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Do You Like DISH Network Corporation (NASDAQ:DISH) At This P/E Ratio?
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at DISH Network Corporation's (NASDAQ:DISH) P/E ratio and reflect on what it tells us about the company's share price. Looking at earnings over the last twelve months,DISH Network has a P/E ratio of 11.75. That is equivalent to an earnings yield of about 8.5%.
See our latest analysis for DISH Network
Theformula for price to earningsis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for DISH Network:
P/E of 11.75 = $38.86 ÷ $3.31 (Based on the year to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. When earnings grow, the 'E' increases, over time. That means unless the share price increases, the P/E will reduce in a few years. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
DISH Network shrunk earnings per share by 26% over the last year. But it has grown its earnings per share by 13% per year over the last five years.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. We can see in the image below that the average P/E (16.4) for companies in the media industry is higher than DISH Network's P/E.
This suggests that market participants think DISH Network will underperform other companies in its industry. Since the market seems unimpressed with DISH Network, it's quite possible it could surprise on the upside. You should delve deeper. I like to checkif company insiders have been buying or selling.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. Thus, the metric does not reflect cash or debt held by the company. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
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).
DISH Network has net debt worth 70% of its market capitalization. This is a reasonably significant level of debt -- all else being equal you'd expect a much lower P/E than if it had net cash.
DISH Network's P/E is 11.7 which is below average (18.2) in the US market. The P/E reflects market pessimism that probably arises from the lack of recent EPS growth, paired with significant leverage.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
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.
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Daniel Aharonoff Discusses the Benefits of Digital Media for Philanthropic Initiatives
ENCINO, CA / ACCESSWIRE / July 2, 2019 /Treating others with kindness and providing support to those in dire circumstances are concepts as old as human civilization, but the birth of modern philanthropy can be traced to the 15thcentury. As feudal structures collapsed and geographical discoveries expanded the world, an era of unprecedented exchange began, including the global spread of philanthropic ventures and ideas. Through the centuries, charitable giving has retained its essence and objectives, but technological and societal progress has inevitably affected the process and the outcomes. As theNational Philanthropic Trust notes, "While still remaining true to the memory of the great philanthropic traditions of the past, philanthropy today is more organized, professional, and global than ever before […] Technology has enabled people to make instant, global exchanges, and philanthropy has thrived in the digital environment, finding new ways to reach people in need and, moreover, empowering them to act and speak out for themselves." According to digital media expertDaniel Aharonoff, charitable foundations now have a plethora of tools at their disposal to mobilize support, drive donor engagement, and raise awareness about worthy causes.
The growing impact of technology was highlighted in the Public Interest Registry (PIR)-sponsored2018 Global Trends in Givingreport, which established that overall charitable donations increased by 4.1%, marking six years of consecutive growth. Importantly, online contributions rose by 12.1%, with 55% of both Millennial and Generation X donors stating they prefer to give online. The percentage was impressive even for Baby Boomers, 54% of whom revealed the same preference. "Donation revenue and interest in philanthropy continue to grow across the board, but it's still essential that nonprofits prepare to adapt their strategies to shifting demographic preferences," the report points out. Digital channels dominate the personal and work lives of the younger generations, which makes it imperative for philanthropic organizations to adapt their strategies to the modern age in order to maximize outcomes.
Embracing digital media is a step that will deliver multiple benefits to charitable initiatives, saysDaniel Aharonoff, pointing out that technology has transformed the way people obtain and share information about philanthropic causes. The rise of social networks such as Facebook, Twitter, and YouTube and the creation of innovative digital toolshave introduced crowdfundingand peer-to-peer fundraising, democratizing the process of giving and expanding the pool of donors. Charities are starting to realize the tremendous potential of digital media to drive engagement and promote long-term commitment while also building trust by improving transparency and accountability. In addition, digital media offers philanthropic organizations the opportunity to educate those in need and equip them with the skills to overcome adversity, as well as to spread the message about their work and attract new supporters through the power of storytelling.
Daniel Aharonoffhas been involved in the digital media space for more than 20 years, laying the foundations of his remarkable professional success with his appointment as a strategic consultant to NBC Television. He advised the company on the launch of its VideoSeeker online service and showcased its digital properties on numerous pioneering portals, among them World News, The Tonight Show, and Saturday Night Live. This assignment was followed by the position of acting CTO at FoxKids and Fox Family Channel, whereDanielAharonoffconsulted on all technology and digital media initiatives. In 1997, he founded movie content aggregator VideoDome Networks, serving as its CEO until 2004. After a number of senior roles at digital media companies, he joined BroadScaler Consulting in 2009, assuming the CEO responsibilities.
Daniel Aharonoff - CEO of BroadScaler Consulting & Digital Media Expert:http://danielaharonoff.com
Daniel Aharonoff Comments on Latest Developments in Digital Media Landscape:https://finance.yahoo.com/news/daniel-aharonoff-comments-latest-developments-110000397.html
Daniel Aharonoff Discusses the Benefits of Digital Media for Philanthropic Initiatives:https://www.youtube.com/watch?v=tRHpcB1e1Xc
Contact Information:
Daniel Aharonoffdaniel.aharonoff@broadscaler.comhttp://danielaharonoff.com
SOURCE:Daniel Aharonoff
View source version on accesswire.com:https://www.accesswire.com/550581/Daniel-Aharonoff-Discusses-the-Benefits-of-Digital-Media-for-Philanthropic-Initiatives
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Chinese Technology is Making “Tremendous” Progress Amid Trade Dispute
This article was originally published onETFTrends.com.
The topic of technology has been a point of contention as the U.S.-China trade war rages on, but the world's second largest economy isn't content with just sitting on its laurels while the tariff battle plays out. In fact, global management consultancy Bain & Company says China is making "tremendous" progress with respect to its technology sector.
Over the weekend at the G-20 summit in Japan, U.S. President Donald Trump said he could reverse restrictions that prevent American companies from selling their products to Chinese technology giant Huawei as part of a trade agreement. Whether this will resolve the trade differences between the two nations is unclear.
“The critical point is that, behind the trade negotiations, there is an underlying theme — which is technology — and the fight for dominance in the technology space,”saidBain and Company partner Henrik Naujoks at the World Economic Forum in Dalian, China.
Interest in Chinese Tech Continues to Increase
Earlier this year, internet search engine giantGoogle saidit will provide a $550 million cash investment into JD.com, China's second-largest e-commerce company. As part of the deal, Google will receive over 27 million newly-issued JD.com Class A ordinary shares at a $20.29 per share price point.
Google will work in conjunction with JD.com to develop a retail infrastructure that can enhance and personalize the online shopping experience, as well as reduce friction in various markets like Southeast Asia. In addition,JD.com saidplans are underway to make a selection of items available for sale in places like the U.S. and Europe through Google Shopping, which allows users to search for products online and compare prices between different sellers to locate the best price.
The Google-JD.com partnership would allow JD.com to grab more market share by offering products to consumers located outside China. This news comes at a time when trade tensions between the United States and China are bubbling, which could hamper the sales of American retailers.
Nonetheless, other opportunities in Chinese tech could help investors looking to capitalize on the Chinese technology sector. Below are three China technology ETFs that could be poised for a gain should other U.S.-China technology companies decide to work in concert with one another despite the trade tensions:
1. KraneShares CSI China Internet ETF (KWEB) : The investment seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the CSI Overseas China Internet Index. The underlying index is designed to measure the performance of the investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors.
2. Invesco China Technology ETF (CQQQ) : The fund seeks to track the investment results (before fees and expenses) of the FTSE China Incl A 25% Technology Capped Index. The underlying index may include China A-shares, B-shares, H-shares, N-shares, Red Chip shares, P-chip shares and S-chip shares.
For more news affecting China ETFs,click here.
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Recordings of the Apollo 11 Moon Landing Are up for Auction for More Than $1 Million
Click here to read the full article. NASA ’s only surviving original recording of Neil Armstrong ’s first steps on the Moon will go to auction next month, a sale that coincides with 50th anniversary of the Apollo 11’s lunar landing on July 20th, 1969. Sotheby’s said of the historic videotapes, “Viewed only three times since June 1976, the three reels of 2-inch Quadruplex videotape transport viewers to the big screen monitor at Mission Control, with images clearer and with better contrast than those that the more than half-billion-person television audience witnessed that momentous July day on their home sets.” Related stories Here's How Much It Will Cost You to Take a NASA-Approved Trip to the International Space Station You Can Now Book a Luxurious Wellness Retreat for Your Brain--in Spain Virgin Galactic Launched a Second Successful Space Flight. Now, the $250,000 Tickets Are Going Fast The tape was among a “truckload” of videotapes that Gary George purchased “by a stroke of remarkable luck: while working as an intern for the NASA Johnson Space Center in June of 1973, he stopped by a government surplus auction to browse the wares.” George, who purchased the lot for $217, originally intended on reselling the videotapes as scrap; “a new reel of Ampex tape cost about $260 at that time, and since the tapes could be re-recorded, George could sell them to a local TV station for a profit,” Sotheby’s said. “I had no idea there was anything of value on them,” George told Reuters recently. “I was selling them to TV stations just to record over.” However, George’s father discovered a box labeled “APOLLO 11 EVA | July 20, 1969 REEL 1 [–3],” which captured three videotapes of the lunar landing, including Neil Armstrong’s timeless “One small step” moment. George opted instead to safeguard the tapes and has only played them on three occasions: A screening the videotapes once for the public in 2008, once in order to digitize the videotapes and a third time for Sotheby’s specialists. Story continues Despite their age, the quality of the videotapes is described as “faultless condition, displaying a picture quality superior to any other existing contemporary videotapes.” The NASA videotapes, which contain nearly 3 hours of footage off the Apollo 11’s extra vehicular activity, have a pre-auction estimate of between $1 million and $2 million, an astronomical return on George’s $217 investment. Sign up for Robb Report's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
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China just extended an olive branch to the US as trade talks restart
Chinawill broaden the ability of some foreign firms to invest in the country a year earlier than expected, a move that comes astrade talkswith the U.S. begin again in earnest.
“We will move up the lifting of foreign capital limits in securities, futures and life insurance, from 2021 to 2020,” Premier Li Keqiang, China’s second-ranking official, said on Tuesday at a meeting of the World Economic Forum, according to the New York Times. “This shows China’s commitment to opening up.”
While it's a small gesture towards improving the relationship with theTrump administrationafter trade talks fell apart in May, the move won’t satisfy the White House’s more sweeping demands that China amend its laws to protect U.S. business interests in the country.
Currently, foreign firms are only allowed to hold partial stakes in Chinese businesses. The pending switch in 2020 will allow securities firms and others to control those operations.
At the recent G20 summit in Japan, Trump and Chinese President Xi Jinping agreed to relaunch trade talks and withhold the imposition of any new tariffs. Negotiations between the two nations broke down when China backtracked on previously agreed upon terms, according to top administration officials.
In March, China made changes to its existing law governing foreign investment in an effort to address complaints that the government doesn’t adequately ensure the safety of American intellectual property, but critics said the overly broad measure did not go far enough in addressing those concerns.
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Alongside the decision on financial investment, Li also made a tenuous commitment to not devalue its currency, according to theNew York Times, a pledge that could help stabilize the trading relationship with the U.S.
As the value of the renminbi, the Chinese currency, declines relative to the U.S. dollar, it makes exports from the Asian nation cheaper in comparison.
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Job Openings and Wages Continue to Rise
The labor market continues to inch forward, but new data show that it may be slowing down. Job openings rose by 1.4%, and median base pay increased by 1.7% compared to last year, according toGlassdoor's latest Job Market Report.
It's a positive that the number of job openings and base pay continue to climb, but the rate of growth has slowed down. That's perhaps a cause for concern, even though the number of total openings posted on Glassdoor remains at 5.65 million down only slightly from the April 2019 high of 5.81 million.
"The job market had a hot run in 2018, seeing annual growth in job openings at 9.8 percent. That annual growth has since slowed down to 2.2 percent so far in 2019," said Glassdoor Senior Economist Daniel Zhao in the report. "Although it seems like a stark change, the continued growth in jobs and pay seen in Glassdoor's latest Job Market Report is a sign that the good times aren't over yet. But after a decade-long recovery, today's labor market is sluggish."
Truck drivers and other transportation workers remain in high demand. Image source: Getty Images.
Wage growth has slowed down as well dropping to 1.7% in June from 1.8% in May. Both those numbers are below the 2.5%average pay growth in the second half of 2018.
The fastest-growing industry --transportation and logistics-- makes sense because of the increasing move for consumers to have products delivered to their homes. Major retailers includingAmazon,Walmart, andTargethave been growing their sales while pushing to deliver in one day or even on thesame daya consumer orders.
Top 5 Industries with Fastest Growth in Job Openings
[{"Industry": "Transportation & Logistics", "Job Openings": "308,066", "YoY %": "49%"}, {"Industry": "Information Technology", "Job Openings": "153,594", "YoY %": "20%"}, {"Industry": "Government", "Job Openings": "124,478", "YoY %": "19.3%"}, {"Industry": "Media & Publishing", "Job Openings": "27,389", "YoY %": "17.8%"}, {"Industry": "Insurance", "Job Openings": "74,200", "YoY %": "8.7%"}]
Data source: Glassdoor.
When it comes to pay, the lowest-paying jobs generally have the fastest growth. That's largely because there are more openings for entry-level or relatively low-skilled workers than there are people to fill them.
"June marks a new record for the longest period of time without a hike in the $7.25 per hour federal minimum wage," according to Zhao. "Despite the lack of federal action, many large employers like Walmart, Amazon, and Target are raising wages themselves in order to attract increasingly scarce workers."
Top 10 Job Titles with Fastest Pay Growth
[{"Job Title": "Pharmacy Technician", "Median Base Pay": "$31,726", "YoY %": "7.7%"}, {"Job Title": "Insurance Agent", "Median Base Pay": "$43,668", "YoY %": "5.8%"}, {"Job Title": "Machine Operator", "Median Base Pay": "$40,628", "YoY %": "5.5%"}, {"Job Title": "Restaurant Cook", "Median Base Pay": "$29,593", "YoY %": "5%"}, {"Job Title": "Emergency Medical Technician", "Median Base Pay": "$36,030", "YoY %": "4.9%"}, {"Job Title": "Sales Representative", "Median Base Pay": "$49,608", "YoY %": "4.5%"}, {"Job Title": "Truck Driver", "Median Base Pay": "$55,457", "YoY %": "4.2%"}, {"Job Title": "Security Officer", "Median Base Pay": "$36,076", "YoY %": "4%"}, {"Job Title": "Customer Service Representative", "Median Base Pay": "$38,134", "YoY %": "3.8%"}, {"Job Title": "Data Scientist", "Median Base Pay": "$97,637", "YoY %": "3.6%"}]
Data source: Glassdoor.
At some point, companies stop adding jobs that they know they won't be able to fill. All of the major retailers and shipping companies have made major investments in automation. That will continue and it may eventually put a major damper on the labor market.
If a retailer can't find cashiers or warehouse workers easily it makes sense to eliminate some of those positions in favor of automation. These trends have already forced some of that but continuing worker shortages will likely increase the pace of larger players automating more positions.
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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. The Motley Fool has adisclosure policy.
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How Much Are Linamar Corporation (TSE:LNR) Insiders Spending On Buying Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inLinamar Corporation(TSE:LNR).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Linamar
In the last twelve months, the biggest single purchase by an insider was when CEO & Non-Independent Director Linda Hasenfratz bought CA$2.3m worth of shares at a price of CA$45.36 per share. That means that an insider was happy to buy shares at around the current price of CA$48.88. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Linamar share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 73349 shares worth CA$3.5m. But insiders sold 51460 shares worth CA$2.6m. In the last twelve months there was more buying than selling by Linamar insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Linamar is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
The last quarter saw substantial insider selling of Linamar shares. In total, CTO, Executive VP of Sales & Marketing and Non-Independent Director Mark Stoddart sold CA$216k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. Linamar insiders own 31% of the company, currently worth about CA$991m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
An insider hasn't bought Linamar stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're not too bothered by recent selling. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Linamar.
But note:Linamar 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.
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UPDATE 1-China issues more crude import quotas for mostly private refiners - document
(adds details)
SINGAPORE, July 2 (Reuters) - China has issued more crude oil import quotas for mostly private refiners that will allow them to bring in an additional 56.85 million tonnes for the remainder of 2019, a document reviewed by Reuters showed on Tuesday.
This will bring the total quotas issued this year to 151 million tonnes of crude oil, or roughly 3.02 million barrels per day (bpd).
The amount is equivalent to about 30% of China's total crude oil imports in the first five months of this year at 9.91 million bpd as reported by official customs data.
Of the new issues, private refiner and chemical giant Hengli Petrochemical Co Ltd won 12.8 million tonnes, the largest recipient among a total of 43 refiners.
Thirty-three of these plants are independent oil processors based in the eastern province of Shandong. State-run ChemChina and provincial government-backed Shaanxi Yanchang Petroleum Group are among the rest.
(Reporting by Florence Tan and Chen Aizhu; editing by Christian Schmollinger and Emelia Sithole-Matarise)
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Is It Time To Consider Buying Allison Transmission Holdings, Inc. (NYSE:ALSN)?
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Allison Transmission Holdings, Inc. (NYSE:ALSN), which is in the machinery business, and is based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Allison Transmission Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Allison Transmission Holdings
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 14% below my intrinsic value, which means if you buy Allison Transmission Holdings today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $54.53, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Allison Transmission Holdings’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Allison Transmission Holdings, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
Are you a shareholder?Currently, ALSN appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on ALSN for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on ALSN should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Allison Transmission Holdings. You can find everything you need to know about Allison Transmission Holdings inthe latest infographic research report. If you are no longer interested in Allison Transmission Holdings, 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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US mulls tariffs on additional $4 billion of EU goods
WASHINGTON (AP) — The U.S. is considering tariffs on an additional $4 billion of goods from the European Union over what it considers to be illegal aircraft subsidies. Whether it does so depends on the results of a World Trade Organization assessment of EU subsidies on large civil aircraft, specifically to Airbus. The U.S. Trade Representative's Office disclosed Monday that it could target a further 89 sub-categories following an earlier list in April. The new items include cheeses, olives and coffee. A U.S. tariff wish-list released in April reflected the Trump administration's calculation of the harm the subsidies inflicted on the U.S. — and specifically to Boeing. The USTR said it plans a public hearing in August on the proposed additional tariffs.
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Looking At Leon's Furniture Limited (TSE:LNF) From All Angles
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I've been keeping an eye on Leon's Furniture Limited (TSE:LNF) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LNF has a lot to offer. Basically, it is a financially-healthy company with a strong history high-grade dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Leon's Furniture here.
LNF’s debt-to-equity ratio stands at 22%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. LNF's has produced operating cash levels of 0.69x total debt over the past year, which implies that LNF's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. LNF's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if LNF's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, LNF's share price is trading below the group's average. This bolsters the proposition that LNF's price is currently discounted.
Income investors would also be happy to know that LNF is a great dividend company, with a current yield standing at 3.7%. LNF has also been regularly increasing its dividend payments to shareholders over the past decade.
For Leon's Furniture, I've compiled three pertinent factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for LNF’s future growth? Take a look at ourfree research report of analyst consensusfor LNF’s outlook.
2. Historical Performance: What has LNF's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of LNF? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Why Altra Industrial Motion Corp.'s (NASDAQ:AIMC) High P/E Ratio Isn't Necessarily A Bad Thing
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The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll show how you can use Altra Industrial Motion Corp.'s (NASDAQ:AIMC) P/E ratio to inform your assessment of the investment opportunity.Altra Industrial Motion has a price to earnings ratio of 27.12, based on the last twelve months. That means that at current prices, buyers pay $27.12 for every $1 in trailing yearly profits.
View our latest analysis for Altra Industrial Motion
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Altra Industrial Motion:
P/E of 27.12 = $35.78 ÷ $1.32 (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 is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
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. A higher P/E should indicate the stock is expensive relative to others -- and that may encourage shareholders to sell.
Altra Industrial Motion saw earnings per share decrease by 24% last year. And EPS is down 2.3% a year, over the last 5 years. This could justify a pessimistic P/E.
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 (21.8) for companies in the machinery industry is lower than Altra Industrial Motion's P/E.
That means that the market expects Altra Industrial Motion will outperform other companies in its industry. Clearly the market expects growth, but it isn't guaranteed. So further research is always essential. I often monitordirector buying and selling.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Altra Industrial Motion's net debt is 68% of its market cap. This is a reasonably significant level of debt -- all else being equal you'd expect a much lower P/E than if it had net cash.
Altra Industrial Motion's P/E is 27.1 which is above average (18.2) in the US market. With significant debt and no EPS growth last year, shareholders are betting on an improvement in earnings from the company.
Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
You might be able to find a better buy than Altra Industrial Motion. 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.
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How Much Did Limbach Holdings, Inc.'s (NASDAQ:LMB) CEO Pocket Last Year?
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Charlie Bacon has been the CEO of Limbach Holdings, Inc. (NASDAQ:LMB) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Limbach Holdings
At the time of writing our data says that Limbach Holdings, Inc. has a market cap of US$68m, and is paying total annual CEO compensation of US$854k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$618k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$465k.
Thus we can conclude that Charlie Bacon receives more in total compensation than the median of a group of companies in the same market, and of similar size to Limbach Holdings, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Limbach Holdings has changed from year to year.
Over the last three years Limbach Holdings, Inc. has shrunk its earnings per share by an average of 95% per year (measured with a line of best fit). Its revenue is up 14% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested inthisfreevisualization of analyst forecasts.
Given the total loss of 4.6% over three years, many shareholders in Limbach Holdings, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Limbach Holdings, Inc. 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.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! So you may want tocheck if insiders are buying Limbach Holdings shares with their own money (free access).
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.
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Special Report: How Poland became a front in the cold war between U.S. and China
By Joanna Plucinska, Koh Gui Qing, Alicja Ptak and Steve Stecklow WARSAW (Reuters) - On a frigid morning in January, Polish internal security officers entered the Warsaw apartment of a foreign businessman, confiscated photographs, seized his electronic devices and detained him. The allegations leveled against him were sensational: An ex-diplomat who speaks Polish, he and a former Polish security official had spied on behalf of a foreign power. The drama had elements of a classic Cold War thriller, updated for the 21st century. The predatory power was not America - Washington and Warsaw are now allies - nor Russia, Poland's Soviet-era master. It was China. The businessman was Chinese, a salesman for the world's largest maker of telecom networking gear, Huawei Technologies Co Ltd. And the alleged Polish traitor, detained the same day, wasn't a soldier but a senior cybersecurity specialist. The arrests opened another front in America's new Cold War, with China. It is a struggle in which Huawei figures prominently, as Washington wages a global campaign to dissuade allies from using the company's equipment in the next generation of mobile-phone technology, known as 5G. The Trump administration in May effectively banned the use of Huawei gear in U.S. telecom networks and restricted the company's purchases of American technology. Washington says the company is an arm of the Chinese government, and U.S. officials fear Huawei's 5G technology could be exploited for espionage and sabotaging a country's critical infrastructure. Huawei denies this. At the G20 summit in Japan last week, Trump said U.S. companies would be allowed to sell some components to Huawei. But he didn't reverse the de facto ban on using Huawei gear in U.S. networks. Since announcing the arrests, Polish prosecutors have said little about the case; it is mostly classified. But in lengthy responses from jail to questions from Reuters, the Chinese businessman at the center of the case, Wang Weijing, said he was innocent. Story continues "I am wrongfully accused for doing things I have never done and am being kept away from my family," he said. "Not to mention that finding an alleged spy in Huawei is a perfect excuse to kick Huawei out of Poland and elsewhere." Wang's responses, delivered by his lawyer, Bartlomiej Jankowski, provide new details about the case and about his relationship with the other defendant, Piotr Durbajlo. Among them: Wang says that Durbajlo was probably his best Polish friend; the two men spent time in China together on three occasions, including during a 2013 visit by Polish government officials to Huawei's headquarters in the southern Chinese city of Shenzhen and a 10-day vacation last summer; and Huawei, which fired Wang after his arrest, has nevertheless provided him some support. Reuters has also learned that Poland's security services are interested in Durbajlo's travel to China. And they are looking into his work on a project at a Warsaw military university that involved creating a monitoring system to guard against intruders accessing classified information sent through fiber optic communication networks. The Huawei battle reflects a fundamental geostrategic shift in Washington. For decades, the U.S. foreign policy establishment assumed Beijing would evolve into a cooperative partner in the rules-based, American-led international order that did so much to foster China's boom. That hope has evaporated. Now, the United States sees China as an adversary determined to challenge American leadership in technology and innovation. President Donald Trump has launched a trade war against Beijing and is boosting defense spending. Huawei is cast as a Chinese standard-bearer in that struggle. But this counter-strategy is creating new tensions in the Western alliance. Many U.S. allies face a hard choice: block Huawei, remain in America's good graces and alienate China; or opt to use Huawei's cheaper equipment in their 5G networks and risk Washington's wrath. Government officials in Poland, which relies on U.S. security backing in the face of an emboldened Russia, have told Reuters that Wang's arrest was a further reason to rethink the integral role Huawei plays in Poland's telecom networks. Poland has yet to decide whether to impose restrictions on Huawei. "The danger of using equipment from Chinese companies like Huawei is very real, as recent events in Poland prove," U.S. Ambassador to Poland Georgette Mosbacher told Reuters, pointing to "the need for all our European allies to take this threat seriously" in building telecom networks. Huawei declined to answer questions for this story. "As the Poland case remains subject to a legal case, we are unable to provide any comment at this time," a company spokesman said. Given his resume, Wang Weijing says he can understand why Polish authorities might believe he is a spy for China. Besides the fact he speaks Polish and worked at Huawei, he had a four-and-a-half-year stint at the Chinese consulate in the port city of Gdansk and cultivated relations with Polish officials during his time in the country. "I guess I could be considered as a potentially good candidate to become a spy," the 37-year-old Chinese national told Reuters from inside Warszawa-Bialoleka prison and detention center. But Wang flatly denies spying for Beijing: "No one ever offered me such a job," he told Reuters. "I have never spied for the Chinese government. I have never done anything to the detriment of Poland. That would be absurd," he also said. "Poland is my second home." Wang's lawyer Jankowski, who declined to discuss any of the evidence in the case, believes his client has become collateral damage in America's war on Huawei. He's concerned, he says, that his client might remain in jail for at least two years before he's either freed or indicted. Under Polish law, a suspect can be held in detention for years while authorities continue to investigate. Whatever Wang's ultimate fate, his case is now embroiled in America's war on Huawei. The United States has praised Poland for the arrests of Wang and Durbajlo. During a visit to Warsaw in February, U.S. Vice President Mike Pence said Washington "welcomes Poland's partnership as we work to protect the telecommunications sector from China." The detention of "a Huawei executive and a Polish national accused of cooperating with him," Pence added, "demonstrate your government's commitment to ensure our telecommunications sector is not compromised in a way that threatens our national security." China's Foreign Ministry directed Reuters to comments it made on the case in January. "We noted that both the relevant Polish side and Huawei have said in their statements that the case of Wang Weijing is entirely an individual one," a spokeswoman said at the time. Attempts to "crack down" on Chinese technology companies, she added, were being driven by baseless charges. "Huawei's reputation for security has been praised by its partners for many years," she said. According to Huawei, the company has more than 900 employees in Poland and so far has invested more than $1.3 billion in the country. Poland's biggest mobile operator, Play Communications SA, says it has built the vast majority of its network's base stations using Huawei equipment. Days after Polish security personnel detained Wang on Jan. 8, Huawei fired him, stating that the incident had brought the company "into disrepute" and that Wang's "alleged actions have no relation to the company." Yet Wang told Reuters that company employees have been helping his wife on a "daily basis" and that Huawei has provided his lawyer with some documents related to his work "to assist the investigation." He didn't elaborate. He also said he hopes the company will help pay his legal expenses. A lawyer for Durbajlo said he didn't want his client to comment for this story. "We filed a request to overturn the arrest and it was not accepted," the lawyer said. Wang's wife declined through a friend to be interviewed. This article is based on interviews with more than 20 people who knew either Wang or Durbajlo or have knowledge of the case. They include former colleagues and friends, business associates, government officials and former intelligence agents. The interviews showed that both had extensive contacts in Poland's government and telecom industry, had known each other for years and had grown very close. Polish President Andrzej Duda told Reuters that the allegations were not "empty," that "documentation exists" and that the arrests of the two men on espionage charges mean "there is evidence that such activities may have been carried out." "So as far as I understand, in this respect, from the point of view of the [Polish security] services and prosecutor's office, the case is unequivocal," said Duda, who spoke in an interview last month. POLISH DICTIONARIES Wang's arrest was a stunning twist in a journey to Poland that began nearly two decades ago. Wang, who also goes by the Polish first name Stanislaw, said he grew up in a village that is now part of the northern Chinese city of Shijiazhuang. He became one of the first students in his village to be accepted at a university, after scoring well on an exam, he said. That earned him the chance to study Polish at the prestigious Beijing Foreign Studies University. "Frankly speaking, I really had very poor knowledge about Poland at that time," Wang said. "I discussed it with my parents and we decided that studying Polish at the best university of foreign languages in China would be a good investment in my future." At university, Wang was diligent and often visited the library, said a friend who has known him for years. The school had seven Polish dictionaries for students, of which four could be borrowed. "You would see his name in all four dictionaries," the friend said. Wang's hard work paid off. He was one of four students at the university who won a scholarship to go to Poland to study the language in the central city of Lodz, he said. He arrived in the fall of 2001 and studied there for about 10 months. "That was the very beginning of my contact with Poland," he said. He returned to China and later held jobs distributing wine and trading amber jewelry, he said. In 2006, he learned that China's consulate in the northern Polish port city of Gdansk was seeking a Polish-Chinese translator. He passed a Polish language exam and was hired. Wang said he worked at the consulate for four-and-a-half years and was one of only three Chinese employees, and the only one who spoke Polish. His official title, he said, was cultural attaché. But he handled protocol, administrative and visa issues, as well as some menial tasks. "I used to remove snow and wash cars," he said. He said he also frequently assisted the consulate's top diplomat. "I traveled across northern Poland on numerous occasions and participated in numerous meetings with local authorities, together with the Consul General," he said. The Chinese consulate didn't respond to requests for comment. Wang left the consulate in January 2011 and returned to China, seeking new challenges. About two months later, Huawei contacted him about a public relations job with the company in Poland. "I guess they got my contact via my colleagues" - either from the Beijing university he attended or the Chinese embassy, he said. Wang landed the job and returned to Poland in June 2011. At Huawei, Wang was responsible for handling public affairs as the company worked to expand beyond selling equipment to telecom operators and enter new markets for its technology. His job, he said, included networking with Polish government officials, institutions and industry groups, as well as "maintaining good working relationships with China-related institutions." He said he also kept in regular contact with the Chinese embassy. By 2017, Wang had changed jobs to become a salesman in Huawei's Enterprise Business Group, where he worked targeting Poland's public sector. He said he was mainly seeking sales opportunities in government ministries and institutions, and state-owned companies. They included the railways and a national research institute tasked with internet security and responding to cybersecurity threats. Wang said he had extensive contacts in the Polish government and telecommunications industry. But he said he was only doing his job. "Not knowing the key people on the market would be an act of negligence," he said. People who interacted with Wang said he was an assiduous networker. He was a regular at events hosted by the Chinese Embassy in Warsaw, according to a Chinese business executive. Several people recounted receiving text greetings, or little presents of Chinese tea or calendars from him during Chinese and Polish holidays. Wang's command of Polish set him apart from his Chinese colleagues, said a former Polish government official. Wang told Reuters he wasn't directly involved in Huawei's 5G business. But he said he understands why Huawei quickly fired him. "When an employee is criminally accused as 'a spy,' what do you think the company could do?" he said. "The company did what it had to do and I understand that." RUSSIA FEARS While Polish officials say they are open to increasing trade ties with China, President Duda said he is opposed to investment by Beijing in strategic infrastructure, including seaports and airports. Poland-China relations have also cooled as Warsaw has sought closer ties with Washington in the face of what the Poles see as a growing threat from Russia, analysts say. In March last year, Poland signed a $4.75 billion deal with Washington to purchase the Patriot missile defense system - the biggest arms procurement deal in Polish history. Currently, there are several thousand American soldiers stationed in Poland on a rotational basis. Last month, President Donald Trump pledged to deploy an additional 1,000 U.S. troops to the country. China's Foreign Ministry told Reuters that Beijing "attaches importance to developing relations with Poland and is willing to cooperate with Poland based on mutual respect and trust." According to a Polish government official, China's foreign intelligence services have increased their monitoring of Poland's economy and politics in an effort to improve the prospects of Chinese businesses by better understanding the local market. "This is something our services have identified and monitored," the official said. Now, the espionage case has further strained Poland's relationship with China. "It has created some impasse in our relations, because we cannot allow for such an activity to be carried out," Duda said in the interview. "Especially if it concerns such a sensitive element – strategic by nature – as communication technology." Wang's Polish friend Durbajlo, the ex-security agent who is also behind bars, has worked at the top echelons of the Polish government. At times he has worked with people and agencies involved in sensitive national security matters. A specialist in cybersecurity and telecommunications, Durbajlo is said by friends to be in his late 40s. He has worked over the past two decades in the Polish national police, the Ministry of the Interior and Administration, and the Internal Security Agency (ISA), Poland's domestic intelligence service, according to a LinkedIn profile in Durbajlo's name. Reuters has independently confirmed that Durbajlo held most of the positions listed on the profile page. In 2009, he joined the ISA, where he dealt with telecommunications and cybersecurity and advised the agency's then-head, Krzysztof Bondaryk, according to a security expert who worked with Durbajlo and Polish media reports. The LinkedIn profile says Durbajlo worked at the ISA for more than four years. There, he had a rare public-facing role. While most agency personnel generally avoid the spotlight, he gave television interviews about cybersecurity, including a 2010 appearance on Polish broadcaster TVN in which he described China as "the leader in hacking." Magdalena Gaj, a former senior government telecommunications official, said she attended a training session given by Durbajlo on how to communicate securely. Gaj said Durbajlo later worked as her aide. In a statement, Poland's telecom regulatory agency said the ISA assigned Durbajlo to work with the agency beginning in May 2012. He spent the first two years as an advisor to Gaj, then the agency's president. Durbajlo left in 2016. Gaj said she and Durbajlo had become friends. "I worked with this man for several years and he gave me the impression of being a really big patriot," she said. The ISA declined to comment for this story. At the Military University of Technology, Durbajlo worked on a particularly sensitive matter - a project to protect fiber optic networks from intruders accessing classified information that ran between 2012 and 2015. Since the arrests, security officials have interviewed at least two people with knowledge of that work, Reuters has learned. The university declined to comment on Durbajlo's role there. In 2016, Durbajlo worked in the office of Poland's telecommunications regulator and was involved with a group of experts that handled security for Pope Francis' five-day visit to Poland that year, according to Polish media reports. The next year, Durbajlo retired from the ISA. In October 2017, he became a consultant to Orange Polska, Poland's largest telecom operator, which is controlled by French telecom group Orange. Durbajlo ended his work with Orange after his arrest, the company told Reuters. BLOSSOMING FRIENDSHIP Wang told Reuters he doesn't "entirely recall" when he first met Durbajlo or learned that Durbajlo had worked in intelligence. But he said Durbajlo was part of a Polish government delegation that visited Huawei's Shenzhen headquarters in 2013. Gaj, who at the time was president of Poland's telecommunications regulatory agency, said she brought Durbajlo along in part to give her "counterintelligence" protection, given his experience at the ISA. Wang said he met the delegation during the visit. Wang's initial interactions with Durbajlo were all business, Wang said, involving such matters as cybersecurity. Huawei, he added, also invited Durbajlo, as a representative of Poland's telecom regulator, to attend a broadband conference in Hong Kong, which he did. Durbajlo was part of a delegation from Poland that attended the 2015 conference and also visited Huawei's headquarters in Shenzhen, according to a person familiar with the matter. In time, Wang said he and Durbajlo grew close. "In 2016, prior to my son being born, I was seeking advice from my Polish friends regarding recommended hospitals and Piotr helped me to find some really good doctors," Wang said. "He has always offered his kind help and warm advice." Wang said the two men visited each other's homes, and he helped Durbajlo plan a family trip to China last year. "I took my vacation and accompanied them on their trip while my wife remained at home with our son," he said. He even recommended Durbajlo for a job at Huawei. "It didn't work out," Wang said. Wang said he hasn't seen Durbajlo in jail and doesn't know his friend's role in "this game." The former Huawei employee, though, isn't surprised that the company was targeted. By the end of 2018, he said, he anticipated that Poland would follow America's lead and "take some action against Huawei." But, he added, he didn't expect it would be "directed against a single person." (Reporting by Joanna Plucinska, Koh Gui Qing, Alicja Ptak and Steve Stecklow. Additional reporting by Anna Koper in Warsaw and the Beijing newsroom. Edited by Peter Hirschberg.)
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Prince William greets fans on Princess Diana's birthday
Prince William stunned well-wishers who had gathered outside London’s Kensington Palace to mark what would have been mother Princess Diana ’s 58th birthday on Monday. A group of fans gathered outside the gates from 5:30 a.m. to hold a vigil for the late princess, who was tragically killed in a car crash in 1997. Princess Diana with sons Harry and William in 1995. (Photo: Antony Jones/Julian Parker/UK Press via Getty Images) The 37-year-old prince astounded the well-wishers when he emerged through the palace gates to speak to them. The small group who had brought flowers and bunting were left emotional when William shook their hands and thanked them for their support. One fan, John Loughrey, 59, told the Daily Mail : “William told me he knew we'd been coming here for years and thanked us for what we were doing for his mother.” Among those he met was ‘superfan” John Loughrey who was left ‘shaking’ by the encounter. ‘William told me that he knew we had been coming here for 22 years and thanked us for what we were doing for his mother, ‘ he said. pic.twitter.com/3fyFr2dtIW — Rebecca English (@RE_DailyMail) July 1, 2019 “I'm still shaking now. I feel very emotional,” he added. Loughrey said William admired his collection of badges pinned to his hat and said he thought it was “wonderful” that they were celebrating his mother's life and legacy. “He said, 'I'm touched by what you do, you've got quite the collection.’ I told him that I pray for his mother every Sunday at Westminster Abbey and he seemed really touched.” William and brother Prince Harry were just 15 and 12 when their mother died. A statue of Diana will be erected in the grounds of Kensington Palace at the request of her sons. The brothers commissioned the project in 2017 to mark the 20th anniversary of her death, but its completion has been delayed, as they want to make sure the monument is “completely right.” Read more from Yahoo Lifestyle: Meghan Markle's fans defend her from 'haters' over baby Archie's private christening plans: 'Do you guys have any humanity left in you?' Meghan Markle and Prince Harry split from joint charity with Kate Middleton and Prince William Princess Diana’s most memorable fashion moments Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. View comments
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Is Fortune Brands Home & Security, Inc. (NYSE:FBHS) Potentially Undervalued?
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Fortune Brands Home & Security, Inc. (NYSE:FBHS), which is in the building business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on Fortune Brands Home & Security’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for Fortune Brands Home & Security
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.36% above my intrinsic value, which means if you buy Fortune Brands Home & Security today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $56.67, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Fortune Brands Home & Security’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Fortune Brands Home & Security’s earnings over the next few years are expected to increase by 54%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?It seems like the market has already priced in FBHS’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping tabs on FBHS, 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 Fortune Brands Home & Security. You can find everything you need to know about Fortune Brands Home & Security inthe latest infographic research report. If you are no longer interested in Fortune Brands Home & Security, 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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3 Surprising Marijuana Stocks That Raised Their Dividends
At the risk of stating the obvious, the U.S. marijuana industry has evolved at a breakneck pace. So much so, that several companies in the business even pay dividends -- typically a feature of a company or industry that has been active and successful for years.
These three associated marijuana stocks aren't the traditional growers and distributors in the industry. On top of that distinction, they not only pay dividends but also have increased them over time. Read on for more about a trio of companies distributing the good stuff in the form of euphoria-inducing greenbacks.
Image source: Getty Images.
Innovative Industrial Properties(NYSE: IIPR)is a real estate investment trust (REIT) specializing in the industrial and greenhouse infrastructure that weed producers need for their business.
All of its clients are state-licensed growers of medical cannabis. These entities typically rent the REIT's properties on 10- to 20-year terms, with annual base rent increases of 3% to 4.5% baked into their contracts.
The company is profitable and growing; in its latest reported quarter, it booked rental revenue of roughly $6.6 million, for weedlike growth of nearly 150% year over year. Adjustedfunds from operations-- a more important profitability metric for REITs than net income -- more than tripled, to just over $5 million ($0.54 per diluted share).
Operating in a hot segment of the economy, Innovative Industrial Properties plans to keep catching the fire. It wants to dramatically increase its footprint, althoughthere are potential pitfalls to such a strategy.
Nevertheless, the company is a champion weed dividend payer. In its short lifespan, it has raised its quarterly distribution four times, most recently boosting it from $0.45 per share to $0.60. At the current stock price, this yields slightly over 2%.
There's something to be said for the pick-and-shovel method of investing -- i.e., putting money in companies that sell the goods and services needed to make popular products.Scotts Miracle-Gro(NYSE: SMG)is a pick-and-shovel play in the marijuana sector; its Hawthorne Gardening subsidiary manufactures and sells the equipment required to grow weed.
The company is a real veteran on the grow-and-cultivate scene; it's effectively been selling its wares since just after the Civil War. It made a decisive move into the marijuana sector earlier this decade with the founding of Hawthorne Gardening, which these days accounts for13% of annual revenue.
So weed isn't Scotts' main customer sector, but it's helping the company grow its fundamentals and will probably continue to. Analysts who track the company are collectively anticipating a 17% increase in net profitability this fiscal year, on the back of 14% improvement in revenue.
It has paid a quarterly distribution steadily and consistently since 2005, and since 2010 it has declared a raise every summer -- so a new one should be coming through the hydroponic tubing soon. The last payout amounted to $0.55 per share, for a yield of 2.2%.
If you think regular alcoholic drinks can be intoxicating, just wait.
In what was a groundbreaking tie-up between a marijuana stock and one of the more traditional corners of the economy, alcoholic beverages purveyorConstellation Brands(NYSE: STZ)bought a big stake inCanopy Growth(NYSE: CGC)in 2017.
Constellation soon plowed more capital into this investment, and itnow owns almost 40% of Canopy Growth.
Together, the two companies plan to develop and sell a line of cannabis-infused beverages. If their efforts are at least close to being first to market in a significant way, they could really get a grip on a segment that's sure to be popular with a certain type of drinker.
Meanwhile, even as it's shouldering the chronically unprofitable Canopy Growth, Constellation Brands is doing a decent job staying in the black and growing its top line. This is always a challenge in the booze business, in which every major segment -- beer, wine, and liquor -- is very competitive in most markets around the world.
Constellation initiated its quarterly dividend in 2015. Since then, it's raised it once every year, at times dramatically. From the initial $0.31 per share, the company now pays $0.75. This yields 1.5%.
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Eric Volkmanhas no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands and Innovative Industrial Properties. The Motley Fool has adisclosure policy.
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Sophie Turner and Joe Jonas Cried While Reading Their Vows to Each Other at Second Wedding
Things got super emotional at Joe Jonas and Sophie Turner's second wedding in the South of France over the weekend. For those of you not up to speed, the bride and groom tied the knot (again) after a quickie Vegas ceremony following the Billboard Music Awards last month. The nuptials were light-hearted, and the couple even had an Elvis-impersonator to officiate their marriage. However, for their second wedding, Sophie and Joe maintained a more sincere tone throughout the evening and they even broke down in tears at one point. Getty Images Apparently, the bride and groom became so overwhelmed with emotion while reading their vows to each other during the ultra-romantic ceremony that they both began to cry. "Joe and Sophie both teared up while reading their vows," a source told E! News . "Everyone stood and cheered and they had huge smiles as they left as a couple. It was an emotional ceremony." Another source explained to ET : "Their love really shows and watching them together touched everyone at the wedding. They couldn't keep their eyes off each other. It was emotional for everyone involved during the ceremony because Sophie and Joe sweetly welled up. They had such happy tears, everyone felt their emotion." One guest who felt the love between the couple? Priyanka Chopra. Ahead of the ceremony, the actress was spotted wiping away her tears alongside brother-in-law Kevin and his wife, Danielle. Reportedly, Chopra and Turner became super close during the wedding planning process, which may explain the waterworks. #PriyankaChopra moved to tears at #JoeJonas , #SophieTurner 's wedding Read more: https://t.co/AGe4YTTIWP #TheNews https://t.co/8qZVm0QQDo The News (@thenews_intl) July 2, 2019 "Sophie and Priyanka really bonded while planning the wedding," a source said to ET . "Priyanka, having just experienced it, was so helpful with details and they have become so close." Unfortunately, there won't be footage of Sophie and Joe exchanging of vows on social media this time around Diplo had his phone held hostage .
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Here's Why I Think First Horizon National (NYSE:FHN) Is An Interesting Stock
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In contrast to all that, I prefer to spend time on companies likeFirst Horizon National(NYSE:FHN), which has not only revenues, but also profits. 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 First Horizon National
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. Impressively, First Horizon National has grown EPS by 25% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. I note that First Horizon National's revenuefrom operationswas lower than its revenue in the last twelve months, so that could distort my analysis of its margins. First Horizon National maintained stable EBIT margins over the last year, all while growing revenue 30% to US$1.9b. That's a real positive.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
In investing, as in life, the future matters more than the past. So why not check out thisfreeinteractive visualization of First Horizon National'sforecastprofits?
Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
It's a pleasure to note that insiders spent US$3.8m buying First Horizon National shares, over the last year, without reporting any share sales whatsoever. As if for a flower bud approaching bloom, I become an expectant observer, anticipating with hope, that something splendid is coming. Zooming in, we can see that the biggest insider purchase was by Independent Director Scott Niswonger for US$1.8m worth of shares, at about US$18.20 per share.
Along with the insider buying, another encouraging sign for First Horizon National is that insiders, as a group, have a considerable shareholding. Given insiders own a small fortune of shares, currently valued at US$78m, they have plenty of motivation to push the business to succeed. That's certainly enough to make me think that management will be very focussed on long term growth.
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. The cherry on top is that the CEO, D. Jordan is paid comparatively modestly to CEOs at similar sized companies. For companies with market capitalizations between US$2.0b and US$6.4b, like First Horizon National, the median CEO pay is around US$5.2m.
First Horizon National offered total compensation worth US$4.3m 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. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. I'd also argue reasonable pay levels attest to good decision making more generally.
Given my belief that share price follows earnings per share you can easily imagine how I feel about First Horizon National's strong EPS growth. Not only that, but we can see that insiders both own a lot of, and are buying more, shares in the company. So it's fair to say I think this stock may well deserve a spot on your watchlist. Now, you could try to make up your mind on First Horizon National by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
As a growth investor I do like to see insider buying. But First Horizon National 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.
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A Spotlight On Lincoln Electric Holdings, Inc.'s (NASDAQ:LECO) Fundamentals
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I've been keeping an eye on Lincoln Electric Holdings, Inc. (NASDAQ:LECO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LECO has a lot to offer. Basically, it is a financially-robust , dividend-paying company with an impressive track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the fullreport on Lincoln Electric Holdings here.
In the previous year, LECO has ramped up its bottom line by 18%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 34%, which paints a buoyant picture for the company. LECO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that LECO has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. LECO's has produced operating cash levels of 0.44x total debt over the past year, which implies that LECO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that LECO is a great dividend company, with a current yield standing at 2.3%. LECO has also been regularly increasing its dividend payments to shareholders over the past decade.
For Lincoln Electric Holdings, I've compiled three fundamental factors you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for LECO’s future growth? Take a look at ourfree research report of analyst consensusfor LECO’s outlook.
2. Valuation: What is LECO 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 LECO is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of LECO? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Is It Time To Consider Buying Werner Enterprises, Inc. (NASDAQ:WERN)?
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Werner Enterprises, Inc. (NASDAQ:WERN), which is in the transportation business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Werner Enterprises’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Werner Enterprises
According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Werner Enterprises’s ratio of 12.56x is trading slightly below its industry peers’ ratio of 16.94x, which means if you buy Werner Enterprises today, you’d be paying a reasonable price for it. And if you believe that Werner Enterprises should be trading at this level in the long run, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Werner Enterprises’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with a negative profit growth of -0.2% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Werner Enterprises. This certainty tips the risk-return scale towards higher risk.
Are you a shareholder?Currently, WERN appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on WERN, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on WERN for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on WERN should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Werner Enterprises. You can find everything you need to know about Werner Enterprises inthe latest infographic research report. If you are no longer interested in Werner Enterprises, 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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3 Warren Buffett Stocks to Buy in July
After 10 years of a strong bull market, it's getting tough to find good deals on quality stocks. You won't find many high-flying tech stocks amongBerkshire Hathaway's holdings, which reflects legendary investor Warren Buffett's long practice of avoiding industries he doesn't understand.
Two of the industries that fit Buffett's circle of competence and where he has been finding deals lately are banking and airlines. At the end of the first quarter, Berkshire owned significant stakes inGoldman Sachs(NYSE: GS),Bank of America(NYSE: BAC), andDelta Air Lines(NYSE: DAL). Here's why these stocks might be some of the best bargains in the market right now.
Image source: Getty Images.
Shares of the world's largest financial institutions have been left out to dry in recent years as investors chase the exciting growth stories in other industries. Valuations for the big banks have become incredibly cheap.
Buffett has taken notice. Berkshire holds several bank stocks, including 18,353,635 shares of Goldman Sachs at the end of the first quarter. That's 5% of one of the most prestigious financial institutions in the world.
Goldman Sachs hasn't grown the top line much over the last decade, but it's been consistently profitable, and management is beginning to target new products and services to expand its addressable market. One of those is the effort toget into consumer banking, with Goldman recently partnering withAppleto launch a consumer credit card.
Goldman Sachs has enormous growth opportunities across different areas. The company has less than $50 billion in online retail deposits, but there are trillions worth of deposits in the U.S. that Goldman could tap into to grow its deposit total. A similar opportunity exists in investment management and investment banking.
Given these opportunities, the stock looks like a bargain, trading for 1x tangible book value. What's more, management plans to repurchase nearly 10% of the company's shares outstanding over the next year -- a signal to investors that the stock is undervalued. Plus, a dividend increase to $1.25 per share starting in Q3 of this year was recently approved, bringing the forward yield to 2.4% based on the current stock price.
Berkshire's largest bank holding, and second largest equity holding overall, is Bank of America. Berkshire owns $26.3 billion worth of the stock, which is nearly 10% of the total outstanding shares of Bank of America -- a big vote of confidence by the Oracle of Omaha.
His confidence starts at the top. CEO Brian Moynihan took over the reins following the financial crisis in 2008 and has spent his tenure lowering the company's risk profile, at the same time cutting expenses to make itone of the most profitable banksin the industry.
It holds the No. 1 market share spot in consumer deposits, and the company has experienced robust growth in digital banking, which accounts for 27% of total sales.
It earned a 16% return on tangible equity in the first quarter, which makes the stock's price-to-tangible-book-value ratio of 1.60 look cheap. On a forward P/E basis, the stock trades at 10.4 times this year's consensus earnings estimate.
As with Goldman Sachs, Bank of America's management clearly sees the stock as undervalued and wants to do something about it. The company's capital return program calls for therepurchase of more than 10%of the shares outstanding, and the dividend payout is getting a boost of 20%, which brings the forward dividend yield to 2.45%.
Excludinghis admitted mistake by investing in USAirways in 1989, Warren Buffett has long shunned airline stocks due to cutthroat competition and low profitability. All the major airlines, exceptSouthwest, have filed for bankruptcy in the last 20 years, but the times are changing.
The airline industry is much more focused on profitability today than years ago. A better focus on profitability combined with growing consumer expenditures going toward air travel is leading to good times for the industry, particularly Delta -- Berkshire's largest airline holding at the end of the first quarter.
Between 2014 and 2018, Delta saw revenue increase by 10%, or by $4 billion in total. Meanwhile, operating expenses increased by only $1 billion. This left most of the incremental increase in revenue dropping straight to the bottom line, with net income improving from $659 million in 2014 to $3.9 billion last year.
Delta expects 2019 to be the fifth year in a row of $5 billion or more in pre-tax profits. The company expects to generate $3 billion to $4 billion in free cash flow, and management plans to return about 70% of that to shareholders in the form of dividends and share repurchases.
Wall Street is currently worried about rising fuel costs and the impact of the grounding of theBoeing737 MAX, but these are short-term problems thatshouldn't affect Delta's business over the long term. Because of these near-term headwinds, investors can currently buy Delta stock for just 8.5 times this year's earnings estimates, and the stock has a dividend yield of 2.44%.
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John Ballardowns shares of Southwest Airlines. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines. The Motley Fool has the following options: short January 2020 $155 calls on Apple and long January 2020 $150 calls on Apple. The Motley Fool has adisclosure policy.
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Is The Greenbrier Companies, Inc.'s (NYSE:GBX) CEO Salary Justified?
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In 1994 Bill Furman was appointed CEO of The Greenbrier Companies, Inc. (NYSE:GBX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Greenbrier Companies
According to our data, The Greenbrier Companies, Inc. has a market capitalization of US$1b, and pays its CEO total annual compensation worth US$7.5m. (This is based on the year to August 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$950k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
As you can see, Bill Furman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean The Greenbrier Companies, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Greenbrier Companies has changed over time.
On average over the last three years, The Greenbrier Companies, Inc. has shrunk earnings per share by 22% each year (measured with a line of best fit). It achieved revenue growth of 16% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
With a total shareholder return of 11% over three years, The Greenbrier Companies, Inc. 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.
We compared total CEO remuneration at The Greenbrier Companies, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
And while shareholder returns have been respectable, they have hardly been superb. So we doubt many shareholders would consider the CEO pay to be particularly modest! CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Greenbrier Companies (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.
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JPMorgan's Dimon: We are winning with millennials
JPMorgan Chase (JPM) CEO Jamie Dimon says the U.S.’s biggest bank is winning with millennial customers, even though the younger customers aren't using retail branches as often.
Specifically, Dimon pointed to the popularity of Chase’s Sapphire card,which offers travel perks and points, as one of the ways the bank is luring in the under-40 set.
"We're gaining share in millennials every day," Dimontold Yahoo Finance's Editior-in-Chief Andy Serwerin an exclusive interview at the unveiling of JPMorgan's new flagship bank branch in Midtown Manhattan.
Using his daughter as an example, he explained that at one of her parties, someone said "Sapphire"— and her friends all pulled out their Sapphire cards.
"They all have it. So, we are winning with millennials,” the banker added.
Approximately 21 million different customers visit a Chase branch each year, but digitally-savvy millennials are "using the branch less," Dimon acknowledged.
While the bank boasts more than 50 million digital users, the physical branches are crucial to supporting local small businesses and middle-market companies, as well as consumers. The branches are seen as critical for millennial customers, too.
However, over time, the format of a bank branchwill change. The newer layout features more ATMs, fewer tellers, and more advisors. Those advisors may assist small businesses, private clients, or customers looking for a mortgage.
"But, as [millennials] get more money, they need banking services, investment services, et cetera,” Dimon told Yahoo Finance.
Of course,the biggest generational wealth transfer in historyis about to happen, as baby boomers pass trillions in assets to Generation X and millennials over the next few decades.
"[As] they get more money they act more and more like you do," Dimon said.
Last month, JPMorgan shuttered its digital-only bank Finn, which targeted younger customers, only a year after its launch.
However, Dimon doesn't view it as a failure. He said the bank "took the best of Finn" and merged it with its Chase mobile app, giving all its digital customers the benefit of autosave.
"We're the kind of company where it's OK to have a skunkworks, try something out. If it doesn't work, merge it in what you learned from it," Dimon said.
"I mean, [Amazon CEO} Jeff Bezos always talks about that mistakes are how you learn,” the CEO added. “And, you know, for the whole business world and the regulatory world to act like a mistake is always a bad thing is a mistake. It's not."
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Julia La Roche is a finance reporter at Yahoo Finance. Follow her onTwitter.
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The 6 Worst Pot Stocks in the First Half of 2019
Although the ride has been wild, marijuana stocks, as a whole, have "delivered the green" to patient investors.
For those with the foresight, and luck, toinvest in some of the most popular names in 2016, you'd be up in the quadruple-digit percentages today. Even those folks who had the wherewithal to buy theHorizonsMarijuana Life Sciences ETFat the beginning of the year -- a basket fund with more than four dozen pot stocks of various weightings -- would be up 37% in the first half of the 2019.
But as investors, we also know that not every company in even the fastest-growing industries can be a winner. Of the nearly five dozen marijuana stocks (both pure play and ancillary) that I track, about a third ended the first half of the year lower. And while some skirted lower by just a few percentage points, others were crash-and-burn terrible.
Below you'll find, in descending order, the six worst-performing pot stocks through the first six months of 2019.
Image source: Getty Images.
An easy way towreck your shareholders' hopesand dreams is to file for bankruptcy, which is exactly what drugmakerInsys Therapeutics(NASDAQ: INSY)did last month.
For those who may not recall, Insys Therapeutics was alleged to have bribed physicians to prescribe its fentanyl-based sublingual medicine for breakthrough cancer pain, Subsys, for off-label use, and fabricated speaking engagements for doctors involved in this scheme to make sure that insurers covered these written prescriptions. All told, four Insys insiders, including former billionaire co-founder John Kapoor, were found guilty of racketeering. Facing a large settlement with the Justice Department and tanking Subsys sales, Insys was facing ongoing funding issues and pulled the bankruptcy lever in June.
If you're wondering why Insys is on a list of the worst-performing pot stocks, look no further than itsmiserable launch of Syndros, an oral dronabinol solution for the treatment of chemotherapy-induced nausea and vomiting. Dronabinol is a synthetic version of tetrahydrocannabinol (THC), the cannabinoid that gets users high. Sales of the drug only came in around $3.3 million in 2018 when, at one time, peak annual estimates had called for at least $200 million. In every sense of the word, Insys has been an investment lemon.
Image source: Getty Images.
Another disaster du jour in the first half of 2019 isTILT Holdings(NASDAQOTH: SVVTF), which lost almost two-thirds of its value.
TILT was formed by combining four companies -- a Massachusetts dispensary operator, Canadian grower, cannabis-delivery software developer, and customer-relationship software developer -- via a complex reverse takeover. On the surface, the breadth of revenue looked highly promising. But accounting snafus have caused investors to completely lose faith in the company's management team.
Prior to commencing trading on Dec. 6, 2018, in Canada, TILT filed its prospectus with SEDAR (Canada's version of the U.S.'s Securities and Exchange Commission). This lengthy prospectus contained a pro forma total asset value of $905 million for the companies involved (through June 30, 2018), albeitwith $721 million in goodwill. However, when TILT filed its fourth-quarter operating results (through Dec. 31, 2018), it announced that an accounting change resulted in a massive $496.4 million writedown, leading to a whopper of a loss of $552 million in 2018. Investors simply don't know what to believe on the company's balance sheet at this point.
Image source: Getty Images.
Small-cap pot stockFSD Pharma(NASDAQOTH: FSDDF)has also been beaten to a pulp, losing 42% of its share price in just the past six months. Whereas legal issues or accounting woes were to blame for the two larger losses in the first half of 2019, FSD Pharma can put the onus of its poor performance on asevered partnershipwithAuxly Cannabis Group(NASDAQOTH: CBWTF).
Auxly and FV Pharma (a subsidiary of FSD Pharma) had signed a deal in March 2018 that involved the creation of a joint venture (FSD's subsidiary would hold a 50.1% stake) and the construction of a 220,000-square-foot grow farm. But this past January, Auxly provided notice to FV Pharma of certain deficiencies and contractual breaches. Rather than dealing with Auxly's concerns, FSD notified Auxly that the joint venture was terminated just weeks later.
With Auxly, a well-funded and growing royalty provider, now out of the picture, investors are left to wonder what FSD Pharma will do to grow out its cultivation capacity. Until that's answered, this stock may continue to trend lower.
Image source: Getty Images.
Although it was easily one of thebest-performing pot stocks in 2018,MariMed(NASDAQOTH: MRMD)has hit the skids in a big way in 2019. Some of this may very well be profit-taking, but it could just as easily be investors wondering what the company has done for them lately.
Initially, MariMed entered the cannabis scene as an advisory business to pot stocks. However, it's beentransitioning in recent monthsto a more direct role in the United States as an operator of medical cannabis dispensaries and grow farms and an investor in the cannabidiol (CBD) space. This past quarter, U.S. vertically integrated operators really took it on the chin, possibly as a result of increasing competition and the need to dilute existing shareholders to raise capital for acquisitions.
More specific to MariMed, investors might be getting anxious to see the company push into profitability. Even with rapid sales growth and a significantly reduced operating loss in the first quarter, MariMed still lost a nominal amount of money. Until profits begin flowing, investors may struggle to justify MariMed's massive run higher last year.
Image source: Getty Images.
On the surface,Green Growth Brands(NASDAQOTH: GGBXF)should be having a great year. As the company behind the Seventh Sense line of CBD products, Green Growth has struck deals withDesigner BrandsandAbercrombie & Fitchto sell its products in-store, as well as withSimon Property Grouptoopen 108 CBD product-focused storesin malls around the country. But there's also been plenty of pressure put on Green Growth's stock.
At the beginning of the year, Green Growth was soaring on speculation that its hostile takeover bid forAphriawould come to fruition, which would have allowed Green Growth to gobble up a top-tier producer on the cheap. Aphria's boardoverwhelmingly rejected the bid, thereby disappointing investors who thought Green Growth would make one heck of a deal.
The other problem has to do with share-based dilution, which is a concern throughout much of the industry. In order to expand its operations, Green Growth has been using its stock as a financing tool. While perfectly common among pot stocks, a ballooning outstanding share count can dilute existing shareholders and make it that much more difficult for a company to earn a meaningful profit. The former has been true for Green Growth, with its bottom line showing a much wider loss in its March-ended quarter.
Image source: Getty Images.
Last among the worst pot performers in the first half of the year isTilray(NASDAQ: TLRY), which has lost a third of its value.
Despite being a popular marijuana stock in 2018 following its July IPO, shares have cooled following the company's subdued operating results andrecent strategy shift. In March, CEO Brendan Kennedy announced that Tilray would focus future investments on the U.S. hemp market and Europe's medical cannabis market, rather than Canada, which is an odd move to make with its home country just now getting recreational weed off the ground. With plenty of capacity, but relatively minimal investment in added production, investors are rightly confused where Tilray and its management team go from here.
The other issue, as noted, has been Tilray's operating results. In back-to-back quarters, the company has deliveredgross margin of 20% and 23%, with Tilray's reliance on wholesale-purchased cannabis to meet supplier agreements weighing on results. According to management, it could be another year before Tilray has a shot at profitability, which isn't what Wall Street wants to hear from a $4 billion-plus market-cap company.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool recommends Auxly Cannabis Group and Designer Brands Inc. The Motley Fool has adisclosure policy.
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US threatens EU tariffs on Scotch, pasta, Italian cheese
The US is threatening new tariffs on $4bn-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 $21bn-worth of EU goods. New items the US has suggested taxing include: Margarine and butter spreads Cheeses including edam, gruyere, gouda, parmesan, provolone, romano, and reggiano Olives Coffee Frozen and fresh fruit Pork sausages, hams, and other cuts of meat Pasta Waffles Whiskey, including, but not exclusively, Irish and Scotch A range of metal products and metals Italian pasta and cheese are caught up in the tariffs. Photo: Stefano Rellandini/Reuters The proposals are “countermeasures in response to harm caused by EU aircraft subsidies,” the USTR said in a statement. The US has repeatedly attacked the EU for supposedly unfair subsidies given to Airbus, the France aerospace giant. The Trump administration believes the support has damaged US competitor Boeing. The World Trade Organisation (WTO) has ruled in the past that Boeing and Airbus, the world’s two biggest plane makers, received billions in unfair subsidies from the US and EU, respectively. The WTO is due to make a ruling later this year on the extent of the unfair subsidies given to Airbus, which could pave the way for the US to levy the threatened tariffs. “This case has been in litigation for 14 years, and the time has come for action. The Administration is preparing to respond immediately when the WTO issues its finding on the value of US countermeasures,” US trade representative Robert Lighthizer said in April . The US and EU have made little progress negotiating a trade deal since US President Donald Trump met with European Commission President Jean-Claude Juncker last summer and agreed to negotiate a pact. ———— Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut . Read more: Bitcoin falls below $10,000 as Facebook rally fades Investors still stranded as Woodford's £3.7bn fund stays frozen LGBT+ pay gap revealed despite corporate embrace of Pride UK government tells banks to go green in anti-carbon push Shake-up at money manager Neil Woodford's business after fund freeze
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Is Leidos Holdings, Inc. (NYSE:LDOS) A Financially Sound Company?
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Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Leidos Holdings, Inc. (NYSE:LDOS) a safer option. Market participants who are conscious of risk tend to search for large firms, attracted by the prospect of varied revenue sources and strong returns on capital. However, its financial health remains the key to continued success. Today we will look at Leidos Holdings’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto LDOS here.
View our latest analysis for Leidos Holdings
LDOS's debt levels surged from US$3.1b to US$3.5b over the last 12 months , which accounts for long term debt. With this increase in debt, the current cash and short-term investment levels stands at US$536m to keep the business going. Additionally, LDOS has generated US$1.0b in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 29%, meaning that LDOS’s debt is appropriately covered by operating cash.
With current liabilities at US$2.3b, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.23x. The current ratio is calculated by dividing current assets by current liabilities. For IT companies, this ratio is within a sensible range since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
With a debt-to-equity ratio of 93%, LDOS can be considered as an above-average leveraged company. This is not unusual for large-caps since debt tends to be less expensive than equity because interest payments are tax deductible. Accordingly, large companies often have an advantage over small-caps through lower cost of capital due to cheaper financing. We can check to see whether LDOS is able to meet its debt obligations by looking at the net interest coverage ratio. Preferably, earnings before interest and tax (EBIT) should be at least three times as large as net interest. For LDOS, the ratio of 5.54x suggests that interest is well-covered. Strong interest coverage is seen as a responsible and safe practice, which highlights why most investors believe large-caps such as LDOS is a safe investment.
LDOS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around LDOS's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for LDOS's financial health. Other important fundamentals need to be considered alongside. You should continue to research Leidos Holdings to get a more holistic view of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LDOS’s future growth? Take a look at ourfree research report of analyst consensusfor LDOS’s outlook.
2. Valuation: What is LDOS 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 LDOS 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.
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Applied Materials to Acquire Kokusai Electric for $2.2B
Applied Materials Inc.AMAT recently announced that it has agreed to acquire Japanese semiconductor device maker Kokusai Electric from an investment firm, namely KKR & Co Inc. (KKR).
The deal, which is valued at approximately $2.2 billion, is expected to close within approximately 12 months. This transaction is subject to regulatory approval and the satisfaction of other customary closing conditions.
Following the deal closure, Kokusai Electric will become part of Applied Materials' Semiconductor Products Group and continue to be based in Tokyo.
Deal Rationale
Kokusai Electric is a producer of semiconductor-manufacturing equipment. It focuses on batch processing systems, particularly memory wafers. Kokusai Electric has strong customer relationships, supply chain, and manufacturing capabilities in Japan and Asia. These systems complement Applied Materials' portfolio in single-wafer processing systems.
Service is an important part of the company's portfolio. It delivers key enabling technologies to logic and foundry customers, given well-differentiated products along with growing market share. The latest deal will likely increase Applied Materials' global services business activity by adding Kokusai new processing technologies.
This acquisition is in sync with the company’s strategy of strengthening business by expanding in adjacent markets, particularly Asia. The merger of these two companies will create an equipment powerhouse with a huge range of products, services, solutions, customer breadth and scale.
Coming to financial benefits, the deal will be immediately accretive to Applied Materials' adjusted earnings.
Applied Materials, Inc. Price and Consensus
Applied Materials, Inc. price-consensus-chart | Applied Materials, Inc. Quote
To Conclude
Applied Materials is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays, and solar photovoltaic cells and modules. Given increasing complexity of semiconductors, the demand for its products and services should remain strong at any point in the business cycle.
We believe, Kokusai Electric’s new products, services and solutions compliment Applied Materials' revenue base, and should drive top as well as bottom-line growth.
The company’s President and CEO Gary Dickerson said, "By bringing Kokusai Electric’s talented team into Applied, we believe we will accelerate innovation for customers and create significant value for our shareholders.”
Zacks Rank & Other Stocks to Consider
Currently, Applied Materials has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Autohome Inc. ATHM, Match Group, Inc. MTCH and Marchex, Inc. MCHX, each carrying a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Autohome, Match Group and Marchex is currently projected at 20.9%, 15.2% and 15%, respectively.
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Should You Be Worried About WEX Inc.'s (NYSE:WEX) 7.0% Return On Equity?
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand WEX Inc. (NYSE:WEX).
Our data showsWEX has a return on equity of 7.0%for the last year. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.070 in profit.
Check out our latest analysis for WEX
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for WEX:
7.0% = US$132m ÷ US$1.9b (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 profit 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 it can be interesting to compare the ROE of 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 shown in the graphic below, WEX has a lower ROE than the average (15%) in the IT industry classification.
That's not what we like to see. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Nonetheless, it might be wise tocheck if insiders have been selling.
Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
It's worth noting the significant use of debt by WEX, leading to its debt to equity ratio of 1.56. Its ROE isn't too bad, but it would probably be very disappointing if the company had to stop using 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 a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of courseWEX may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Is Lancaster Colony Corporation (NASDAQ:LANC) As Strong As Its Balance Sheet Indicates?
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Stocks with market capitalization between $2B and $10B, such as Lancaster Colony Corporation (NASDAQ:LANC) with a size of US$4.0b, do not attract as much attention from the investing community as do the small-caps and large-caps. While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. Let’s take a look at LANC’s debt concentration and assess their financial liquidity 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 top-level understanding, so I encourage you to look furtherinto LANC here.
View our latest analysis for Lancaster Colony
A debt-to-equity ratio threshold varies depending on what industry the company operates, since some requires more debt financing than others. A ratio below 40% for mid-cap stocks is considered as financially healthy, as a rule of thumb. For LANC, the debt-to-equity ratio is zero, meaning that the company has no debt. This means it has been running its business utilising funding from only its equity capital, which is rather impressive. Investors' risk associated with debt is virtually non-existent with LANC, and the company has plenty of headroom and ability to raise debt should it need to in the future.
Since Lancaster Colony doesn’t have any debt on its balance sheet, it doesn’t have any solvency issues, which is a term used to describe the company’s ability to meet its long-term obligations. However, another measure of financial health is its short-term obligations, which is known as liquidity. These include payments to suppliers, employees and other stakeholders. Looking at LANC’s US$109m in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of US$367m, leading to a 3.38x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, a ratio above 3x may be considered excessive by some investors, yet this is not usually a major negative for a company.
LANC has no debt as well as ample cash to cover its short-term commitments. Its safe operations reduces risk for the company and its investors, but some degree of debt may also boost earnings growth and operational efficiency. I admit this is a fairly basic analysis for LANC's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Lancaster Colony to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LANC’s future growth? Take a look at ourfree research report of analyst consensusfor LANC’s outlook.
2. Valuation: What is LANC 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 LANC 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.
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Why I Just Doubled Down on This REIT Stock
During 2019, shares ofPennsylvania Real Estate Investment Trust(NYSE: PEI)have fallen tolevels not seen in nearly a decade, as investors have grown increasingly pessimistic about the future of malls in the United States.
Yet PREIT has done a great job of adapting its malls to the times and upgrading its tenant mix to boost customer traffic. It is slated to complete a slew of redevelopment projects over the next 12 months, which should drive a return to growth in key earnings metrics. Yet investors haven't given theREITany credit for its progress. With the shares continuing to trade for around $6, I loaded up on more PREIT stock last week.
In recent years, management has prioritized improving PREIT's real estate portfolio. This has included a combination of disposing of weaker malls and investing in stronger properties to make them even better.
PREIT is investing in its best properties, like Willow Grove Park Mall (pictured here) near Philadelphia. Image source: PREIT.
Since 2013, PREIT has gotten rid of nearly half of its malls, selling some and selectively turning over others to lenders by defaulting on mortgages. It currently has just 18 core malls -- plus one more under development -- compared to about three dozen at the beginning of 2013.
This strategy is proving very prescient. Many of the malls that have exited PREIT's portfolio in recent years were anchored by Sears stores that subsequently closed. While other mall REITs have been hit hard by Sears' store closures, PREIT had already reduced the number of Sears stores in its portfolio to just seven at the time of the chain's bankruptcy filing last fall,down from more than two dozensix years earlier. (Six of those seven stores have remained open.)
The other part of PREIT's plan to boost performance -- reinvesting in its remaining properties -- is also paying dividends. In 2017, the REIT redeveloped three former Sears stores at malls in secondary markets (Scranton, Pennsylvania; Camp Hill, Pennsylvania; and Florence, South Carolina), bringing in a mix of big-box tenants includingDick's Sporting Goodsand various off-price retailers. Sales per square foot have increased by an average of 5% at those three malls compared to 2016, and all three ended 2018 with occupancy of at least 99%.
Most impressively, PREIT has added a number of new retailers and restaurants to the Mall at Prince Georges, just outside of Washington, D.C. These tenant upgrades have driven a surge in sales per square foot from $451 in 2016 to $558 in the most recent 12-month period.
In short, there is ample evidence that replacing struggling anchors and bringing in new in-demand tenants can drive substantial growth in sales per square foot. In the long run, that should make PREIT's properties more attractive to potential tenants, leading to stronger rents and higher occupancy levels. The downside of these projects is that they have driven up capital expenditures, leading to elevated leverage and causing some investors to question the sustainability of PREIT's dividend.
PREIT has spent hundreds of millions of dollars on redevelopment work in the past few years. Image source: PREIT.
Fortunately, PREIT is set to finish most of its current redevelopment projects within the next 12 months. The completely rebuilt (and renamed) Fashion District Philadelphia will have itsgrand opening on Sept. 19, with more tenants scheduled to open later in the fall or in early 2020.
Two other major redevelopment projects will wrap up in the fourth quarter. Five new tenants will open at Plymouth Meeting Mall in the Philadelphia suburbs to replace a formerMacy's, while upscale department store Von Maur and a collection of smaller retailers and restaurants will open at Woodland Mall near Grand Rapids, Michigan.
Several more department store replacements will be completed in the first half of 2020. Most notably, PREIT recently announced that it will proactively replace the Sears store at Dartmouth Mall in Dartmouth, Massachusetts, with aBurlingtonstore and other new retailers. This will leave just four Sears stores in PREIT's core mall portfolio -- and one of those has a substantial amount of space already subleased to Primark.
By this time next year, PREIT will have more or less completed its entire current redevelopment pipeline. Of course, it's possible that more department stores will close in PREIT's portfolio between now and then, but the backlog of redevelopment projects should be much smaller.
PREIT estimates that the new Fashion District Philadelphia development will generate between $11 million and $15 million of net operating income (NOI) next year, almost all of which will be incremental compared to 2019. Committed new leases at other properties -- mainly for its anchor redevelopments -- will add another $11 million to $15 million of NOI.
Thus, NOI could increase by as much as $30 million next year, even with zero growth in the rest of PREIT's portfolio. Considering that management expects the REIT to generate no more than $240 million of NOI this year, that would represent a huge gain.
Furthermore, PREIT expects to raisebetween $150 million and $300 millionover the next two years by selling land parcels at various malls (mainly in the Philadelphia and Washington, D.C. metro areas) for residential development. That will allow it to start reducing its debt load.
Thus, by the end of next year, PREIT is likely to generate significantly more income than today, and its balance sheet should be stronger. This will put the REIT in a good position to respond to the threats it may face in the years after 2020. As a result, the stock continues to look like a huge bargain, which is why I snapped up more shares last week.
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Adam Levine-Weinbergowns shares of Macy's and Pennsylvania REIT. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
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What Should We Expect From Ag Growth International Inc.'s (TSE:AFN) Earnings Over The Next Year?
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Based on Ag Growth International Inc.'s (TSE:AFN) earnings update in March 2019, analyst consensus outlook appear vastly optimistic, with a bottom line expansion of more than 100% in the upcoming year, compared with the past 5-year average growth rate of 31%. Currently with trailing-twelve-month earnings of CA$27m, we can expect this to reach CA$53m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company shouldresearch its fundamentals here.
Check out our latest analysis for Ag Growth International
The longer term expectations from the 8 analysts of AFN is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of AFN's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 6.1% based on the most recent earnings level of CA$27m to the final forecast of CA$52m by 2022. This leads to an EPS of CA$3.69 in the final year of projections relative to the current EPS of CA$1.58. With a current profit margin of 2.9%, this movement will result in a margin of 4.4% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Ag Growth International, I've compiled three fundamental aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is Ag Growth International 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 Ag Growth International is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Ag Growth International? 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.
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Man jailed for repeatedly clogging women’s toilets
A man has been jailed for repeatedly clogging up the women’s toilets at his workplace. Patrick D Beeman was given a 150 day sentence and three years of probation after he was found guilty of five counts of criminal damage. The 26-year-old from Wisconsin was caught after police discovered an overflowing toilet in the women’s bathroom at a community centre had been blocked by a plastic bottle, according to a criminal complaint. Officers investigating the March incident then discovered the women’s toilets at the Deland Community Centre in the city of Sheboygan had been obstructed multiple times since April 2017. The serial clogger told police “he could not explain this behaviour”, but said he “would get very strong urges to do this”, according to documents filed at Sheboygan County Circuit Court. Beeman apologised in a statement he read during his sentencing hearing earlier this week. “I need to make things right and pray forgiveness every day,” he said. He told police he had urges to search through the garbage looking for bottles to block the toilets with, according the Sheboygan Press . Investigators looked at 10 similar clogging incidents after the initial discovery, the city officials estimating that each one caused around $200 (£160) in damage. Joe Kerlin, the city’s parks and forestry superintendent, had previously complained that the bottles had been shoved down into the pipes so firmly that repairmen had to take the toilets apart to remove the bottles. “A lot of times we can just fish ‘em out,” he explained. Beeman said he stopped once he realised there was an investigation under way into the damage. The 26-year-old will have to pay more than $5,500 (£4,400) in charges and carry out 100 hours of community service as part of the probation ordered by Judge Kent Hoffmann. However, he will be allowed to continue working, before returning to prison at night. View comments
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Evaluating Loblaw Companies Limited’s (TSE:L) Investments In Its Business
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Today we are going to look at Loblaw Companies Limited (TSE:L) to see whether it might be an attractive investment prospect. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.
First of all, we'll work out how to calculate ROCE. Then we'll compare its ROCE to similar companies. Last but not least, we'll look at what impact its current liabilities have on its ROCE.
ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. All else being equal, a better business will have a higher ROCE. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
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 Loblaw Companies:
0.076 = CA$2.1b ÷ (CA$35b - CA$7.9b) (Based on the trailing twelve months to March 2019.)
So,Loblaw Companies has an ROCE of 7.6%.
Check out our latest analysis for Loblaw Companies
When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Loblaw Companies's ROCE appears to be around the 9.5% average of the Consumer Retailing industry. Separate from how Loblaw Companies 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.
You can see in the image below how Loblaw Companies's ROCE compares to its industry. Click to see more on past growth.
Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. 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.
Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counteract this, we check if a company has high current liabilities, relative to its total assets.
Loblaw Companies has total assets of CA$35b and current liabilities of CA$7.9b. As a result, its current liabilities are equal to approximately 23% of its total assets. This is a modest level of current liabilities, which would only have a small effect on ROCE.
If Loblaw Companies continues to earn an uninspiring ROCE, there may be better places to invest. But note:make sure you look for a great company, not just the first idea you come across.So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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The Daily Biotech Pulse: Celyad To Advance Leukemia Drug To Clinical Trial, Positive Data For Teva's Migraine Drug
Here's a roundup of top developments in the biotech space over the last 24 hours.
Scaling The Peaks
(Biotech stocks hitting 52-week highs on July 1)
• Apellis Pharmaceuticals Inc(NASDAQ:APLS)
• Arena Pharmaceuticals, Inc.(NASDAQ:ARNA)
• Argenx SE – ADR(NASDAQ:ARGX)
• ArQule, Inc.(NASDAQ:ARQL)
• Axsome Therapeutics Inc(NASDAQ:AXSM) (the company's stock has been added to Russell 3000 and Russell 2000 Indexes)
• Coherus Biosciences Inc(NASDAQ:CHRS)(announced that it has produced over 400,000 Udenyca pre-filled syringes to date)
• Fate Therapeutics Inc(NASDAQ:FATE)
• GALAPAGOS NV/S ADR(NASDAQ:GLPG)
• MeiraGTx Holdings PLC(NASDAQ:MGTX)
• Misonix, Inc.(NASDAQ:MSON) (the company's stock has been added to Russell 3000 and Russell 2000 Indexes)
• Morphic Holding Inc(NASDAQ:MORF)(IPOed June 27)
• Odonate Therapeutics Inc(NASDAQ:ODT)
• Ra Pharmaceuticals Inc(NASDAQ:RARX)
• ResMed Inc.(NYSE:RMD)
• Tricida Inc(NASDAQ:TCDA)
• Vapotherm Inc(NYSE:VAPO)
• Zai Lab Ltd(NASDAQ:ZLAB)
Down In The Dumps
(Biotech stocks hitting 52-week lows on July 1)
• Aerie Pharmaceuticals Inc(NASDAQ:AERI)
• Artelo Biosciences Inc(NASDAQ:ARTL)
• CELLECT BIOTECH/S ADR(NASDAQ:APOP)
• ContraVir Pharmaceuticals Inc(NASDAQ:CTRV)
• Enochian Biosciences Inc(NASDAQ:ENOB)
• HTG Molecular Diagnostics Inc(NASDAQ:HTGM)
• Nuvectra Corp(NASDAQ:NVTR)
• Prevail Therapeutics Inc(NASDAQ:PRVL)
See Also:Attention Biotech Investors: Mark Your Calendar For These July PDUFA Dates
Stocks In Focus Mirati Adds Oncology Expert To Board
Mirati Therapeutics Inc(NASDAQ:MRTX) announced the appointment of Dr. Julie Cherringtom, an oncology expert, to its board. Thecompanysaid it sees her knowledge of pre-Clinical and clinical drug development to assist it, as it progresses its itravatinib and MRTX849 programs and builds its pre-clinical pipeline.
The stock rose 2.3% to $105.38 in after-hours trading.
FDA Clears Celyad's IND For Leukemia CAR-T Therapy
Announcing strategic updates to its autologous relapse/refractory acute myeloid leukemia, or AML, and myelodysplastic syndromes, or MDS,CELYAD SA/ADR(NASDAQ:CYAD) said the FDA has accepted its IND application, including OptimAb manufacturing process, for CYAD-02 – its next-gen NKG2D-based CAR-T therapy-focused on improved persistence. The company said it would start the Phase 1 trial in early 2020.
The OptimAb manufacturing process enriches T cells with memory-like phenotype, and has been approved for use with CYAD-1, Celyad's lead candidate.
The stock climbed 6.36% to $12.20 in after-hours trading.
Gilead On Track To Submit NDA For Rheumatoid Arthritis Drug In 2019
Following a pre-NDA meeting with the FDA,Gilead Sciences, Inc.(NASDAQ:GILD) said it discussed with the regulatory agency the Phase 3 FINCH studies and the ongoing Phase 2 MANTA study that assessed seven parameters withfilgotinibtreatment in men with moderately to severely active ulcerative colitis or Crohn's disease.
As a result of the discussion, the company said a path forward has been established to submit the NDA for filgotinib as a treatment for rheumatoid arthritis in 2019.
Filgotinib is co-developed by Gilead and Dutch pharma company Galapagos.
Galapagos shares moved up 1.17% to $130.44 in after-hours trading.
Teva Reports Positive Late-Stage Data For Migraine Drug
Teva Pharmaceutical Industries Ltd(NYSE:TEVA) announced positive results from the Phase 3b FOCUS study that evaluated its migraine treatment fremanezumab in adults with migraine.
"This study evaluated the efficacy and safety of fremanezumab for the preventive treatment of migraine in adult patients who previously experienced inadequate responses to two to four classes of preventive treatments," the company said.
Updated results were presented at the 5th Congress of the European Academy of Neurology being held in Oslo, Norway.
Teva said it expects to submit the full results of the FOCUS study for publication later in 2019.
See more from Benzinga
• The Week Ahead In Biotech: Pending Clinical Readouts In Focus
• The Daily Biotech Pulse: Chiasma To Join R3K Index, EU Rejects Amgen's Osteoporosis Drug Application, Karuna IPO
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Advanced Drainage Systems, Inc. (NYSE:WMS) Insiders Have Been Selling
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inAdvanced Drainage Systems, Inc.(NYSE:WMS).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Advanced Drainage Systems
The Chairman Emeritus, Joseph Chlapaty, made the biggest insider sale in the last 12 months. That single transaction was for US$45m worth of shares at a price of US$30.08 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$32.53. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 16.6% of Joseph Chlapaty's holding.
We note that in the last year insiders divested 1.5m shares for a total of US$46m. Insiders in Advanced Drainage Systems didn't buy any shares in 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!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Advanced Drainage Systems insiders own 16% of the company, currently worth about US$300m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Advanced Drainage Systems, we can't say the same about the selling of shares. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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An Alabama Shooting Victim Could Be Prosecuted for Her Fetus’s Death
Here is what happened to 27-year-old Marshae Jones of Pleasant Grove, Alabama: Last December, she got into an altercation with another woman in front of the Dollar General store where they both worked, according to police. The argument escalated into a fistfight, which prompted the other woman to pull out a gun and shoot Jones in the stomach. Jones, who was five months pregnant, survived; her fetus did not. Police elected not to pursue charges against the shooter, after determining that Jones instigated the confrontation and the other woman acted in self-defense. They did, however, arrest Jones in connection with the loss of her pregnancy. "The investigation showed that the only true victim in this was the unborn baby," Pleasant Grove police lieutenant Danny Reid said , describing an incident in which Jones was shot. In April, a grand jury indicted her on manslaughter charges, explaining that she had "intentionally caused" the fetus's death by "initiating a fight knowing she was five months pregnant." A zeal for protecting fetuses is not unique to this Jefferson County grand jury. Last fall, nearly 60 percent of voters in Alabama backed a state constitutional amendment that affirms "the sanctity of unborn life" and reiterates a commitment to protecting their rights "in all manners and measures lawful and appropriate." In May, Republican governor Kay Ivey signed the Alabama Human Life Protection Act, which, if court challenges to its implementation fail, would ban abortion in the state even in cases of rape and incest. The Act is part of a decades-long conservative push to overturn Roe v. Wade by arguing that fetuses have "personhood," and the practice of affording them legal rights and privileges—including, as in this case, the protections afforded by the justice system—helps the anti-choice movement bolster its argument. Prosecutions of people who commit crimes that result in fetal harm are not new or particularly controversial. According to the National Conference of State Legislatures, at least 38 states have enacted laws that allow for separate charges when a violent act perpetrated against a pregnant woman results in the death of her fetus. The law sensibly recognizes that such crimes have two victims, not one. Story continues Criminal prosecutions of pregnant women for their own miscarriages or stillbirths, however, are different—a natural extension of the right-wing talking point that the state's obligation to "protect life" requires that it ban abortions, too. Earlier this year, feminist writer Jessica Valenti highlighted how anti-choice laws are landing pregnant women in prison. In Louisiana, a woman who sought treatment for unexplained vaginal bleeding was jailed on second-degree murder charges ; she was released more than a year later, when medical records proved she had miscarried. In Iowa, officials charged Christina Taylor with attempted feticide after she fell down the stairs . Now, Marshae Jones joins their ranks—this time, for her failure to foresee that arguing with a co-worker might get her shot in the parking lot. Whatever the law says—and whatever ideologues think the law says—the prosecutors who enforce it are responsible for deciding which cases to pursue, which ones to plead out, and which ones to drop. Last month, a coalition of 42 state and local prosecutors signed a pledge not to enforce anti-choice laws that, as the signatories put it, "divide our community, create untenable choices for women and healthcare providers, and erode trust in the justice system." This system of prosecutorial discretion is the first line of defense against absurd results that, in the district attorney's estimation, would not make the public any safer. On Monday, Jones's lawyers filed a motion to dismiss the charges, calling the punishment of a shooting victim for her fetus's death "unconscionable." And in Jefferson County, Bessemer Cutoff district attorney Lynniece Washington—the first black woman D.A. in Alabama's history—has already hinted that this power of her office could come into play here. In a statement , she promised to "respect" the grand jury's decision. But, she emphasized, "I have the discretion and power to do what I please." Whatever Washington decides to do in this particular matter, she'll have to answer for it soon enough. Prosecutors are not federal judges, insulated by life tenure from political pressure; they are elected officials, who must return to voters at regularly scheduled intervals and ask for another term in office. And in cases like this one, her job is especially difficult, because wherever anti-choice extremism earns social acceptance, any prosecutor who elects not to "defend the unborn" in a given case runs the risk of earning a challenger—one who, unlike the incumbent, promises to make the cause a priority of their public service. As a tool for preventing unjust outcomes, prosecutorial discretion only matters if the people in office are willing to wield it. Originally Appeared on GQ
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Do Kennedy-Wilson Holdings's (NYSE:KW) Earnings Warrant Your Attention?
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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 Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inKennedy-Wilson Holdings(NYSE:KW). 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.
Check out our latest analysis for Kennedy-Wilson Holdings
As one of my mentors once told me, share price follows earnings per share (EPS). That makes EPS growth an attractive quality for any company. As a tree reaches steadily for the sky, Kennedy-Wilson Holdings's EPS has grown 20% each year, compound, over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
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. Not all of Kennedy-Wilson Holdings's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. Kennedy-Wilson Holdings's EBIT margins are flat but, of some concern, its revenue is actually down. And that does make me a little more cautious of the stock.
In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers.
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 Kennedy-Wilson Holdings.
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
Any way you look at it Kennedy-Wilson Holdings shareholders can gain quiet confidence from the fact that insiders shelled out US$432k to buy stock, over the last year. And when you consider that there was no insider selling, you can understand why shareholders might believe that lady luck will grace this business. Zooming in, we can see that the biggest insider purchase was by Trevor Bowen for US$283k worth of shares, at about US$20.93 per share.
Along with the insider buying, another encouraging sign for Kennedy-Wilson Holdings is that insiders, as a group, have a considerable shareholding. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$378m. Coming in at 13% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So it might be my imagination, but I do sense the glimmer of an opportunity.
Given my belief that share price follows earnings per share you can easily imagine how I feel about Kennedy-Wilson Holdings's strong EPS growth. Not only that, but we can see that insiders both own a lot of, and are buying more, shares in the company. So it's fair to say I think this stock may well deserve a spot on your watchlist. 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 Kennedy-Wilson Holdings 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 Kennedy-Wilson Holdings 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.
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Wabash National Corporation (NYSE:WNC): Time For A Financial Health Check
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Wabash National Corporation (NYSE:WNC) is a small-cap stock with a market capitalization of US$898m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Evaluating financial health as part of your investment thesis is essential, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, this is just a partial view of the stock, and I’d encourage you todig deeper yourself into WNC here.
Over the past year, WNC has reduced its debt from US$542m to US$509m , which includes long-term debt. With this reduction in debt, WNC's cash and short-term investments stands at US$152m to keep the business going. Additionally, WNC has generated US$158m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 31%, meaning that WNC’s operating cash is sufficient to cover its debt.
Looking at WNC’s US$361m in current liabilities, it seems that the business has been able to meet these commitments with a current assets level of US$647m, leading to a 1.8x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. For Machinery companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
WNC is a highly-leveraged company with debt exceeding equity by over 100%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can test if WNC’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For WNC, the ratio of 4.77x suggests that interest is appropriately covered, which means that lenders may be willing to lend out more funding as WNC’s high interest coverage is seen as responsible and safe practice.
Although WNC’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around WNC's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for WNC's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Wabash National to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for WNC’s future growth? Take a look at ourfree research report of analyst consensusfor WNC’s outlook.
2. Valuation: What is WNC 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 WNC 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.
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Is Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) A Volatile Stock?
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If you own shares in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks are more sensitive to general market forces than others. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. 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.
See our latest analysis for Kratos Defense & Security Solutions
Given that it has a beta of 1.31, we can surmise that the Kratos Defense & Security Solutions share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that Kratos Defense & Security Solutions are likely to rise strongly in times of greed, but sell off in times of fear. 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 Kratos Defense & Security Solutions's revenue and earnings in the image below.
Kratos Defense & Security Solutions is a fairly large company. It has a market capitalisation of US$2.4b, which means it is probably on the radar of most investors. It takes a lot of money to influence the share price of large companies like this one. That makes it interesting to note that its share price has a history of sensitivity to market volatility. There might be some aspect of the business that means profits are leveraged to the economic cycle.
Since Kratos Defense & Security Solutions 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 Kratos Defense & Security Solutions’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 KTOS’s future growth? Take a look at ourfree research report of analyst consensusfor KTOS’s outlook.
2. Past Track Record: Has KTOS 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 KTOS's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how KTOS 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.
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Trump suggests homelessness is a 'phenomenon that started two years ago' in barely comprehensible interview
President Trumps comments on homelessness begin at 3:10. Donald Trump has suggested that homelessness is a phenomenon that started two years ago and said that he may intercede to tackle the crisis. The US president also implied that homeless people living in the streets of US cities were making police officers sick. He made the comments in a rambling interview with Fox News host Tucker Carlson in Japan, which was broadcast on Monday. When Mr Carlson asked Mr Trump why US cities including have a major problem with filth, unlike Japanese cities, Mr Trump appeared to talk about homelessness instead. It's a phenomenon that started two years ago, he said. It's disgraceful. He added: You cant have whats happening where police officers are getting sick just by walking the beat, I mean, theyre getting actually very sick, where people are getting sick, where the people living there are living in hell too. Mr Trump may have been referring to a Los Angeles police officer who was diagnosed with typhoid fever last month after working in a downtown area with a large homeless population. Some of them have mental problems where they dont even know theyre living that way, Mr Trump added. In fact, perhaps they like living that way." We cannot ruin our cities. And you have people that work in those cities. They work in office buildings and to get into the building, they have to walk through a scene that nobody would have believed possible three years ago. Throughout the segment, it was unclear what the US president was referring to as he did not mention the word homelessness. When we have leaders of the world coming in to see the president of the United States and theyre riding down a highway, they cant be looking at that, he added. I really believe that it hurts our country. Mr Trump said the cities facing these problems are usually sanctuary cities run by very liberal people. We may intercede. We may do something to get that whole thing cleaned up, he added. It's inappropriate. Story continues Los Angeles has seen homelessness increase by 16 per cent over the last year as the citys housing crisis intensifies. Likewise, in San Francisco , homelessness has increased by 17 per cent in the past year despite the tech boom which has benefited many companies based in the city. In the same fox interview, Mr Trump railed against some of these big tech companies in San Francisco. Facebook was against me, he said. They were all against me. Twitter was against me
Ive been very good for Twitter. I dont think Twitter would be the same without what I do on Twitter.
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Brexit Party MEPs turn their backs while 'European anthem' played at parliament's opening session
Brexit Party MEPs staged their own protest on the opening day of the European Parliament in Strasbourg - turning their backs during a rendition of the European Anthem. Leader Nigel Farage and newly-elected candidates including Annunziata Rees-Mogg made the protest as the anthem, based on Beethovens Ode to Joy, was played as representatives gathered for the parliaments first session since May's European elections. Several people shared pictures of the protest, including Mr Farage who wrote on Twitter: "The Brexit Party has already made its presence felt." The Brexit Party has already made its presence felt. https://t.co/cyHyYsG6y4 Nigel Farage (@Nigel_Farage) July 2, 2019 And so it starts. We are in this undemocratic talking shop to fight for the British people, for our democracy and we fight to leave. pic.twitter.com/cZjQs3xQ6I Annunziata Rees-Mogg (@zatzi) July 2, 2019 Mr Farage performed the same protest at the start of the session in 2014, along with the Ukip MEPs he led at the time. Paul Nuttall, the party's then deputy leader, said it was intended to send a message that they did not "recognise or respect the EU flag or anthem". READ MORE Scary moment boy, 4, falls between train and platform The move comes a day after Brexit Party MEP David Bull sparked ridicule on Twitter after posting a video complaining about having to travel to Europe as part of his new job. Mr Bull, who won a North West seat in the recent European elections, filmed himself on the platform at Ipswich station moaning about his eight-hour commute from Ipswich to the European Parliament in Strasbourg. And the @LibDems are about to take up their seats with Bollocks to #Brexit T-shirts pic.twitter.com/Xpoic181VF Darren McCaffrey (@DarrenEuronews) July 2, 2019 Other people in the parliament also refused to stand at all as the EU's anthem, which is played on official occasions, was performed by a jazz ensemble. Story continues Liberal Democrat MEPs also staged their own protest, taking their seats wearing yellow "bollocks to Brexit" T-shirts. But the Brexit Partys stance fell under fire from critics who dismissed the move as petty. Labour MP David Lammy tweeted: "Brexit Party MEPs turning their backs on Europe, as they do their best to isolate the UK from the world. This is petty, small minded little England at its worst. These plonkers do a proud and open nation a disservice. Shame on them." Brexit Party MEPs turning their backs on Europe, as they do their best to isolate the UK from the world. This is petty, small minded little England at its worst. These plonkers do a proud and open nation a disservice. Shame on them. pic.twitter.com/Lbg1b9Gcbg David Lammy (@DavidLammy) July 2, 2019 Conservative MP Nicholas Soames tweeted: "Truly pathetic oafish childish behaviour by Brexit and Liberal MEPs #growup", while Labour MEP Richard branded the move pathetic. Nigel #Farage and his band of #Brexit company MEPs think theyre being clever by standing with their backs to the chair at the opening session of the #EuropeanParliament Looks pathetic and not impressed anyone! pic.twitter.com/SK7VhXpxG4 Richard Corbett (@RCorbettMEP) July 2, 2019 Tuesday marked the opening of the new five-year session of the European Parliament, though the length of the UK's involvement remains in doubt. UK MEPs may sit in the parliament until the country formally leaves the EU. The UK is due to leave the EU on October 31 but that could be extended if a deal cant be reached by then. Watch the latest videos from Yahoo UK
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Are Investors Undervaluing Worthington Industries, Inc. (NYSE:WOR) By 37%?
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Today we will run through one way of estimating the intrinsic value of Worthington Industries, Inc. (NYSE:WOR) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
See our latest analysis for Worthington Industries
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2020": "$282.0m", "2021": "$279.9m", "2022": "$280.8m", "2023": "$283.7m", "2024": "$288.1m", "2025": "$293.5m", "2026": "$299.8m", "2027": "$306.8m", "2028": "$314.3m", "2029": "$322.3m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x1", "2021": "Est @ -0.73%", "2022": "Est @ 0.31%", "2023": "Est @ 1.03%", "2024": "Est @ 1.54%", "2025": "Est @ 1.9%", "2026": "Est @ 2.15%", "2027": "Est @ 2.32%", "2028": "Est @ 2.44%", "2029": "Est @ 2.53%"}, {"": "Present Value ($, Millions) Discounted @ 9.98%", "2020": "$256.4", "2021": "$231.4", "2022": "$211.1", "2023": "$193.9", "2024": "$179.0", "2025": "$165.9", "2026": "$154.1", "2027": "$143.4", "2028": "$133.5", "2029": "$124.5"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $1.8b
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 10%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$322m × (1 + 2.7%) ÷ (10% – 2.7%) = US$4.6b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$4.6b ÷ ( 1 + 10%)10= $1.76b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $3.56b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $64.15. Compared to the current share price of $40.29, the company appears quite undervalued at a 37% 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.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Worthington Industries as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.216. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Worthington Industries, I've put together three additional aspects you should further research:
1. Financial Health: Does WOR 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 WOR'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 WOR? 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.
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Is Kronos Worldwide, Inc. (NYSE:KRO) A High Quality Stock To Own?
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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 Kronos Worldwide, Inc. (NYSE:KRO).
Over the last twelve monthsKronos Worldwide has recorded a ROE of 19%. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.19.
Check out our latest analysis for Kronos Worldwide
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Kronos Worldwide:
19% = US$165m ÷ US$851m (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. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, Kronos Worldwide has a superior ROE than the average (15%) company in the Chemicals industry.
That is a good sign. I usually take a closer look when a company has a better ROE than industry peers. One data point to check is ifinsiders have bought shares recently.
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
While Kronos Worldwide does have some debt, with debt to equity of just 0.53, we wouldn't say debt is excessive. 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 useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
But note:Kronos Worldwide may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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New AI tool lets you doctor photos, and it’s showing surprising potential
A team of researchers at theMIT-IBM Watson AI Labdevelopedan AI toolthat is using a neural network to generate images almost identical to real photographs that are being uploaded by its user. It then lets the user remove any unwanted objects from those pictures or replace them with new ones. The tool is called GANPaint Studio and its demo version is available atganpaint.io.The team acknowledges that their system could potentially be abused by bad actors, but they believe that more importantly, it will help researchers better understand how Generative Adversarial Networks (GANs) work to improve our ability at detecting fake images.Read more...
More aboutMashable Video,Artificial Intelligence,Mit,Gan, andTech
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EU open to talks with U.S. in aircraft subsidies dispute
By Alissa de Carbonnel and Andrea Shalal
BRUSSELS/WASHINGTON (Reuters) - The European Union said on Tuesday it was open to talks with Washington in a dispute over aircraft subsidies after the United States threatened an additional $4 bln in tariffs on EU goods including olives, Italian cheese and Scotch whisky.
Just days after reaching a truce in the U.S.-China trade war, the U.S. Trade Representative's office (USTR) opened the new front with Europe on Monday in the long-running dispute.
It added the list of additional products to $21 billion worth of EU goods that could be hit with tariffs announced in April - alarming industries on both sides of the Atlantic.
The EU hit back, saying the dispute should be adjudicated by the World Trade Organisation (WTO) and the United States could not make its own tally of potential hurt to calculate retaliation.
"The figures quoted by the USTR are based on US internal estimates that have not been awarded by the WTO," a spokesman for the EU executive said in an email.
The bloc said it remained opened to negotiations "provided these are without preconditions and aim at a fair outcome", but added it was also preparing to retaliate as soon as the WTO arbitrator had ruled on its rights to do so.
The United States and the EU have threatened to impose billions of dollars of tit-for-tat tariffs on planes, tractors and food in a nearly 15-year dispute at the WTO over aircraft subsidies given to U.S. planemaker Boeing Co and its European rival, Airbus SE.
Airbus said the U.S. announcement was not helpful.
"This only adds to the trade tensions but in reality does not change anything. The level of retaliation is up to the WTO to define, not the USTR or Boeing," the company said in a statement.
"That is not creating a healthy environment for working towards a negotiated solution and risks a wide variety of industries on both sides of the Atlantic to arrive in a lose-lose situation."
Senior officials from Boeing and a U.S. aerospace trade group urged the U.S. government last month to narrowly tailor any tariffs imposed on the EU over illegal aircraft subsidies to avoid harming American manufacturers.
The latest tariff threats drew strong criticism from industry groups that stand to suffer.
The Scotch Whisky Association on Tuesday urged Washington and Brussels not to take steps that could jeopardize jobs and hurt consumers.
"Exports of Scotch Whisky to the US have been zero tariff for twenty years, so it is disappointing that Scotch Whisky has been drawn into this dispute," a spokesman for the association said after the U.S. Trade Representative's announcement.
Sources familiar with the WTO cases said Washington's latest salvo appeared aimed at increasing pressure on the EU and hastening negotiations by hitting important agricultural products.
Washington had signalled its openness last month to working on an enforceable mechanism to govern government subsidies for aircraft production, potentially paving the way for an end to the aircraft subsidy fight.
One of the sources, however, said it had not received much of a reply, saying: "The EU has to understand that the United States is serious about imposing tariffs. The only way this is going to get resolved is through negotiation."
The WTO has found that the world's two largest planemakers received billions of dollars of harmful subsidies in a pair of cases marking the world's largest-ever corporate trade dispute.
It could rule as early as the second half of July about the level of appropriate retaliation in the case brought by the United States, said another source.
The USTR said it would hold a hearing on the proposed additional products on Aug. 5 and could immediately impose increased duties on the products included in the initial list, if the WTO arbitrator issued a decision before the public comment period ended on the supplemental list.
(Additional reporting by Alistair Smout in London and Andrea Shalal in Washington; Editing by Frances Kerry)
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The W. P. Carey (NYSE:WPC) Share Price Is Up 26% And Shareholders Are Holding On
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the W. P. Carey Inc. ( NYSE:WPC ) share price is up 26% in the last five years, that's less than the market return. However, if you include the dividends then the return is market beating. Some buyers are laughing, though, with an increase of 22% in the last year. Check out our latest analysis for W. P. Carey While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, W. P. Carey achieved compound earnings per share (EPS) growth of 8.8% per year. The EPS growth is more impressive than the yearly share price gain of 4.7% over the same period. So one could conclude that the broader market has become more cautious towards the stock. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). NYSE:WPC Past and Future Earnings, July 2nd 2019 We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on W. P. Carey's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return . Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, W. P. Carey's TSR for the last 5 years was 70%, 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 We're pleased to report that W. P. Carey shareholders have received a total shareholder return of 30% over one year. That's including the dividend. That gain is better than the annual TSR over five years, which is 11%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list 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 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.
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BitMEX to launch bitcoin zero coupon bond in the ‘next few weeks’
Cryptocurrency derivatives exchange BitMEX is preparing to launch bitcoin zero coupon bond in the "next few weeks," its CEO Arthur HayestoldBloomberg from the sidelines of the Asia Blockchain Summit in Taipei.
"Something that we're really keen on working on is fixed income. So, in the next few weeks, we will be revealing that we have the first bitcoin zero coupon bond with a few counterparties that we have identified," said Hayes.
BitMEX wants to start a market where people can earn a yield on their bitcoin by investing and loaning it to "some of the most stable companies in the space," according to the CEO.
The exchange currently offers cryptocurrency perpetual swap products andcommandsa 57% market share. It also recently clocked in more than $1 trillion in trading volumes over the last 365 days.
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This Guy's Stripped-Down Diet Plan Helped Him Tame His Junk Food Cravings
Photo credit: Levi Combs From Men's Health After his weight climbed to nearly 380 pounds, Levi Combs committed to the CICO diet and worked on addressing his low self-esteem. Combining the diet with regular exercise, such as walking and going to the office gym helped him lose weight consistently. Since starting on the plan, he's lost more than 165 pounds and says he's "never felt better." Levi Combs knows all too well that you can be your own worst enemy. By his mid-20s, Combs had allowed himself to self-sabotage his way to obesity , putting 380 pounds on his six-foot frame. Bu he also knows you can change all that by learning a few important lessons about self-worth. Need proof? How about this: Combs has since dropped 165 pounds and counting just by realizing he needed to put himself first. I had no motivation whatsoever, Combs, a 27-year-old from Ohio, told us about his life before his transformation. Prior to making changes, Combs would come home from work and eat one of two meals: 12 tacos with a big bag of Doritos on the side or two frozen pizzas with Ruffles. Of course, I wouldn't do anything except eat and lay in bed watching Netflix or playing video games, he shared. I had friends, but I'd only see them once or twice a week, mostly because I just didn't feel like doing anything. Though Combs said hed exercise by playing disc golf a few days a week hed always undo all of that work by scarfing down McDonald's right after. But that wasnt his biggest problem. According to Combs, his biggest hurdle was never, ever feeling full. I wouldn't necessarily be hungry, but I wouldn't be full and I'd just keep eating because I was bored, he says. By the time he hit his mid-20s, Combs had reached his heaviest weight. Around the same time, a tough breakup sent him spiraling even further into self-hatred. I remember constantly looking at myself in the mirror and tearing myself down with pretty awful things; I'd tell myself that I'm fat and will never find love again or that I'll be fat and ugly for the rest of my life, he shared. I believe the reason I said all of these things was because hearing myself say it made it easier to accept defeat and it would give me an excuse to not change. Story continues Though he had tried to lose the weight before nothing seemed to stick. Until one day he noticed his 4XL clothes starting to fit a little snug. He then went and looked in the mirror one more time and had an epiphany. I realized that no one will love me until I love myself, Combs says. I knew I had to change who I was to accept myself before anyone else could. Photo credit: Levi Combs To kick off his lifestyle change, Combs kept things simple. He started by just walking laps around his building and drastically cut his calories for a calories in, calories out diet . During his work breaks hed also visit his office gym for short bursts of cardio, or hed take a few walks with friends on his lunch break. Though he found success, he still had to fight his biggest battle-cravings. I constantly wanted pizza, tacos, and cheeseburgers. It was really hard to not give in and even three years later, I still struggle with cravings, Combs explains. It's something I've been able to manage, thanks in large part to cheat days I have once a week. Almost immediately after he started becoming a bit more active and paying attention to his calorie count Combs began to see results, even if they were slow and steady. Stepping on the scale to see I'd lost another one to two pounds was the biggest high and that made it easy to keep going. Sometimes it feels like my body doesn't have enough dopamine to keep up with how incredible it feels, Combs said. Of course, Combs is also well-versed in both the plateau and the holiday downfall that comes with attempting to regain your health. This year, Combs said, he gained back about 30 pounds during the Christmas season. But, even that setback isnt stopping him as he got right back on the horse in the new year to work it all off and then some. In fact, hes already down to 215 pounds, marking a 165-pound weight loss transformation. The moment I went back to work, I immediately jumped back on my diet and started running again. The only thing you can do in any situation like that is to move past it and get back to what you know works, Combs says. Though he feels great about where hes at now in terms of his weight and his health Combs is on a mission to just keep going both mentally and physically. There are so many changes that have come along with weight loss, he says. Physically, I've never felt better. Unfortunately, I have pain in my knees and back from carrying 350-plus pounds for so long, but it's nothing like it used to be. I now run 5k's (and a quarter marathon), which is something I never envisioned for myself, and I can now go out and enjoy going places with friends without getting winded after five minutes. Mentally, Combs says its been a total 180. After feeling so unhappy for so long hes now able to look in the mirror and see a man whos been able to come so far and make changes he didnt even know was possible before. I feel a great sense of pride. I'm 100 times happier than I've ever been and that's always one of the first things people mention when they see my before and after pictures, Combs says. I no longer insult myself; instead, I encourage and motivate myself, even on my bad days. Weight loss is as much mental as it is physical. Combs believes its key for anyone attempting to lose weight to not let it overwhelm them from the start. And hes a firm believer in counting your calories too, which is especially easy with apps like MyFitnessPal and others now on the market. People always think the only way they'll lose weight is if they get a gym membership and spend all their free time there, Combs said, wisely adding, weight loss is 90 percent diet, 10 percent exercise. Cut your calories to make sure you're at a healthy deficit and do exercise that you're comfortable with. Once you start to feel good, change it up a little and just keep going from there. Weight loss is a marathon, not a sprint. Take your time. ('You Might Also Like',) A Vegan Diet Helped This Man Lose 150 Pounds and Improve His Mental Health How to Cool Down After Your Hardest Workouts What Is The Lectin-Free Diet?
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Knoll, Inc. (NYSE:KNL) Delivered A Better ROE Than Its Industry
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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 Knoll, Inc. (NYSE:KNL).
Knoll has a ROE of 19%, based on the last twelve months. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.19.
Check out our latest analysis for Knoll
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Knoll:
19% = US$76m ÷ US$393m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. That means it can be interesting to compare the ROE of 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. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Knoll has a superior ROE than the average (13%) company in the Commercial Services industry.
That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently.
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 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. That will make the ROE look better than if no debt was used.
Knoll does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.18. Its ROE is quite good but, it would have probably been lower without 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 a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
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.
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European powers won't trigger Iran deal dispute mechanism for now: diplomats
PARIS/BRUSSELS (Reuters) - Britain, France and Germany will not for the moment trigger a dispute resolution mechanism enshrined in the 2015 Iran nuclear accord that could lead to the reimposition of United Nations sanctions, two European diplomats said. Iran's announcement on Monday that it had amassed more low-enriched uranium than permitted was confirmed by U.N. nuclear watchdog, the International Atomic Energy Agency (IAEA), which monitors Iran's nuclear program under the deal. "Not for now. We want to defuse the crisis," said one European diplomat. The second diplomat said the three powers would focus on bringing Iran back into compliance and that they wanted to gain more time for dialogue. French President Emmanuel Macron earlier on Tuesday urged Iran to rapidly reverse its first major breach of the nuclear pact, but said he would work in the coming days on ensuring Iran complied with the deal. His statement came after discussing the latest developments with U.S. President Donald Trump in a call on Monday night. "On the basis of the IAEA report, we want the question of exceeding the limits to be looked at in the framework of the JCPOA (Joint Comprehensive Plan of Action) procedures," said a French diplomatic source, referring to the accord's formal name. "In the immediate term, Iran must return to its obligations. There is room for dialogue," the source said. One of the diplomats said that a planned ministerial meeting of three European powers, Russia, China and Iran to discuss the current crisis was imperative to discuss the next steps on all sides. (Reporting by John Irish and Robin Emmott; Addiational reporting by Marine Pennetier; Editing by Catherine Evans and Jon Boyle) View comments
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Should Advanced Emissions Solutions, Inc. (NASDAQ:ADES) Be Part Of Your Dividend Portfolio?
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Today we'll take a closer look at Advanced Emissions Solutions, Inc. (NASDAQ:ADES) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
In this case, Advanced Emissions Solutions pays a decent-sized 7.9% dividend yield, and has been distributing cash to shareholders for the past two years. A high yield probably looks enticing, but investors are likely wondering about the short payment history. The company also bought back stock during the year, equivalent to approximately 11% of the company's market capitalisation at the time. There are a few simple ways to reduce the risks of buying Advanced Emissions Solutions for its dividend, and we'll go through these below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Advanced Emissions Solutions paid out 46% of its profit as dividends, over the trailing twelve month period. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Advanced Emissions Solutions paid out 468% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. While Advanced Emissions Solutions's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Cash is king, as they say, and were Advanced Emissions Solutions to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign.
As Advanced Emissions Solutions 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 8.24 times its EBITDA, Advanced Emissions Solutions could be described as a highly leveraged company. While some companies can handle this level of leverage, we'd be concerned about the dividend sustainability if there was any risk of an earnings 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. With EBIT of 1.15 times its interest expense, Advanced Emissions Solutions's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them, and we're reluctant to rely on the dividend of companies with these traits.
We update our data on Advanced Emissions Solutions 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. Its most recent annual dividend was US$1.00 per share, effectively flat on its first payment two years ago.
Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Advanced Emissions Solutions has grown its earnings per share at 48% per annum over the past five years. Earnings per share have rocketed in recent times, and we like that the company is retaining more than half of its earnings to reinvest. However, always remember that very few companies can grow at double digit rates forever.
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 Advanced Emissions Solutions's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Advanced Emissions Solutions out there.
You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Advanced Emissions Solutions stock.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Does IBERIABANK Corporation's (NASDAQ:IBKC) P/E Ratio Signal A Buying Opportunity?
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at IBERIABANK Corporation's (NASDAQ:IBKC) P/E ratio and reflect on what it tells us about the company's share price. Looking at earnings over the last twelve months,IBERIABANK has a P/E ratio of 10.65. That means that at current prices, buyers pay $10.65 for every $1 in trailing yearly profits.
Check out our latest analysis for IBERIABANK
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for IBERIABANK:
P/E of 10.65 = $76.08 ÷ $7.14 (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. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means even if the current P/E is high, it will reduce over time if the share price stays flat. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings.
In the last year, IBERIABANK grew EPS like Taylor Swift grew her fan base back in 2010; the 159% gain was both fast and well deserved. The sweetener is that the annual five year growth rate of 20% is also impressive. With that kind of growth rate we would generally expect a high P/E ratio.
The P/E ratio indicates whether the market has higher or lower expectations of a company. We can see in the image below that the average P/E (12.9) for companies in the banks industry is higher than IBERIABANK's P/E.
IBERIABANK's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Many investors like to buy stocks when the market is pessimistic about their prospects. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
The 'Price' in P/E reflects the market capitalization of the company. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
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).
IBERIABANK's net debt equates to 45% of its market capitalization. While it's worth keeping this in mind, it isn't a worry.
IBERIABANK's P/E is 10.7 which is below average (18.2) in the US market. The company does have a little debt, and EPS growth was good last year. If the company can continue to grow earnings, then the current P/E may be unjustifiably low.
When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
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.
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PRESS DIGEST- Canada- July 2
July 2 (Reuters) - The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy. THE GLOBE AND MAIL ** Mortgage insurer Genworth Financial Inc is considering spinning out its large Canadian subsidiary after Ottawa raised national-security concerns about a sale of the entire company to a Chinese conglomerate, China Oceanwide Holdings Group Co Ltd. https://tgam.ca/326Db2K ** Larry Tanenbaum, private equity investor and co-owner of the Toronto Raptors, and a unit of Italian catering company Autogrill Group, sold their joint interest in Ontario's 23 ONroute service centres. https://tgam.ca/2RKHhZG ** A new policy implemented in early June by Transport Canada on cannabis regulation is driving a rift between employers and workers, particularly in safety sensitive industries, as some unions argue that overly cautious policies amount to an outright ban on the drug. https://tgam.ca/2RNqqpj ** Montreal based Alaya Care has raised C$51 million ($38.87 million) from iNovia Capital, Caisse de dépôt et placement du Québec and Investissement Québec. https://tgam.ca/2ROWgCb ($1 = 1.3122 Canadian dollars) (Compiled by Bengaluru newsroom)
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Meghan and Harry Reportedly Have Less Money Than William and Kate
Photo credit: Getty Images From Cosmopolitan Meghan Markle and Prince Harry reportedly have fewer "financial resources" than Prince William and Kate Middleton. Meghan and Harry have a laid back lifestyle with a shockingly small number of staff members, given they're royals. Meghan Markle and Prince Harry have settled right TF into their cozy lives in the hilariously-named Frogmore Cottage, and the time has come for an update. Vanity Fair's royal reporter Katie Nicholl just dished an entire bucket of tea, and she had some interesting things to say about the couple's life at home with this cutie: View this post on Instagram Happy Father’s Day! And wishing a very special first Father’s Day to The Duke of Sussex! © SussexRoyal A post shared by The Duke and Duchess of Sussex (@sussexroyal) on Jun 16, 2019 at 5:01am PDT First of all, Meghan has worked through her royal growing pains, and has even adopted some Britishisms like "bits and bobs," lol. "The papers like to use the word difficult. I’d say ‘'different,'" a source who works with the Duchess tells Nicholl. “It was hard for her. She didn’t have a support structure in place and she was getting used to living in a new country and being part of a very unique institution." Meghan and Harry's home at Frogmore is like a "private oasis and sanctuary," with very few staff members due to the couple's financial restrictions. A source tells Nicholl they "won’t be hiring anything like what the Cambridges have," and that "the Sussexes don’t have the same financial resources as the Cambridges, for starters." Photo credit: Getty Images Aside from a nanny and security, Meghan and Harry employ a housekeeper and two assistants, and they share two palace orderlies. They don't have a chef, the Duchess doesn't have a stylist ("she does most of it herself"), and she does all her grocery shopping herself online from Ocado-England's version of Fresh Direct. In other words, they're completely chill. Minus the occasional tiara and carriage ride. Story continues ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne
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OPEC and allies extend oil supply cut in bid to boost prices
By Olesya Astakhova, Bozorgmehr Sharafedin and Alex Lawler VIENNA (Reuters) - OPEC and its allies led by Russia agreed to extend oil output cuts until March 2020 on Tuesday, seeking to prop up the price of crude as the global economy weakens and U.S. production soars. The alliance, known as OPEC+, has been reducing oil supply since 2017 to prevent prices from sliding amid increasing competition from the United States, which has overtaken Russia and Saudi Arabia to become the world's top producer. Asked by reporters whether agreement had been reached, Saudi Energy Minister Khalid al-Falih said: "Yes." Benchmark Brent crude has climbed more than 25% so far this year after Washington tightened sanctions on OPEC members Venezuela and Iran, causing their oil exports to drop. The approval of the pact extension on Tuesday follows a decision by OPEC producers the previous day. Fears about weaker global demand as a result of a U.S.-China trade spat have added to the challenges faced by the 14-nation Organization of the Petroleum Exporting Countries. Prolonging the output pact is likely to anger U.S. President Donald Trump, who has demanded OPEC leader Saudi Arabia supply more oil and help reduce fuel prices if Riyadh wants U.S. military support in its standoff with arch-rival Iran. A jump in oil prices might lead to costlier gasoline, a key issue for Trump as he seeks re-election next year. Brent was trading slightly weaker at just below $65 per barrel. The OPEC+ extension comes after Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to prolong the pact and continue to cut combined production by 1.2 million barrels per day, or 1.2% of world demand. Oil output in OPEC's exempt nations: https://tmsnrt.rs/2Fx7Lcc Oil prices could stall as a slowing global economy squeezes demand and U.S. oil floods the market, a Reuters poll of analysts found. Saudi Arabia's Falih said on Monday he was growing more positive about the global economy after a G20 meeting of world leaders over the weekend. Story continues "The global economy in the second half of the year looks a lot better today than it did a week ago because of the agreement reached between President Trump and President Xi (Jinping) of China and the truce they have reached in their trade and the resumption of serious trade negotiations," Falih said. The meeting on Tuesday also agreed on a charter for long-term cooperation between OPEC and non-OPEC producers. (Additional reporting by Alex Lawler, Rania el Gamal, Ahmad Ghaddar, Shadia Nasralla and Vladimir Soldatkin; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)
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Is 58.com Inc. (NYSE:WUBA) Trading At A 28% Discount?
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In this article we are going to estimate the intrinsic value of 58.com Inc. (NYSE:WUBA) by projecting its future cash flows and then discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for 58.com
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (CN\u00a5, Millions)", "2020": "CN\u00a54.5b", "2021": "CN\u00a55.8b", "2022": "CN\u00a55.9b", "2023": "CN\u00a56.1b", "2024": "CN\u00a56.2b", "2025": "CN\u00a56.4b", "2026": "CN\u00a56.6b", "2027": "CN\u00a56.8b", "2028": "CN\u00a57.0b", "2029": "CN\u00a57.2b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x5", "2021": "Analyst x4", "2022": "Analyst x1", "2023": "Est @ 2.77%", "2024": "Est @ 2.75%", "2025": "Est @ 2.75%", "2026": "Est @ 2.74%", "2027": "Est @ 2.74%", "2028": "Est @ 2.74%", "2029": "Est @ 2.73%"}, {"": "Present Value (CN\u00a5, Millions) Discounted @ 8.87%", "2020": "CN\u00a54.1k", "2021": "CN\u00a54.9k", "2022": "CN\u00a54.6k", "2023": "CN\u00a54.3k", "2024": "CN\u00a54.1k", "2025": "CN\u00a53.9k", "2026": "CN\u00a53.6k", "2027": "CN\u00a53.4k", "2028": "CN\u00a53.2k", "2029": "CN\u00a53.1k"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= CN¥39.2b
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 8.9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CN¥7.2b × (1 + 2.7%) ÷ (8.9% – 2.7%) = CN¥120b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CN¥CN¥120b ÷ ( 1 + 8.9%)10= CN¥51.13b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CN¥90.36b. The last step is to then divide the equity value by the number of shares outstanding. This results in an intrinsic value estimate in the company’s reported currency of CN¥608.19. However, WUBA’s primary listing is in China, and 1 share of WUBA in CNY represents 0.146 ( CNY/ USD) share of NYSE:WUBA,so the intrinsic value per share in USD is $88.78.Relative to the current share price of $64.29, the company appears a touch undervalued at a 28% 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.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at 58.com as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.9%, which is based on a levered beta of 1.031. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For 58.com, I've compiled three additional aspects you should further examine:
1. Financial Health: Does WUBA 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 WUBA'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 WUBA? 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.
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Estimating The Fair Value Of Knowles Corporation (NYSE:KN)
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In this article we are going to estimate the intrinsic value of Knowles Corporation (NYSE:KN) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Knowles
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": "$65.0m", "2021": "$86.5m", "2022": "$107.3m", "2023": "$126.2m", "2024": "$142.8m", "2025": "$157.1m", "2026": "$169.4m", "2027": "$180.0m", "2028": "$189.5m", "2029": "$197.9m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x1", "2021": "Est @ 33.1%", "2022": "Est @ 23.99%", "2023": "Est @ 17.61%", "2024": "Est @ 13.15%", "2025": "Est @ 10.02%", "2026": "Est @ 7.83%", "2027": "Est @ 6.3%", "2028": "Est @ 5.23%", "2029": "Est @ 4.48%"}, {"": "Present Value ($, Millions) Discounted @ 9.58%", "2020": "$59.3", "2021": "$72.1", "2022": "$81.5", "2023": "$87.5", "2024": "$90.4", "2025": "$90.7", "2026": "$89.3", "2027": "$86.6", "2028": "$83.2", "2029": "$79.3"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $819.9m
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$198m × (1 + 2.7%) ÷ (9.6% – 2.7%) = US$3.0b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$3.0b ÷ ( 1 + 9.6%)10= $1.19b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $2.01b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $22.11. Compared to the current share price of $18.36, the company appears about fair value at a 17% 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.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Knowles as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.6%, which is based on a levered beta of 1.149. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Knowles, I've put together three additional aspects you should look at:
1. Financial Health: Does KN 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 KN'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 KN? 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.
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Internet restored in Ethiopia 10 days after assassinations
ADDIS ABABA, Ethiopia (AP) — Ethiopia has begun restoring internet access Tuesday, 10 days after it was cut following the assassinations of six top government officials. On June 22, attackers shot and killed the Amhara governor and two other officials. On the same night in Addis Ababa, the country's army chief and his close friend, a retired army general, were assassinated inside his residence by his bodyguard. The internet was shut following the killings amid tightened security and a wave of arrests. Prime Minister Abiy Ahmed said the killings in Amhara were a coup attempt. The internet shutdown affected the entire country but in recent days a few locations were able to function. "Internet has been restored in Addis Ababa today and it will be restored in other locations across the country as well, step by step," Cherer Aklilu, secretary director of Ethio Telecom, told The Associated Press on Tuesday. "All internet packages that users bought but were not able to use during the internet cut will be reimbursed." Ethio Telecom, the country's state-owned monopoly of telecommunications services, also cut internet access two weeks ago during national school exams. NetBlocks, an internet monitoring group, estimated Ethiopia lost a minimum of $4.5 million a day during the internet cuts. "The government should stop cutting the internet whenever some security or exam issues pop up," said Abinet Haregu, a businessman in the delivery business in Ethiopia. "This is a tactic that was tried and failed in the past." Internet clampdowns have become more frequent across Africa. Mauritania and Sudan have recently blocked internet access in their countries. The shutdown in Mauritania was for a few days last week when the opposition planned to demonstrate against election results and Sudan cut internet access amid the ongoing anti-government demonstrations. In January Zimbabwe ordered a "total internet shutdown" when violent protests over a dramatic fuel price increase resulted in a deadly crackdown. Story continues Also in January Congo cut internet service before a court declared the winner of its disputed election and Gabon shut off service during an attempted coup. The global digital rights group Access Now reports that there were 21 shutdowns across Africa in 2018, up from 13 in 2017. ___ Follow Africa news at https://twitter.com/AP_Africa
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Have Insiders Been Selling Woodward, Inc. (NASDAQ:WWD) Shares This Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inWoodward, Inc.(NASDAQ:WWD).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Woodward
In the last twelve months, the biggest single sale by an insider was when the Director, James Rulseh, sold US$671k worth of shares at a price of US$95.92 per share. That means that an insider was selling shares at slightly below the current price (US$115). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 70% of James Rulseh's holding. James Rulseh was the only individual insider to sell shares in the last twelve months.
James Rulseh ditched 11112 shares over the year. The average price per share was US$89.69. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Woodward insiders own about US$171m worth of shares (which is 2.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
It doesn't really mean much that no insider has traded Woodward shares in the last quarter. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Woodward insiders selling. Of course,the future is what matters most. So if you are interested in Woodward, you should check out thisfreereport on 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.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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If You Had Bought Zebra Technologies (NASDAQ:ZBRA) Stock Three Years Ago, You Could Pocket A 319% Gain Today
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Investing can be hard but the potential fo an individual stock to pay off big time inspires us. You won't get it right every time, but when you do, the returns can be truly splendid. One bright shining star stock has beenZebra Technologies Corporation(NASDAQ:ZBRA), which is 319% higher than three years ago. And in the last month, the share price has gained 4.5%.
View our latest analysis for Zebra Technologies
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).
Zebra Technologies became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Zebra Technologies has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Zebra Technologies stock, you should check out thisFREEdetailed report on its balance sheet.
It's nice to see that Zebra Technologies shareholders have received a total shareholder return of 41% over the last year. That gain is better than the annual TSR over five years, which is 20%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. If you would like to research Zebra Technologies in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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.
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Dollarama to buy 50.1% stake in Latin American value retailer Dollarcity
(Reuters) - Dollarama Inc <DOL.TO> said on Tuesday it would acquire a 50.1% stake in Latin American value retailer Dollarcity, as the Canadian discount store operator looks to expand in the region.
The deal, valued in the range of $85 million to $95 million, includes an upfront payment of $40 million at closing, which is expected in August.
The deal is expected to add to Dollarama's earnings per share in the range of 2 Canadian cents to 3 Canadian cents for the rest of fiscal year ending Feb. 2, and 5 Canadian cents to 7 Canadian cents in fiscal 2021.
In February 2013, Dollarama entered into an agreement with Dollarcity to share its business expertise and provide sourcing, which also included an option for the former to acquire a 50.1% stake. This agreement was amended in 2016 to postpone the call option window by one year, from February 2019 to February 2020.
Dollarcity's board will consist of five directors - three from Dollarama and two from Dollarcity's founding group.
As of March 31, Dollarcity had 180 stores, including 44 in El Salvador, 54 in Guatemala and 82 in Colombia.
(Reporting by Shanti S Nair in Bengaluru; Editing by James Emmanuel)
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Brazilian telecom Oi taps former TIM exec for CEO spot -paper
RIO DE JANEIRO, July 2 (Reuters) - The board of Brazilian telecoms firm Oi SA has approved the former head of competitor TIM Participacoes SA as its new chief executive, newspaper O Globo reported late on Monday.
Rodrigo Abreu is set to take over the top spot from current CEO Eurico Teles in December, O Globo said, without saying how it got its information. As the company is currently undergoing an in-court bankruptcy recovery process, the name will have to be approved by a judge in Rio de Janeiro, the paper said.
According to his LinkedIn profile, Abreu has been an Oi board member since September 2018, and he served as chief executive of TIM Participacoes, the local unit of Telecom Italia SpA, from 2013 to 2016.
Representatives for Oi did not immediately respond to a request for comment.
The company, Brazil's largest fixed line operator, is recovering from a messy and protracted bankruptcy recovery process and is currently investing in high-speed broadband and data in a bid to return to profitability.
(Reporting by Gram Slattery Editing by Chizu Nomiyama)
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Man, 78, jailed for killing six-year-old great-grandson with air rifle
Stanley Metcalf was shot by great-grandad Albert Grannon as he checked his unlicensed air rifle (Picture: PA) A 78-year-old man has been jailed for three years after killing his six-year-old great-grandson with an air rifle. Albert Grannon was handed the sentence at Sheffield Crown Court after previously pleading guilty to the manslaughter of Stanley Metcalf. Albert Grannon discharged the unlicensed .22 calibre weapon into football-mad Stanley Metcalf's stomach as he checked it during a family gathering. The court heard how the youngster said "you shot me granddad" as shocked relatives responded to the sound of a loud bang in the house in Sproatley, East Yorkshire, in July last year. The court heard Stanley had asked to see his great-grandfather's air rifle (Picture: PA) Prosecutor John Elvidge QC told the court that Stanley was shot from a few feet away at a family gathering at the pensioner's house. He said Grannon had a habit of keeping the adapted air rifle loaded in a cupboard to shoot vermin and Stanley had asked to see it. READ MORE Brexit Party MEPs turn their backs while 'European anthem' played at parliament's opening session Grannon originally told police he was checking the gun was empty by pulling the trigger while pointing it downwards and Stanley was hit by a ricochet, the court heard, but Mr Elvidge said experts had shown the rifle was discharged directly in the boy's abdomen. The judge told the pensioner: "What you did was obviously a very dangerous thing to do. Why on Earth did you do it?" Stanley's mother, Jenny Dees said that immediately after the incident she felt sorry for her grandfather but she told the judge: "I don't feel sorry for him now." “Not once did he say sorry,” she said. “Now if he did, it would be meaningless - too little, too late.” Paul Genney, defending, told the court that, despite the views of Stanley's parents, Grannon, "blames himself totally". The court heard how Stanley's extended family had been split by the incident and some relatives sat in the court itself while others were in the overhanging public gallery.
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Is Abbott Laboratories (NYSE:ABT) Investing Your Capital Efficiently?
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 look at Abbott Laboratories ( NYSE:ABT ) 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, 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. Return On Capital Employed (ROCE): What is it? ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' So, How Do We Calculate ROCE? 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 Abbott Laboratories: 0.07 = US$4.1b ÷ (US$68b - US$9.1b) (Based on the trailing twelve months to March 2019.) Therefore, Abbott Laboratories has an ROCE of 7.0%. View our latest analysis for Abbott Laboratories Does Abbott Laboratories Have A Good ROCE? ROCE can be useful when making comparisons, such as between similar companies. Using our data, Abbott Laboratories's ROCE appears to be significantly below the 10% average in the Medical Equipment industry. This performance could be negative if sustained, as it suggests the business may underperform its industry. Setting aside the industry comparison for now, Abbott Laboratories's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. Readers may find more attractive investment prospects elsewhere. Story continues Abbott Laboratories's current ROCE of 7.0% is lower than 3 years ago, when the company reported a 9.6% ROCE. Therefore we wonder if the company is facing new headwinds. The image below shows how Abbott Laboratories's ROCE compares to its industry, and you can click it to see more detail on its past growth. NYSE:ABT Past Revenue and Net Income, July 2nd 2019 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. ROCE is only a point-in-time measure. Since the future is so important for investors, you should check out our free report on analyst forecasts for Abbott Laboratories . How Abbott Laboratories's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Abbott Laboratories has total liabilities of US$9.1b and total assets of US$68b. Therefore its current liabilities are equivalent to approximately 13% of its total assets. It is good to see a restrained amount of current liabilities, as this limits the effect on ROCE. Our Take On Abbott Laboratories's ROCE That said, Abbott Laboratories's ROCE is mediocre, there may be more attractive investments around. You might be able to find a better investment than Abbott Laboratories. 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). If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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.
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Should IQ Chaikin U.S. Small Cap ETF (CSML) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the IQ Chaikin U.S. Small Cap ETF (CSML) is a passively managed exchange traded fund launched on 05/16/2017.
The fund is sponsored by Indexiq. It has amassed assets over $277.61 M, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.39%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 26.50% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Sunpower Corp (SPWR) accounts for about 0.75% of total assets, followed by Magnachip Semiconduct (MX) and Vectrus Inc (VEC).
The top 10 holdings account for about 6.58% of total assets under management.
Performance and Risk
CSML seeks to match the performance of the NASDAQ Chaikin Power US Small Cap Index before fees and expenses. The NASDAQ Chaikin Power US Small Cap Index is a rules-based, quantitative index designed to enhance the NASDAQ US 1500 Index, by selecting stocks with the highest Chaikin Power Gauge rating.
The ETF return is roughly 13.05% so far this year and is down about -11.36% in the last one year (as of 07/02/2019). In the past 52-week period, it has traded between $21.19 and $29.65.
The ETF has a beta of 1.26 and standard deviation of 16.47% for the trailing three-year period. With about 218 holdings, it effectively diversifies company-specific risk.
Alternatives
IQ Chaikin U.S. Small Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, CSML is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $42.36 B in assets, iShares Core S&P Small-Cap ETF has $44.81 B. IWM has an expense ratio of 0.19% and IJR charges 0.07%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 reportIQ Chaikin U.S. Small Cap ETF (CSML): ETF Research ReportsVectrus, Inc. (VEC) : Free Stock Analysis ReportiShares Core S&P Small-Cap ETF (IJR): ETF Research ReportsiShares Russell 2000 ETF (IWM): ETF Research ReportsMagnaChip Semiconductor Corporation (MX) : Free Stock Analysis ReportSunPower Corporation (SPWR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Body and Mind Inc. to Attend the RAISE Capital Small Cap Conference
Vancouver, British Columbia--(Newsfile Corp. - July 2, 2019) - Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) (the"Company" or "BaM"), a multi-state operator in Nevada, California, Ohio and Arkansas, is pleased to attend the RAISE Capital Small Cap Conference on July 3rdbeing held in Calgary, Alberta.
Management will be available to meet throughout the event in Meeting Area #6. For more information please visit:http://raiseconference.com/Calgary-Evite/RAISE-Calgary2019-BAM.html
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Michael MillsTel: 800-361-6312mmills@bamcannabis.com
About Body and Mind Inc.
BaM is a well capitalized publicly traded company investing in high quality medical and recreational cannabis cultivation, production and retail. Body and Mind has a strategic investment by Australis Capital Inc. Our wholly owned Nevada subsidiary was awarded one of the first medical marijuana cultivation licences and holds cultivation and production licenses. BaM products include dried flower, edibles, topicals, extracts as well as GPEN Gio cartridges and Lucid Mood offerings. BaM cannabis strains have won numerous awards including the 2019 Las Vegas Weekly Bud Bracket, Las Vegas Hempfest Cup 2016, High Times Top Ten, the NorCal Secret Cup and the Emerald Cup.
BaM continues to expand operations in Nevada, California, Arkansas and Ohio and is dedicated to increasing shareholder value by focusing time and resources on improving operational efficiencies, facility expansions, state licensing opportunities as well as mergers and acquisitions.
Please visitwww.bamcannabis.comfor more information.
Safe Harbor Statement
Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of activities, variations in the underlying assumptions associated with the estimation of activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46017
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Xylem Inc. (NYSE:XYL): What Does The Future Look Like?
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In March 2019, Xylem Inc. (NYSE:XYL) released its earnings update. Generally, analysts seem cautiously bearish, with earnings expected to grow by 2.9% in the upcoming year compared with the higher past 5-year average growth rate of 9.1%. By 2020, we can expect Xylem’s bottom line to reach US$565m, a jump from the current trailing-twelve-month of US$549m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Xylem in the longer term. Investors wanting to learn more about other aspects of the company shouldresearch its fundamentals here.
Check out our latest analysis for Xylem
The longer term expectations from the 16 analysts of XYL is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of XYL's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 12% based on the most recent earnings level of US$549m to the final forecast of US$751m by 2022. EPS reaches $4.33 in the final year of forecast compared to the current $3.05 EPS today. Margins are currently sitting at 11%, which is expected to expand to 13% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Xylem, I've compiled three relevant factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is Xylem 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 Xylem is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Xylem? 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.
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Equinix Forms JV With GIC to Develop Hyperscale Data Centers
Recently,Equinix, Inc.EQIX announced that it has formed a joint venture (JV) in the form of a limited liability partnership with GIC — Singapore's sovereign wealth fund — to develop and operate xScaleTM data centers in Europe. The JV, worth more than $1 billion, was signed on Jun 27.
Per terms of the agreement, GIC will own an 80% equity interest in the JV and Equinix will own the remaining 20%. The JV is anticipated to close in third-quarter 2019.
Moreover, Equinix will sell both its Paris PA8 and London LD10 (retaining part of that business under a lease back) IBX data centers as well as other development interests, to the JV, in return for net cash proceeds and equity stake. Notably, a major part of the London LD10 and Paris PA8 are already leased.
Further, additional new xScale data centers will likely be developed in Amsterdam, Frankfurt (two sites) and London. When fully built out, these initial six facilities will provide nearly 155 megawatts of power capacity.
The initial facilities provided through the JV will cater specific workload deployment needs of targeted group of hyperscale companies, including preeminent cloud service providers. These facilities situated on or close to some of Equinix's existing International Business Exchange (IBX) campuses will enable companies to streamline their continued growth. As enterprises rapidly adopt hybrid multi-cloud, it will fortify Equinix's leading position in the cloud ecosystem.
In fact, well-known hyperscale operators like Alibaba Cloud, Microsoft Azure, Amazon Web Services, Oracle Cloud Infrastructure and Google Cloud have partnered with Equinix owing to the company’s global platform of 200 IBX data centers. This vast network of data centers enables companies to directly connect to strategic business partners and customers.
Also, Platform Equinix offers the most points of access to the global cloud service providers. Moreover, hyperscale companies are ramping investments in large-scale data center deployments to serve their rapidly growing core workload needs. Hence, development of xScale data centers is a strategic fit as it will allow hyperscale companies to add core deployments at Equinix’s facilities to their existing access point locations. This will offer direct interconnection to their customers and strategic business partners, as well as assist growth on a single Equinix platform, spanning more than 50 global metro cities.
Notably, the deployment of core hyperscale infrastructure at Equinix’s facilities through xScale data centers will attract additional partners and other hyperscale providers to Equinix's ecosystem, and also benefit the “network effect”. However, the sale of the London and Paris data centers is estimated to result in a decline in the company’s 2019 revenues, adjusted EBITDA and AFFO guidance by nearly $15 million or less. This is projected net of the fees earned and the lease payments incurred by the company from the JV.
Shares of this Zacks Rank #3 (Hold) company have gained 9.3% over the past three months, outperforming the real estate market's growth of 0.1%.
Key Picks
Investors can consider better-ranked stocks from the same space like Host Hotels & Resorts, Inc. HST, Duke Realty Corporation DRE and Lamar Advertising Co. LAMR, each carrying a Zacks Rank of 2 (Buy), currently. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Host Hotels & Resorts’ funds from operations (FFO) per share estimates for 2019 moved marginally north to $1.82 in two months’ time.
Duke Realty’s FFO per share estimates for the ongoing year have been revised slightly upward to $1.42, in the past 30 days.
Lamar Advertising’s FFO per share estimates for the current year have been revised slightly upward to $5.83, over the past 30 days.
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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 reportEquinix, Inc. (EQIX) : Free Stock Analysis ReportLamar Advertising Company (LAMR) : Free Stock Analysis ReportHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis ReportDuke Realty Corporation (DRE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Five reasons English speakers struggle to learn foreign languages
ivosar via Shutterstock According to a recent survey co-ordinated by the European Commission 80% of European 15-30 year olds can read and write in at least one foreign language. This number drops to only 32% amongst British 15-30 year olds. This is not just because all European young people speak English. If we look at those who can read and write in at least three languages, the UK is still far behind. Only 8% of UK young people can do what 88% of Luxembourgish, 77% of Latvian and 62% of Maltese young people can do. So what are the difficulties Britons face when learning other languages? Here are a few of the basics. 1. Objects have genders One of the most difficult and bizarre things about learning languages such as French, Spanish and German – but also Portuguese, Italian, Polish, German, Hindi and Welsh – is that inanimate objects such as chairs and tables have genders, so they are masculine ( he ), feminine ( she ) or sometimes neuter ( it ). There is no real logic to this – milk is masculine in French, Italian and Portuguese, but feminine in Spanish and German, but it still tastes and looks the same. In Spanish, Italian and Portuguese, gender is usually indicated by word endings (-o and -a), making it easier to learn, but sound changes in French have made genders rather opaque, and a real challenge for second language learners. Interestingly, English used to have grammatical gender too, but this was basically lost in Chaucer’s time. There are still some remnants of it in English, though: the pronouns he/she/it __ are masculine, feminine and neuter, but he/she are now only used to talk about living things, not tables and windows (as they were in older stages of English). Most Britons are all at sea when it comes to gendered language. Frankie's via Shutterstock Contrary to what you might think, languages don’t actually need gender. The gender-neutral singular pronoun they , has been much discussed of late , but many languages lack the equivalent of he/she , having only they (among them Turkish and Finnish). Other languages, notably Swahili and related languages, have many more genders – up to 18. French gender is easy by comparison. Story continues 2. Agreement is vital Once you have memorised the fact that house is feminine and book is masculine, the next step is to make sure that all the adjectives, articles ( the/a ), demonstratives ( this/that ) and possessors ( my/his ) describing these words have matching gender and also indicate the difference between singular (one) or plural (more than one) ma belle maison (my beautiful house) but mon beau livre (my handsome book). Linguists call this “agreement” or “concord”, and it is very common, especially in European languages – but nonetheless quite tricky for English speakers, simply because they don’t really have it (any more). Tower of Babel: this is where the problems all started. Pieter Brueghel the Elder via Shutterstock Once again, English used to have this, but it has been almost completely lost. They still have a little bit of it left though: “this sheep is lonely but these sheep are not”, and we know that partly because of the word these, a “plural” demonstrative. 3. Just being polite French has tu/vous , German has du/Sie , Spanish tu/usted , Italian tu/lei , but, in English, we just have plain old you . Linguists call this the “T-V distinction” (because of Latin tu/vos ) and this politeness distinction is found in many European languages and well as in other languages (Basque, Indonesian, Mongolian, Persian, Turkish and Tagalog). Essentially, there are two different forms of you depending on power dynamics, and every time you strike up a conversation, you need to choose the right pronoun, or risk causing offence. This poses obvious difficulty for English speakers as there are no hard-and-fast rules about when to use the formal or informal form. In fact, usage has varied over time. In the past, pronouns were often used asymmetrically (I call you vous , but you call me tu ), but western Europe increasingly uses pronouns symmetrically (If I call you tu , you can call me tu as well). In recent years, the polite forms have become less used in some western European countries (at least in Spain, Germany and France). That might mean that these languages could eventually change, but in the opposite way from English. Thou knave: would Shakespeare feel more at home in Yorkshire? Anton_Ivanov via Shutterstock English also had thou/you until Shakespearean times, but the informal thou was eventually lost (and retained only by some dialects, for example in Yorkshire). Thou was also the singular form, just as tu/du are – used when addressing just one person. So, when English lost thou , it also lost the difference between talking to just one or more people. Languages like to fill in gaps like these, and many dialects have created novel plural forms: y’all , you lot , you guys , youse . What’s interesting is that these forms are often themselves regulated by politeness. So, many people would use you with parents, you guys with friends and you lot with kids. When it comes to language, politeness is always there but, in some languages, it is a little more in your face. Once again, French, Spanish and German are not actually that complex in making a simple two-way distinction. They are nothing compared to languages like Japanese, which have bamboozingly difficult “honorific” systems. 4. Keeping track of case Where German has der/die/des/dem/den/das , English has only the – and this poses considerable challenges for English speakers learning German. So why does German have all these different ways of saying the ? This is the German case system which spells out the article the differently depending not only on whether it is singular or plural (see above), but on its function in a sentence (subject, direct object, indirect object, possessor). English has case too actually, but only with pronouns. “I love him”, does not (alas) mean the same thing as “he loves me”. It’s not only the word order that’s different. I/he are the subject (nominative) forms and him/me the object (accusative) forms. They are also different from my/his , which are the possessive (genitive) forms. Once again, English used to be like German but it has lost most of its case system. Some Indigenous Australian languages use different grammatical cases, unlike English. Millenius via Shutterstock Articles, demonstrative and adjectives all inflected for case in Old English, so English speakers a few hundred years ago would have found German pretty simple. German is not alone in having case. Many European languages have case and it is also found in many unrelated languages (among them Turkish, Japanese, Korean, Dyirbal and many native Australian languages). In a sense, case gives us another way of keeping track of who is doing what to who. English speakers use word order for this function, but this is by no means the only option. 5. A matter of mood This takes us to our final challenge, verbal inflection. Where English regular verbs have just four verb forms jump/jumps/jumping/jumped (which can combine with auxiliary verbs in certain ways as in “I have been jumping”), Spanish has a hefty 51 (I won’t list them all here). So Spanish (like Italian and German and to some extent French) is a richly inflecting language. Verbs in Spanish (Italian, and French) change depending on tense (as in English), but also depending on aspect (the duration of an event), mood (the nature of the event) and person/number (the kind of subject they have). This poses notorious problems for English speakers, especially when it comes to mood. The dreaded subjunctive indicates that something is not being asserted as true and this turns out to be difficult to learn when that is not an important distinction in your own language. Once again, though, English itself used to be more like Spanish, French, Italian and German in this respect. Old English verbs also inflected for tense, person/number and mood. In fact the subjunctive remains an option for many speakers in examples such as: “I wish I were (or was) you” and: “It is vital that you be (or are) on time.” Once again, then, English speakers a few hundred years ago would probably have been better linguists than Britons are now, as their language still had many of the features which pose difficulties for modern-English-speaking language students. Somehow I think it’s not really grammar that’s holding Britons back, though. With language, where there’s a will, there is always a way. The 2% of Britons who can read and write in more than three languages show that that’s true. This article is republished from The Conversation under a Creative Commons license. Read the original article . The Conversation Michelle Sheehan has received funding for her research and outreach activities from the British Academy, Language Acts and World Making and the Philological Society.
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Aurora Receives Order from Second Major China-based Automation Provider and Announces Appointment of Investor Relations Services Firm
North Vancouver, British Columbia--(Newsfile Corp. - July 2, 2019) - Aurora Solar Technologies Inc. (TSXV: ACU) (the "Company") announces that it has received an order to supply a major China-based manufacturer of solar cell and module manufacturing automation systems and also announces that it has appointed AXINO GmbH for investor relations services in Europe.
The new order is for six DM-110 measurement systems and three AS-100 servers for control of the DM-110 units. These products will be integrated in the automation systems and then provided to a China-based solar cell manufacturer for use in their production operations. The DM-110 and AS-100 units are planned to be shipped in August 2019.
"This order from the second of the two dominant automation providers in China is an important development for Aurora," said Gordon Deans, Aurora's Chief Executive Officer. "As noted previously, our DM measurement products must operate in tandem with suitable production line automation. Typically, the automation is specified and designed during the planning of new or expanded production facilities. This acquisition of our DM-110 products by the second of the two dominant automation system providers in China further increases the visibility and inclusion of Aurora's products in that market. We expect continuing increased sales and reduced costs for the Company as a result."
Additionally, the Company announces that it has contracted with AXINO GmbH for investor relations services in Europe. AXINO provides marketing, media and event management services for publicly-traded companies, and is headquartered in Stuttgart (Esslingen), Germany. The contract is for a period of 12 months, commencing July 1, 2019. AXINO's compensation for these services will be in cash, paid quarterly, starting at the time the contract commences.
About Aurora Solar Technologies:
Aurora Solar Technologies is a leader in the development and delivery of inline process measurement, analysis and control systems for solar cell manufacturers. We believe that solar power will dominate the renewable energy field, and our mission is to bring quality and profitability to every customer through superior control of critical processes during solar cell manufacturing.
Aurora's products are used by some of the world's most advanced and respected solar cell manufacturers. With headquarters near Vancouver, Canada, Aurora has operations in Shanghai, China and partners in all major solar manufacturing markets. Aurora is a public company, traded on the TSX Venture Exchange (ACU) and is a two-time TSX-V Top 50 winner. Aurora's website is located atwww.aurorasolartech.com.
For further information contact:
Gordon Deans, P.Eng.President and Chief Executive OfficerAurora Solar Technologies Inc.Phone: +1 (778) 241-5000info@aurorasolartech.com
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.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45991
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AD100 Designer Pierre Yovanovitch Revives an Arts and Crafts Home in London
The client knew exactly what she wanted: not too many floors. High ceilings. Lots of light. And a south-facing garden. Her husband had two requests: a small hammam and a swimming pool in the garden. It was a tall order for a family home in central London, but eventually they found it—an unassuming but generously proportioned Arts and Crafts property nestled on a quiet street in Chelsea, the once-bohemian enclave turned posh residential district. After glimpsing the overgrown gardens—now planted with climbing honeysuckles, hedges, maples, and magnolias by the Natural Gardening Company—and a yard just big enough to carve out a narrow, stone-lined lap pool, they were sold. “When you look out the window, you almost feel like you’re in the country,” says the wife of the home she shares with her husband—they’re both globe-trotting businesspeople—and two teenage daughters. “We woke up one morning and found ducks swimming in the pool.” An Alex Katz portrait is displayed in the dining room. Vincenzo de Cotiis pendant; Lola Lely table; Carlo de Carli chairs; on walls, woven silk by Fortuny . Jean-Francois Jaussaud That feeling of the countryside doesn’t stop at the façade. The homeowner wanted interiors that were casual, comfortable, and finely crafted, so she called on Pierre Yovanovitch, the Paris-based AD100 designer and noted artisan whisperer. (His oeuvre will be showcased in a monograph—Pierre Yovanovitch: Interior Architecture—being published by Rizzoli in September.) “I wanted the interior to be in line with her lifestyle,” Yovanovitch says of the wife, with whom he had previously worked on the family’s chalet in the Swiss Alps. “She’s easygoing, never formal—she likes color, and she’s always laughing.” Aside from a few beloved elements—the staircase, the grand fireplace in the master bedroom—Yovanovitch stripped away most of the interior detailing to establish a clean, contemporary slate. By moving the dining room to the first floor, for instance, Yovanovitch transformed the home’s original formal eating quarters downstairs into a chestnut-lined spa that opens to the revitalized garden and new pool. Story continues “I didn’t want to create an Arts and Crafts revival,” he explains, “but I wanted to keep the spirit of the house.” In a nod to the property’s turn-of-the-century roots, he filled it with custom woodwork like intricately carved doors and moldings, made-to-measure oak wall paneling, and built-in shelving. Similarly, he points out, “I wanted the fireplaces to look like they were made in the old times,” so he called on ceramist Armelle Benoit, a longtime collaborator, to fabricate them in enameled ceramic tiles and bricks. In the living room, a glass-bead artwork by Liza Lou hangs above a Benoit mantelpiece. Zebrawood console by David Ebner , 1950s Italian chair, vintage Stilnovo floor lamp, Roberto Matta armchair. Jean-Francois Jaussaud Benoit went on to make a curved bench and a poolside ceramic fresco in her deep-hued, earthy glazes, modern foils to the folk-art ceramics—an alligator from Ethiopia; vases from Hungary—the wife has long collected. “This was a studio house—it belonged to an artist,” she notes. “So it was very important to incorporate craft.” Indeed, handmade touches—a Yovanovitch hallmark—figure throughout. Twentieth-century works in wood, like a cork-and-sycamore console by Paul Frankl, a squiggly oak bench by Peter Danko, and a range of furnishings by Danish masters Kaare Klint and Børge Mogensen, feel newly fresh in this setting. They are mixed with pieces by modern masters, like the wicker buffet by Brazilian maestros the Campana Brothers, bespoke furnishings by British collective the New Craftsmen, and a specially commissioned brass-and-glass light fixture by Milan master Vincenzo De Cotiis. Step Inside the Pierre Yovanovitch-Designed Residence Bespoke metal doors open into the living room. Bench, sofa, and cocktail table by Pierre Yovanovitch ; Camille Henrot bronze. Jean-Francois Jaussaud In the kitchen, Børge Mogensen chairs surround a Lely timber table. Vintage bamboo pendants. Jean-Francois Jaussaud The house from the garden. Jean-Francois Jaussaud Otto Schulz chairs flank a ceramic mantelpiece by Armelle Benoit in the small living room. Paavo Tynell floor lamp; Harvey Probber table. On oak-paneled walls, art by Wilhelm Sasnal (left) and Valentin Carron. Jean-Francois Jaussaud An Alex Katz portrait is displayed in the dining room. Vincenzo de Cotiis pendant; Lola Lely table; Carlo de Carli chairs; on walls, woven silk by Fortuny . Jean-Francois Jaussaud The stone-edged lap pool was designed by Yovanovitch; Landscaping by Ceri Evans for The Natural Gardening Co. Jean-Francois Jaussaud In the living room, a glass-bead artwork by Liza Lou hangs above a Benoit mantelpiece. Zebrawood console by David Ebner , 1950s Italian chair, vintage Stilnovo floor lamp, Roberto Matta armchair. Jean-Francois Jaussaud But while such attention to detail is typical of a Yovanovitch project, the palette he employed here is less expected. “It’s a bit more colorful than Pierre would normally do,” the wife points out. “But he was very happy to go down that road.” The designer took inspiration from the family’s diverse art collection. A coral-hued Fortuny silk sheathes the walls in the dining room, serving as backdrop for a portrait by Alex Katz. The azure glaze of Benoit’s ceramic mantelpiece in the living room relates to a vivid Liza Lou artwork made from deep cobalt-blue glass beads. And the otherwise serenely hued entryway gets a jolt of fun from one of Ugo Rondinone’s neon stone totem structures. “I saw an exhibition, and they had a room full of these,” the homeowner says of the exuberant artwork. “It just made me so happy I thought, That’s exactly what I want for the house—to feel that happiness.” She gets the same burst of energy from an anthropomorphic chair by Roberto Matta—a Chilean artist who dabbled in furniture design. “My dad is Chilean,” she says. “But I didn’t know that Matta did furniture until Pierre found two other wood pieces for our place in Switzerland.” Yet none of the art—or the furniture, for that matter—feels too precious. After all, says Yovanovitch of his client, “when she sits on a sofa, she wants it to be comfortable.” And his many custom sofas and banquettes—made with master in-house carpenter Pierre-Eloi Bris and wrapped in textural cottons, wools, and linens from Jouffre—do not disappoint. “We use every part of the house,” says the client. “Right now there are six teenagers down in the living room playing music so loud. We’ve only lived here a year and a half, but it really feels like we’ve been here forever.” Originally Appeared on Architectural Digest
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JPMorgan Commits Hedge Fund to AI in Technology Arms Race
(Bloomberg) -- JPMorgan Chase & Co. is pushing its use of artificial intelligence beyond investment banking and into hedge funds. The bank’s asset management arm is planning a strategy to invest in emerging and established machine-learning statistical-arbitrage hedge funds, according to a person familiar with the matter. The vehicle -- dubbed for now the Machine Learning Fund Ltd. -- will operate within JPMorgan’s $15 billion fund-of-hedge funds business, according to June 20 regulatory filings. JPMorgan has spent billions in the technology arms race with rivals like Morgan Stanley, deploying AI and machine-learning in investment banking and tapping industry experts to help shape strategy. Last year, the company started an equity data science unit within its asset management business to explore how AI can improve investment decisions. The alternatives business has stumbled on a few recent hedge fund bets. It invested $200 million with Duane Park Capital Management, which closed recently after only two years in business. The group also pulled a big investment from quant firm Mana Partners, which struggled almost from the get-go. JPMorgan’s machine-learning strategy comes as the use of AI among hedge fund managers accelerates in an effort to stand out in a crowded field. With machine learning, a subset of AI, computers improve their ability to find trading signals based on data sampled over time, without needing much human intervention. Hedge funds deploy AI in many ways, from basic research to sophisticated live trading, and it’s unclear what type of managers the bank is targeting. A Barclayhedge study last year found that two-thirds of managers it surveyed use machine learning in idea generation, more than half deploy the technology for portfolio construction, and 25% utilize it for trade execution. Overall, 56% of the 55 hedge funds surveyed in May 2018 said they utilized a machine-learning approach in their investment processes. That compares with about 20% in a Barclayhedge survey from August 2017. Story continues AI and machine-learning hedge funds have lost money this year, according to a Eurekahedge index of about 14 funds that use the technology. But over the longer-term, they’ve outperformed other computer-driven funds. The index has had annualized gains of about 7% over the last five years, about three times the returns of Eurekahedge’s CTA/Managed Futures hedge fund index. Hedge funds, broadly, posted annualized gains of about 3.6% over the period. A spokeswoman for New York-based JPMorgan declined to comment. --With assistance from Michelle F. Davis. To contact the reporter on this story: Katia Porzecanski in New York at kporzecansk1@bloomberg.net To contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Vincent Bielski, Josh Friedman For more articles like this, please visit us at bloomberg.com ©2019 Bloomberg L.P.
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The Best Private Student Loans Offer These 5 Perks
Here are five particularly valuable and useful perks offered by some of the best private student lenders.
Image source: Getty Images.
There are some obvious things to look for when shopping for a private student loan. For example, you want a lender that offers relatively low interest rates and the ability to defer repayment while you’re still in school.
On the other hand, there are some student loan perks offered by thebest private student lendersthat aren’t quite so obvious to add to your wish list. As one example, did you know that some lenders will reduce your principal balance after you get your degree? Or, did you know that some will allow you to postpone repayment without penalty if you fall on tough times?
With that in mind, here are the details about these and a few more of the best private student loan perks to look for when shopping for a lender.
Some student lenders, including the U.S. Department of Education, charge borrowers an origination fee on new student loans. An origination fee (known as a “loan fee” with federal student loans) is a charge that a borrower pays a lender to compensate for the costs associated with underwriting and processing the loan application.
Many private lenders don’t charge any origination fees at all, which can translate tobigcost savings over your college career. On a similar note, look for private lenders that don’t charge a prepayment penalty either. Some lenders don’t even charge late fees.
When it comes to federal student loans, there are numerous ways you can postpone your loan payments in tough financial times. In addition to qualifying for a forbearance, federal student loans might even qualify for a deferment, under which the government will pay your interest on any subsidized loans you have.
Some private lenders (but not many) have started to include forbearance programs for borrowers. Generally, if a private lender offers a forbearance program, it provides a specific maximum amount of time payments can be deferred -- 12 months seems to be common. Even so, a forbearance option can be a valuable tool if you ever fall on financial hardship, so it’s smart to look for lenders that offer it.
This is a somewhatrarebenefit, but there are a couple of private lenders that offer a “graduation reward,” or a reduction in your principal balance upon graduation. This can take the form of a set dollar amount, or a percentage of your loan principal.
The percentage method can be especially valuable. If you’ve accumulated $50,000 of private student loans and your lender offers a 2% reduction upon graduation, this translates into $1,000 towards your loan balance.
This is a common feature of lenders offeringstudent loanrefinancing, but it isn’t very common when applying for new student loans. Even so, there are a few private student loan companies that allow new borrowers (and their cosigners, if applicable) to check their interest rates and loan term offers without any affect to their credit score.
A 0.25% interest rate reduction has become the industry standard if you agree to have your payments made automatically from your bank account. Most lenders refer to this as the autopay discount, or some variation.
However, some private student lenders, especially those that are full-service banks, also offer discounts for borrowers who have a banking relationship. For example, a bank may offer a 0.25% interest rate reduction for autopayandan additional 0.25% discount for borrowers who maintain a checking account with the bank.
To be perfectly clear, not all of thebest student lendersoffer every single one of these perks, and few offer the best version of more than one or two. The point is that while these are some of the best student loan perks you can find, it’s important to decide which are the most important toyouwhen shopping for a private student loan.
The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either. Our number one goal is helping people find the best offers to improve their finances. That is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
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Peak Subsidiary ASCS Begins Loan Servicing Relationship with Hua Xia Bank
Montreal, Quebec--(Newsfile Corp. - July 2, 2019) - Peak Positioning Technologies Inc. (CSE: PKK) (OTC PINK: PKKFF) ("Peak" or the "Company") today announced that its Asia Synergy Credit Solutions ("ASCS") subsidiary, which provides commercial lending outsourcing services to banks and other lending institutions, recently began servicing loans to micro and small-sized enterprises on behalf of Hua Xia Bank ("HXB").
Headquartered in Beijing, HXB (http://www.hxb.com.cn/en/) is China's 14thlargest commercial bank with over CAD$490B in assets, 968 branches and over 42,000 employees in 40 cities across China.
All HXB loans serviced by ASCS will be guaranteed by ASCS loan insurance partner, Wuxi Union SME Guarantee Co. Ltd ("WU"), under the terms and conditions of the existing agreement between WU and ASCS. The first loan serviced by ASCS on behalf of HXB, for the amount of 300,000 RMB (approximately CAD$58,000), was issued on June 28, 2019.
HXB becomes the tenth financial institution and the second bank to either outsource a portion of its small business commercial lending activities to ASCS or use Peak's Cubeler Lending Hub platform to help with their small business commercial lending activities.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. is an IT portfolio management company whose mission is to assemble, finance and manage a portfolio of promising companies and assets in some of the fastest-growing tech sectors in China, including fintech, e-commerce and cloud-computing. Peak provides a bridge for North American investors who wish to participate in the continued digitization of China's industrial sectors through the latest advancements in technology. For more information:http://www.peakpositioning.com
[["CHF Capital Markets", "Peak Positioning Technologies Inc.", "Twitter:@PeakPositioning"], ["Cathy Hume, CEO", "Johnson Joseph, President and CEO", "Facebook:@peakpositioning"], ["416-868-1079 ext.: 231", "514-340-7775 ext.: 501", "LinkedIn:Peak Positioning"], ["cathy@chfir.com", "investors@peakpositioning.com", "YouTube:Peak Positioning"]]
Forward-Looking Statements / Information:
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including "anticipate", "believe", "could", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "will", "would" and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46009
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I Built A List Of Growing Companies And Accenture (NYSE:ACN) Made The Cut
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
So if you're like me, you might be more interested in profitable, growing companies, likeAccenture(NYSE:ACN). 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.
See our latest analysis for Accenture
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. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. We can see that in the last three years Accenture grew its EPS by 6.6% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). Accenture maintained stable EBIT margins over the last year, all while growing revenue 4.1% to US$41b. That's a real positive.
In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.
The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future Accenture EPS100% free.
We would not expect to see insiders owning a large percentage of a US$119b company like Accenture. But we do take comfort from the fact that they are investors in the company. Notably, they have an enormous stake in the company, worth US$233m. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions!
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I'd say they are indeed. For companies with market capitalizations over US$8.0b, like Accenture, the median CEO pay is around US$11m.
The Accenture CEO received US$6.7m in compensation for the year ending August 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. 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 a culture of integrity, in a broader sense.
One important encouraging feature of Accenture is that it is growing profits. Earnings growth might be the main game for Accenture, but the fun doesnotstop there. Boasting both modest CEO pay and considerable insider ownership, I'd argue this one is worthy of the watchlist, at least. If you think Accenture might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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On the set of Spider-Man: Far From Home: EW exclusive
It’s August in Italy, and Venice looks like a postcard. Market stalls and small cafés line cobblestone streets; flowers spill over wrought-iron balconies; a young bride and groom embrace by a tranquil canal. And then it hits: a seismic blast of malevolent, man-shaped water, sweeping the newlyweds off their feet like the world’s worst-conceived Six Flags ride. But who’s that swooping in to save the day? He doesn’t seem like a superhero — he’s not even wearing spandex — though he does look a lot like Tom Holland . Just over six weeks into the Spider-Man: Far From Hom e shoot, the 23-year-old British actor is actually not far at all: The “canal” is a massive water tank located at a film studio just outside his London hometown, it’s two million-plus gallons tinted a fitting Venetian blue. But his Peter Parker, the kid from Queens–turned–arachnid-blessed enforcer, is a stranger in a strange land, and he’s not having the trip he planned. “The film picks up on the last day of school,” Holland explains later in his trailer. “Peter and his friends go on a summer vacation to Europe, and it’s time for him to sort of hang up the Spider-Man suit and take a break. He’s very tired from recent events that have been going on in the MCU, as I’m sure you’re aware, and he basically just wants to go on vacation. That vacation is hijacked by [Samuel L. Jackson’s S.H.I.E.L.D. agent] Nick Fury, and it all goes terribly wrong.” Wrong can be right, of course — for narrative tension, if not for a teen still mourning the loss of his beloved mentor, Tony Stark, and merely hoping he’ll finally get to kiss the girl. (“I didn’t get very lucky in the last movie, because my girlfriend’s dad was a supervillain,” Holland cracks of Michael Keaton’s Vulture. “He was Birdman and Batman all in one.”) This time he’ll have to deal with another, albeit more mortal rival: “We’re introducing a new character named Brad,” says executive producer Eric Carroll, “And he’s the sort of dude that guys like Peter and I didn’t like in high school, because their hair was always perfect, they’re always in better shape, they read all the same books as the girl — or he’s lying about reading all the same books as her, who knows,” he laughs. “But either way, when you’re the boy who likes that girl, you hate to see her laughing at jokes he’s telling.” Story continues “We’re also bringing back Martin Starr as the hapless Mr. Harringon,” he continues. “And J.B. Smoove as Mr. Dell, who are hilarious together and constitute what is, like, the worst chaperone team of all time. And we’re giving Ned a girlfriend for the first time. He and Peter were going to be bachelors in Europe, but now Peter is hoping to get Zendaya — or MJ, as we’re calling her now.” Zendaya , 22, who returns as Peter’s wry love interest MJ, was excited to go deeper too: “I kind of always knew she was going to start out small and interesting,” she says. “But the cool part is that Peter likes her for all of her quirks and the weird things she’s into. I didn’t want her to go through some glamorous change and now people care about her.” Neither did director Jon Watts ( Spider-Man: Homecoming ), who provided his young cast with a syllabus of offbeat ’80s and ’90s pop culture references — including, for her specifically, the bone-dry delivery and brutal honesty of MTV’s Daria . Together they worked hard, she says, to make sure her character “never feels damsel-y.” Which doesn’t mean MJ might not need to be rescued. The kids have hardly unpacked their bags in Italy before the towering water monster rears its ugly anthropomorphized head, wreaking havoc in the Renaissance city. “It’s like Peter and his friends think they’re going off on this teen road-trip movie across Europe,” says Carroll, “but that movie keeps getting interrupted by the spy movie or the superhero movie that got taped over it. So Peter keeps getting pulled in these two directions, because he just wants to hang out with his friends and spend time with MJ, and Fury’s like ‘Man, I need help. I can’t get ahold of anyone else so I’m sorry, we gotta do this.'” Columbia Pictures This time, though, Peter has help, in the form of Jake Gyllenhaal’s Mysterio. Brought on by Nick Fury in the wake of Avengers: Endgame ’s five-year Snap — here, it’s called “the Blip” — Mysterio seems like the perfect father figure: thoughtful, bearded, sympathetic to young Peter’s plight. Plus he’s got cool superpowers and an even cooler look: somewhere between red-caped gladiator and reptilian Tron . (According to the film’s wardrobe department, Gyllenhaal had five Mysterio costumes made for production and Holland approximately 30 Spideys; none, for the record, is remotely conducive to bathroom breaks.) For Peter, there’s also a new, more incognito “stealth suit” designed by Ryan Meinerding, who visualizes many of the most iconic characters in the MCU — a sleekly minimalist look Carroll describes as “more like something Hawkeye or Black Widow would wear.” When it came to the man inside the Mysterio suit, Watt and Co. were happy to let Gyllenhaal bring his own ideas to the table. “Jake wanted this guy to come in with a backstory,” Carroll says. “And when s— gets heavy, he plays with it. He’s obviously a great actor, and this is the kind of stuff that really informs him.” (It’s hard to miss in an early scene, for example, that he’s wearing a wedding ring.) As conflicted as Parker and Mysterio’s relationship may turn out to be, Holland says it was important to showcase Peter as a regular teenager still looking for guidance. “Mysterio in the comics is a huge villain and one of his most notorious foes, but he is actually in this film a teammate…. We live in a climate where there are so many superhero movies made every year, so it’s nice to have one about a 16-year-old kid who’s given these responsibilities that mostly only grownups have, and see how he deals with it.” Without too many spoilers, it’s safe to say that Peter won’t make it Home quite as innocent as he set out — especially after the game-changing reveal of the first post-credits scene. But whatever comes next, Holland is ready. “I’ll do 26 of these movies if they ask me. I get to travel the world, I get to play a character that I’ve grown up loving my whole life. So if they want me doing this until I’m Hugh Jackman’s age,” he adds with a laugh, “then I will be.” Related content: ‘Home’ boys: How Tom Holland and Jake Gyllenhaal forged their Spider-Man friendship EW digital cover: Tom Holland and Jake Gyllenhaal in Spider-Man: Far From Home Spider-Man: Far From Home stars sling a pose for EW’s cover shoot Watch Tom Holland and Jake Gyllenhaal compliment each other over and over during EW’s digital cover shoot
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Blockchain Solution for FATF ‘Travel Rule’ to Keep User Data Private
Blockchain sleuthing firm CipherTrace is to launch a solution aimed to help cryptocurrency firms meet tough new rules recently recommended by the Financial Action Task Force (FATF), an international money-laundering watchdog.
CipherTrace is teaming up with Shyft, a firm developing blockchain-based identity and attestation platform, on the initiative, which the firms say is planned to enable compliance with the FATF “Travel Rule,” while still maintaining user privacy.
Specifically, according to an announcement Tuesday, the firms will build know-your-customer (KYC) and anti-money laundering (AML) ecosystem “in which participating exchanges can securely transfer Proof of Knowledge without disclosing personally identifying information.”
Related:Bridging the Gap Between Bitcoin and Global Regulators
FATFannouncedin late June that it had finalized its recommendations on regulating cryptocurrencies for its 37 member countries.
The new standards included acontroversialrequirement that “virtual asset service providers,” including crypto exchanges, pass information about their customers to one another when transferring funds between firms. FATF gave member countries 12 months to adopt the guidelines, with a review set for June 2020.
Currently, crypto exchanges lack a compliant way to share KYC data or alert other firms over suspicious activity, according to the release.
To address that shortfall, CipherTrace and Shyft will launch a pilot program to develop a “shared smart-contract and cryptographic access controls” allowing cryptocurrency exchanges to manage access to users’ private details.
Related:Singapore’s Central Bank Wants More Information on Facebook’s Libra Crypto
The ultimate aim is to make KYC and AML “faster, more efficient and open,” while maintaining a “high level of privacy.” The solution would only reveal identity information when “compelled to do so by legal authorities,” the firms said.
CipherTrace CEO Dave Jevans said:
“With cryptographically controlled privacy mechanisms, it is possible to have both anonymity and responsible disclosure of the source of funds for legitimate purposes such as criminal or terrorist investigations and AML compliance. This is the direction that CipherTrace is working on for the future growth of cryptocurrencies globally. We believe that there are technological and regulatory solutions that can preserve privacy while enabling security and compliance.”
Paper peopleimage via Shutterstock
• Another Indian Crypto Exchange Shuts Down Blaming Banking Ban
• Chainalysis Hires FinCEN Vet to Tackle Crypto’s New ‘Travel Rule’ Challenge
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Why Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft's (FRA:MUV2) High P/E Ratio Isn't Necessarily A Bad Thing
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). To keep it practical, we'll show how Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft's (FRA:MUV2) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,Münchener Rückversicherungs-Gesellschaft has a P/E ratio of 15.54. That is equivalent to an earnings yield of about 6.4%.
Check out our latest analysis for Münchener Rückversicherungs-Gesellschaft
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Münchener Rückversicherungs-Gesellschaft:
P/E of 15.54 = €223.1 ÷ €14.35 (Based on the year to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't 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. A higher P/E should indicate the stock is expensive relative to others -- and that may encourage shareholders to sell.
Münchener Rückversicherungs-Gesellschaft's earnings made like a rocket, taking off 239% last year. Unfortunately, earnings per share are down 4.8% a year, over 5 years.
The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that Münchener Rückversicherungs-Gesellschaft has a higher P/E than the average (13.3) P/E for companies in the insurance industry.
Its relatively high P/E ratio indicates that Münchener Rückversicherungs-Gesellschaft shareholders think it will perform better than other companies in its industry classification. Clearly the market expects growth, but it isn't guaranteed. So further research is always essential. I often monitordirector buying and selling.
Don't forget that the P/E ratio considers market capitalization. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such 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.
Münchener Rückversicherungs-Gesellschaft has net cash of €1.4b. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options.
Münchener Rückversicherungs-Gesellschaft's P/E is 15.5 which is below average (20.3) in the DE market. The net cash position gives plenty of options to the business, and the recent improvement in EPS is good to see. The below average P/E ratio suggests that market participants don't believe the strong growth will continue. Given analysts are expecting further growth, one I would have expected a higher P/E ratio.So this stock may well be worth further research.
When the market is wrong about a stock, it gives savvy investors an opportunity. 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.
You might be able to find a better buy than Münchener Rückversicherungs-Gesellschaft. 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.
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Bank OZK (OZK) Announces 4.35% Dividend Hike: Worth a Look?
As always, Bank OZK OZK has announced an increase in its regular quarterly cash dividend. The company has approved a dividend of 24 cents per share, representing 4.35% rise from the prior payout. The dividend will be paid on Jul 19 to shareholders on record as of Jul 12, 2019. This marks the 36th consecutive quarter of dividend hike by the company. Based on this, Bank OZK’s dividend yield stands at 3.22%, considering last day’s closing price of $29.84. Not only the yield is attractive for income investors, it also represents a steady stream of income. While the stock looks attractive based on the regular rise in dividend income, one must take a look at Bank OZK’s fundamentals and financial performance before taking any investment decision. Bank OZK has grown substantially through de novo branching strategy and inorganically. Over the last five years (2014-2018), the company’s revenues witnessed a CAGR of 29.5%. Given its strong balance-sheet position, the bank is expected to keep expanding through acquisitions. It also plans to open additional branches in new and existing markets. Further, over the last three-five years, the company witnessed earnings per share growth of 21.6%. Additionally, it is expected to deliver strong earnings performance as indicated by its projected earnings growth of 7.7% and 2.7% for 2019 and 2020, respectively. Bank OZK displays strong financial leverage. Its debt/equity ratio of 0.09 compares favorably with the industry average of 0.40, indicating a lower debt burden relative to the industry. Furthermore, Bank OZK looks undervalued based on price-to-earnings (P/E) and price-to-book (P/B) ratios. The company currently has a P/E ratio of 8.55 and P/B ratio of 1.00, which are below the industry average of 11.78 and 1.2, respectively. Also, the stock has a Value Score of B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential. Moreover, Bank OZK’s trailing 12-month return on equity (ROE) reflects its superiority in terms of utilizing shareholders’ fund. The company’s ROE of 11.11% compares favorably with 10.16% for the industry. Based on the above-mentioned factors, the stock seems worth investing in, but one must look in to the following downsides before taking the final decision. Bank OZK’s net interest margin continues to remain under pressure despite rise in interest rates. Reduction of the high yielding purchased loans portfolio is one of the main reasons for margin pressure. Furthermore, it is making adjustments in investment securities portfolios leading to lower yields. Thus, the trend will likely persist in the near term. Also, mounting non-interest expenses pose a concern for the company. Over the last five years (2014-2018), expenses witnessed a CAGR of 23.1%. As the company continues to expand inorganically and open branches in newer areas, overall expenses are expected to remain elevated. Moreover, Bank OZK’s price performance is quite disappointing. Its shares have plunged 34.1% in the past year compared with the decline of 11.8% for the industry it belongs to. Story continues Our Take Just because Bank OZK has announced a dividend hike, it will not be wise to bet on the stock right away. Pressure on margins and rising expenses make us apprehensive about its prospects. In addition, its Zacks Consensus Estimate for 2019 earnings has remained unchanged in the past 60 days. Further, the stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . Some other finance stocks which raised their dividends during the past three months include Lazard Ltd. LAZ, Main Street Capital Corporation MAIN and First Midwest Bancorp FMBI. Lazard raised its quarterly dividend by 7%, while First Midwest Bancorp increased by 17%. Main Street Capital has also announced a 2.5% rise in its common stock dividend. 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 report First Midwest Bancorp, Inc. (FMBI) : Free Stock Analysis Report Lazard Ltd (LAZ) : Free Stock Analysis Report Main Street Capital Corporation (MAIN) : Free Stock Analysis Report Bank OZK (OZK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Does Kennametal Inc. (NYSE:KMT) Have A Good P/E Ratio?
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical, we'll show how Kennametal Inc.'s (NYSE:KMT) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,Kennametal has a P/E ratio of 11.98. That corresponds to an earnings yield of approximately 8.3%.
Check out our latest analysis for Kennametal
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Kennametal:
P/E of 11.98 = $36.23 ÷ $3.02 (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 a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up.
Kennametal's earnings made like a rocket, taking off 57% last year.
The P/E ratio indicates whether the market has higher or lower expectations of a company. If you look at the image below, you can see Kennametal has a lower P/E than the average (21.8) in the machinery industry classification.
Its relatively low P/E ratio indicates that Kennametal shareholders think it will struggle to do as well as other companies in its industry classification. Many investors like to buy stocks when the market is pessimistic about their prospects. 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.
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.
Kennametal's net debt is 16% of its market cap. This could bring some additional risk, and reduce the number of investment options for management; worth remembering if you compare its P/E to businesses without debt.
Kennametal's P/E is 12 which is below average (18.2) in the US market. The company does have a little debt, and EPS growth was good last year. The low P/E ratio suggests current market expectations are muted, implying these levels of growth will not continue.
Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
You might be able to find a better buy than Kennametal. 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.
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Why Coca-Cola will launch a global attack on energy drink king Red Bull
Can’t blame Cola-Cola (KO) for what it’s very likely to do next: declare war on the old guard down the energy drink section.
The soda giant logged an arbitration case win this week against energy drink king — and frenemy — Monster Beverage. Coca-Cola has battled Monster — which it has a more than 16% stake in — since 2018 as the latter said Coca-Cola selling an energy drink in the U.S. would violate its agreement.
With that win in the books, many around Wall Street expect Coke to bring Coke Energy to the U.S. soon. Coke Energy — an energy drink with a tame 80 milligrams of caffeine inside a slim Red Bull-like can —launched in select European markets and Australia earlier this year. Consumer response has been positive, says veteran Wells Fargo beverage analyst Bonnie Herzog after a recent meeting with Coke management. Herzog adds Coke Energy has quickly gained “significant” shelf space in Europe.
Both early takeaways suggest Coke could make a fast headway in the U.S. market for energy drinks.
“While we think it’s possible that Coca-Cola Energy cannibalizes some of Coke’s existing lineup, we think the opportunity to gain share in an entirely new category is too good of an opportunity for Coke to forego, and we ultimately expect sales of Coca-Cola Energy to be accretive to Coke’s total beverage share in Europe and beyond,” Herzog says.
A Coca-Cola spokesperson tells Yahoo Finance that plans for Coke Energy will be shared in the future.
“Overall, Coca-Cola Energy is a new energy product under the Coca-Cola brand and is more closely associated with classic Coke. We see Coke Energy as an addition to the category for a different energy drink audience,” the spokesperson says.
Indeed it makes sense for Coca-Cola to go after the energy drink market as it continues to see impressive growth. And hey, it’s just a big market with a lot of consumer interest that could easily support another entrant.
Energy drink sales for the 52-weeks ended May 25 topped $11.8 billion, up 8.9% year-over-year, according to Nielsen.
Clearly, Coke is all-in on caffeine in 2019. Coke said on its first quarter earnings call it’s expanding its test of coffee-infused soda to 25 markets this year. The company debuted Coke ‘Plus Cafe Espresso’ in Southeast Asia in 2018.
A Coke spokesman told Yahoo Finance at the time there are no plans to debut Coke Coffee in the U.S. But it will likely be here before you know it.
Coke is also poised to release ready-to-drink coffee products under the Costa brand shortly. No launch markets were shared.
CEO James Quincey said these more caffeinated coffee products — along with the new Coke Energy — take aim at people looking for a “pick me up” in the afternoon.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi
Read the latest financial and business news from Yahoo Finance
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Here's My Top Dividend Stock to Buy in July
Buried in the news about banks getting approved for dividend increases last week was another notable dividend hike that income investors may have missed. Supermarket grocerKroger(NYSE: KR)announced a nice double-digit increase to its payout. The dividend increase gives Kroger a dividend that's well ahead of the average dividend yield of stocks in theS&P 500.
Here's a close look at Kroger's most recent dividend increase, the company's prospects for further dividend growth in the coming years, and why income investors may want to buy shares.
Image source: Getty Images.
Kroger is increasing its dividend by 14%, the company said in a press release last Thursday. This means Kroger's quarterly dividend is increasing from $0.14 to $0.16, or $0.64 annually. The dividend will first be paid out on Sept. 1, 2019, to shareholders of record as of close of business on Aug. 15, 2019.
"Kroger's 14 percent dividend increase underscores our Board of Director's confidence in the momentum we are building in the second year ofRestock Krogerand our ability to deliver strong free cash flow," said Kroger CEO Rodney McMullen in the press release.
This higher dividend gives Kroger a meaningful dividend yield of 3%, easily beating the average dividend yield of stocks in the S&P 500 of 1.9%.
While a substantial dividend yield is nice for investors looking for income, investors want dividend growth, too. Fortunately, Kroger shines in that regard.
Showing how management prioritizes dividend growth, the company's dividend has increased at an average annual rate of 13% since the dividend was reinstated in 2006. In addition, the company has raised its dividend for 13 years straight.
If this dividend history isn't enough to demonstrate management's prioritization of dividend growth, consider that management explicitly stated in its press release about its dividend increase that it expects its payout to continue increasing over time.
In addition, Kroger's underlying business looks poised to easily support dividend growth. For instance, the company brought in an impressive $954 million infree cash flow(cash from operations less capital expenditures) in trailing 12 months, yet it paid out just $440 million in dividends. This means Kroger has plenty of wiggle room for its dividend, protecting it during a downturn and increasing the odds of substantial dividend increases in the coming years.
Perhaps the biggest downside to Kroger's dividend is the company's slow growth. Sales only increased 2% in Kroger's most recent quarter when adjusted to exclude fuel sales and the impact of selling its convenience store business unit. In addition, the company's non-GAAP(adjusted) earnings per share decreased slightly from $0.73 to $0.72 during the same period.
But investors should note that same-store sales are on the rise, increasing 1.5% in the first quarter of 2019. In addition, digital sales were up 42% year over year, highlighting the momentum of the company's Restock Kroger transformation plan. Further, Kroger expects full-year 2019 same-store sales to rise 2% to 2.5%. Pairing these metrics with the company's meaty dividend, Kroger looks like a solid bet for income investors.
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Daniel Sparkshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
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Amazon to Add Jobs in France as Part of Expansion Plans
Amazon.com Inc. AMZN recently announced plans of hiring new positions in France this year. The company will add 1,800 permanent contract jobs in France to meet the increasing demand for products, thereby further expanding footprint in Europe. These new additions will bring the total workforce of the country to approximately 9,300 by 2019-end. The latest move aligns with Amazon’s motto of providing better services to customers, accommodating rapid growth and leveraging the area’s diverse high-technology talent pool. Coming to price performance, the company has outperformed the industry it belongs to on a 12-month basis. The company’s shares have gained 11.9% against the industry’s decline of 8.1% in the said period. Expansion in France Continues Over the past few years, the Seattle e-commerce giant Amazon has invested more than 2 billion euros ($2.26 billion) in France. France remains Amazon’s largest European market after Britain and Germany. The company already has 20 sites in the country, including six logistics centers. The most recent facility, located in Bretigny-Sur-Orge near Paris, is expected to be operational this summer. In a bid to expand the food retail business, it plans to launch a grocery delivery service in France. In this regard, Amazon expanded partnership with French food retailer Casino this April. It installed pick-up lockers in Casino stores across France and ensured the availability of Casino-branded products, in turn expanding the grocery business in the European Union. The latest step to recruit more personnel in France clearly demonstrates that Amazon is focused on expanding operations in the country and delivering enhanced services to more customers. Consequently, the company is likely to achieve growth targets going forward. Amazon.com, Inc. Price and Consensus Amazon.com, Inc. Price and Consensus Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote Bottom Line France is witnessing rapid adoption of e-commerce technology. This is a key catalyst for the booming e-commerce market. Per a report from Statista, France is expected to generate revenues worth $49.9 billion in 2019. Story continues Further, the report suggests that revenues are anticipated to hit $67.2 billion by 2023, witnessing a CAGR of 7.7% between 2019 and 2023. For 2019, user penetration in the market is projected at 77.4% and is likely to reach 84.7% by 2023. Amazon believes that France’s solid economic potential and a strong technological outlook will act as a perfect springboard for future growth. The IT major’s profound expertise in providing financial services and other technological solutions aptly complement France’s journey toward digital transformation. In a bid to maintain supremacy, Amazon has been expanding on a global basis. The company is investing more in fulfillment, technology and content. Although increased expenses could hurt the bottom line in the near term, we believe that these measures are necessary to maintain its dominance in this highly competitive market. Zacks Rank and Stocks to Consider Currently, Amazon carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Autohome Inc. ATHM, Match Group, Inc. MTCH and Marchex, Inc. MCHX, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Long-term earnings growth for Autohome, Match Group and Marchex is currently projected at 20.9%, 15.2% and 15%, respectively. 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 report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Marchex, Inc. (MCHX) : Free Stock Analysis Report Autohome Inc. (ATHM) : Free Stock Analysis Report Match Group, Inc. (MTCH) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Does KB Home (NYSE:KBH) Create Value For Shareholders?
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand KB Home (NYSE:KBH).
KB Home has a ROE of 12%, based on the last twelve months. That means that for every $1 worth of shareholders' equity, it generated $0.12 in profit.
Check out our latest analysis for KB Home
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for KB Home:
12% = US$261m ÷ US$2.2b (Based on the trailing twelve months to May 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 measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. 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.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. The image below shows that KB Home has an ROE that is roughly in line with the Consumer Durables industry average (12%).
That's not overly surprising. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. I will like KB Home 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 issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
KB Home has a debt to equity ratio of 0.84, which is far from excessive. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So 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.
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Here's What IEC Electronics Corp.'s (NYSEMKT:IEC) P/E Ratio Is Telling Us
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to IEC Electronics Corp.'s (NYSEMKT:IEC), to help you decide if the stock is worth further research.IEC Electronics has a P/E ratio of 5.8, based on the last twelve months. That means that at current prices, buyers pay $5.8 for every $1 in trailing yearly profits.
See our latest analysis for IEC Electronics
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for IEC Electronics:
P/E of 5.8 = $6.2 ÷ $1.07 (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 a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means even if the current P/E is high, it will reduce over time if the share price stays flat. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings.
In the last year, IEC Electronics grew EPS like Taylor Swift grew her fan base back in 2010; the 320% gain was both fast and well deserved. Even better, EPS is up 37% per year over three years. So you might say it really deserves to have an above-average P/E ratio.
The P/E ratio essentially measures market expectations of a company. The image below shows that IEC Electronics has a lower P/E than the average (18.7) P/E for companies in the electronic industry.
This suggests that market participants think IEC Electronics will underperform other companies in its industry. Since the market seems unimpressed with IEC Electronics, it's quite possible it could surprise on the upside. You should delve deeper. I like to checkif company insiders have been buying or selling.
Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
Such 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.
IEC Electronics's net debt is 54% of its market cap. If you want to compare its P/E ratio to other companies, you should absolutely keep in mind it has significant borrowings.
IEC Electronics trades on a P/E ratio of 5.8, which is below the US market average of 18.2. The company has a meaningful amount of debt on the balance sheet, but that should not eclipse the solid earnings growth. The low P/E ratio suggests current market expectations are muted, implying these levels of growth will not continue.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
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.
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Is Jabil Inc.'s (NYSE:JBL) CEO Salary Justified?
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Mark Mondello became the CEO of Jabil Inc. (NYSE:JBL) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Jabil
According to our data, Jabil Inc. has a market capitalization of US$4.9b, and pays its CEO total annual compensation worth US$11m. (This number is for the twelve months until August 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.9m.
As you can see, Mark Mondello is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Jabil Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Jabil, below.
On average over the last three years, Jabil Inc. has shrunk earnings per share by 12% each year (measured with a line of best fit). Its revenue is up 15% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested inthisfreevisualization of analyst forecasts.
Boasting a total shareholder return of 78% over three years, Jabil Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Jabil Inc. 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
However, we can't argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Jabil (free visualization of insider trades).
If you want to buy a stock that is better than Jabil, 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.
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How Many Parex Resources Inc. (TSE:PXT) Shares Do Institutions Own?
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Every investor in Parex Resources Inc. (TSE:PXT) 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 have been privatized tend to have low insider ownership.
Parex Resources isn't enormous, but it's not particularly small either. It has a market capitalization of CA$3.1b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about PXT.
Check out our latest analysis for Parex Resources
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 40% of Parex Resources. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Parex Resources, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Parex Resources. There is some analyst coverage of the stock, but it could still become more well known, with time.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Parex Resources Inc.. The insiders have a meaningful stake worth CA$84m. Most would see this as a real positive. 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, who are mostly retail investors, collectively hold 56% of Parex Resources shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
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.
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UPDATE 1-Lebanon PM postpones cabinet meeting after shooting
(Adds background on incident)
BEIRUT, July 2 (Reuters) - Lebanon's Prime Minister Saad al-Hariri decided on Monday to postpone a cabinet meeting for 48 hours to allow tensions to ease after two aides of a government minister were killed in a shooting on Sunday.
In televised comments, Hariri said the judiciary would take all steps to hold accountable those behind the shooting which the minister, Saleh al-Gharib, has called an attempted assassination.
"I agreed to head a national unity government, not a national disagreement government. We need 48 hours to clear the air so I decided to postpone the meeting," Hariri said.
The incident in the Aley region spiralled as supporters of Walid Jumblatt, Lebanon's main Druze leader, protested against a planned visit to the area by Foreign Minister Gebran Bassil, a Maronite Christian and Jumblatt adversary aligned with Gharib.
Bassil ultimately cancelled the visit, saying he wanted to avoid any security problem.
Jumblatt's Progressive Socialist Party (PSP) has accused Gharib's bodyguards of opening fire. Gharib in turn has said he was targeted by an "armed ambush".
The incident has inflamed tensions between Jumblatt's party and his historic Druze rival Talal Arslan, a pro-Damascus politician who backs Gharib and is also aligned with Bassil.
Jumblatt's party has two ministries in Hariri's coalition government and tussled with Arslan over the third cabinet post reserved for the Druze sect, which ultimately went to Gharib.
Lebanon's coalition was formed in late January after months of negotiations and is trying to pass a state budget and other economic reforms to address the country's heavy public debt and get the economy moving again. (Reporting by Ellen Francis and Angus McDowall, Editing by Tom Perry and Catherine Evans)
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UK's Boris Johnson: I am like a lightsaber-wielding Jedi Knight
BELFAST, July 2 (Reuters) - Boris Johnson, the favourite to become Britain's next prime minister, said he identified closely with the Jedi Knights - the lightsaber-wielding mythical warrior monks of the Star Wars movies.
"Star Wars - I'll tell you what - I identify very much with the guy with the lightsaber - the Jedi Knights," Johnson said when asked who his favourite character was in the films.
"I am proud to say the lightsaber is manufactured, was invented in South Ruislip - the constituency I represent," he added.
"I have a lightsaber in my office in Westminster - it is a most beautiful thing which was presented to my by no less a figure than Christopher Lee," he said. Lee played Count Dooku in Star Wars.
"We invented the lightsaber in Uxbridge, it is wielded in Northern Ireland, the resulting film is shown around the world ... or something like that," Johnson added.
The Jedi were an ancient order whose knights were guardians of peace and order in the Star Wars galaxy. Among them were Anakin Skywalker - who turned to the dark side as Darth Vader - and his son, Luke Skywalker. (Writing by Guy Faulconbridge; editing by Stephen Addison)
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Namaste’s Online Marketplace to Launch True Leaf’s Hemp Products for Pets
NamasteTechnologies (TSXV:N) (FRANKFURT:M5BQ) (OTCMKTS:NXTTF)has signed a supply and purchase agreement withTrue Leaf Brands (OTCQX:TRLFF) (CSE:MJ) (DEUTSCHE BORSE:TLA).
Under the agreement with True Leaf, Namaste will market and distribute a line of hemp-based supplements for pets through its online marketplace, CannMart.com.
“We’re building a technologically exciting marketplace for the adult-use cannabis market where we can reimagine the experience and product offering available to both our customers and vendors,” Meni Morim, interim CEO at Namaste, stated.
The companies have jointly agreed to donate 10 percent of all profits generated from the first month of sales to help local animal rescue shelters.
CannMart.com is expected to launch the True Leaf products in the third quarter of 2019.
“Namaste Technologies and its online direct-to-consumer platforms allow us to reach cannabis customers worldwide who are looking for safe, legal, and effective alternatives for their pets,” True Leaf CEO Darcy Bomford stated. “Our line of hemp-seed based pet supplements is a great way to introduce Namaste’s customers to the health benefits of hemp for pets. We also look forward to soon offering a line of CBD products for pets in Canada and abroad, pending regulatory approval.”
Namaste is a cannabis e-commerce. Founded in 2005 by Sean Dollinger and Kory Zelickson, the company is now known as the Amazon of cannabis.
The company uses artificial intelligence to assist patients and customers, and conducts business selling vaporizers and smoking paraphernalia in 20+ countries with 30+ websites and currently has over 1.5 million global customers, according to Wikipedia.
Namaste integrated telemedicine application, NamasteMD.com, connects medical clients with health care practitioners to more readily issue and renew cannabis prescriptions online. Featuring the first Canadian medical sales-only license, the company’s own CannMart.com which is your ‘everything cannabis store’.
The company’s artificial intelligence engine incorporated in its platforms and related Uppy App is designed to identify the right product and pairing to address specific medical cannabis requirements.
The postNamaste’s Online Marketplace to Launch True Leaf’s Hemp Products for Petsappeared first onMarket Exclusive.
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Blockchain startups raised $822 million combined in H1 2019
Blockchain startups have raised a total of $822 million during the first half of this year, according to a report from venture capital firm Outlier Ventures.
The firm published its State of Blockchains Q2 report on Monday, saying that the amount was raised from 279 separate venture capital deals. Out of those 279, 159 deals were seed stage ones. “This indicates that entrepreneurial zeal in the ecosystem has not declined in spite of the bear market.”
Outlier further said that enterprises are no longer building proofs of concepts, but are rather launching fully developed open-source projects. For instance, EY, JP Morgan and Target have each released open-source code over the past six months, it said.
“Compared to the outsized performance of the 2018 bull market, large venture capital raises within the blockchain space have diminished in frequency," said Lawrence Lundy-Bryan, partner and research head at Outlier Ventures. "However, cryptocurrency exchanges despite increased regulatory activity continue to be a strong favourite for investors - Bithumb exchange alone raised $200 million."
Lundy-Bryan added that another macro-trend Outlier is witnessing is direct investments into protocols in exchange for both tokens and equity. "Exchange Listings in the form of Initial Exchange Offerings (IEOs) have begun capturing public attention over the first half of this year. They are a resurgence of the ICO model, with exchanges offering immediate liquidity to digital asset holders through a listing,” he said.
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At US$95.26, Is PVH Corp. (NYSE:PVH) Worth Looking At Closely?
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PVH Corp. (NYSE:PVH), which is in the luxury business, and is based in United States, 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, what if the stock is still a bargain? Today I will analyse the most recent data on PVH’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for PVH
According to my valuation model, PVH seems to be fairly priced at around 12% below my intrinsic value, which means if you buy PVH today, you’d be paying a fair price for it. And if you believe that the stock is really worth $108.1, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since PVH’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 37% over the next couple of years, the future seems bright for PVH. 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?PVH’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 PVH, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth 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 PVH. You can find everything you need to know about PVH inthe latest infographic research report. If you are no longer interested in PVH, 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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5 Top Manufacturing Stocks to Buy Despite Soft Growth in June
The U.S. manufacturing sector maintained its growth in June albeit at a slow pace. Despite facing prolonged trade conflict with China, the largest trading partner of the country, and slowdown in global economy, the U.S. manufacturing sector managed to expand for 122 consecutive months.Mixed ISM Manufacturing Data for JuneOn Jul 1, the Institute of Supply Management (ISM) reported that its index for U.S. manufacturing sector in June came in at 51.7. Although the reading fell below May’s reading of 52.1, it was better than the consensus estimate of 51.3. Notably, 12 out of the total 18 industries reported growth. Any reading above 50 indicates expansion of manufacturing activities.On the positive side, the manufacturing employment index rose to 54.5 in June from 53.7 in May, indicating strong hiring by U.S. manufacturers. This reflects business confidence on the part of manufacturers despite lingering trade conflict with China, global economic slowdown and a rising U.S. dollar.On the other hand, the new orders index declined to 50 from 52.7 in the prior month, raising questions on for future momentum. Moreover, the price paid by manufacturers dropped significantly to 47.9 in June from 53.2 in May, implying that inflation may remain muted in the near future.U.S. Manufacturing Sector Still Best GloballyIn a separate study, IHS Markit reported that U.S. manufacturing PMI rose 50.6 in June from 50.1 in May. This is a significant achievement given the fact that trade negotiations between the United States and China broke down abruptly in early May.According to a report jointly developed by Caixin Media Co. and IHS-Markit, China’s manufacturing sector index fell to 49.4 in June from 50.2 in May. Furthermore, as per the National Bureau of Statistics of China, manufacturing PMI declined to 49.4 in June.The IHS Markit Eurozone Manufacturing PMI came in at 47.6 in June 2019, slightly below the prior month’s estimate of 47.7. Within Eurozone, Germany continued to witness the biggest deterioration in manufacturing activities. Germany’s manufacturing PMI in June was just at 45. Moreover, the U.K.’s manufacturing PMI decreased to 48 from 49.4 in the prior month.Therefore, it is clear that despite the slowdown in growth, the U.S. manufacturing sector is still the best globally. In addition, strong industrial production and core durable goods data of the United States in May also supports this view.
Likely Rate Cut by Fed to Boost U.S. ManufacturingOn Jun 25, in comments at the Council of Foreign Relations, Fed chairman Jerome Powell reiterated his dovish monetary stance declared in June FOMC minutes. Powell said that the downside risks to the U.S. economy have increased. Consequently, a growing number of Fed policymakers are looking for a rate cut.Despite several policy tools applied by the Fed, inflation remains muted in 2019. PCE inflation declined to 1.5% in May from 1.6% in April. Core PCE inflation –- the Fed’s favorite inflation gauge – rose 1.6%, well below the central bank’s target rate of 2%.Personal spending increased 0.4% in May compared with the revised estimate of an increase of 0.6% in April. Moreover, the ISM manufacturing price index suffered a significant drop in June.All these parameters indicate a possible rate cut by the Fed in July in order to sustain U.S. economic expansion. A drop in interest rate will reduce the cost of funds thereby boosting investments in the manufacturing sector.Our Top PicksConsidering the above-mentioned factors, we narrowed down our search to five manufacturing stocks with a strong growth potential. Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.The chart below shows price performance of our five picks in the past six months.
Universal Display Corp.OLED engages in the research, development and commercialization of organic light emitting diode technologies and materials for use in flat panel displays and solid-state lighting applications. The company has an expected earnings growth rate of 96.8% for the current year. The Zacks Consensus Estimate for the current year has improved 20.2% over the last 60 days.Hubbell Inc.HUBB designs, manufactures, and sells electrical and electronic products in the United States and internationally. The company has an expected earnings growth rate of 11.3% for the current year. The Zacks Consensus Estimate for the current year has improved 0.2% over the last 60 days.Issuer Direct Corp.ISDR helps companies produce and distribute their financial and business communications both online and in print. The company has an expected earnings growth rate of 19.3% for the current year. The Zacks Consensus Estimate for the current year has improved 3% over the last 60 days.OSI Systems Inc.OSIS is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, and defense and aerospace industries. The company has an expected earnings growth rate of 16.9% for the current year. The Zacks Consensus Estimate for the current year has improved 0.2% over the last 60 days.Axalta Coating Systems Ltd.AXTA manufactures, markets, and distributes high performance coatings systems. It operates in two segments, Performance Coatings and Transportation Coatings. The company has an expected earnings growth rate of 35.2% for the current year. The Zacks Consensus Estimate for the current year has improved 0.6% over the last 60 days.This Could Be the Fastest Way to Grow Wealth in 2019Research 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 reportAxalta Coating Systems Ltd. (AXTA) : Free Stock Analysis ReportOSI Systems, Inc. (OSIS) : Free Stock Analysis ReportUniversal Display Corporation (OLED) : Free Stock Analysis ReportHubbell Inc (HUBB) : Free Stock Analysis ReportIssuer Direct Corporation (ISDR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Here's How P/E Ratios Can Help Us Understand Pizza Pizza Royalty Corp. (TSE:PZA)
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The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll look at Pizza Pizza Royalty Corp.'s (TSE:PZA) P/E ratio and reflect on what it tells us about the company's share price.Pizza Pizza Royalty has a price to earnings ratio of 11.85, based on the last twelve months. That means that at current prices, buyers pay CA$11.85 for every CA$1 in trailing yearly profits.
Check out our latest analysis for Pizza Pizza Royalty
Theformula for price to earningsis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Pizza Pizza Royalty:
P/E of 11.85 = CA$9.99 ÷ CA$0.84 (Based on the year to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each CA$1 of company earnings. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
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. That means even if the current P/E is high, it will reduce over time if the share price stays flat. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Pizza Pizza Royalty saw earnings per share decrease by 2.8% last year.
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 (17) for companies in the hospitality industry is higher than Pizza Pizza Royalty's P/E.
This suggests that market participants think Pizza Pizza Royalty will underperform other companies in its industry. Many investors like to buy stocks when the market is pessimistic about their prospects. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. So it won't reflect the advantage of cash, or disadvantage of debt. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such 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.
Pizza Pizza Royalty has net debt worth 14% of its market capitalization. It would probably deserve a higher P/E ratio if it was net cash, since it would have more options for growth.
Pizza Pizza Royalty's P/E is 11.9 which is below average (14.9) in the CA market. With only modest debt, it's likely the lack of EPS growth at least partially explains the pessimism implied by the P/E ratio.
Investors have an opportunity when market expectations about a stock are wrong. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
You might be able to find a better buy than Pizza Pizza Royalty. 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.
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How Many Phillips 66 (NYSE:PSX) Shares Did Insiders Buy, In The Last Year?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inPhillips 66(NYSE:PSX).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Phillips 66
Independent Director James Ferguson made the biggest insider purchase in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$92.31 each. So it's clear an insider wanted to buy, at around the current price, which is US$94.06. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 25500 shares worth US$2.3m. While Phillips 66 insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
It's good to see that Phillips 66 insiders have made notable investments in the company's shares. Specifically, Independent Director John Lowe bought US$335k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Phillips 66 insiders own 0.2% of the company, worth about US$77m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Phillips 66 insiders are well aligned, and that they may think the share price is too low. Of course,the future is what matters most. So if you are interested in Phillips 66, you should check out thisfreereport on analyst forecasts for the company.
Of coursePhillips 66 may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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American Water's (AWK) Arm Files for New Rates in California
American Water Works’ AWK arm, California American Water has filed an application with the California Public Service Commission, seeking approval to set new rates in each of its service areas from 2021 through 2023. Subject to approval of the commission, the new rates will take effect from Jan 1, 2021.This filing seeks to increase revenues by $46.5 million over three years, beginning with a $26 million increase proposed for Jan 1, 2021. Rate hikes at regular intervals are quite essential, as these provide American Water with necessary funds to continue with water infrastructure upgrade work. The request also seeks $197 million for infrastructure improvements in the 2021-2022 time period in the service territories of California American Water. In the 2018-2019 time period, the company plans to invest $103 million in infrastructure replacements and improvements.Systematic Investments Will Help Water UtilitiesPer latest assessment from the U.S. Environmental Protection Agency, water utilities in the country will need to make infrastructure investment of more than $384 billion by 2030 to ensure public health. The old and aging water mains and infrastructure are resulting in the wastage of millions of gallons of potable water each year. Water utilities are making efforts to expand, upgrade, and maintain water and wastewater infrastructure.American Water and its subsidiaries in different states are making concerted efforts to improve the quality of water and wastewater services that it provides to the existing and expanding customer base. American Water aims to invest within $8-$8.6 billion from 2019 through 2023. This investment target is part of the company’s long-term investment plan.California Water Service, a unit of California Water Service Group CWT — another water utility operating in the state — had filed an application with the California Public Utilities Commission last year, seeking permission for investing $828.5 million within the 2019-2020 time frame.Price MovementShares of American Water have outperformed the industry on a year-to-date basis.
Zacks Rank and Other Key PicksCurrently, American Water has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other top-ranked water utility stocks in the same space include Middlesex Water Company MSEX and Global Water Resources, Inc. GWRS.Middlesex Water, sporting a Zacks Rank #1, delivered average positive earnings surprise of 19.72% in the last four quarters. The Zacks Consensus Estimate for 2019 and 2020 has moved up 5.8% and 4.7%, respectively, in the past 60 days.Global Water Resources, which has a Zacks Rank #2, reported average positive earnings surprise of 39.58% in the last four quarters. Its long-term (three to five years) earnings growth is projected at 15%. The Zacks Consensus Estimate for 2019 has moved up 15.4% in the past 60 days.This Could Be the Fastest Way to Grow Wealth in 2019Research 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 reportMiddlesex Water Company (MSEX) : Free Stock Analysis ReportAmerican Water Works Company, Inc. (AWK) : Free Stock Analysis ReportCalifornia Water Service Group (CWT) : Free Stock Analysis ReportGlobal Water Resources, Inc. (GWRS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Turkey's Erdogan affirms importance of ties with China
BEIJING (AP) — Turkish President Recep Tayyip Erdogan, an ostensible U.S. NATO ally, affirmed the importance of ties with key American rival China at a meeting with Chinese President Xi Jinping in Beijing on Tuesday. Erdogan told Xi on Tuesday that Turkey and China have "great potential to grow our relationship" based on historical trading ties, and that the two would "contribute to regional and global stability." Xi said China and Turkey should "sincerely work toward upholding a multilateral world order with the United Nations at its core, a system based on international law, focusing on (the development of) science and technology." That appeared to be a swipe at the U.S., with which China is locked in a prolonged dispute over tariffs and technology. Turkey is an important link in China's trillion-dollar "belt-and-road" initiative to build ports, highways, power plants and other infrastructure linking it to Europe, Africa and Asia. Washington has declined to endorse the program, which critics say risks burdening poor developing countries with massive debts that they will be unable to pay back to Beijing. Erdogan is also seen as drifting closer to Russia and China despite Turkey's treaty ties with the U.S. and has stood firm against Washington's opposition to its decision to purchase Russia's S-400 missile defense system. Alone among majority Muslim nations, Turkey has criticized Beijing over its treatment of its Muslim minority groups, although Erdogan did not raise the issue in his opening remarks to Xi before reporters were sent from the room. Turkey's foreign ministry earlier this year called China's policies "a great cause of shame for humanity" and said it is "no longer a secret" that China has arbitrarily detained more than a million Turkic Muslim Uighurs in "concentration camps."
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Have Insiders Been Selling Central Pacific Financial Corp. (NYSE:CPF) Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sellCentral Pacific Financial Corp.(NYSE:CPF), you may well want to know whether insiders have been buying or selling.
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Central Pacific Financial
In the last twelve months, the biggest single sale by an insider was when the Chairman Emeritus, John Dean, sold US$1.1m worth of shares at a price of US$30.78 per share. So we know that an insider sold shares at around the present share price of US$30.03. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 14600 shares for US$415k. On the other hand they divested 68080.26 shares, for US$2.0m. All up, insiders sold more shares in Central Pacific Financial than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Over the last three months, we've seen notably more insider selling, than insider buying, at Central Pacific Financial. In that time, John Dean dumped US$1.4m worth of shares. On the other hand we note insiders bought US$415k worth of shares, as previously mentioned. Generally this level of net selling might be considered a bit bearish.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.4% of Central Pacific Financial shares, worth about US$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
Unfortunately, there has been more insider selling of Central Pacific Financial stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Central Pacific Financial makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Central Pacific Financial.
But note:Central Pacific Financial 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.
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5 Reasons I Just Bought More Berkshire Hathaway Stock
Generally speaking, I've had a tough time finding attractive stocks to invest in over the past couple of years. To put it mildly, I find many stock valuations to be a bit generous and truly attractive bargains to be difficult to find.
As Warren Buffett says, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." So, I recently added shares of what I consider to be one of the most wonderful businesses you can invest in -- Buffett-led conglomerateBerkshire Hathaway(NYSE: BRK-A)(NYSE: BRK-B). Here's why I decided to not only add some shares, but to roughlydoublemy Berkshire investment.
Image source: The Motley Fool.
If I have some cash to invest, I might find myself asking questions like, "should I add to one of my bank stocks?," "do I have enough industrial exposure?," or "I could use more consumer staples stocks in my portfolio, but which one should I buy?"
An investment in Berkshire Hathaway addresses all three of these questions -- and many more. Berkshire owns more than 60 subsidiary businesses, including large operations in insurance, aircraft parts, consumer goods, railroads, and more. Plus, the company has astock portfolioworth more than $200 billion, with big stakes inBank of America,Wells Fargo,American Express,Coca-Cola, and other big-name companies.
Berkshire Hathaway is quite literally an investment in more than 100 different businesses in a single stock.
I can't think of anyone I'd rather have making investment decisions with my money than Warren Buffett. The Oracle of Omaha's track record of consistent long-term growth in a variety of economic and political climates is simply unmatched.
In addition, Vice Chairman Charlie Munger has been Buffett's right-hand man for decades, and stock-picking lieutenants Todd Combs and Ted Weschler have built solid performance records in their short tenures at the company. In short, I feel 100% confident when I invest in Berkshire Hathaway that investment decisions will not only be made wisely, but with the best interests of shareholders in mind at all times.
Berkshire Hathaway had $114.2 billion in cash and equivalents on its balance sheet at the end of thefirst quarter. While this has likely declined a bit since Berkshire agreed to invest $10 billion inOccidental Petroleumafter the quarter ended, it's fair to assume that Buffett and his team still have a 12-figure war chest as I write this.
Buffett insists on keeping at least $20 billion in cash at all times, so this (conservatively) gives Berkshire $80 billion it could put to work. There has been a shortage of attractive investment opportunities in recent years -- which is why the cash hoard has grown so large -- but as soon as opportunity knocks, Berkshire will be ready.
Berkshire Hathaway's recently modified buyback program gives us insight into what the company's management (specifically Buffett and Munger) think it's really worth.
If you aren't familiar, Berkshire's buyback program was modified in mid-2018 to allow the company to buy back as much stock as it wants as long as Buffett and Munger both agree that it's trading at a substantial discount to its intrinsic value.
Well, Berkshire spent about $1.7 billion on buybacks during the first quarter, and the average price Berkshire paid for each Class B share was over $201. This represented an accelerated buyback rate when compared to the third and fourth quarters of 2018, when the new buyback program was in place (and shares were bought back at averages as high as $208.50), so it's fair to say that both Berkshire leaders feel the stock is significantly undervalued as it approaches $200.
Finally, while we have no idea when a recession will hit or how bad it will be, it's fair to say that we're overdue for one at this point. With more than 10 years of improving economic fundamentals in the years since the financial crisis, the good times won't last forever, and most experts predict a recession within the next few years.
Also, there are few stocks in the market with the growth potential of Berkshire Hathaway and such a solid track record of outperforming the stock market during down years. In fact, theS&P 500has finished a year with negative total returns 11 times in the past 50 years, and Berkshire has beaten the market in all but two of those years. This certainly makes sense -- some of its largest businesses (auto insurance, for example) are rather recession-resistant.
So, while I certainly view Berkshire as a stock with the ability to deliver great returns in prosperous times, it also functions as a bit of a recession-protection play.
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Matthew Frankel, CFP, owns shares of American Express, Bank of America, and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool has adisclosure policy.
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