices. We haven't yet hit a point where consumers have been substantially driven to the sidelines by price, and that's ultimately a positive for Big Tobacco. Maybe most intriguing is what the future might hold with its IQOS heated tobacco device. Shipments of heated tobaccorose by 20% to 11.5 billion units in the first quarter, with the number of IQOS systems in use in Europe more than doubling to over 1 million. While the rollout of alternative nicotine consumption options might take longer than expected, the company is nevertheless seeing sales growth from IQOS. Additionally, with a refinement to its advertising, my personal suspicion is that Philip Morris can capture a larger portion of mature smokers (age 45 and up) with IQOS. As these three companies show, if you're willing to do some homework, there are ultra-high-yield dividend bargains to be had. 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 Sean Williamsowns shares of AT&T. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
CEE MARKETS-Assets hold steady as investors eye EU jobs, Fed By Alan Charlish WARSAW, July 2 (Reuters) - Central European assets were little changed on Tuesday, with traders focusing on indications of monetary easing in the U.S. and eurozone while keeping an eye on Brussels where EU leaders are seeking to break a stalemate on top jobs. The Federal Reserve remains under pressure to stimulate the U.S. economy despite a ceasefire in the U.S.- China trade war and ECB policymakers are uniting behind the need for stimulus. Central Europe's most liquid currency, the Polish zloty , strengthened 0.05% against the euro, while the Czech crown also gained 0.05%, both continuing to hover around 2019 highs. The Hungarian forint gained 0.12% against the euro, but remained in a range close to 323. "Long dollar positions were cut against zloty -- 25, 24 is the support area and we would need fresh stimulus to go lower in euro/zloty. We may see a technical rebound to 25, 26," said a Warsaw-based currency trader European Union leaders were spending a third consecutive day trying to decide who should hold the bloc's most prominent jobs, including the presidents of the European Commission, European Parliament and the European Central Bank. "The expectation is for monetary policy easing, so the nomination of a hawk could destroy that picture," said Jakub Rybacki, economist at ING Bank Slaski, of the ECB top job. Polish and Czech 10-year bond yields continued to hover around 2019-lows. Polish 10-year yields were at 2.359% , while Czech 10-year yields were at 1.538% and Hungarian 10-year yields were at 2.68% Romania's central bank is seeking to bring inflation within target in the medium term, not short-term at the cost of suffocating economic growth, central bank Governor Mugur Isarescu said. The Romanian leu was down 0.11% against the euro at 0926 GMT. "Slowly but steadily the EUR/RON seems to be departing from the 4.7200 support area, trading more around 4.7300 with a general upside bias," ING analysts said in a note. In Poland, the Monetary Policy Council (MPC) convened at the central bank ahead of Wednesday's rates announcement, which is widely expected to see the benchmark rate kept on hold at a record low of 1.5%. "The Polish MPC is likely to keep rates flat, which will be mildly positive for PLN," said Rybacki. CEE SNAPSHOT AT MARKETS 1145 CET CURRENCI ES Latest Previous Daily Change bid close change in 2019 Czech 25.4390 25.4380 -0.00% +1.05% crown Hungary 322.9000 323.0200 +0.04% -0.56% forint Polish 4.2415 4.2408 -0.02% +1.13% zloty Romanian 4.7350 4.7339 -0.02% -1.71% leu Croatian 7.3960 7.3953 -0.01% +0.19% kuna Serbian 117.7500 117.9000 +0.13% +0.47% dinar Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2019 Prague 1035.77 1039.840 -0.39% +4.99% 0 Budapest 40537.52 40618.08 -0.20% +3.57% Warsaw 2322.56 2329.74 -0.31% +2.02% Bucharest 8825.63 8797.06 +0.32% +19.53% Ljubljana 878.82 880.32 -0.17% +9.27% Zagreb 1887.75 1883.94 +0.20% +7.94% Belgrade <.BELEX15 741.78 736.97 +0.65% -2.61% > Sofia 584.32 582.79 +0.26% -1.71% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=RR 1.5550 0.1030 +231bps +11bps > 5-year <CZ5YT=RR 1.3600 0.0880 +204bps +9bps > 10-year <CZ10YT=R 1.5380 -0.0060 +190bps -1bps R> Poland 2-year <PL2YT=RR 1.6100 -0.1030 +236bps -10bps > 5-year <PL5YT=RR 1.9340 -0.0160 +262bps -2bps > 10-year <PL10YT=R 2.3590 -0.0080 +272bps -1bps R> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep < 2.18 2.10 1.99 2.17 PRIBOR=> Hungary < 0.34 0.45 0.53 0.25 BUBOR=> Poland < 1.74 1.73 1.71 1.72 WIBOR=> Note: FRA are for ask prices quotes ************************************************ ********** For related news and prices, click on the codes in brackets: All emerging market news EMRG CEEU CEE/ Spot FX rates Eastern Europe spot FX EEFX= Middle East spot FX MEFX= Asia spot FX ASIAFX= Latin America spot FX LATAMFX= Other news and reports World central bank news CEN Economic Data Guide ECONGUIDE Official rates GLOBAL/INT Emerging Diary EMRG/DIARY Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY (Reporting by Alan Charlish, additional reporting by Marton Dunai in Budapest Editing by Keith Weir)
What Kind Of Shareholder Owns Most C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) Stock? 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 C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) 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. Companies that used to be publicly owned tend to have lower insider ownership. With a market capitalization of US$12b, C.H. Robinson Worldwide 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. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about CHRW. See our latest analysis for C.H. Robinson Worldwide 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. C.H. Robinson Worldwide already has institutions on the share registry. Indeed, they own 88% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see C.H. Robinson Worldwide's historic earnings and revenue, below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. C.H. Robinson Worldwide is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own less than 1% of C.H. Robinson Worldwide, Inc.. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$47m worth of shares. In this sort of situation, it can be more interesting tosee if those insiders have been buying or selling. With a 12% ownership, the general public have some degree of sway over CHRW. 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. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Brexit crisis wallops UK builders, survey shows By William Schomberg LONDON (Reuters) - Britain's Brexit crisis tipped the country's construction industry into its sharpest fall in a decade in June, a survey showed on Tuesday, in a stark sign of how quickly the world's fifth-biggest economy is slowing. The IHS Markit/CIPS construction Purchasing Managers' Index (PMI) plunged to 43.1, the lowest reading since April 2009 when the country was gripped by the global financial crisis and way below any forecast in a Reuters poll of economists. The yield on 10-year British government bonds sank to its lowest level in nearly three years as investors, already anxious about the prospect of a no-deal Brexit under the country's next prime minister, took fright at the scale of the fall. Construction accounts for only 6% of Britain's economy and economists say the PMI surveys can overstate the degree of turning points in gross domestic product. But there have been other signs that overall activity has stalled, and possibly even contracted, in the second quarter. On Monday, a PMI for Britain's manufacturing sector -- which represents 10% of the economy -- also showed a fall in activity in June as the global economic slowdown hit demand for exports, adding to the drag from Brexit worries. Bank of England data meanwhile revealed the slowest growth in five years in borrowing by consumers, whose spending has helped cushion the economy from Brexit. Samuel Tombs, an economist with consultancy Pantheon Macroeconomics, said the construction survey was "a worrying sign that the damage wrought by Brexit uncertainty is building". The hit was felt across the breadth of the sector: homebuilding shrank for the first time in 17 months, commercial work fell for the sixth consecutive month and civil engineering contracted by the most since October 2009. Shares in UK housebuilders Persimmon, Taylor Wimpey and Barratt Developments all fell while the broader UK stock market was up. Tim Moore, associate director at IHS Markit, said it was "almost impossible to sugarcoat" the survey. "In particular, new orders dropped to the largest extent for just over 10 years, while demand for construction products and materials fell at the sharpest pace since the start of 2010," he said. There was one potential silver lining: job cuts were marginal and some firms said they had retained staff in anticipation of a recovery in sales. Tombs at Pantheon Macroeconomics said the sector could experience a quick recovery around the turn of the year, if the Brexit deadline of Oct. 31 is delayed again. In campaigning for the leadership of the ruling Conservative Party, both candidates to replace Theresa May as prime minister have said they are prepared to take the country out of the European Union without a transition deal if necessary. The second-quarter slowdown in the economy contrasts with a strong start to 2019, when companies rushed to get ready for the original March 29 Brexit deadline. A PMI for Britain's dominant services sector, which is due to be published on Wednesday, is expected to show only marginal growth in June, according to economists polled by Reuters. (Writing by William Schomberg, Graphic by Andy Bruce, Editing by Catherine Evans)
Chuck Schumer Torches Donald Trump: One Of 'The Worst Few Days' Of Foreign Policy Senate Minority Leader Chuck Schumer (D-N.Y.) on Monday chastised President Donald Trump for conducting one of the worst few days in American foreign policy in American diplomatic history in a long time. Trump joked about election interference and getting rid of journalists with Russian President Vladimir Putin at last weeks G-20 summit in Osaka, Japan, before his impromptu meet-and-greet in North Korea with the pariah states dictator Kim Jong Un. Schumer told CNNs Anderson Cooper that Trumps foreign policy is erratic. Its done for the moment so he can get his little ego hit and it hurts us, hurts us in the long run. Its reality show foreign policy. He wants that photo op. He wants that little hit, Schumer added. He has no strategic long-range sense where to go, what to do. If anyone thinks this doesnt hurt America in the short term, in the long run, they are sadly mistaken. Check out the clip here: "This was one of the worst few days in American foreign policy in American diplomatic history in a long time," says Senate Minority Leader Chuck Schumer. "...He admires these strong men. He doesn't have principles about what rule of law is, what a democracy is..." pic.twitter.com/B4JlAdB0Rh Anderson Cooper 360° (@AC360) July 2, 2019 Related... Chris Christie Inadvertently Gives Democrats The Key To Beating Donald Trump In A Debate Sarah Huckabee Sanders' Goodbye 'Head Held High' Tweet Blows Up In Her Face Megan Rapinoe's World Cup Goal Celebration Is Now A Donald Trump-Trolling Meme Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
Beleaguered builders in worst slump for 10 years Britain's construction sector is declining at the fastest pace since the financial crisis, fresh figures showed on Tuesday, raising recession risks. Manufacturers have already seen activity at its lowest level for six years, as a short-lived boost from Brexit-related stock-piling faded away last month. Today construction joined the gloom, with the IHS Markit/Cips UK index at 43.1 for June, down from 48.6 in May — the biggest fall since April 2009. The index has been below 50 — indicating contracting output — for four of the past five months. Last year, the construction industry contributed about £115 billion to the UK economy, around 6% of the total. Delays to HS2 and motorway projects have hit big players, including Costain, which issued a profit warning last week that sent the shares tumbling 40%. Simon French at Panmure Gordon said: “The construction PMI generated the first concrete signal that the nonsense of Westminster is permeating the real economy. The sharpest contraction in activity since 2009 sets the UK economy up for zero growth, perhaps even a contraction, in the second quarter.” Duncan Brock at the Chartered Institute of Procurement & Supply said: “Purchasing activity and new orders dropped like a stone in June as the UK construction sector experienced its worst month for a decade. “This abrupt change in the sector’s ability to ride the highs and lows of political uncertainty shows the impact has finally taken its toll as new orders dried up and larger contracts were delayed again.” Signs of sluggishness in the housing sector are regarded as particularly worrisome. Tim Moore at IHS Markit said: “The latest survey reveals weakness across the board for the UK construction sector, with housebuilding, commercial work and civil engineering activity all falling sharply in June.”
Can You Imagine How Silvercorp Metals's (TSE:SVM) Shareholders Feel About The 49% Share Price Increase? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. To wit, the Silvercorp Metals share price has climbed 49% in five years, easily topping the market return of 0.8% (ignoring dividends). See our latest analysis for Silvercorp Metals There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the five years of share price growth, Silvercorp Metals moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. We can see that the Silvercorp Metals share price is down 7.2% in the last three years. During the same period, EPS grew by 85% each year. It would appear there's a real mismatch between the increasing EPS and the share price, which has declined -2.4% a year for three years. You can see below how EPS has changed over time (discover the exact values by clicking on the image). TSX:SVM Past and Future Earnings, July 2nd 2019 It is of course excellent to see how Silvercorp Metals has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Silvercorp Metals's financial health with this free report on its balance sheet . What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return . The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Silvercorp Metals's TSR for the last 5 years was 55%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! Story continues A Different Perspective Investors in Silvercorp Metals had a tough year, with a total loss of 5.5% (including dividends), against a market gain of about 1.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 9.1%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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.
US proposes tariffs on another $4 billion of EU goods: Morning Brief Tuesday, July 2, 2019 Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET.Subscribe Amid a week filled with crucial economic data, investors will get a pulse on the U.S. manufacturing and consumer when June auto sales is released. According to data compiled by Bloomberg, total auto sales are expected to have fallen to a seasonally-adjusted rate of 17 million vehicles, down from the 17.3 million vehicles last month. Most of the biggest automakers are expected to release their quarterly results, with a few releasing monthly sales figures. Furthermore, analysts are expecting that the trend of strong truck sales and soft passenger-car sales will continue when June’s results are revealed. Read more U.S. proposes more tariffs on EU goods: The US is threatening new tariffs on $4 billion worth of EU imports as part of a long-running dispute over aircraft manufacturing. On Monday evening, the US Trade Representatives Office (USTR) proposed adding 89 new items to a list of proposed tariffs on EU imports. The new items come in addition to a proposal in April for tariffs on $21 billion worth of EU goods. [Yahoo Finance UK] Bitcoin falls below $10,000 as Facebook rally fades: Bitcoin has fallen back below $10,000 after a brief rally over the last two weeks. Bitcoin dropped below the psychologically significant level early on Tuesday morning and was down by 6.8% against the dollar to $9,862.91 (BTC-USD) at 9.15am UK time. It was down 6.8% against the pound to £7,800.19 (BTC-GBP). [Yahoo Finance UK] AB InBev Asia unit tops Uber with $9.8B Hong Kong IPO: Anheuser-Busch InBev NV kicked off the year’s biggest initial public offering, a sale of shares in its Asia Pacific beer unit that could raise as much as $9.8 billion and top Uber Technologies Inc.’s (UBER) May listing. The Hong Kong IPO consists of 1.63 billion shares of Budweiser Brewing Company APAC Ltd. offered at HK$40 to HK$47 each. [Bloomberg] Nike recalls shoe after Kaepernick raises racial concerns: In a decision that will thrust Nike (NKE) into the spotlight of corporations walking a tightrope between product and historic symbolism, the athletic giant has pulled an American flag-themed shoe from circulation after former NFL quarterback Colin Kaepernick expressed concern to the company about selling apparel he says features a slave-era emblem. [Yahoo Sports] Warren Buffett to donate $3.6 billion of Berkshire shares to 5 charities Get ready for the worst earnings season in 3 years 'Tariff-proof': One class of recent IPOs is seen as immune to the trade war Manhattan high-end apartment prices slide as NYC real estate cools: Study Jamie Dimon backs minimum wage hike: ‘We’ve got to give people more of a living wage’ To ensure delivery of the Morning Brief to your inbox, please addnewsletter@yahoofinance.comto your safe sender list. Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Does Ameren Corporation's (NYSE:AEE) Debt Level Pose A Problem? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Ameren Corporation (NYSE:AEE), a large-cap worth US$18b, comes to mind for investors seeking a strong and reliable stock investment. One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. But, the health of the financials determines whether the company continues to succeed. Let’s take a look at Ameren’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look furtherinto AEE here. See our latest analysis for Ameren AEE's debt levels surged from US$8.9b to US$9.4b over the last 12 months – this includes long-term debt. With this rise in debt, AEE's cash and short-term investments stands at US$8.0m , ready to be used for running the business. Additionally, AEE has generated cash from operations of US$2.3b during the same period of time, leading to an operating cash to total debt ratio of 24%, meaning that AEE’s operating cash is sufficient to cover its debt. Looking at AEE’s US$2.4b in current liabilities, the company arguably has a rather low level of current assets relative its obligations, with the current ratio last standing at 0.59x. The current ratio is the number you get when you divide current assets by current liabilities. Ameren is a highly levered company given that total debt exceeds equity. This is common amongst large-cap companies because debt can often be a less expensive alternative to equity due to tax deductibility of interest payments. Accordingly, large companies often have an advantage over small-caps through lower cost of capital due to cheaper financing. We can test if AEE’s debt levels are sustainable by measuring interest payments against earnings of a company. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In AEE's case, the ratio of 3.98x suggests that interest is well-covered. High interest coverage serves as an indication of the safety of a company, which highlights why many large organisations like AEE are considered a risk-averse investment. AEE’s high debt level indicates room for improvement. Furthermore, its cash flow coverage of less than a quarter of debt means that operating efficiency could also be an issue. In addition to this, its lack of liquidity raises questions over current asset management practices for the large-cap. This is only a rough assessment of financial health, and I'm sure AEE has company-specific issues impacting its capital structure decisions. You should continue to research Ameren to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for AEE’s future growth? Take a look at ourfree research report of analyst consensusfor AEE’s outlook. 2. Historical Performance: What has AEE's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Secret Facebook group appears to show US border agents mocking death of migrant teenager Members of a Facebook group for US border agents reportedly mocked the death of a migrant child in custody and posted racist comments about congresswomen inspecting the facilities. In one post, the group of current and former border patrol agents referenced a news story about a 16-year-old Guatemalan who died in Border Patrol custody, with comments underneath such as "Oh well" and "If he dies, he dies." Another post contained a mock-up of the Democratic congresswoman engaging in oral sex with a detained migrant. Alexandria Ocasio-Cortez protesting the separation of children from their parents last week - Getty Images North America The existence of the Facebook group, named "I'm 10-15", was revealed by the non-profit news site ProPublica . 10-15 is Border Patrol code for "aliens in custody." The US Customs and Border Protection (CBP) agency said on Monday that it has launched an investigation into the group, appearing to confirm that some of its employees were involved. Alexandria Ocasio-Cortez has drawn criticism for comparing the border detention facilities to “concentration camps” Credit: AP In a statement the CBP said it had been "made aware of disturbing social media activity hosted on a private Facebook group that may include a number of CBP employees." Members of the group also posted derogatory comments about female Hispanic lawmakers, including fake sexually explicit photo montages of Ms Ocasio-Cortez, who has been outspoken on the treatment of migrants in US facilities. The members discussed throwing burritos at the Hispanic members of Congress who were visiting a detention facility in Texas on Monday. Border Patrol chief Carla Provost denounced the "inappropriate" posts in the Facebook group and the CBP, which oversees the Border Patrol, said it had launched an investigation. "These posts are completely inappropriate and contrary to the honour and integrity I see - and expect - from our agents day in and day out," Ms Provost said. "Any employees found to have violated our standards of conduct will be held accountable." Asked about the @CBP agents @Facebook group with derogatory and vulgar comments, @POTUS (who may not be familiar with what the questioner was referring to) replied: The Border Patrol -- they're patriots. They're great people. They love our country. They know what's coming in." — Steve Herman (@W7VOA) July 1, 2019 The group was created in August 2016 and has some 9,500 members. ProPublica said it was able to link the participants in the controversial posts to seemingly legitimate Facebook profiles belonging to Border Patrol agents, including a supervisor based in El Paso, Texas, and an agent in Eagle Pass, Texas. The website said it has provided the names of three agents who appear to have participated in the online discussions to the CBP. Story continues Ms Ocasio-Cortez, who has been a frequent critic of the CBP , said the revelations would not impact her planned visit to facilities housing migrants along the US-Mexico border on Monday. "There are 20,000 TOTAL Customs & Border Patrol agents in the US," Ms Ocasio-Cortez said in a tweet. "9,500 CBP officers sharing memes about dead migrants and discussing violence and sexual misconduct towards members of Congress," she said. "How on earth can CBP's culture be trusted to care for refugees humanely?" 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 The New York representative also decried the conditions she found at the migrant facilities she visited. "It's not just the kids. It's everyone. People drinking out of toilets, officers laughing in front of members of Congress," the congresswoman said. "This has been horrifying so far," she said. "It is hard to understate the enormity of the problem." "We're talking systemic cruelty w/a dehumanizing culture that treats them like animals," she said. Border Patrol officials have said they are overwhelmed by the numbers of refugees crossing the southern US border. Arrivals of undocumented migrants have surged in recent months, with 144,000 taken into custody in May alone.
Should You Worry About TESSCO Technologies Incorporated's (NASDAQ:TESS) CEO Pay Cheque? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In 2016 Murray Wright was appointed CEO of TESSCO Technologies Incorporated (NASDAQ:TESS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels. See our latest analysis for TESSCO Technologies According to our data, TESSCO Technologies Incorporated has a market capitalization of US$155m, and pays its CEO total annual compensation worth US$933k. (This is based on the year to March 2019). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$550k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m. So Murray Wright is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at TESSCO Technologies, below. Over the last three years TESSCO Technologies Incorporated has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). Its revenue is up 4.6% over last year. This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to checkthis free visual report onanalyst forecastsfor future earnings. Most shareholders would probably be pleased with TESSCO Technologies Incorporated for providing a total return of 51% over three years. 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. Remuneration for Murray Wright is close enough to the median pay for a CEO of a similar sized company . The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling TESSCO Technologies (free visualization of insider trades). Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Be Impressed By Generac Holdings Inc.'s (NYSE:GNRC) ROE? 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 Generac Holdings Inc. (NYSE:GNRC). Generac Holdings has a ROE of 29%, based on the last twelve months. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.29. View our latest analysis for Generac Holdings Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Generac Holdings: 29% = US$242m ÷ US$867m (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. 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 profit over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. 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. 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, Generac Holdings has a better ROE than the average (13%) in the Electrical industry. That's clearly a positive. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently. Companies usually need to invest money to grow their profits. 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 use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. It's worth noting the significant use of debt by Generac Holdings, leading to its debt to equity ratio of 1.07. There's no doubt its ROE is impressive, but the company appears to use its debt to boost that metric. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Lagerfeld successor brings demure librarians to Chanel catwalk By Sarah White PARIS (Reuters) - Buttoned up looks fit for a studious afternoon in the library filled Chanel's Haute Couture runway show on Tuesday, as models paraded around an enormous bookcase in designer Virginie Viard's second, closely-watched solo outing for the French brand. Viard, a long time collaborator of Chanel's veteran creative chief Karl Lagerfeld, took on the design reigns at the luxury label after the German fashion star died in February at 85. The brand has so far preserved many of the elements that have drawn fans and rich clients back over the years, including new twists every season on its famed tweed suits, and several guests said they were taken with Viard's interpretation of them. "It did feel a little bit different with the new designer... maybe a little younger," said Chinese customer Regina Chen, 30, as she craddled a little white dog and posed for pictures after the show. Tuesday's collection - part of Paris' Haute Couture week, a presentation of one-of-a-kind outfits considered the height of fashion prowess - featured elaborate takes on the Chanel classic, including a mauve trouser suit with wide legs. Model Kaia Gerber showed off a bright pink, skirted version with flowery, white shoulders, while others wore longer versions of the tweed skirts. The collection also included intricately-beaded gowns, a shimmering fuschia number and a more sultry, velvet evening dress. Dubai resident Reem Abousamra, another long-time Chanel client, said she was drawn to some of the winter coats on display, and was glad that Viard had not veered too far from its trademark looks. "You could feel the new touch with maybe more feminine cuts, longer skirts," she said. "They shouldn't change completely ..., you have to have the spirit (of Chanel)." Viard's show plunged spectators deep into the inner sanctum of a spectacular, circular library. Several models wore glasses, and prim looks dominated the runway, with high, Edwardian-style collars or dresses evoking ladies riding outfits. Story continues Chanel, also known for its no5 perfume, is privately-owned by the Wertheimer family. It is the second biggest luxury brand in the world after LVMH's Louis Vuitton, with annual sales up 13 percent last year to $11.1 billion. Chief Financial Officer Philippe Blondiaux told Reuters in June that Viard was there for the long term. He denied that Chanel had had any discussions with former Celine designer Phoebe Philo, rumoured in industry circles as another possible successor to Lagerfeld. (Reporting by Sarah White; Editing by Alexandra Hudson)
Fans think Taylor Swift just confirmed Justin Bieber cheated on Selena Gomez Photo credit: Getty Images From Cosmopolitan Fans think Taylor Swift implied that Justin Bieber cheated on Selena Gomez thanks to a very telling Tumblr Like. Taylor and Justin are currently feuding over Scooter Braun . Hello and welcome to the messiest Monday ever. This weekend, celebrity manager Scooter Braun acquired Taylor Swift’s music catalog through a $300 million deal with Big Machine Records-and she promptly wandered over to Tumblr and accused him (and Kim Kardashian...and Justin Bieber...and Kanye West) of bullying her. It’s all extremely messy, and Justin made it even messier by responding to Taylor on Instagram. His post was one part not-that-great apology and one part calling Taylor out for bullying Scooter. Ya see? View this post on Instagram Hey Taylor. First of all i would like to apologize for posting that hurtful instagram post, at the time i thought it was funny but looking back it was distasteful and insensitive.. I have to be honest though it was my caption and post that I screenshoted of scooter and Kanye that said “taylor swift what up” he didnt have anything to do with it and it wasnt even a part of the conversation in all actuality he was the person who told me not to joke like that.. Scooter has had your back since the days you graciously let me open up for you.! As the years have passed we haven’t crossed paths and gotten to communicate our differences, hurts or frustrations. So for you to take it to social media and get people to hate on scooter isn’t fair. What were you trying to accomplish by posting that blog? seems to me like it was to get sympathy u also knew that in posting that your fans would go and bully scooter. Anyway, One thing i know is both scooter and i love you. I feel like the only way to resolve conflict is through communication. So banter back and fourth online i dont believe solves anything. I’m sure Scooter and i would love to talk to you and resolve any conflict, pain or or any feelings that need to be addressed. Neither scooter or i have anything negative to say about you we truly want the best for you. I usually don’t rebuttal things like this but when you try and deface someone i loves character thats crossing a line.. A post shared by Justin Bieber (@justinbieber) on Jun 30, 2019 at 2:54pm PDT Anyway, Taylor hasn’t responded to Justin directly, but-as Elle noted-she’s been extremely active on Tumblr-Liking a ton of shady fan comments about him. Including one that claims Justin cheated on Selena Gomez. Story continues taylor literally confirmed that jstin cheated on selena💀💀💀 pic.twitter.com/SOZUXFTszn - cindy (@cloudysel) June 30, 2019 Now, to be clear Taylor isn’t confirming these cheating rumours directly, but fans think this Like is basically an indirect confirmation. The post in question reads “‘We haven’t gotten to communicate our differences.’ You cheated on her best friend and then publicly sided with the man who made revenge porn against her, was she supposed to invite you over for tea??? Fck outta here.” Justin himself implied that there was infidelity during his relationship with Selena, telling i-D , “We were working out how to be in a relationship, how to be ourselves, who we were, in the middle of having people judge our relationship through the media. I think that really messed my head up to. Because then, it’s like trust and all this other stuff that starts messing with your mind. You’re on the road. And there are beautiful women on the road. And you’re just getting yourself into trouble.” ('You Might Also Like',) A ranking of the very best hair straighteners - according to our Beauty Editors Best party dresses to shop in the UK right now 11 products you'd be mad to miss from the Net A Porter beauty sale
Does The Primoris Services Corporation (NASDAQ:PRIM) Share Price Tend To Follow The Market? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching Primoris Services Corporation (NASDAQ:PRIM) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market. Some stocks are more sensitive to general market forces than others. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price. Check out our latest analysis for Primoris Services Given that it has a beta of 1.49, we can surmise that the Primoris Services share price has been fairly sensitive to market volatility (over the last 5 years). If this beta value holds true in the future, Primoris Services shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Primoris Services fares in that regard, below. With a market capitalisation of US$1.1b, Primoris Services is a small cap stock. However, it is big enough to catch the attention of professional investors. It is quite common to see a small-cap stock with a beta greater than one. In part, that's because relatively few investors can influence the price of a smaller company, compared to a large company. Since Primoris Services tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Primoris Services’s financial health and performance track record. I urge you to continue your research by taking a look at the following: 1. Future Outlook: What are well-informed industry analysts predicting for PRIM’s future growth? Take a look at ourfree research report of analyst consensusfor PRIM’s outlook. 2. Past Track Record: Has PRIM been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of PRIM's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how PRIM measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Mayim Bialik’s positive Pride post spammed with anti-LGBT comments The reaction to Mayim Bialik ’s Pride post on Instagram is a reminder that there’s much to be done in the name of equality. Mayim Bialik's Pride post was trolled by bigots. (Photo: Astrid Stawiarz/Getty Images) On the last day of Pride month, the Big Bang Theory alum took to Instagram to remind her followers that the “LGBTQ+ community is still fighting 365/year for equality.” This fight “began long before the Stonewall riots,” she wrote, and, now 50 years later, “continues.” View this post on Instagram A post shared by mayim bialik (@missmayim) on Jun 30, 2019 at 2:09pm PDT While many simply thanked her for the support, amid Pride celebrations across the country the same day, others felt the need to spam the post with homophobic comments. For instance, one person thinks the LBGTQ community “should have NO rights at all.” (Screenshot: Mayim Bialik via Instagram) Others wrote the LBGTQ community isn’t fighting for anything. “They have [their] rights. They can get married,” wrote one, adding, “All Pride is about now is being as obscene as possible.” (Screenshot: Mayim Bialik via Instagram) (Screenshot: Mayim Bialik via Instagram) Religion was brought into it with one person saying Bialik can’t be an Orthodox Jew if she supports anything LBGTQ. (She’s actually described herself as Modern Orthodox.) “Why would you encourage something against your belief? You may win the people, but not before [losing] your faith.” wrote one. (Screenshot: Mayim Bialik via Instagram) Another wrote that the actress is “fighting against God” by supporting Pride. (Screenshot: Mayim Bialik via Instagram) There were also comments like, “F**k the gay pride” and “I don’t have to like anything and this one.” Others posted vomit emojis. (Screenshot: Mayim Bialik via Instagram) (Screenshot: Mayim Bialik via Instagram) (Screenshot: Mayim Bialik via Instagram) Still, there were positive comments to offset the hate. One person wrote that “homophobia of any kind is dying” and “homophobes will change or die with it.” (Screenshot: Mayim Bialik via Instagram) (Screenshot: Mayim Bialik via Instagram) (Screenshot: Mayim Bialik via Instagram) Bialik is one of many celebrities supporting Pride over the weekend: Glenn Close had a really thoughtful post. Andy Cohen was in the thick of things with Housewives aplenty at NYC Pride. Ellen Pompeo showed off her daughter’s Pride manicure . And there were countless others. By Suzy Byrne, Editor, Yahoo Entertainment
'Love Island' viewers disgusted as Anna drinks pool water from Ovie's belly button Anna drinking pool water from Ovie's belly button (ITV) Love Island viewers were left disgusted by Monday’s episode after one challenge saw Anna Vakili drink pool water from Ovie Soko’s belly button. With the girls in Casa Amor and the boys still in the original villa, the two groups were pit against each other in a game which forced them to carry out a number of intimate challenges with the new arrivals. The quickest to perform the challenge would be awarded a point, with the eventual winner being rewarded with a party in the evening. For one of the tasks, one Islander was required to drink water from another’s belly button. Anna ran straight to the pool and cupped water in her hands (ITV) Read more: New Love Island hopeful's father has acted alongside the likes of Danny Dyer and Daniel Craig In the main villa, Anton quickly lied flat on his back and began to pour water on his stomach, only for the cap of his bottle to fail him as he struggled to get anything out of it. In Casa Amor, however, Anna wasted no time in running over to the swimming pool, cupping some water in her hands and then taking it over to Ovie to drink it out of his belly button. Fellow Islander Amber Gill immediately remarked with disgust: “That’s pool water.” And viewers certainly seemed to share her sentiment. Pool water yano 🤢 #loveisland — Kris (@misterchocpipe) July 1, 2019 How has Anna drank pool water outta a mans belly button #LoveIsland pic.twitter.com/MwQQuTJT8D — Josh (@Joshhhh_93) July 1, 2019 Wait, why did Anna just drink pool water tho? 🤢 #LoveIsland — Amina (@_thisisamina) July 1, 2019 Did she just drink pool water? #LoveIsland pic.twitter.com/lOyIjmKJfl — Lawrence Morris (@LPMorris8) July 1, 2019 Ovie got Anna drinking the veruca infested pool water out of mans belly button, you hate to see it #loveisland — __Sades (@_MANLIKESADIE) July 2, 2019 Anna drank pool water when there was a bottle next to her 😖 #loveisland pic.twitter.com/ukU6bxeF9p — A Girl Has No Name (@_cherieldn) July 1, 2019 One viewer tweeted: “How has Anna drunk pool water out of a man’s belly button?” Story continues While another wrote: “Ovie got Anna drinking the veruca infested pool water out of mans belly button. You hate to see it.” Read more: Love Island contestant Elma Pazar reveals she lied about her age to get on the show Also in Monday’s episode, viewers were stunned as Curtis Pritchard confirmed that his head had been turned by new girl Jourdan Riane, despite being in a “half-relationship” with Amy Hart. In a teaser for Tuesday’s episode, Curtis was even seen telling Jourdan that he’d choose to couple up with her over Amy, which could spell the end of her time in the villa as another re-coupling approaches.
How Darling Ingredients Inc. (NYSE:DAR) Can Impact Your Portfolio Volatility Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you're interested in Darling Ingredients Inc. (NYSE:DAR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price. Check out our latest analysis for Darling Ingredients Given that it has a beta of 1.21, we can surmise that the Darling Ingredients share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that Darling Ingredients are likely to rise strongly in times of greed, but sell off in times of fear. Beta is worth considering, but it's also important to consider whether Darling Ingredients is growing earnings and revenue. You can take a look for yourself, below. With a market capitalisation of US$3.3b, Darling Ingredients is a pretty big company, even by global standards. It is quite likely well known to very many investors. It takes deep pocketed investors to influence the share price of a large company, so it's a little unusual to see companies this size with high beta values. It may be that that this company is more heavily impacted by broader economic factors than most. Since Darling Ingredients has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether DAR is a good investment for you, we also need to consider important company-specific fundamentals such as Darling Ingredients’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Future Outlook: What are well-informed industry analysts predicting for DAR’s future growth? Take a look at ourfree research report of analyst consensusfor DAR’s outlook. 2. Past Track Record: Has DAR been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of DAR's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how DAR measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Estimating The Intrinsic Value Of Costco Wholesale Corporation (NASDAQ:COST) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Costco Wholesale Corporation (NASDAQ:COST) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. Check out our latest analysis for Costco Wholesale We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF ($, Millions)", "2020": "$2.7b", "2021": "$3.4b", "2022": "$3.6b", "2023": "$4.3b", "2024": "$4.8b", "2025": "$5.2b", "2026": "$5.5b", "2027": "$5.8b", "2028": "$6.1b", "2029": "$6.3b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x11", "2021": "Analyst x5", "2022": "Analyst x3", "2023": "Analyst x3", "2024": "Est @ 10.69%", "2025": "Est @ 8.3%", "2026": "Est @ 6.63%", "2027": "Est @ 5.46%", "2028": "Est @ 4.64%", "2029": "Est @ 4.07%"}, {"": "Present Value ($, Millions) Discounted @ 7.5%", "2020": "$2.5k", "2021": "$2.9k", "2022": "$2.9k", "2023": "$3.2k", "2024": "$3.3k", "2025": "$3.4k", "2026": "$3.3k", "2027": "$3.3k", "2028": "$3.2k", "2029": "$3.1k"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $31.1b 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 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 7.5%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$6.3b × (1 + 2.7%) ÷ (7.5% – 2.7%) = US$136b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$136b ÷ ( 1 + 7.5%)10= $66.24b 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 $97.35b. 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 $221.35. Compared to the current share price of $263.55, 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. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Costco Wholesale as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.5%, 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 Costco Wholesale, There are three further aspects you should further research: 1. Financial Health: Does COST 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 COST'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 COST? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Pembina Pipeline Corporation (TSE:PPL) A Great Dividend Stock? 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 Pembina Pipeline Corporation (TSE:PPL) 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 stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. With Pembina Pipeline yielding 4.9% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. 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, Pembina Pipeline paid out 101% of its profit as dividends. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Pembina Pipeline paid out 117% of its free cash flow last year, which we think is concerning if cash flows do not improve. Cash is slightly more important than profit from a dividend perspective, but given Pembina Pipeline's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend. As Pembina Pipeline 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. With net debt of 3.62 times its EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Pembina Pipeline has EBIT of 5.68 times its interest expense, which we think is adequate. Consider gettingour latest analysis on Pembina Pipeline'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 Pembina Pipeline's dividend payments. During the past ten-year period, the first annual payment was CA$1.44 in 2009, compared to CA$2.40 last year. This works out to be a compound annual growth rate (CAGR) of approximately 5.2% a year over that time. Companies like this, growing their dividend at a decent rate, can be very valuable over the long term, if the rate of growth can be maintained. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Pembina Pipeline has grown its earnings per share at 15% per annum over the past five years. Although earnings per share are up nicely Pembina Pipeline is paying out 101% of its earnings as dividends, which we feel is borderline unsustainable without extenuating circumstances. When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. We're a bit uncomfortable with Pembina Pipeline paying out a high percentage of both its cashflow and earnings. That said, we were glad to see it growing earnings and paying a fairly consistent dividend. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Pembina Pipeline out there. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 11 analysts we track are forecasting for Pembina Pipelinefor freewith publicanalyst estimates for the company. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
8 all-natural cleaning hacks that will change your life Unless you can afford to hire help regularly, cleaning is never an easy chore. Not only is it expensive, but it's a time-consuming, sweat-inducing production. Seriously, scrubbing the bathroom floor puts most of our other workouts to shame. And not to add fuel to the fire, but the cleaning products sitting under your sink right now are most likely packed with toxins that have been linked to respiratory issues, environmental harm and, yes, even cancer, according to theEWG. And whereas it may cost an arm and a leg for safer and natural cleaning products (but why?!), there are a myriad of ways to find nontoxic cleaning brands that are not only affordable but versatile as well. We spoke with Alex Crane and Chu-Min Lee, who both oversee product development atGrove Collaborative, for their biggest household cleaning tips and tricks. The subscription service is beloved by consumers looking for a sustainable and nontoxic lifestyle (they just launched a wellness section!) so, it's safe to say we're in safe hands.We repeat. Scroll through above for Crane and Lee's biggest tips, from laundry hacks to bathroom tips to even pest control! Related: Make sure to pay special attention to these dirty spots
Is Now The Time To Put Century Communities (NYSE:CCS) On Your Watchlist? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy. So if you're like me, you might be more interested in profitable, growing companies, likeCentury Communities(NYSE:CCS). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath. Check out our latest analysis for Century Communities As one of my mentors once told me, share price follows earnings per share (EPS). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Over the last three years, Century Communities has grown EPS by 17% per year. That's a good rate of growth, if it can be sustained. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Century Communities maintained stable EBIT margins over the last year, all while growing revenue 43% to US$2.3b. That's a real positive. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. Fortunately, we've got access to analyst forecasts of Century Communities'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting. It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. So it is good to see that Century Communities insiders have a significant amount of capital invested in the stock. With a whopping US$77m worth of shares as a group, insiders have plenty riding on the company's success. That holding amounts to 9.6% of the stock on issue, thus making insiders influential, and aligned, owners of the business. One important encouraging feature of Century Communities is that it is growing profits. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. Of course, just because Century Communities is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry. Although Century Communities certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Bitcoin breaks above $11,000 again as parabolic advance continues It’sbitcoinbull season, folks. Despite a 75 percent drop during 2018, and many investors eyeing a prolonged bear market, the price of bitcoin has risen dramatically since the start of this year. Since early April, the price has risen 275 percent to reach highs not seen since March 2018. And so far, it has shown little sign of stopping—at last facing overhead resistance at the $11,000 barrier. Bitcoin has spent the last two days pushing up against this resistance, breaking through only to be pushed back down. However, in the last few hours, it broke through $11,000 for the fourth time, rising to $11,100 on Monday at approximately 8pm ET, and causing celebration among holders—who only recently had been glad to pass the $9,000 mark. However, the long-term drop in price and subsequent rise did not come as a surprise to everyone. Anthony Pompliano, co-founder of Morgan Creek Digital, used the news topoint outthat he made a call in August 2018 that bitcoin would fall to $3,000 and then rise past $10,000. He then reminded everyone that his next call is for bitcoin to hit $100,000 by the end of 2021, a slightly less ambitious goal than JohnMcAfee’s famous bet. But bitcoin’s bull run hasn’t been good for everyone. Binance only just added margin trading to its exchange platform, but already the bull market has claimed its first scalp. A bitcoin short seller was liquidated yesterday,accordingto Binance CEO Changpeng Zhao, the first on the nascent platform. “Don’t bet against bitcoin,” Zhaotweeted. Then again, that’s what everyone said at the height of the 2017 bubble.
HSBC Bank plc Announces Post Stabilisation Notice LONDON / ACCESSWIRE / July 2, 2019 /HSBC (contact: Syndicate desk, telephone: +44 207 992 8066) hereby gives notice that no stabilisation (within the meaning of the rules of the Financial Conduct Authority) was undertaken by the Stabilisation Manager(s) named below in relation to the offer of the following securities. [{"Issuer:": "Guarantor (if any):", "HSBC Holdings plc": "na"}, {"Issuer:": "Aggregate nominal amount:", "HSBC Holdings plc": "GBP 750,000,000"}, {"Issuer:": "Description:", "HSBC Holdings plc": "3% due 29thMay 2030 (call date 29thMay 2029)"}, {"Issuer:": "Offer price:", "HSBC Holdings plc": "99.601"}, {"Issuer:": "Stabilising Managers:", "HSBC Holdings plc": "HSBC Bank"}] This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Issuer in any jurisdiction. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contactrns@lseg.comor visitwww.rns.com. SOURCE:HSBC Holdings PLC View source version on accesswire.com:https://www.accesswire.com/550605/HSBC-Bank-plc-Announces-Post-Stabilisation-Notice
Are Investors Undervaluing Pitney Bowes Inc. (NYSE:PBI) By 30%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we will run through one way of estimating the intrinsic value of Pitney Bowes Inc. (NYSE:PBI) by projecting its future cash flows and then discounting them to today's value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. Check out our latest analysis for Pitney Bowes We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF ($, Millions)", "2020": "$163.8m", "2021": "$167.3m", "2022": "$155.4m", "2023": "$148.9m", "2024": "$145.8m", "2025": "$144.9m", "2026": "$145.4m", "2027": "$147.0m", "2028": "$149.3m", "2029": "$152.1m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ -7.11%", "2023": "Est @ -4.16%", "2024": "Est @ -2.09%", "2025": "Est @ -0.65%", "2026": "Est @ 0.37%", "2027": "Est @ 1.08%", "2028": "Est @ 1.57%", "2029": "Est @ 1.92%"}, {"": "Present Value ($, Millions) Discounted @ 14.65%", "2020": "$142.9", "2021": "$127.3", "2022": "$103.1", "2023": "$86.2", "2024": "$73.6", "2025": "$63.8", "2026": "$55.8", "2027": "$49.2", "2028": "$43.6", "2029": "$38.8"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $784.3m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 14.7%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$152m × (1 + 2.7%) ÷ (14.7% – 2.7%) = US$1.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$1.3b ÷ ( 1 + 14.7%)10= $334.12m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.12b. 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 $6.19. Relative to the current share price of $4.36, the company appears a touch 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. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Pitney Bowes 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 14.7%, 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. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Pitney Bowes, I've compiled three fundamental aspects you should further examine: 1. Financial Health: Does PBI 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 PBI'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 PBI? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How to prepare for a home inspection and maybe get a better price After an offer is accepted, it's time to hire a home inspector. Once you get the report, this may be the last time to negotiate a lower price.
Church steps in to host LGBT+ prom after library cancels in face of backlash When the Storybook Pride Prom for Jacksonville , Florida s LGBT + teens was cancelled after online conservative backlash, a local church made sure the story had a happy ending. The Willowbranch Library in Jacksonville originally organised the event, where 14 to 18-year-olds were invited to come in costume as their favourite book character, with a dress code of casual, formal, or in drag whatever makes you feel great. Be you! Over 100 teens planned to attend. But when the event caught the attention of a conservative blogger, who encouraged her nearly 700,000 Facebook followers to call the library to complain, the Jacksonville Public Library cancelled the event on 24 June due to fears for the teens safety to the outrage of many local parents and community members. Ultimately, the kids got their dance. The Buckman Bridge Unitarian Universalist Church in Jacksonville stepped in and held the prom on Friday, the same night as the original event at the neighbourhoods library. It was the right thing to do, Grace Repass, the churchs past president, said in a statement to The Washington Post . The LGBTQIA+ youth in our community deserve to have their prom and we wanted to support them. Ms Repass said the decision to host the prom was swift and unanimously supported by the churchs board, and that the event featured Happy teens, grateful parents, and a lot of community support. We see our church as a safe place for people who are figuring out who they are, she said. Our Unitarian Universalist values call us to respect the inherent worth and dignity of every person. So, its a matter of integrity-to act in alignment with who we say we are. About 50 volunteers, LGBT+ veterans, private security, and the Jacksonville sheriffs office were on hand to protect the kids, News4Jax reported. Willowbranch Library originally announced the prom on Facebook on 4 June. But on 21 June, blogger Elizabeth Johnson, who goes by Activist Mommy, encouraged her followers to express your disgust that this perversion is taking place in a taxpayer funded library! and listed the branchs phone number. Story continues Ms Johnsons Facebook page frequently criticises drag queens and LGBT+ people, and she has encouraged her followers to call libraries that host storytime events where drag performers read to children. She could not immediately be reached for comment. That call to action was echoed by a Florida group called Biblical Concepts Ministries, whose stated mission is educating, motivating, and activating the body of Christ in civil and community service and public policy in order to defend our religious freedoms. The group blasted out an emergency alert email to pastors and supporters urging them to contact the mayor and city council to complain about the inappropriate insanity. The groups founder, Raymond Johnson, told News4Jax that were absolutely opposed to anything like this . The Biblical Concepts Ministries declared victory on Facebook over the cancellation on 24 June, calling it a Perverted Drag Queen Prom for Children. In a Facebook statement on the cancellation, the Jacksonville Public Library said that it promotes inclusivity and acceptance of all people, regardless of sexual orientation, but that after hearing of physical threats to the young participants, it decided to cancel. That decision prompted protests of its own from patrons upset that the library had capitulated to pressure from anti-LGBT+ activists. Some parents even suggested that the library director, Tim Rogers, resign. Chris Boivin, spokesman for Jacksonville Public Libraries, told The Washington Post via email that Mr Rogers now understands how the cancellation impacted the teens who were planning to attend as well as the greater LGBTQ community. This has been a humbling and learning experience. But Mr Boivin stood by the decision to cancel the event. As a small, non-activist organisation, we had never dealt with this kind of thing before, he wrote. With one week to go before holding a brand-new event for teens, we felt out of our element and unprepared to ensure the kids safety and sense of security. We had the teens well-being and safety in mind when we cancelled, and nothing else. We did not realise how the cancellation would impact the LGBTQ community, and for that, we are very sorry. BeBe Deluxe, a drag queen who was scheduled to appear at the prom, wrote on Instagram after the cancellation that such events were important because, trans kids need to see themselves represented in healthy trans adults. Gay kids need to see happy gay adults. Straight kids need to learn to help make the world better for everybody. One parent critical of Mr Rogers, Michelle Leipuner, said that he had caved to online pressure and that the children had not been in danger. Ms Leipuner said she called the library and the mayors office to complain and participated in a protest against Mr Rogers last week. Ms Leipuners 14-year-old son is gay, and she has a 17-year-old daughter who is transgender , she told The Washington Post , and the cancellation felt intensely personal to her. She had been excited for her son to attend the prom, because it presented an opportunity for him to go and meet people like him, different from him. She called its cancellation a slap in the face . She praised the Buckman Bridge Unitarian Universalist Churchs last-minute intervention, as it gave her son the opportunity to celebrate pride with his fellow LGBTQ teens. He was the belle of the ball, she said. He had a gorgeous gold dress on. He was beautiful. Washington Post
Brady Corporation (NYSE:BRC) Is Employing Capital Very Effectively Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Brady Corporation (NYSE:BRC) to determine whether it could have potential as an investment idea. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. Then we'll determine how its current liabilities are affecting its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. In general, businesses with a higher ROCE are usually better quality. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Brady: 0.17 = US$161m ÷ (US$1.1b - US$178m) (Based on the trailing twelve months to April 2019.) Therefore,Brady has an ROCE of 17%. Check out our latest analysis for Brady ROCE can be useful when making comparisons, such as between similar companies. Using our data, we find that Brady's ROCE is meaningfully better than the 11% average in the Commercial Services industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Regardless of where Brady sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look. We can see that , Brady currently has an ROCE of 17% compared to its ROCE 3 years ago, which was 11%. This makes us think about whether the company has been reinvesting shrewdly. The image below shows how Brady's ROCE compares to its industry, and you can click it to see more detail on its past growth. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is, after all, simply a snap shot of a single year. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counteract this, we check if a company has high current liabilities, relative to its total assets. Brady has total assets of US$1.1b and current liabilities of US$178m. As a result, its current liabilities are equal to approximately 16% of its total assets. A fairly low level of current liabilities is not influencing the ROCE too much. With that in mind, Brady's ROCE appears pretty good. There might be better investments than Brady out there,but you will have to work hard to find them. These promising businesses withrapidly growing earningsmight be right up your alley. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Malibu Boats, Inc. (NASDAQ:MBUU) A Volatile Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching Malibu Boats, Inc. (NASDAQ:MBUU) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. View our latest analysis for Malibu Boats Zooming in on Malibu Boats, we see it has a five year beta of 1.86. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If the past is any guide, we would expect that Malibu Boats shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Malibu Boats's revenue and earnings in the image below. Malibu Boats is a small company, but not tiny and little known. It has a market capitalisation of US$842m, which means it would be on the radar of intstitutional investors. It has a relatively high beta, which is not unusual among small-cap stocks. Because it takes less capital to move the share price of a smaller company, actively traded small-cap stocks often have a higher beta that a similar large-cap stock. Since Malibu Boats tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Malibu Boats’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Future Outlook: What are well-informed industry analysts predicting for MBUU’s future growth? Take a look at ourfree research report of analyst consensusfor MBUU’s outlook. 2. Past Track Record: Has MBUU been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of MBUU's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how MBUU measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Female presidential candidates pose for Vogue Sen. Amy Klobuchar, Rep. Tulsi Gabbard, Sen. Kirsten Gillibrand, Sen. Elizabeth Warren and Sen. Kamala Harris pose for Vogue. (Photo: Vogue/Annie Leibovitz) Less than a week after the first round of Democratic debates , five of the six women running for president are coming together for a Vogue photo shoo t lensed by the famed Annie Leibovitz. (Leibovitz, incidentally, also photographed fellow candidate Beto O’Rourke for his eyebrow-raising Vanity Fair cover this spring.) Though there’s been some friction between the candidates — Rep. Tulsi Gabbard’s sister complained on Twitter that Sen. Elizabeth Warren , pictured here in a red blazer, got more air time during last Wednesday’s debate — they’re all smiles in the magazine shoot, which also includes a shot of them in a group high-five. Along with a black-clad Gabbard and Warren, Sen. Amy Klobuchar in peacock green, LBD-wearing Sen. Kirsten Gillibrand and a suit-sporting Sen. Kamala Harris are featured. “A woman’s place is in the House, Senate and the White House,” Harris quipped as she shared the photo on social media, while Minnesota senator Klobuchar wrote, “May the best woman win.” View this post on Instagram A post shared by Kamala Harris (@kamalaharris) on Jul 1, 2019 at 1:49pm PDT May the best woman win. 📷: Annie Leibovitz https://t.co/W7HX906nO1 pic.twitter.com/7ZgRwNd40P — Amy Klobuchar (@amyklobuchar) July 2, 2019 Madam President. Has a nice ring to it, doesn't it? https://t.co/El0QG54IyR — Kirsten Gillibrand (@SenGillibrand) July 1, 2019 The women also opened up to writer Amy Chozick about their policies, motherhood — with Warren recalling using M&Ms to potty-train her daughter so she could put the toddler in daycare and free her up to attend law school — and what it’s like to be part of a group vying for the title of Madam President. Story continues “I think the reason all of these women ran is because they weren’t going to accept a nation where Trump’s views of the world would prevail,” said Gillibrand. “I’ve heard from girls 8, 9, 10 years old, and for them this is what an election should look like,” added Gabbard. “It’s not a shocker.” Many supporters are hailing the group shoot. “I really do appreciate the fact that none of the women who are running for the nomination seem willing to cut one another down,” read one Instagram comment. “You may not agree on the how, but you all agree that things must change. I’m proud to support the wonderful women who are speaking up and investing in change! #ClassyWomen ” “Y’all are changing the ENTIRE GAME,” wrote one of Harris’s followers. Some, however, were quick to play favorites — often at the expense of Gabbard. Fixed it pic.twitter.com/E38ur345rE — Debbie🏳️‍🌈 #IAmEqual ❤💛💚💙💜 (@DebbieDoesTwitt) July 2, 2019 A better version pic.twitter.com/qwHwCxatwb — Unlikeable UltmtPerSISter 🏳️‍🌈🤨🎯Women2020 (@ultmtpersister) July 2, 2019 #Ticket pic.twitter.com/S2PM5s72ee — Parrhizzia🇺🇸🇦🇺 (@parrhizzia) July 2, 2019 While conservatives trolled Gillibrand’s call for a “Madam President” — “Thank goodness you will never know,” read one comment, while one wrote, “Ivanka Trump would make an excellent president” — the main question on everyone’s lips was: “Where’s Marianne Williamson ?” Presidential candidate Williamson, the Oprah-connected spiritual adviser famed for her new age outlook, wasn’t included in the shoot or its accompanying story, though it’s unclear why. Some have suggested that Williamson was excluded because, unlike the other candidates, she is neither a member of the Senate or the House. The internet, of course, has other theories. “I’m assuming Marianne is off harnessing love?” joked one commenter. “She couldn't get anyone to cover her shift on the Psychic Friends Network,” someone suggested, while one person wrote that she was “aligning her chakras.” “Marianne is gonna do some brujería [witchcraft] on this photo,” added another commenter. Where's the new-age hippie lady? — Salvatore Compoccia (@SCompoccia) July 2, 2019 Williamson’s absence riled up some supporters. Not okay. Excludes democratic presidential candidate, @marwilliamson — Overturn Citizens United. (@jamesmarie33) July 2, 2019 If @TulsiGabbard was Included then @marwilliamson should have been also. — Trace (@WithoutaTRACE) July 2, 2019 Read more from Yahoo Lifestyle: Elizabeth Warren says ban on federal funding for abortion has been 'wrong for a long time': 'It's just discrimination' Politician speaks out after Pride flag removed from museum: 'We still have work to do' Famed magazine columnist: 'Donald Trump assaulted me' Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day.
Should You Invest In Brandywine Realty Trust (NYSE:BDN)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Brandywine Realty Trust is a US$2.5b mid-cap, real estate investment trust (REIT) based in Philadelphia, United States. REITs own and operate income-generating property and adhere to a different set of regulations. This impacts how BDN’s business operates and also how we should analyse its stock. Below, I'll look at a few important metrics to keep in mind as part of your research on BDN. View our latest analysis for Brandywine Realty Trust Funds from Operations (FFO) is a higher quality measure of BDN's earnings compared to net income. This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation. For BDN, its FFO of US$227m makes up 73% of its gross profit, which means the majority of its earnings are high-quality and recurring. Robust financial health can be measured using a common metric in the REIT investing world, FFO-to-debt. The calculation roughly estimates how long it will take for BDN to repay debt on its balance sheet, which gives us insight into how much risk is associated with having that level of debt on its books. With a ratio of 11%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take BDN 9 years to pay off using just operating income, which is a long time, and risk increases with time. But realistically, companies have many levers to pull in order to pay back their debt, beyond operating income alone. Next, interest coverage ratio shows how many times BDN’s earnings can cover its annual interest payments. Usually the ratio is calculated using EBIT, but for REITs, it’s better to use FFO divided by net interest. This is similar to the above concept, but looks at the nearer-term obligations. With an interest coverage ratio of 2.82x, BDN is not generating an appropriate amount of cash from its borrowings. Typically, a ratio of greater than 3x is seen as safe. I also use FFO to look at BDN's valuation relative to other REITs in United States by using the price-to-FFO metric. This is conceptually the same as the price-to-earnings (PE) ratio, but as previously mentioned, FFO is more suitable. BDN's price-to-FFO is 11.23x, compared to the long-term industry average of 16.5x, meaning that it is undervalued. Brandywine Realty Trust can bring diversification into your portfolio due to its unique REIT characteristics. Before you make a decision on the stock today, keep in mind I've only covered one metric in this article, the FFO, which is by no means comprehensive. I'd strongly recommend continuing your research on the following areas I believe are key fundamentals for BDN: 1. Future Outlook: What are well-informed industry analysts predicting for BDN’s future growth? Take a look at ourfree research report of analyst consensusfor BDN’s outlook. 2. Valuation: What is BDN 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 BDN 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.
Pancon Commences Exploration at the St. Laurent Ni-Cu-Co Project Toronto, Ontario--(Newsfile Corp. - July 2, 2019) - Pancontinental Resources Corporation(TSXV: PUC) (OTC: PUCCF)("Pancon" or the "Company") announced today that exploration field work is underway on the newly acquired nickel-copper-cobalt St. Laurent Project, located in St. Laurent Township, Northern Ontario, 160 kilometres northeast of Timmins, 50 kilometres south of Detour Lake Mine and 20 kilometres southwest of the Casa Berardi Mine. According to Pancon President and CEO Layton Croft, "A recently completed geological compilation and a re-interpretation of past work indicates the presence of an intrusive gabbro body containing widespread anomalous Ni-Cu-Co mineralization. Mineralization consists of disseminations, blebs and stringers, which represent a body up to 80 metres thick. Historic diamond drilling was limited along 205 metres of strike extent, with the deepest hole at a 160 metre vertical depth. It appears from our ongoing interpretation that several of the previous drill holes were terminated while still in the mineralized gabbro body. An unexplained robust airborne electromagnetic (EM) conductor, 600 metres in length, is coincident with the mineralized body. Our ongoing evaluation indicates these important exploration features together represent a classic Ni-Cu-Co massive sulphide target." The first phase of historic diamond drilling was completed in 1965-1966, when 7 holes totalling 1,081 metres were completed. Pancon has located a sufficient number of the drill casings in the field in order to re-establish and incorporate this work into the current interpretation. Drill logs from the 7 holes were preserved and incorporated, although assay results were not preserved. A single drill section from an accompanying historical assessment report indicates the following intersections from the drill program [{"DDH": "PA-1", "Ni%": "0.78", "Cu%": "0.23", "Width (m)": "2.7"}, {"DDH": "PA-5", "Ni%": "0.37", "Cu%": "0.33", "Width (m)": "19.2"}, {"DDH": "PA-7", "Ni%": "0.23", "Cu%": "0.16", "Width (m)": "26.5"}] The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. Source: MNDM Assessment Report KL-0162 and KL-1062 Geological Report on Asarco Claims, March 1971. The historic drill logs record sulphide mineralization in all 7 holes, ranging from trace to higher concentrations of up to 70% over several cm intervals. The extent of sampling in 7 seven holes is not indicated, but the sulphide descriptions and visual estimates in the logs provide supportive indication of a wide mineralized zone. Evidence of a second phase of drilling (6 holes) by the same previous operator is indicated in a drill plan map from the assessment report. Casings from this phase of work were also located in the field, however drill logs were not preserved and assay results were not preserved. In 2008, a 3-hole, 604-metre diamond drill program was completed. Drill logs and assay results were preserved from this phase of exploration, and they support the presence of a wide zone of low-grade Ni-Cu-Co sulphide mineralization. Pancon has located and re-logged the complete drill core from this program. The core logging, in conjunction with magnetic susceptibility measurements and specific gravity measurements, forms the basis of Pancon's current geological interpretation. The broad zone of sulphide mineralization is hosted in a fine-grained intrusive gabbro body that shows distinct intrusive breccia textures (see Figure 1). The drill holes intersected disseminated and blebby sulphides and scattered narrow sections of sulphide stringers (see Figure 2), but did not explain the strong EM conductor. Two of the holes are interpreted to have ended in the mineralized body. The Ni-Cu mineralization is associated with relatively low sulphur assay data, which is consistent with the observed mineralization. Projected to massive sulphides of approximately 35% sulphur, St. Laurent's Ni grade could potentially be 4.8% and the Co grade could potentially be 0.2%. Calculating Ni and Co tenor to 100% sulphide is a common practice in Ni-Cu-Co exploration to determine potential economic possibilities of nickel sulphide mineralization. These characteristics provide a number of similarities to the Ni-Cu-Co deposit mined at the former Montcalm Mine, owned by Glencore. Pancon has built up its exploration knowledge of the Montcalm deposit from its recent and ongoing exploration work on its Montcalm Ni-Cu-Co Project, which surrounds the former Montcalm Mine. Figure 1: SL 08-01 - Gabbro Breccia To view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/5156/46013_7199a00ac4335bdb_003full.jpg Figure 2: SL08-02 - Sulphide Stringers To view an enhanced version ofFigure 2, please visit:https://orders.newsfilecorp.com/files/5156/46013_7199a00ac4335bdb_004full.jpg [{"DDH": "SL-08-01", "From(m)": "57.4", "To(m)": "64.5", "Width(m)": "7.1", "Ni%": "0.14", "Cu%": "0.22", "Co (ppm)": "95", "Au-Pt-Pd (ppb)": "104"}, {"DDH": "SL-08-01", "From(m)": "71.9", "To(m)": "82.4", "Width(m)": "10.5", "Ni%": "0.14", "Cu%": "0.15", "Co (ppm)": "92", "Au-Pt-Pd (ppb)": "78"}, {"DDH": "SL-08-01", "From(m)": "93.9", "To(m)": "112.4", "Width(m)": "18.5", "Ni%": "0.18", "Cu%": "0.12", "Co (ppm)": "143", "Au-Pt-Pd (ppb)": "60"}, {"DDH": "SL-08-01", "From(m)": "120.3", "To(m)": "124.4", "Width(m)": "4.1", "Ni%": "0.25", "Cu%": "0.10", "Co (ppm)": "174", "Au-Pt-Pd (ppb)": "59"}, {"DDH": "SL-08-02", "From(m)": "65.2", "To(m)": "81.1", "Width(m)": "15.9", "Ni%": "0.27", "Cu%": "0.23", "Co (ppm)": "149", "Au-Pt-Pd (ppb)": "85"}, {"DDH": "SL-08-02", "From(m)": "85.4", "To(m)": "90.9", "Width(m)": "5.5", "Ni%": "0.51", "Cu%": "0.31", "Co (ppm)": "290", "Au-Pt-Pd (ppb)": "70"}, {"DDH": "SL-08-02", "From(m)": "94.2", "To(m)": "104.2", "Width(m)": "10.0", "Ni%": "0.34", "Cu%": "0.34", "Co (ppm)": "191", "Au-Pt-Pd (ppb)": "145"}, {"DDH": "SL-08-03", "From(m)": "157.1", "To(m)": "187.1", "Width(m)": "30.0", "Ni%": "0.25", "Cu%": "0.20", "Co (ppm)": "145", "Au-Pt-Pd (ppb)": "92"}] The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. Source: Ministry of Northern Development and Mines assessment report 20006295. About the St. Laurent Project: • Pancon acquired the St. Laurent Project earlier this year (see News Release dated March 15, 2019) which covers 4,170 hectares and is located in St. Laurent Township, Northern Ontario, 160 kilometres northeast of Timmins, 50 kilometres south of Detour Lake Mine and 20 kilometres southwest of the Casa Berardi Mine. • Past shallow drilling at the St. Laurent Project identified disseminated multi-element sulphide mineralization across notable widths trending towards a large gabbro-hosted magnetic feature. • The Ni-Cu-Co-Au-Pt-Pd zone is open along strike and at depth. This mineralized zone is coincident with a strong 600-metre long EM anomaly. • Drilling to date has not yet intersected massive sulphides, and the EM anomaly has not yet been explained. The disseminated sulphide halo provides an important vector to guide our upcoming exploration work. Maps and more information on the St. Laurent Key Exploration Features can be viewed here:https://adobe.ly/301aBPy. In a separate matter, Pancon has renewed its Investor Relations consulting agreement with Jeanny So Consulting (the "Consultant") for another 12-month term, wherein the Company will pay the Consultant a fee of $5,000 per month. In addition, the Consultant shall be granted 250,000 options to purchase common shares at $0.08 per share. The options will vest in installments of 62,500 options per quarter and will have a term of 5 years, subject to acceptance of the TSX Venture Exchange. Qualified Person: The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and approved by Todd Keast, P.Geo., a Qualified Person as defined by NI 43-101. Mr. Keast is a member of Pancon's Technical Advisory Committee and Pancon's Projects Manager. Certain technical information within this news release is historical in nature and pre-dates NI 43-101 standards; this information is believed to be reliable however the Company has not verified this material. About Pancon Resources: Pancontinental Resources Corporation (TSXV: PUC), or Pancon, is a Canadian junior mining company focused on North American gold and battery metals projects in proven mining districts and near producing or former mines. Pancon's 100%-owned Jefferson Gold Project is 15 km along trend from the Haile Gold Mine and next to the former Brewer Gold Mine, on the Carolina Gold Belt in South Carolina, USA. Pancon has 5 nickel-copper-cobalt projects in Northern Ontario. The Montcalm Project, Gambler Project, Nova Project and Strachan Project are near and surrounding the former Montcalm Ni-Cu-Co Mine, located 65 km northwest of Timmins. The St. Laurent Project has an advanced Ni-Cu-Co-Au-Pt-Pd target and is located 50 km south of Detour Lake Mine and 20 km southwest of Casa Berardi Mine. For further information, please contact: Layton Croft, President & CEO or Jeanny So, Manager, External RelationsE:info@panconresources.comT: +1.416.293.8437 For additional information please visit our new website atwww.panconresources.comand our Twitter feed:@PanconResources. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws. To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46013
Ely Gold Closes Royalty Sale and Private Placement with Eric Sprott Vancouver, British Columbia--(Newsfile Corp. - July 2, 2019) -Ely Gold Royalties Inc.(TSXV: ELY) (OTCQB: ELYGF)("Ely Gold")or the("Company")is pleased to announce that it has closed its previously announced royalty sale and private placement with 2176423 Ontario Ltd., a company controlled by Eric Sprott ("Sprott"). Sprott has acquired 100% of all rights and interests in a 1.0% (one percent) net smelter returns royalty on the Fenelon Mine Property (the "FenelonRoyalty"), operated by Wallbridge Mining Company Limited, located in west-central, Quebec. Under the terms of the Agreement, Sprott paid Ely Gold a cash consideration of US$1,250,000, (approximately CAN$1,673,360) for the Fenelon Royalty. (see press release dated June 10, 2019.) Subsequent to the sale, Ely Gold will retain a 2.0% royalty on the Fenelon Mine Property. In a separate transaction, Sprott has subscribed to a previously announced Ely Gold private placement (the "Placement") consisting of 5,615,454 Ely Gold units (each a "Unit") at a price of CAN$0.18 per Unit for gross proceeds of CAN$1,010,782 (see press release dated June 10, 2019). Each Unit will comprise one common share and one-half of a non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for a period of three (3) years at an exercise price of $0.30. The Company paid a 6.0% placement arrangement fee and 6% in warrants to, Medalist Capital Ltd., an arm's length registered dealer. All securities issued and issuable in the Placement will be subject to a four-month hold period from the closing date. The Placement, including the payment of the arrangement fee, is subject to Exchange final acceptance. The net proceeds from the Placement will be used for the Company's project generative activities and for general corporate expenses. The placement will result in Sprott holding 5.7% of Ely Gold shares and 8.3% if warrants are exercised. About Ely Gold Royalties Inc.Ely Gold Royalties Inc. is a Vancouver-based, emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 33 Deeded Royalties and 20 properties optioned to third parties. Ely Gold's royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The Company is actively seeking opportunities to purchase existing third-party royalties for its portfolio and all the Company's option properties are expected to produce royalties, if exercised. The royalty and option portfolios are currently generating significant revenue. Ely Gold is well positioned with its current portfolio of over 20 available properties to generate additional operating revenue through option and sale agreements. The Company has a proven track record of maximizing the value of its properties through claim consolidation and advancement using its extensive, proprietary data base. All portfolio properties are sold or optioned on a 100% basis, while the Company retains royalty interests. Management believes that due to the Company's ability to generate third-party royalty agreements, its successful strategy of organically creating royalties, its equity portfolio and its current low valuation, Ely Gold offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term mineral royalties. On Behalf of the Board of DirectorsSigned "Trey Wasser"Trey Wasser, President & CEO For further information, please contact: Trey Wasser, President & CEOtrey@elygoldinc.com972-803-3087 Joanne Jobin, Investor Relations Officerjjobin@elygoldinc.com647 964 0292 Caution: This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding the timing and size of the proposed Placement , the anticipated use of proceeds, the required Exchange acceptance of the presently proposed transactions, the future exercise of options on the Company's properties, the ability of the Company to generate and acquire new royalty interests, the Company's prospects for future revenue generation, management's assessment of the risks associated with the Company's business and stated plans for further near-term exploration and development of the Company's properties. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the risk of accidents and other risks associated with mineral exploration, development and extraction operations, the risk that its partners will encounter unanticipated geological factors, or the possibility that they may not be able to secure permitting and other governmental clearances, necessary to carry out their stated plans for the Company's properties, the Company's inability to secure the required Exchange acceptance required for the Placement , and the risk of political uncertainties and regulatory or legal disputes or changes in the jurisdictions where the Company carries on its business that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) atwww.sedar.comfor a more complete discussion of such risk factors and their potential effect. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available. Not for distribution to United States newswire services or for dissemination in the United States Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release, as required by applicable Canadian laws, is not for distribution to U.S. newswire services or for dissemination in the United States To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46001
Pride March and the Contradictions of the New Sexual Revolution T he coincidence of WorldPride and the 50th anniversary of the Stonewall riots in New York City this June is supposed to be historic, a queer celebration of mythic proportions, with millions of LGBTQ activists and allies expected to descend on Manhattan at the end of the month for the Pride March, the biggest in the world — in fact, the biggest ever. It’s no surprise, then, that come June 30, the streets near the march are all lined with floats, trucks, banners, etc., advertising every business imaginable and assuring the masses that all companies present are sufficiently woke. The kitschy capitalism that runs rampant at the official Pride March has actually sparked a countermarch this year. It’s called the Queer Liberation March, and it’s organized by a group called Reclaim Pride. Their whole hook is that they don’t accept major corporate sponsors (while NYC Pride welcomes them). Horrified at the mainstreaming — sellout, in their eyes — of their once-radical movement, these queer activists have decided that the next enemies to be vanquished are . . . queer activists. Bored with victory, they’ve turned on their own. It’s a strange bit of cannibalism. On sidewalks and street corners along the route itself, spectators are packed in tight — definitely millions, as expected. After some balloons, the first major contingent is the Gay Liberation Front. The organization was founded in immediate response to the Stonewall riots 50 years ago, and it shows. Packed into the backs of two big, flatbed Penske rental trucks, many of them have to sit and the rest lean on the railings or on canes. The first truck is full, probably two dozen septuagenarians squeezed in there. The second, the same size, holds only two. One sits on the far side facing away from me; the other is standing at the railing, smiling from ear to ear and waving to the crowd with both hands. I think at first that the scene reminds me of Queen Elizabeth. But Nixon is a better comparison. Story continues The older demonstrators — who definitely constitute a disproportionate percentage of the attendees — seem to be reliving the glory days (as it were) of the ’60s, when being radical was actually radical, and being a cross-dressing lesbian Marxist actually meant something other than fitting in on campus. The revolution is over , but they’re not ready to admit it. Their senses of community and meaning have been formed for decades by their self-conception as rebels. Just like the members of Reclaim Pride, they can’t stand the thought of being mainstream. They can’t stand the thought of success. The crowd’s not entirely elderly, though. There are plenty of Millennials among both the marchers and the spectators, and they form a stark contrast with their more senior comrades. They have a different response to the mainstreaming: While the older activists just sort of pretend that they’re still living in the Stonewall era, many of the younger ones just keep pushing further to ensure that they stay out of the mainstream. Thus, among the Millennial demonstrators, there are some trends that must seem horrifying to the old veterans: packs of young men in nothing but underwear, dog masks, and collars; the morbidly obese insisting on near-nudity in public as a necessary condition of empowerment; couples leading each other around on leashes (whither “liberation”?). As the limits of social acceptability constantly expand (in no small part due to the activism of the older people here) the younger people feel the need to stay beyond those limits so that they can feel as revolutionary as the generation that came before. It causes some obvious tension. It also causes some confusion. There’s a taxi parked next to me with two teenage girls sitting on top of it. They have rainbow clothing and stickers and various other souvenirs of their participation. Talking about the souvenirs, one of them says to the other, “I got a pink and blue flag, so I don’t really know what I represent, but oh well.” (It’s the transgender flag, for what it’s worth.) These are the soldiers of the next sexual revolution, and they have no idea what they’re doing. The revolution is over. Its leaders, all of them old now, cling to some romantic memory of their rebellious past. Its opponents mourn the tradition it overturned and grimace at the libertinism that rose up in its place. Its descendants search desperately for a revolution of their own, flying flags whose meaning even they don’t know, obsessively convincing themselves that they too are heroes in a fight long ended. And none of them seem happy with what the revolution wrought. More from National Review Catholics vs. Libertarians in the 1960s In Defense of ‘Bulldozing a Modernist Landmark’ The Farce of Griswold v. Connecticut
You Have To Love Matthews International Corporation's (NASDAQ:MATW) 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 Matthews International Corporation (NASDAQ:MATW) 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. A 2.3% yield is nothing to get excited about, but investors probably think the long payment history suggests Matthews International has some staying power. The company also bought back stock equivalent to around 1.5% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Explore this interactive chart for our latest analysis on Matthews International! Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Matthews International paid out 34% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Matthews International paid out a conservative 26% of its free cash flow as dividends last year. 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. As Matthews International 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. With net debt of 4.52 times its EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of 3.25 times its interest expense is starting to become a concern for Matthews International, and be aware that lenders may place additional restrictions on the company as well. Remember, you can always get a snapshot of Matthews International's latest financial position,by checking our visualisation of its financial health. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Matthews International's dividend payments. During the past ten-year period, the first annual payment was US$0.24 in 2009, compared to US$0.80 last year. This works out to be a compound annual growth rate (CAGR) of approximately 13% a year over that time. Dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Earnings have grown at around 3.2% a year for the past five years, which is better than seeing them shrink! Matthews International is paying out less than half of its earnings, which we like. However, earnings per share are unfortunately not growing much. Might this suggest that the company should pay a higher dividend instead? 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 Matthews International has low and conservative payout ratios. Earnings growth has been limited, but we like that the dividend payments have been fairly consistent. Matthews International performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 4 analysts we track are forecasting for Matthews Internationalfor freewith publicanalyst estimates for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Read This Before Buying Aircastle Limited (NYSE:AYR) For Its Dividend Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Aircastle Limited (NYSE:AYR) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. With Aircastle yielding 5.6% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. The company also bought back stock equivalent to around 4.6% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 40% of Aircastle's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Last year, Aircastle paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. We update our data on Aircastle every 24 hours, so you can always getour latest analysis of its financial health, here. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of Aircastle's dividend payments. During the past ten-year period, the first annual payment was US$1.00 in 2009, compared to US$1.20 last year. This works out to be a compound annual growth rate (CAGR) of approximately 1.8% a year over that time. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see Aircastle has been growing its earnings per share at 49% a year over the past 5 years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. First, we like Aircastle's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. In sum, we find it hard to get excited about Aircastle 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. 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 Aircastlefor freewith publicanalyst estimates for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Bitcoin Price Sharp Drops 30% from 2019 High to Land Near $9,700 Since June 23, within a two-week span, thebitcoin pricefell from $13,868 to $9,711, demonstrating a sharp correction of nearly 30 percent. The “Real 10” volume of bitcoin, which refers to the total verifiable volume of the dominant crypto asset taken from ten exchanges verified to have real volume above $1 million by Bitwise Asset Management, remains above $2.9 billion, a high figure compared to March. In March, the Real 10 volume was hovering at $300 million with the majority coming from the CME bitcoin futures market and Binance. Historically, the bitcoin price has tended to record pullbacks in the range of 30 to 40 percent following an extended period of strong momentum and upside movement. Year-to-date, the bitcoin price has increased by more than 176 percent against the U.S. dollar inclusive of the recent 30 percent pullback, solidifying itself as one of the best performing assets in the global market. However, on July 1, as CCNreported, a whale or a large bitcoin holder placed a $200 million short order on Bitfinex, immediately crashing the market. Read the full story on CCN.com.
U.K.’s Oldest Peer-to-Peer Lender Zopa Plans Fundraising, IPO (Bloomberg) -- Zopa Ltd. is planning to raise as much as 200 million pounds ($253 million) as the online lender works to satisfy regulatory requirements en-route to winning a U.K. banking license. The company is talking to private equity and sovereign wealth funds about the cash, which could come in the next several months, Chief Executive Officer Jaidev Janardana said in an interview on Tuesday. The firm got 60 million pounds in investments in November to help finance its plans to start a retail bank, adding to a 44 million-pound fundraising earlier in 2018. Zopa, the oldest peer-to-peer lender in the U.K., is working on a banking license that will allow it to manage customers’ deposits ahead of a potential initial public offering in early 2021, Janardana said. Founded in 2005, the company is part of a wave of financial-technology companies that are challenging traditional lenders. Regulators granted Zopa a provisional banking license in December, giving it a year to prove it can meet standards. The firm has lent more than 4 billion pounds and generated about 250 million pounds in interest for its investors since it started, according to its website. To contact the reporters on this story: Edward Robinson in London at edrobinson@bloomberg.net;Jan-Henrik Förster in London at jforster20@bloomberg.net;Dinesh Nair in London at dnair5@bloomberg.net To contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Amy Thomson, Marion Dakers For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
Examining ManTech International Corporation’s (NASDAQ:MANT) Weak Return On Capital Employed Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at ManTech International Corporation (NASDAQ:MANT) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. Firstly, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Finally, we'll look at how its current liabilities affect its ROCE. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. In general, businesses with a higher ROCE are usually better quality. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for ManTech International: 0.065 = US$115m ÷ (US$2.0b - US$266m) (Based on the trailing twelve months to March 2019.) So,ManTech International has an ROCE of 6.5%. Check out our latest analysis for ManTech International ROCE can be useful when making comparisons, such as between similar companies. Using our data, ManTech International's ROCE appears to be significantly below the 9.7% average in the IT industry. This performance is not ideal, as it suggests the company may not be deploying its capital as effectively as some competitors. Separate from how ManTech International stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Readers may find more attractive investment prospects elsewhere. The image below shows how ManTech International's ROCE compares to its industry, and you can click it to see more detail on its past growth. Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for ManTech International. Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counteract this, we check if a company has high current liabilities, relative to its total assets. ManTech International has total assets of US$2.0b and current liabilities of US$266m. As a result, its current liabilities are equal to approximately 13% of its total assets. This is a modest level of current liabilities, which would only have a small effect on ROCE. If ManTech International continues to earn an uninspiring ROCE, there may be better places to invest. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. I will like ManTech International better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Nature Could Have Created Oddball 'Oumuamua, Not Aliens When the solar system's first-known interstellar visitor was spotted on Oct. 19, 2017, scientists scurried to observe the strange object. The oddly shaped, rapidly moving traveler had been ejected from its home system and was perhaps a comet or asteroid, or even a chunk of a shredded planet. One pair of scientists even suggested that it could be an alien spacecraft . "We have never seen anything like 'Oumuamua in our solar system," Matthew Knight, an astronomer at the University of Maryland and first author on a new paper about the mysterious object, said in a statement . "It's really a mystery still." Knight was part of the 'Oumuamua International Space Science Institute (ISSI) Team, a group that examined all of the observations and studies of the passing visitor. The scientists concluded that aliens are not needed to explain 'Oumuamua, as a natural explanation satisfies the observations. Their study was published today (July 1) in the journal Nature Astronomy . Related: 'Oumuamua: The Solar System's 1st Interstellar Visitor Explained in Photos "Our preference is to stick with analogs we know, unless or until we find something unique," Knight said. "The alien spacecraft hypothesis is a fun idea, but our analysis suggests there is a whole host of natural phenomena that could explain it." An unusual object 'Oumuamua's rapid speed meant that astronomers had only a few weeks after it was first spotted to collect as much data as possible. Their observations revealed that the object was small and red in color. The object also seemed to have a cigar-like shape and an unusual spin, as well as a strange change in direction that has been a challenge to explain. "The motion of 'Oumuamua didn't simply follow gravity along a parabolic orbit as we would expect from an asteroid," Knight said. Jets of gas could gently push the traveler, providing a potential explanation for its change in spin and direction. But astronomers didn't spot any sign of material shooting out of the elongated object that would match current models of cometary jets . Story continues "Either the jet model in that study did not capture how 'Oumuamua's jets actually worked, or we need to throw the whole jets idea out of the window," Sean Raymond, a member of the ISSI team and co-author on the paper, wrote in his blog . "The alien-spacecraft camp threw the jets model out of the window." According to Raymond, these scientists may have tossed out jets too soon. "How comets' spins change due to outgassing is an active area of research," Raymond wrote. "And it's more complicated than you might think." Another model suggesting that the cometary object would have lost about 10% of its total mass as it passed the sun reveals a spin that matches what was observed with 'Oumuamua. According to Raymond, that theory may or may not be correct, but it "clearly shows that comet-like outgassing can explain 'Oumuamua's nongravitational acceleration and spin at the same time." It's also possible that pressure from solar radiation could have affected the spin. If 'Oumuamua was only a few millimeters thick, it could work as a lightsail , pushed along by starlight. But if the interstellar traveler was an alien star sail, it shouldn't have a spin, instead keeping one face constantly pointing toward the sun. The scientists who suggested that the object could be an alien spacecraft also argued that the lack of similar natural objects in space suggests that 'Oumuamua should never have been discovered, and may therefore have been deliberately aimed at Earth. Similarly, its unlikely orbit sent it closer to Earth than any other planet, a so-called special orbit that suggests it may have sought us out. Knight and his colleagues argued that, while simulations suggest how much material — roughly one Earth-mass — gets ejected during planet formation, the true amount of debris ejected during these events remains unknown: It could be a few large objects or many smaller ones. Some estimates suggest that roughly two extrasolar objects pass by the sun each year. Knight also pointed out that small, faint objects like 'Oumuamua should constantly breeze through the solar system but are often too faint to be visible. These items can only be spotted when they are near our planet. "'Oumuamua's orbit is completely average when compared with detectable interstellar objects," Raymond wrote. "The ones we could find are mostly on 'special' orbits." What about the strange elongated shape of the visitor? "The thing is, we don't know 'Oumuamua's actual shape," Raymond wrote. Researchers only had a limited time to observe the faint fleeing object . While it could look like a cigar, it could also bear a strong resemblance to a pancake. Even a cigar shape could have a natural explanation. 'Oumuamua could be a fragment of a larger object shredded before it was ejected, a process that stretched it out. Slow collisions with objects in its home system could have produced its bizarre shape. Or the fast-traveling dust between the stars could have crashed into the visitor, carving out an elongated cigar. Or it could be something else entirely. If 'Oumuamua isn't an alien spacecraft, what might it be? "There is no universally accepted answer, but signs point toward 'Oumuamua being similar to solar system comets ," Raymond wrote. Comet-like objects are constantly tossed out of their systems by large planets and passing stars. A full-size comet or cometary fragment would fit with the appearance and acceleration of 'Oumuamua, according to the researchers. "It is possible that some of 'Oumuamua's weirdnesses are simply due to its small size," Raymond wrote. He added that the properties of very few similarly sized objects in the solar system are known because their small size and faintness make them a challenge to observe. "Signs point to 'Oumuamua being a natural object. Maybe something similar to a comet," he wrote. "But no aliens." One of many As telescope technology continues to increase, astronomers anticipate spotting more interstellar visitors. The Large Synoptic Survey Telescope (LSST) , currently under construction in Chile, may help to reveal many of these, once the instrument sees first light in 2022. While observers won't catch a glimpse of 'Oumuamua again, they will be able to spot other interstellar visitors. "We may start seeing a new object every year," Knight said. "That's when we'll start to know whether 'Oumuamua is weird or common." If the interstellar visitor resembles other travelers, then it would most likely have similar origins. Only if it was dramatically different from the majority of visitors might scientists begin to consider more fantastic origins. "If we find 10 to 20 of these things and 'Oumuamua still looks unusual, we'll have to reexamine our explanations," Knight said. Solar System Planets: Order of the 8 (or 9) Planets Interstellar Object 'Oumuamua Could Be a 'Monstrous' Corpse of Comet Dust Interstellar Objects Like 'Oumuamua Might Jump-Start Planet Formation Follow Nola on Facebook and on Twitter at @NolaTRedd . Follow us on Twitter @Spacedotcom and on Facebook .
Don't Sell Amphenol Corporation (NYSE:APH) Before You Read This 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 Amphenol Corporation's ( NYSE:APH ) P/E ratio and reflect on what it tells us about the company's share price. Amphenol has a price to earnings ratio of 24.31 , based on the last twelve months. That is equivalent to an earnings yield of about 4.1%. Check out our latest analysis for Amphenol How Do You Calculate Amphenol's P/E Ratio? The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Amphenol: P/E of 24.31 = $97.87 ÷ $4.03 (Based on the year to March 2019.) 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 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 P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. Then, a lower P/E should attract more buyers, pushing the share price up. In the last year, Amphenol grew EPS like Taylor Swift grew her fan base back in 2010; the 78% gain was both fast and well deserved. Even better, EPS is up 19% per year over three years. So we'd absolutely expect it to have a relatively high P/E ratio. How Does Amphenol's P/E Ratio Compare To Its Peers? The P/E ratio essentially measures market expectations of a company. The image below shows that Amphenol has a higher P/E than the average (18.7) P/E for companies in the electronic industry. NYSE:APH Price Estimation Relative to Market, July 2nd 2019 Its relatively high P/E ratio indicates that Amphenol 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 always consider the P/E ratio alongside other factors, such as whether company directors have been buying shares . 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. 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 expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. So What Does Amphenol's Balance Sheet Tell Us? Amphenol's net debt is 8.8% of its market cap. It would probably trade on a higher P/E ratio if it had a lot of cash, but I doubt it is having a big impact. The Verdict On Amphenol's P/E Ratio Amphenol trades on a P/E ratio of 24.3, which is above the US market average of 18.2. The company is not overly constrained by its modest debt levels, and its recent EPS growth is nothing short of stand-out. So on this analysis a high P/E ratio seems reasonable. Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So this free report on the analyst consensus forecasts could help you make a master move on this stock. You might be able to find a better buy than Amphenol. 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.
Who Has Been Selling ManpowerGroup Inc. (NYSE:MAN) 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 before you buy or sellManpowerGroup Inc.(NYSE:MAN), you may well want to know whether insiders have been buying or selling. It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required. We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for ManpowerGroup Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Operational Excellence, Sriram Chandrashekar, for US$1.2m worth of shares, at about US$84.90 per share. That means that even when the share price was below the current price of US$97.10, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Sriram Chandrashekar's holding. All up, insiders sold more shares in ManpowerGroup than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! I will like ManpowerGroup better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.7% of ManpowerGroup shares, worth about US$43m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. It doesn't really mean much that no insider has traded ManpowerGroup shares in the last quarter. We don't take much encouragement from the transactions by ManpowerGroup insiders. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for ManpowerGroup. But note:ManpowerGroup may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
An Intrinsic Calculation For American Public Education, Inc. (NASDAQ:APEI) Suggests It's 36% Undervalued Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll do a simple run through of a valuation method used to estimate the attractiveness of American Public Education, Inc. (NASDAQ:APEI) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. See our latest analysis for American Public Education We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF ($, Millions)", "2020": "$41.1m", "2021": "$41.3m", "2022": "$41.8m", "2023": "$42.5m", "2024": "$43.3m", "2025": "$44.3m", "2026": "$45.3m", "2027": "$46.5m", "2028": "$47.6m", "2029": "$48.9m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x2", "2021": "Est @ 0.56%", "2022": "Est @ 1.21%", "2023": "Est @ 1.67%", "2024": "Est @ 1.99%", "2025": "Est @ 2.21%", "2026": "Est @ 2.37%", "2027": "Est @ 2.48%", "2028": "Est @ 2.55%", "2029": "Est @ 2.61%"}, {"": "Present Value ($, Millions) Discounted @ 7.8%", "2020": "$38.1", "2021": "$35.5", "2022": "$33.4", "2023": "$31.5", "2024": "$29.8", "2025": "$28.2", "2026": "$26.8", "2027": "$25.5", "2028": "$24.2", "2029": "$23.1"}] ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $296.0m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 7.8%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$49m × (1 + 2.7%) ÷ (7.8% – 2.7%) = US$991m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$991m ÷ ( 1 + 7.8%)10= $467.95m 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 $763.97m. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $46.06. Compared to the current share price of $29.34, the company appears quite good value at a 36% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. 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 American Public Education as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.8%, which is based on a levered beta of 0.850. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For American Public Education, I've compiled three relevant aspects you should further examine: 1. Financial Health: Does APEI 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 APEI'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 APEI? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Qualcomm’s New Processor Is An Underrated Game-Changer Qualcomm(NASDAQ:QCOM) hasn’t caught many breaks of late. The Federal Trade Commission is looking to prevent the presentation of new documents in its antitrust argument withApple(NASDAQ:AAPL). The EU is levying another $1.1 billion worth of antitrust fines. Never even mind the fact that the trade war with China, though temporarily cooled, has hardly ended. In short, QCOM stock remains mired in question marks. While theiShares PHLX Semiconductor ETF(NasdaqGM:SOXX) has gained 33.5% in the past three months, Qualcomm shares have only eked out a 4.6% increase. QCOM has the third-largest weighting — 8.06% — of the exchange-traded fund’s 31-stock portfolio. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There’s a proverbial ace in the hole, however, that’s made Qualcomm stock a worthy gamble here, even if the average investor doesn’t fully understand the underlying technology. Qualcomm’s Snapdragon 855 mobile processor is a game-changer that’s been mostly underestimated. Unveiled in December, the 855 processor was welcomed with great acclaim. Not only was it the first microprocessor capable ofhandling 5G connectivity, it handles artificial intelligence work like a champ. As it turns out, the 855 is even more of a beast than it initially seemed. • The 7 Top Small-Cap Stocks Of 2019 The latest accolade was laid on last week, when Germany certified the system on a chip assecure enough to replace separate chipsthat had previously been necessary to fully secure mobile hardware. By reducing the number of chips needed to make a device secure, therefore lowering costs and required size. The EAL-4+ certification from Germany’s Federal Office for Information Security is not only highly regarded by other nations, but confirms that the Snapdragon 855 is as secure as true smart cards. The implications are tremendous. Not only will 855-powered smartphones be able toserve as e-wallets and transit cards, the tech will support multiple SIM applications even with just one SIM card slot. It also means Snapdragon 855 devices can serve as offline payment tools, and surprisingly powerful gaming platforms. This is all largely solutions to problems that don’t yet exist. But, better understanding of how consumers and corporations will utilize technologies once made available has drawn the interest of a handful major tech names. Alphabet(NASDAQ:GOOGL, NASDAQ:GOOG) is one of them. Subsidiary and breadwinner Google isdeveloping at least two different Chromebooksthat will utilize the 855 processor. Codenamed “Trogdor,” the Chromium-driven devices in question could readily rival the computing power and functionality of a wide swath of Windows-running laptops. That said, Windows-makerMicrosoft(NASDAQ:MSFT) may also be exploring the possibilities of the ground-breaking Snapdragon 855 … or at least its close cousins. Qualcomm’s 8cx may not yet be available in any laptops, but it’s coming. Ithandles Windows 10 as well as it needs to, and then some. And, Microsoft has already tinkered withQualcomm’s custom-built chips for its Surface line. It makes sense.Intel(NASDAQ:INTC), though with a better legacy than it arguably deserves, has been struggling to deliver performance at palatable prices. OEMs have noticed as much as consumers have, slowly but consistently straining once-strong partnerships by prompting consumer-tech companies to explore all alternatives. • 7 F-Rated Stocks to Sell for Summer Samsung(OTCMKTS:SSNLF) also chose the855 for its new Galaxy S10. Even ZTE is testing out the Snapdragon 855 mobile computing platform, for the most unlikely of reasons — gaming. Last month, with help from partnerTencent(OTCMKTS:TCEHY),demonstrated the potentialof cloud-based video games using 5G connections and the Qualcomm CPUs that made it possible. It’s a rarity for one single product to serve as a reason to step into a stock. Not only is more diversity — rather than less diversity — of a product menu desirable, technology rivals are generally quick to respond by mirroring a rival’s new development. QCOM stock may prove to be an exception to that norm though. There’s little out there on the market or even in development that can readily rival the new 855 system on a chip. And, to the extent the mobile processor could be copied, Qualcomm is well-shielded by a deep and wide patent portfolio that it used to at least keep the venerable Apple in check. Bulletproof? No, it isn’t, but on this front it’s certainly close to it. Its all-purpose system on a chip isn’t forcing many compromises, and already has a massive degree of credibility. That, coupled with the fact that Qualcomm stock is trading at a palatableforward-looking P/E of 15.2, isn’t a bad bullish thesis at all. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his websitejamesbrumley.com, orfollow him on Twitter, at @jbrumley. • 2 Toxic Pot Stocks You Should Avoid • 7 F-Rated Stocks to Sell for Summer • 7 Stocks to Buy for the Same Price as Beyond Meat • 7 Penny Marijuana Stocks That Are NOT Cheap Stocks The postQualcomm’s New Processor Is An Underrated Game-Changerappeared first onInvestorPlace.
Should You Worry About La-Z-Boy Incorporated's (NYSE:LZB) CEO Pay? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Kurt Darrow has been the CEO of La-Z-Boy Incorporated (NYSE:LZB) since 2003. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO. View our latest analysis for La-Z-Boy According to our data, La-Z-Boy Incorporated has a market capitalization of US$1.5b, and pays its CEO total annual compensation worth US$4.4m. (This figure is for the year to April 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$990k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m. So Kurt Darrow receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at La-Z-Boy, below. On average over the last three years, La-Z-Boy Incorporated has grown earnings per share (EPS) by 4.3% each year (using a line of best fit). Its revenue is up 10% over last year. I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested inthisfreevisualization of analyst forecasts. With a total shareholder return of 20% over three years, La-Z-Boy Incorporated shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size. Kurt Darrow is paid around the same as most CEOs of similar size companies. We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling La-Z-Boy (free visualization of insider trades). Important note:La-Z-Boy 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.
Do people in Japan actually want commercial whaling to resume after three decades? Japan resumed commercial whale hunting on Monday after a hiatus of more than 30 years , defying calls from conservation groups to protect animals once hunted to the brink of extinction . Now whalers, who have long depended on government subsidies for their survival, face the much tougher challenge of defying basic economic reality: the market for their product is declining while labour costs across the nation are on the rise . Japanese production of whale meat peaked in 1962, and the taste is generally preferred by an older generation. The government also hopes to start reducing the £36 million in annual subsidies it pays to whale hunters within three years. The value of previous catches, obtained under the auspices of scientific research in the Antarctic Ocean , totalled only about a half to a third of that. [[gallery-0]] “Will whaling succeed commercially?” said Masayuki Komatsu, a former government official who oversaw Japan’s international negotiations on the subject and now works at a think tank in Tokyo . “No way.” Industry experts say they expect costs will come down as ships move their whaling operations from the far seas to waters closer to home. Producers also hope to increase the appeal of whale meat by promoting it among high-end Japanese restaurants , said Konomu Kubo, secretary of the Japan Whaling Association. “The people in charge of sales are targeting whale at places they haven’t up until now,” he said. For Japan, whaling has long been about more than economics. Tokyo has for decades fiercely defended whale hunting despite heavy criticism from the international community. The government and local authorities celebrate the practice as a tradition with a long history and cultural significance akin to the hunting of whales in countries such as Norway and Iceland, where commercial hunting is permitted, or among indigenous communities in the United States and Canada. Japanese people have “mixed feelings” about whaling, according to Hisayo Takada, spokeswoman for Greenpeace Japan. Story continues She cited a combination of national pride and politics, as Japanese lawmakers have propped up an industry they see as economically and sentimentally important for their voter base. Opinion polls by the national broadcaster NHK and Japan’s Foreign Ministry show broad support for whaling, even if people do not necessarily want to eat the meat. If shown a picture of a whale, “most people would see it as wildlife,” Ms Takada said. But whaling “has become a sensitive, nationalistic topic,” she said. “It’s not about whaling itself. It’s more about Japanese pride and standing up for what people see as their culture.” Japan hunted whales under a loophole in international rules that allowed the activity for research purposes. Japanese scientific vessels, financed by the country’s taxpayers, prowled international waters in search of the animals, sailing into the Antarctic and northern Pacific Ocean in search of minke, sei and Bryde’s whales. Once home, whalers sold their catch for meat. In 2014, the International Whaling Commission , a global organisation aimed at whale conservation, declared there was no scientific basis for the practice. Japan withdrew from the commission in December and said it would resume commercial whaling. For the whaling industry to stand on its own two feet without government subsidies, it will have to find more lucrative markets for its product. But Japanese consumers’ interest in the meat has dwindled. For Japanese who came of age after World War II , the taste of whale — which many describe as a fishier, greasier version of beef — is the taste of their childhood. As the country built up its devastated economy, the American occupation authority encouraged the use of whale as a cheap source of protein. The meat found its way into lunches at schools across the nation, a practice that ended in 1987. While the flavour stirs nostalgia for some, many others don’t find it very tasty. Production peaked 57 years ago, at 226,000 tonnes of whale meat, and by 2017 whalers were bringing home just 3,000 tonnes, according to government data. Authorities say Japan still has an appetite for whale meat. Consumption is put at about 3,000 tonnes annually, including 1,000 tonnes of imports from places like Iceland and Norway — which are said to produce choicer cuts. The difference ends up in cold storage, with around 3,500 tonnes warehoused as of April, according to government data. Despite its stated support for the industry, the government is moving to reduce the haul. On Monday, it announced that whalers would be able to hunt 227 whales from July to December. By comparison, over all of 2018, it allowed a haul of 630 animals from two species. Japan, which faces a labour shortage because of its ageing population and declining birthrates, is already facing difficulties recruiting enough workers to fill fishing boats. Although the whaling industry directly employs only 300 people or so, the labour shortages mean commercial whalers will have to compete on wages with more lucrative and profitable segments of the seafood industry, like tuna fishing and crabbing. Whaling ship operators think they have a chance. Last week, the chairman of the Japan Small-Type Whaling Association, Yoshifumi Kai, said the industry would adjust. “We’ve done nothing wrong, and we have no plans to stop,” he said. “We’re continuing whale hunts that began over 400 years ago. If this generation ended them, we would live with the shame forever.” The activist groups that have long fought whaling think these industry efforts will fail, and they see the fight over whaling in Japan as more or less over. Sea Shepherd, the group that became infamous in Japan for harrying Japanese whaling vessels, has moved its attention to Iceland. The potential impact of Japan’s continued operations will have on whale populations is not yet clear, according to Junko Sakuma, an expert on the industry at Rikkyo University. “For the time being, coastal whaling isn’t a problem as long as it’s done precisely,” she said. “We’ll have to wait and see if that’s the case.” While Greenpeace is still concerned about whales, it is focusing on other issues that have a larger and more detrimental impact on the marine ecosystem, according to Ms Takada. “The whaling industry has been ingesting a lot of taxpayers’ money,” she said. “It may survive on a small scale, but it’s hard to believe whale will ever be a daily meal for Japanese people again.” New York Times
How I ditched debt: 'It made our marriage so strong' In this series, NerdWallet interviews people who have triumphed over debt. Responses have been edited for length and clarity. BAILEY AND RAY ROBERTSON HOW MUCH: $33,456 in 18 months Ray Robertson's debt-payoff journey involves two fateful conversations across the ocean from where he grew up. The first was a blind date with his future wife, Bailey. Ray had moved from Canterbury, England, to the Nashville, Tennessee, area for a soccer scholarship at Martin Methodist College and met Bailey soon after graduating in 2012. The second meeting was about a year later, Thanksgiving 2013, when Ray asked Bailey's father for his marriage blessing. He got the blessing with a stipulation. Bailey's father wanted the couple to enroll in Dave Ramsey's Financial Peace University. The two signed up for the video-based money course in 2014 and found it to be "life-changing," Ray says. They began learning how to budget, hold each other accountable and set goals, including paying off about $33,000 in combined debts. The Robertsons began tackling these debts in August 2014, after moving to Houston, where Ray made about $55,000 as project manager for a hospital in the Texas Medical Center. Bailey's substitute teaching, paired with a handful of tutoring sessions and Ray's occasional refereeing, added roughly $5,000 in annual income, although that figure fluctuated. Each month, the couple threw about $1,500 toward their debt and paid extra after receiving their tax refunds and selling Ray's car and other items. This aggressive payoff strategy, along with a lean lifestyle, tight partnership and plenty of planning, enabled the Robertsons to eliminate their consumer debt in 18 months. Now Ray, 31, and Bailey, 29, are back in Nashville, where they own a home and raise their 15-month-old son, Callum. Bailey and Ray, who is now a personal finance coach in addition to working as a product manager, recently connected with NerdWallet to share their story, which may inspire your own journey in paying off debt . Story continues WHAT WAS YOUR TOTAL DEBT WHEN YOU STARTED YOUR REPAYMENT JOURNEY, AND WHAT IS IT NOW? Ray: We had a little over $33,000 in consumer debt: About $18,000 for Bailey's student loans, nearly $14,000 for a car loan, about $800 for a bank loan balance, and a little over $400 for an immigration lawyer. We completely paid off this debt between August 2014 and February 2016. Now, our only liability is a mortgage, which has a current balance of $299,000. Our goal is to pay that off by 2030. WHAT WAS YOUR DEBT-PAYOFF STRATEGY? Ray: We utilized the debt snowball we listed our debts from smallest to largest in value, and then worked through them. So for us, that meant tackling the balance for the immigration lawyer, then the personal loan, followed by the auto loan and finally student loans. The momentum of paying off these debts kept us motivated. DID YOU USE ANY TOOLS TO HELP YOU TRACK YOUR PAYMENTS? Ray: When we first started our journey, I used an Excel spreadsheet with tabs for income, expenses and debts. Then Dave Ramsey dropped his app called EveryDollar, which did everything my spreadsheet did. So I was an early adopter of that and still use it to this day. WHAT WAS YOUR LIFESTYLE LIKE WHILE YOU TACKLED YOUR DEBTS? Ray: We truly lived like no one else. While our friends were going out to dinner, we were cooking; when they were at happy hour, we were working our second jobs; when they were buying new cars, we were budgeting every dollar to throw as much at debt as possible. WHAT WAS THE MOST CHALLENGING PART OF LIVING THIS WAY? Bailey: Living in a city with such lavish restaurants. It was almost a punishment not to be able to go and indulge in one of our favorite activities eating! DO YOU HAVE ANY REGRETS FOR LIVING THIS WAY? Bailey: No regrets. We are a very goal oriented couple, and we try to think about where we want to be in five years. Knowing that we missed out on a few things early on doesn't compare to our financial freedom right now. Ray: I have no regrets now, because it's a lot nicer on the other side. I think back to then, and I definitely could have been a bit over the top. I was so into it I just wanted to be done with debt. But, we wouldn't be where we are right now without making those sacrifices. It really set us up for future success, and it made us grow up a lot quicker. WHAT'S LIFE LIFE NOW 'ON THE OTHER SIDE'? Ray: It's so good. It's no longer: "We have to pay this." Now, it's: "What should we allocate to?" Should we allocate more to investing, paying off our house, saving for a car? Now we have only have choices, whereas we didn't have any choices before. Bailey: Honestly, it feels natural. Knowing that we've overcome our biggest hurdle gives me so much confidence in our future financial goals. Also, it's nice to make a Target run every now and then and not feel guilt of Ray's piercing eyes! HOW DID YOU TWO DISCUSS MONEY AND HOLD EACH OTHER ACCOUNTABLE? Ray: We'd sit down every single week to look at our budget and calendar. We'd make sure we were both on the same page in terms of what we're spending, and what money is coming in and going out. That communication, especially in the beginning of a marriage, is so key. Paying off this debt together made our marriage so strong. And the best thing about a budget is that it's kind of an informal contract between the two. If one of you buys something random, you've pretty much broken the trust of your partner. HOW DO YOU TALK ABOUT MONEY NOW? Bailey: Now that we are both on the same page, most of it has become routine conversation and check-ins. Ray makes and tracks the budget he's a serious budget nerd and we review the budget together at the beginning of each month. If we start to get off track, Ray gives me a heads up, and we adjust a few categories so that we always hit our goals. WHAT ARE YOUR CURRENT GOALS? Bailey: Become mortgage-free so that we can build a legacy for our family. Also, I don't ever want money to be the source of anxiety or frustration. Ray: My goals right now are to pay off our house by 2030 and become a millionaire by age 40. We just had a baby, so we want to raise him and maybe have another in a couple years. WHAT ADVICE DO YOU HAVE FOR YOUNG COUPLES WORKING TOGETHER TO PAY OFF DEBT? Bailey: Have open, in-depth conversations about your goals and dreams. This will get you on the same page and make you work together without question. Ray and I have learned to be a good balance for what each other needs. I can let him know when he is throwing too much of our money into our future instead of now, and Ray lets me know vice versa. Ray: Include your spouse, and listen to their point of view, and just be really honest about what each person's goals are. And remember that you're in a partnership. You're with this person for the rest of your life, so you've got time to figure this out. It's not going to work perfectly the first time you write a budget. It's going to take a few iterations. HOW TO DITCH YOUR OWN DEBT Inspired by the Robertsons' debt-free journey and want to start your own? Here's what you can do: Make a budget. Identify a plan for your income, so you know how much you can devote to debt repayment and other expenses. We're fans of the 50/30/20 budget , which suggests you spend about 50% of your take-home pay on necessities, 30% on wants and 20% on savings and paying off debt. Find a debt-payoff strategy. Ray and Bailey were motivated by the debt snowball method, which had them tackle their debts in order of smallest to largest. Another popular strategy, the debt avalanche , involves paying off debts in order of highest-interest to lowest. Earn extra income. The Robertsons brought in additional money by refereeing soccer games and tutoring students. They also sold one of their cars, as well as some electronics, appliances and furniture. Consider ways you can make more money that you can pay toward debt. Photo by Amelia Campbell Photography. _____________________________________________________ This article originally appeared on the personal finance website NerdWallet. Laura McMullen is a writer at NerdWallet. Email: lmcmullen@nerdwallet.com. Twitter: lauraemcmullen. RELATED LINKS Pay Off Debt: Tools and Tips http://bit.ly/nerdwallet-tools-pay-off-debt How to Use Debt Snowball to Pay Off Debt http://bit.ly/nerdwallet-debt-snowball Free Budget Calculator http://bit.ly/nerdwallet-budget-calculator How to Use Debt Avalanche http://bit.ly/nerdwallet-debt-avalanche 26 Legit Ways to Make Money http://bit.ly/nerdwallet-ways-to-make-money How They Ditched Debt Series http://bit.ly/nerdwallet-stories-getting-out-of-debt
Can Arista Networks, Inc.'s (NYSE:ANET) 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. We'll use ROE to examine Arista Networks, Inc. (NYSE:ANET), by way of a worked example. Over the last twelve monthsArista Networks has recorded a ROE of 16%. That means that for every $1 worth of shareholders' equity, it generated $0.16 in profit. View our latest analysis for Arista Networks Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Arista Networks: 16% = US$384m ÷ US$2.4b (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. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule,a high ROE is a good thing. 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. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Arista Networks has a superior ROE than the average (7.6%) company in the Communications industry. That's clearly a positive. In my book, a high ROE almost always warrants a closer look. One data point to check is ifinsiders have bought shares recently. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Shareholders will be pleased to learn that Arista Networks has not one iota of net debt! Its respectable ROE suggests it is a business worth watching, but it's even better the company achieved this without leverage. 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 one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. 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. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Be Worried About Insider Transactions At Luxfer Holdings PLC (NYSE:LXFR)? 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. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inLuxfer Holdings PLC(NYSE:LXFR). 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Luxfer Holdings In the last twelve months, the biggest single sale by an insider was when the , Joseph Bonn, sold US$224k worth of shares at a price of US$22.30 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$24.91. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Joseph Bonn's holding. We note that in the last year insiders divested 26200 shares for a total of US$622k. Insiders in Luxfer Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction! I will like Luxfer Holdings better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. The last quarter saw substantial insider selling of Luxfer Holdings shares. Specifically, insiders ditched US$324k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all. Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Luxfer Holdings insiders own 1.5% of the company, worth about US$10.0m. We do generally prefer see higher levels of insider ownership. Insiders haven't bought Luxfer Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Could CBD Calm Your Dog's Anxiety During Fourth Of July Fireworks? We Asked The Experts. HuffPost may receive a share from purchases made via links on this page. (Photo: Aleksandr_Kravtsov via Getty Images) We already know that many people use CBD for a variety of things like pain , anxiety and skin concerns , but did you know that it can also be used to treat similar conditions in pets? As a reminder, CBD — or cannabidiol — is the nonpsychoactive ingredient in the marijuana plant. The chemical that is responsible for weed’s psychoactive effects is called THC — or tetrahydrocannabinol — which is mostly removed from CBD products. The biggest difference between CBD and THC ? THC gets you high, and CBD doesn’t. So why would pets need CBD? Just like humans, cats and dogs can live with arthritis and anxiety, and one of the most stressful holidays of the year for anxious pets is the Fourth of July . Fireworks can be both triggering and stressful for anxious dogs because the sudden loud sounds can release adrenaline and stress hormones that tell their instincts to run . Unfortunately, that means a lot of dogs run away and go missing over the Fourth of July weekend . With Independence Day coming up, a lot of pet parents are considering CBD to calm their dogs during fireworks shows — but is there any science to it? We wanted to learn more about whether CBD works for pups with anxiety, so we spoke with two licensed veterinarians to get their take. Will CBD calm an anxious pet during Fourth of July fireworks shows? We asked the experts. (Photo: koldunova via Getty Images) Is it safe to give your pet CBD? Dr. Adam Christman is an award-winning veterinarian from New Jersey and a board member of the New Jersey Veterinary Medical Association who has written books and created YouTube videos about pet wellness. He said there’s a lot of anecdotal evidence showing benefits to CBD for pets, but not a ton of research out there about CBD generally — even for humans. “I always preface this discussion by referencing the first scientific study of CBD oil in pets,” Christman said. The study he’s referring to is a 2017 Cornell University study in which CBD oil was given twice daily to dogs with osteoarthritis. The study found it helped increase their comfort and activity. Story continues “The results seem to support anecdotal reports of CBD oil’s benefits for pain and anxiety,” Christman said. “However, we are truly unsure of its true safety and potential drug interactions with traditional medications . Therefore, there’s a very gray zone on this.” Dr. Ibrahim Shokry, a professor of pharmacology and toxicology at the Ross University School of Veterinary Medicine with over 30 years of veterinarian experience, said there are still certain pet health concerns that can be address with CBD. “It can be used in the treatment of certain types of seizures, to control pain, inflammation, nausea, vomiting, to stimulate appetite and to manage anxiety,” Shokry said. “All these uses are based on experiences, but controlled clinical studies are needed in dogs and cats to establish efficacy and safety.” Love HuffPost? Become a founding member of HuffPost Plus today. (Photo: Jasper Cole via Getty Images) Would CBD help anxious pets on the Fourth of July? Both vets agree that more research is needed to definitively say CBD can help anxious pets. Still, Showry said CBD is generally safe to use on pets if you’re buying pet products from a reputable source and use them in the correct dose. The substances’ sedating and calming effects may help the animals cope with the anxiety caused by fireworks. Christman, on the other hand, recommends more traditional anxiety-reducing products that have been scientifically proven to be effective, like Sileo, Prozac, tranquilizers and Thundershirts . What’s the TL;DR version? If your dog is on any kind of traditional medication, chat with your vet before giving it CBD treats or tinctures. In other situations, proceed with care and caution, and follow the product’s recommended dosing guidelines. It’s generally a good rule of thumb to reach out to your vet before giving your pet any new products for health or wellness. Still, if you are interested in learning more about CBD to calm your pet’s anxiety during fireworks this Fourth of July (and beyond), we’ve rounded up some reputable and popular CBD products for pets that are worth browsing. And, if you want more of our editor-sourced products and reviews, sign up for HuffPost’s sales and deals newsletter . Take a look below: Medterra Pets CBD Joint Support Soft Chews Medterra’s CBD Pet Chews combine the purest form of 99% CBD with tasty ingredients to make a snack your pet will enjoy. Each peanut butter chew contains 10mg of CBD, so you can easily track how much CBD your pet consumes daily and our products contain ZERO THC, eliminating any psychoactive ingredients. Medterra’s pet chews combine CBD, glucosamine, MSM and chondroitin to support joint health. Find them for $30 on Medterra . Purfurred Pet 200mg CBD for Dogs The Purfurred CBD dog tincture provides the benefit of CBD oil in a formula suited to your dog’s diet. This tincture contains 200mg CBD from full-spectrum hemp oil, which includes essential phytocannabinoids and nutrients. Find it for $27 on Made By Hemp. Proper Hemp Co. 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Our 100mg, 250mg and 500mg custom formulas are the perfect CBD oil for small, medium and large dogs. Find it for $30 to $50 on Medix . Therabis CBD Dog Treats Calm & Quiet These CBD dog treats are made with hemp-derived CBD oil, vitamins and natural plant terpenes. Find small, medium and large treats for $32-$53 on Made By Hemp . Related Coverage The Best CBD Lotion For Pain Is Now Available At Sephora The Best CBD Products Of 2019 That Are The Real Deal CBD May Possibly Interfere With Your Daily Medication You can also check out HuffPost Coupons for the best deal before you buy. This article originally appeared on HuffPost and has been updated.
Does TD Ameritrade Holding Corporation's (NASDAQ:AMTD) P/E Ratio Signal A Buying Opportunity? 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 TD Ameritrade Holding Corporation's (NASDAQ:AMTD), to help you decide if the stock is worth further research.What is TD Ameritrade Holding's P/E ratio?Well, based on the last twelve months it is 14.15. That corresponds to an earnings yield of approximately 7.1%. Check out our latest analysis for TD Ameritrade Holding Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for TD Ameritrade Holding: P/E of 14.15 = $50.37 ÷ $3.56 (Based on the trailing twelve months to March 2019.) The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't 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. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. Then, a lower P/E should attract more buyers, pushing the share price up. In the last year, TD Ameritrade Holding grew EPS like Taylor Swift grew her fan base back in 2010; the 93% gain was both fast and well deserved. The cherry on top is that the five year growth rate was an impressive 21% per year. With that kind of growth rate we would generally expect a high P/E ratio. One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. We can see in the image below that the average P/E (37.8) for companies in the capital markets industry is higher than TD Ameritrade Holding's P/E. TD Ameritrade Holding's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Since the market seems unimpressed with TD Ameritrade Holding, it's quite possible it could surprise on the upside. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. TD Ameritrade Holding has net cash of US$4.9b. This is fairly high at 18% 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. TD Ameritrade Holding has a P/E of 14.1. That's below the average in the US market, which is 18.2. The net cash position gives plenty of options to the business, and the recent improvement in EPS is good to see. The relatively low P/E ratio implies the market is pessimistic. Investors have an opportunity when market expectations about a stock are wrong. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. Of courseyou might be able to find a better stock than TD Ameritrade Holding. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Marathon Oil Bids Adieu to UK to Deepen Focus on US Plays Marathon OilMRO recently closed the divestment of North Sea operations, marking a complete exit from the United Kingdom. In accordance with the deal that was inked in February 2019, the company jettisoned a 40% operating stake in the Greater Brae Area and 28% stake in BP plc BP operated Foinaven oilfield to RockRose Energy for $95 million. Deal Benefits for RockRose The transaction is in line with RockRose’s intention of bolstering operations in the North Sea region, and uplifting the firm’s reserves and production forecast. The deal added 28.4 million barrels of oil equivalent (BOE) to its proved and probable reserves, which came in at 62.9 million BOE as of March 2019. Anticipated output from acquired assets is likely to be around 13,000 BOE per day, in turn raising RockRose’s total net production in 2019 to approximately 24,000 BOE. Notably, this London-based firm has been exploring many acquisition opportunities over the past couple of years to have improved operations of scale in the North Sea. In this regard, in 2017, the company had snapped up assets from Idemitsu Petroleum IK Limited, Egerton Energy Ventures limited and Sojitz Energy Project Limited to expand foothold in the North Sea. RockRose also closed EUR €107 Dyas B.V. buyout in October 2018, which added more than 5,000 BOE per day of production to the company’s portfolio. Deal in Sync With Marathon Oil’s Strategies Over the past few years, the Texas-based energy explorer inked several deals to sell non-core assets that do not fit into the company’s long-term growth plan. With the closure of this deal, Marathon Oil bided goodbye to 10 countries since 2013. Markedly, while the company will derive total oil production from the United States, it will retain LNG operations in Equatorial Guinea. The strategic sell-offs not only bolstered its portfolio but also boosted financials of the firm.We believe that Marathon Oil’s high emphasis on exiting the non-core business, and focus on strategic acquisitions and strengthening balance sheet will drive growth. However, management’s low priority toward dividend growth and share buyback programs may dampen investors’ confidence in the stock. The company, which intends to optimize its portfolio with high-return and low-risk investments, wants to deepen focus on prolific U.S. shale plays.The upstream player’s strategic portfolio in key resource shale plays like Bakken, Eagle Ford, Permian and STACK/SCOOP signals visible production growth in the upcoming years. Given enhanced completion designs and effective spacing strategies, the firm has been improving the quality of assets, and is well positioned to ramp up production and revenues. For 2019, Marathon Oil targets 12% output growth in the United States. Zacks Rank and Key Picks Marathon Oil currently carries a Zacks Rank #3 (Hold). Some better-ranked oil and gas explorers include Approach Resources Inc. AREX and Comstock Resources, Inc. CRK, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. This Could Be the Fastest Way to Grow Wealth in 2019 Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities. These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month. Click here to see these breakthrough stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBP p.l.c. (BP) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportComstock Resources, Inc. (CRK) : Free Stock Analysis ReportMarathon Oil Corporation (MRO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Should Central Garden & Pet Company’s (NASDAQ:CENT) Weak Investment Returns Worry You? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at Central Garden & Pet Company (NASDAQ:CENT) and reflect on its potential as an investment. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. First up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. Finally, we'll look at how its current liabilities affect its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. All else being equal, a better business will have a higher ROCE. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Central Garden & Pet: 0.088 = US$154m ÷ (US$2.0b - US$299m) (Based on the trailing twelve months to March 2019.) So,Central Garden & Pet has an ROCE of 8.8%. View our latest analysis for Central Garden & Pet ROCE can be useful when making comparisons, such as between similar companies. We can see Central Garden & Pet's ROCE is meaningfully below the Household Products industry average of 12%. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Separate from how Central Garden & Pet stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Investors may wish to consider higher-performing investments. You can click on the image below to see (in greater detail) how Central Garden & Pet's past growth compares to other companies. It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counter this, investors can check if a company has high current liabilities relative to total assets. Central Garden & Pet has total liabilities of US$299m and total assets of US$2.0b. Therefore its current liabilities are equivalent to approximately 15% of its total assets. This is a modest level of current liabilities, which would only have a small effect on ROCE. If Central Garden & Pet continues to earn an uninspiring ROCE, there may be better places to invest. You might be able to find a better investment than Central Garden & Pet. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). I will like Central Garden & Pet better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Here's What CF Industries Holdings, Inc.'s (NYSE:CF) P/E Is Telling Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll show how CF Industries Holdings, Inc.'s (NYSE:CF) P/E ratio could help you assess the value on offer.CF Industries Holdings has a price to earnings ratio of 33.75, based on the last twelve months. That corresponds to an earnings yield of approximately 3.0%. View our latest analysis for CF Industries Holdings Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for CF Industries Holdings: P/E of 33.75 = $46.52 ÷ $1.38 (Based on the year to March 2019.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future. Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation. That means even if the current P/E is low, it will increase over time if the share price stays flat. So while a stock may look cheap based on past earnings, it could be expensive based on future earnings. CF Industries Holdings shrunk earnings per share by 27% over the last year. And EPS is down 26% a year, over the last 5 years. This might lead to muted expectations. The P/E ratio indicates whether the market has higher or lower expectations of a company. As you can see below, CF Industries Holdings has a higher P/E than the average company (18.9) in the chemicals industry. CF Industries Holdings's P/E tells us that market participants think the company will perform better than its industry peers, going forward. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should always consider the P/E ratio alongside other factors, such aswhether company directors have been buying shares. The 'Price' in P/E reflects the market capitalization of the company. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Such 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. CF Industries Holdings's net debt equates to 39% of its market capitalization. While that's enough to warrant consideration, it doesn't really concern us. CF Industries Holdings has a P/E of 33.7. That's higher than the average in the US market, which is 18.2. 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. Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Hyatt Hotels Corporation (NYSE:H) Has A ROE Of 12% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Hyatt Hotels Corporation (NYSE:H). Over the last twelve monthsHyatt Hotels has recorded a ROE of 12%. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.12. Check out our latest analysis for Hyatt Hotels Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Hyatt Hotels: 12% = US$421m ÷ US$3.6b (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. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. That means ROE can be used to compare two businesses. 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. You can see in the graphic below that Hyatt Hotels has an ROE that is fairly close to the average for the Hospitality industry (14%). That's neither particularly good, nor bad. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. I will like Hyatt Hotels better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. 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. Although Hyatt Hotels does use debt, its debt to equity ratio of 0.48 is still low. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Constellation Brands still 'happy' about Canopy Growth stake, 'not pleased' with earnings Constellation Brands Inc. (STZ) executives are repeating the words “long term” when discussing the beer-marker’s stake in cannabis giant Canopy Growth Corp. (WEED.TO) The choice of phrase comes as chief executive Bill Newlands notes that he was “not pleased” with the Smiths Falls, Ont.-based pot producer’s recent year-end results. Constellation Brands reported a US$828 million decrease in the fair value of its investment in Canopy Growth in the in its fiscal first quarter. But, the alcohol giant known for Corona beer and Kim Crawford wine remains cautiously upbeat about its 38 per cent stake in the company. “While we remain happy with our investment in the cannabis space and its long-term potential. We were not pleased with Canopy's recent reported year-end results,” Newlands said on a call with analysts on Friday. “We need to all recognize there are going to be fits and starts around a business like this.” Constellation Brands’ executive vice president and chief financial officer David Klein echoed Newlands, adding that the company knew Canopy Growth’s Canadian cannabis business was “volatile.” Last week, the world’s largest cannabis company by market capitalization reported a net loss of $670 million for full-year fiscal 2019, more than 12 times the $54 million booked in the same period a year ago. Newlands cited the slow rollout of brick-and-mortar cannabis stores in the key market of Ontario among the challenges facing Canopy Growth and its peers. “We continue to aggressively support Canopy on a more focused, long-term strategy to win markets and form factors that matter while paving a clear path to profitability," Newlands said. “What we remain excited about is that this is going to be big long-term business.” He added that he continues to expect Canopy Growth to achieve the previously stated $1 billion revenue goal. “We are working with Canopy almost on a daily basis to ensure that we are all focused on the right things,” Newlands said. Constellation Brands reported earnings per share of US$2.21, up from US$2.20 a year ago. Analysts had expected $2.04. Excluding Canopy Growth equity losses, the New York-based company says it earned US$2.40 per share during the quarter. Download the Yahoo Finance app, available forAppleandAndroid.
Should Retailers Work With Amazon? Amazon.com(NASDAQ: AMZN)has become so big that its rivals have a decision to make. They can work with the online giant -- a potential deal with the devil -- or they can elect to compete and risk being crushed. Some brands have chosen to go it alone.Walmart(NYSE: WMT)andTarget(NYSE: TGT)consider Amazon a direct competitor, a rival to fight at all costs. That's essentially the choiceFedExmade when it chose togive up its dealwith the online giant. That's a bold move to make, and some retailers have chosen to do the opposite. Two notable ones --Kohl's(NYSE: KSS)andRite Aid(NYSE: RAD)-- have decided to embrace the competition. Essentially, they're betting that their deals with the online leader bring in more traffic than the companies lose through Amazon's general efforts to dominate. Kohl's also sells Amazon products. Image source: Kohl's. Both have similar deals, but for sort of reverse purposes.Kohl's accepts Amazon returns. That deal started as a small pilot program, and it expanded to all of the chain's roughly 1,150 locations in 48 states. The Rite Aid deal solves a different problem. It lets customers pick up their deliveries at one of the pharmacy chain's locations. The deal will begin at 100 Rite Aid locations and may expand to the full chain. It's also part of a larger effort Amazon has dubbed Counter, which may eventually expand to other retailers. Both of these programs solve pain points for Amazon customers. Returning packages can be frustrating, and Kohl's will help with packaging and labeling the returns. The Rite Aid deal, and Counter in general, offers another option for Amazon customers who don't want their orders delivered at home. That helps anyone worried about having a package stolen or people who may be away when an order gets delivered. It's easy to see what Amazon gets from these deals. The company gets to expand its physical presence without having to open more stores. That's a benefit for its customers. The pluses are less clear for Rite Aid and Kohl's. In theory, customers who enter those chains to pick up or return packages could buy things. In reality, it's hard to know if someone returning a package is going to try on clothes or buy some bedding at Kohl's. For Rite Aid, which sells a lot of impulse items, it might be easier to see how the chain could gain some incremental sales. Still, that may not be worth helping Amazon get stronger. If Kohl's, Rite Aid, and other retailers decided not to work with Amazon, the online giant might not be quite as strong. In reality, the online giant has enough money to build out whatever pickup/drop-off infrastructure it needs. By not working with the online retailer, Kohl's and Rite Aid might slightly delay its plans, but it would not even mildly derail them. By choosing to play along, the two chains get a chance to benefit from Amazon's customers -- or at least has a chance to try to sell to them. It seems unlikely that either chain will gain a lot of sales from accepting Amazon returns or deliveries respectively. Still, there seems to be very little reason to not try to make something from the deal. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Daniel B. Klinehas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and FedEx. The Motley Fool has adisclosure policy.
What Did Amedisys, Inc.'s (NASDAQ:AMED) CEO Take Home Last Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Paul Kusserow became the CEO of Amedisys, Inc. (NASDAQ:AMED) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO. View our latest analysis for Amedisys At the time of writing our data says that Amedisys, Inc. has a market cap of US$3.8b, and is paying total annual CEO compensation of US$4.9m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$875k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.2m. That means Paul Kusserow receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Amedisys has changed from year to year. Over the last three years Amedisys, Inc. has grown its earnings per share (EPS) by an average of 45% per year (using a line of best fit). It achieved revenue growth of 12% over the last year. Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. Boasting a total shareholder return of 131% over three years, Amedisys, Inc. 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. Paul Kusserow is paid around the same as most CEOs of similar size companies. The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Amedisys shares (free trial). If you want to buy a stock that is better than Amedisys, thisfreelist of high return, low debt companies is a great place to look. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
With EPS Growth And More, Alliant Energy (NASDAQ:LNT) Is Interesting Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inAlliant Energy(NASDAQ:LNT). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath. View our latest analysis for Alliant Energy The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. That means EPS growth is considered a real positive by most successful long-term investors. Alliant Energy managed to grow EPS by 9.3% per year, over three years. That growth rate is fairly good, assuming the company can keep it up. I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Alliant Energy maintained stable EBIT margins over the last year, all while growing revenue 4.7% to US$3.6b. That's progress. You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Alliant Energy. Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, small purchases are not always indicative of conviction, and insiders don't always get it right. Alliant Energy top brass are certainly in sync, not having sold any shares, over the last year. But the bigger deal is that the , Deborah Dunie, paid US$55k to buy shares at an average price of US$43.80. On top of the insider buying, it's good to see that Alliant Energy insiders have a valuable investment in the business. To be specific, they have US$21m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Even though that's only about 0.2% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders. While insiders already own a significant amount of shares, and they have been buying more, the good news for ordinary shareholders does not stop there. That's because on our analysis the CEO, Pat Kampling, is paid less than the median for similar sized companies. For companies with market capitalizations over US$8.0b, like Alliant Energy, the median CEO pay is around US$11m. Alliant Energy offered total compensation worth US$6.5m to its CEO in the year to December 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of good governance, more generally. One positive for Alliant Energy is that it is growing EPS. That's nice to see. On top of that, we've seen insiders buying shareseven though they already own plenty. To me, that all makes it well worth a spot on your watchlist, as well as continuing research. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Alliant Energy is trading on a high P/E or a low P/E, relative to its industry. As a growth investor I do like to see insider buying. But Alliant Energy isn't the only one. You can see aa free list of them here. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Kate Middleton Wears a Chic Shirtdress for Surprise Wimbledon Appearance Photo credit: Karwai Tang - Getty Images From Harper's BAZAAR Kate Middleton made a surprise solo appearance at Wimbledon on July 2, 2019. The Duchess of Cambridge wore a chic white shirtdress by Suzannah featuring black button detailing for the outing. She accessorized the look with an Alexander McQueen belt, basket box bag, black pumps, and black Ray-Bans. The Duchess of Cambridge has been enjoying the great weather in the United Kingdom this week, and she continued by making a surprise appearance at Wimbledon during Day Two of the prestigious tennis tournament. Kate Middleton is a royal patron of the Lawn All England Lawn Tennis and Croquet Club and regularly attends Wimbledon-in 2018, she famously paid a visit with Meghan Markle . Stepping out solo on July 2, Kate wore the chicest white shirtdress by Suzannah featuring black detailing. She accessorized the look with an Alexander McQueen basket box bag and a pair of Ray-Bans . Photo credit: Karwai Tang - Getty Images Photo credit: Karwai Tang - Getty Images According to the Daily Mai l , Kate sat with British tennis players Katie Boulter and Anne Keothavong during her latest appearance. ESPN UK reporter Robert Bartlett noted that Kate was seen "watching Harriet Dart play on Court 14, an outside court open to all fans with grounds passes. #Wimbledon" Photo credit: Mike Hewitt - Getty Images Kate Middleton watching Harriet Dart play on Court 14, an outside court open to all fans with grounds passes. #Wimbledon pic.twitter.com/X9WUlLWqPV - Robert Bartlett (@RobBartlettESPN) July 2, 2019 Kate's appearance at Wimbledon comes just one day after she hosted a picnic at the garden she co-designed for this year's Chelsea Flower Show . Her " Back to Nature " garden was re-created at the RHS Hampton Court Palace Garden Festival, and is twice the size of the original version. For the event, Kate wore a green Sandro dress that you can still shop: Story continues Photo credit: Max Mumby/Indigo - Getty Images Photo credit: . ('You Might Also Like',) The Essential British Packing List 30 Facial Moisturizers for Every Budget We Cut Bangs on 16 Different Women With The Help of Celebrity Stylist Justine Marjan
Is There Now An Opportunity In Autoliv, Inc. (NYSE:ALV)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Autoliv, Inc. (NYSE:ALV), which is in the auto components business, and is based in Sweden, saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Autoliv’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Autoliv The stock seems fairly valued at the moment according to my valuation model. It’s trading around 11% below my intrinsic value, which means if you buy Autoliv today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $78.27, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Autoliv’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Autoliv’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?ALV’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 ALV, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth 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 Autoliv. You can find everything you need to know about Autoliv inthe latest infographic research report. If you are no longer interested in Autoliv, 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.

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