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Brazil power company Light approves 2 billion-real share offering
RIO DE JANEIRO, July 2 (Reuters) - Brazilian power company Light SA has approved a primary and secondary share offering valued at over 2 billion reais ($521 million), it said in a securities filing late on Monday, confirming a Reuters report earlier in the day.
According to the filing, Light has approved a primary offering of 100 million new shares and 11.1 million shares owned by power company Cemig. Given Light's Monday closing price on the Sao Paulo stock exchange of 18.85 reais per share, the total value of the offering comes to 2.09 billion reais.
Reuters reported on Monday afternoon that Light was preparing the offering to reduce debt. The company ended March with a net debt of 8.2 billion reais, which is equivalent to 3.7 times its earnings before interest, taxes, depreciation and amortization (EBITDA).
Light primarily operates in the electricity distribution sector in the Rio de Janeiro metropolitan area. Cia Energetica de Minas Gerais SA, as Cemig is formally known, currently has a 49.99% stake in the firm. The offer will be led by Banco Itau BBA SA, with Citibank, Banco Santander Brasil SA , Banco Bradesco SA, BB Investimentos, XP, and Banco BTG Pactual SA also coordinating the offering.
The new shares are scheduled to begin trading on July 15.
($1 = 3.84 reais)
(Reporting by Gram Slattery Editing by Chizu Nomiyama)
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AT&T down: 911 calls failing to go through amid major carrier outage
A major outage with the US telecoms carrier AT&T is preventing people from calling emergency services. Anyone attempting to call 911 in the US from a mobile phone running off the AT&T network is reportedly unable to get through to an operator. Police departments around the country advised anyone attempting to reach emergency services to use a landline or a mobile phone with a different service provider. "At this time AT&T is experiencing a nationwide network service outage. This is effecting the ability to reach 911 on a cell phone if you have AT&T," Tarrant County police department in Texas warned. "This is a nationwide outage on AT&T. We will provide updates as they come in." People are also advised to call local police stations directly If you are an AT&T customer and need police/fire/EMS in NRH please use our direct line in to dispatch 817-281-1000. NRH Police (@NRHPD) 2 July 2019 More follows
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Are Insiders Buying PrairieSky Royalty Ltd. (TSE:PSK) Stock?
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inPrairieSky Royalty Ltd.(TSE:PSK).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
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. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for PrairieSky Royalty
Over the last year, we can see that the biggest insider purchase was by President Andrew Phillips for CA$179k worth of shares, at about CA$23.92 per share. That means that even when the share price was higher than CA$18.40 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Andrew Phillips was also the biggest seller, having sold CA$20k worth of shares.
Happily, we note that in the last year insiders paid CA$483k for 21015 shares. On the other hand they divested 1000 shares, for CA$20k. In total, PrairieSky Royalty insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
PrairieSky Royalty 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that PrairieSky Royalty insiders own 1.1% of the company, worth about CA$45m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It doesn't really mean much that no insider has traded PrairieSky Royalty shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in PrairieSky Royalty and we see no evidence to suggest they are worried about the future. Of course,the future is what matters most. So if you are interested in PrairieSky Royalty, you should check out thisfreereport on analyst forecasts for the company.
But note:PrairieSky Royalty 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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Westlake Chemical Q2 & FY19 View Falls Short of Expectations
Westlake Chemical CompanyWLK has issued downbeat earnings guidance for the second quarter and full-year 2019.The chemical maker expects earnings between 73 cents and 87 cents per share for the second quarter. For 2019, the company sees earnings in the band of $3.10-$4.28 per share, factoring in current margin and pricing expectations for its products in the second quarter and the full year.The company’s guidance fell short of expectations. The Zacks Consensus Estimate is currently $1.39 per share for earnings in the second quarter. For 2019, the Zacks Consensus Estimate is pegged at $4.96.For the second quarter, Westlake Chemical envisions net income in the range of $106-$123 million. The company expects EBITDA to improve roughly 8-15% on a sequential comparison basis to between $340 million and $363 million in the second quarter. Net sales for the quarter have been projected in the band of $2.1-$2.2 billion.For 2019, the company sees net income in the range of $443-$596 million and net sales of between $8 billion and $8.8 billion. EBITDA for the year has been forecast in the range of $1.4-$1.6 billion.Westlake Chemical noted that while its average margin rose on a sequential comparison basis in the second quarter, it did not increase as much as industry pricing expectations at the start of second quarter.Westlake Chemical also said that the guidance it has provided is preliminary and subject to change. The company expects to come up with its final second-quarter results on Aug 6.Shares of Westlake Chemical have lost 34.8% in a year’s time compared with the industry’s 35.6% decline.
Westlake Chemical experienced a difficult pricing environment in the first quarter of 2019, stemming from sharp decline in global crude oil prices in late 2018 along with softer Chinese demand.The company, during its first-quarter call, said that is cautiously optimistic that trade tensions between the United States and China as well as crude oil prices will improve in second-half 2019.
Westlake Chemical Corporation Price and Consensus
Westlake Chemical Corporation price-consensus-chart | Westlake Chemical Corporation Quote
Zacks Rank & Key PicksWestlake Chemical currently carries a Zacks Rank #5 (Strong Sell).A few better-ranked stocks in the basic materials space include Materion Corporation MTRN, Flexible Solutions International Inc FSI and Israel Chemicals Ltd. ICL.Materion has an expected earnings growth rate of 30.3% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 22% over the past year. You can seethe complete list of today’s Zacks #1 Rank stocks here.Flexible Solutions has an expected earnings growth rate of 342.9% for the current fiscal year and carries a Zacks Rank #1. Its shares have surged around 159% in the past year.Israel Chemicals has an expected earnings growth rate of 13.5% for the current year and carries a Zacks Rank #1. Its shares are up roughly 17% in the past year.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 reportWestlake Chemical Corporation (WLK) : Free Stock Analysis ReportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportIsrael Chemicals Shs (ICL) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Protesters target Amazon in France calling for action on climate change
By Forrest Crellin
PARIS (Reuters) - Several hundred environmental activists protested outside Amazon's headquarters in Paris and at two of its regional distribution centers in France on Tuesday as part of stepped-up climate change demonstrations.
The protest drew support from groups including Friends of the Earth and the "Gilets Jaunes", who have mounted months of demonstrations against President Emmanuel Macron.
Some 240 people blocked access to Amazon's <AMZN.O> main office in Paris, organizers said, with many denouncing the online giant's business practices, saying it wasn't paying its fair share of tax or paying its employees a fair wage.
Around 70 people blockaded a distribution center in the southern city of Toulouse and another 80 were gathered at a center near Lille in the north, with workers forced to go home and operations at both warehouses halted, organizers said.
In a statement sent to Reuters, Amazon said it respected the right of protesters to express their opinion, but defended its business practices, saying it paid all the taxes it owed.
"We are very proud of our work environment and of the thousands of employees we have in France," it said. "We invite anyone who wants to come and visit any of our sites and form their own opinion."
The retailer earlier announced the creation of 1,800 new jobs in France as it looks to raise its number of permanent staff to 9,300 by the end of the year.
The demonstrators said they were angered by a report issued last week that showed France was falling behind on its commitments to reduce CO2 emissions and combat climate change.
"We have to be radical with our demands," said Alma Dufour, a Friends of the Earth campaigner. "There are no little steps left to take when it comes to climate change. We want a transformation of the system."
Organizers said the aim was not to have Amazon shut down in France but to cancel its plans for expansion in 2020.
The U.S. online retail giant has expanded rapidly in the French market, prompting domestic rivals to up their game.
But environmental activists say Amazon needs to do more to limit its environmental impact, including changing a policy of destroying unsold non-food items such as clothes, cosmetics and luxury goods.
French Prime Minister Edouard Phillipe called for a ban on the destruction of non-food items last month, saying he hoped it could be brought into effect within four years.
Protests against climate change have expanded across northern and western Europe in recent months, with Swedish teenaged activist Greta Thunberg leading a high-profile campaign in which students have walked out of school on Fridays.
Last Friday, French police used pepper spray to forcibly remove scores of members of the Extinction Rebellion group who were occupying a bridge over the River Seine.
The French government on Monday ordered an inquiry into tactics used against a peaceful protest.
(Reporting by Forrest Crellin; Additional reporting by Dominique Vidalon; Editing by Luke Baker and Mark Potter)
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Should You Worry About Ryder System, Inc.’s (NYSE:R) ROCE?
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Today we are going to look at Ryder System, Inc. (NYSE:R) to see whether it might be an attractive investment prospect. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires.
First up, we'll look at what ROCE is and how we calculate it. Second, we'll look at its ROCE compared to similar companies. Then we'll determine how its current liabilities are affecting its ROCE.
ROCE measures the 'return' (pre-tax profit) a company generates from 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'.
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 Ryder System:
0.062 = US$695m ÷ (US$14b - US$2.8b) (Based on the trailing twelve months to March 2019.)
Therefore,Ryder System has an ROCE of 6.2%.
View our latest analysis for Ryder System
ROCE is commonly used for comparing the performance of similar businesses. We can see Ryder System's ROCE is meaningfully below the Transportation industry average of 11%. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Separate from how Ryder System stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Investors may wish to consider higher-performing investments.
You can see in the image below how Ryder System'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 misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is only a point-in-time measure. 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. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counter this, investors can check if a company has high current liabilities relative to total assets.
Ryder System has total liabilities of US$2.8b and total assets of US$14b. As a result, its current liabilities are equal to approximately 20% of its total assets. This is a modest level of current liabilities, which would only have a small effect on ROCE.
If Ryder System 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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Lincoln Electric Buys Askaynak, Eyes Regional Growth
Lincoln Electric Holdings, Inc.LECO has acquired remaining 49.6% controlling interest in Askaynak in a bid to enhance its regional growth in EMEA (Europe, the Middle East and Africa). Lincoln Electric earlier held a 50% stake in Askaynak, which it had secured in 1998.Askaynak is a leading Turkish producer and supplier of welding consumables, arc welding equipment, including plasma and oxyfuel cutting equipment, and robotic welding systems. The company generated around $70 million in annual revenues. Askaynak strengthens Lincoln Electric’s position in the EMEA region, by offering customers with superior service, innovative solutions and operational excellence.Acquisitions: A Key CatalystIn 2010, the company mobilized the organization around a 10-year “2020 Vision and Strategy.” Key strategic initiatives include profitable growth (organic and through a disciplined acquisition strategy), enhancing portfolio mix in equipment systems, automation and alloy consumables, and leveraging continued improvement initiatives to boost profitability, operating working capital and returns.In sync with this, Lincoln Electric has been on an acquisition spree, which is likely to enhance its portfolio and be conducive to the company’s long-term performance. This April, Lincoln Electric acquired Detroit, MI-based Baker Industries, which will complement Lincoln Electric’s automation portfolio and its metal additive manufacturing service business. Last December, the company acquired the soldering business of Worthington Industries Inc. WOR. This strengthens Harris Products Group’s portfolio of industry-leading consumables with the addition of premium solders and fluxes. Last December, Lincoln Electric also acquired Coldwater Machine Company and Pro Systems. These two acquisitions will help expand Lincoln Electric’s industry-leading portfolio of automated cutting and joining solutions.Further, in the same month, the company acquired Inovatech Engineering Corporation, a manufacturer of advanced robotic plasma cutting solutions for structural steel applications. This buyout will boost Lincoln Electric’s automated cutting solutions and application expertise for structural steel applications.In January 2017, Lincoln Electric completed its acquisition of Air Liquide Welding — a subsidiary of Air Liquide. The buyout has enhanced the company’s global specialty consumables portfolio as well as extended the channel reach for equipment systems and cutting, soldering and brazing solutions in Europe. It also offers European customers more comprehensive welding solutions, greater technical application expertise and improved service levels. The company is working rigorously on the Air Liquide integration activities as the team continues to frame the business into a more efficient and successful enterprise in the region.Other Growth Drivers in PlaceAdditionally, the company’s focus on commercializing innovative product and cost-cutting initiatives is likely to stoke growth. Lincoln Electric has increased investment in research and development, and continues to roll out several solutions in the automation solutions market. These launches are likely to be conducive to the company’s long-term growth.
Lincoln Electric Holdings, Inc. Price and Consensus
Lincoln Electric Holdings, Inc. price-consensus-chart | Lincoln Electric Holdings, Inc. Quote
Zacks Rank & Stocks to ConsiderLincoln Electric currently carries a Zacks Rank #3 (Hold).A few better-ranked stocks in the Industrial Products sector are AptarGroup, Inc. ATR and Roper Technologies, Inc. ROP, each sporting a Zacks Rank #1 (Strong Buy), at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.AptarGroup has an estimated earnings growth rate of 8.7% for the ongoing year. The company’s shares have gained 34% in the past year.Roper Technologies has an expected earnings growth rate of 9.4% for the current year. The stock has appreciated 37.7% in a year’s time.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 reportAptarGroup, Inc. (ATR) : Free Stock Analysis ReportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportLincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis ReportWorthington Industries, Inc. (WOR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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WRAPUP 2-Diplomats: Europeans keen to avoid sending Iran nuclear case to back U.N. - for now
* Macron warns Tehran against further breaches
* China urges restraint, regrets Iran initiative
* Trump says Iran move "playing with fire"
* Zarif says deal has not been violated (Recasts with diplomats on dispute mechanism)
By John Irish and Parisa Hafezi
PARIS/DUBAI, July 2 (Reuters) - France urged Iran on Tuesday to reverse its first major breach of a nuclear pact with world powers, but Europe will not for now trigger a dispute mechanism that could lead to the reimposition of U.N. sanctions, two European diplomats said.
Iran's announcement on Monday that it had amassed more low-enriched uranium than permitted under the deal was confirmed by U.N. nuclear watchdog, the International Atomic Energy Agency (IAEA), which monitors Iran's nuclear programme under the deal.
Iranian Foreign Minister Mohammad Javad Zarif said the move was not a violation of the accord, arguing that Iran was exercising its right to respond to the U.S. walkout last year.
However, the gambit may have far-reaching diplomatic consequences and comes less than two weeks after Trump said he ordered air strikes on Iran, only to cancel them minutes before impact.
European signatories of the 2015 deal with Iran have sought to pull Washington and Tehran back from direct confrontation and wanted to avoid escalating the diplomatic standoff to the United Nations.
"Not for now. We want to defuse the crisis," said one European diplomat when asked about a possible move to trigger the dispute resolution mechanism enshrined in the 2015 nuclear accord with Iran.
China, like France a signatory to the deal, said it regretted Iran's move but urged all parties to exercise restraint and said the U.S. policy of increasing pressure on Iran was the "root cause of the current tensions".
The nuclear deal lifted most international sanctions against Iran in return for curbs on its nuclear work. It aimed to extend the time Tehran would need to produce a nuclear bomb, if it chose to, from roughly 2-3 months to a year.
Iran's main demand - in talks with the European parties to the deal and as a precondition to any talks with the United States - is to be allowed to sell its oil at the levels of April 2018, before Washington pulled out of the deal and imposed punishing economic sanctions.
Iran says it will breach the deal's nuclear curbs one by one until it is able to sell that amount of oil, saying this is the least it should be able to expect from an accord that offered economic gains in exchange for nuclear restrictions.
In a statement, French President Emmanuel Macron expressed "his attachment to the full respect of the 2015 nuclear accord and asks Iran to reverse without delay this excess, as well as to avoid all extra measures that would put into question its nuclear commitments." (Additional reporting by Francois Murphy in Vienna, Writing by William Maclean; Editing by Jon Boyle)
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Here's Why We Think Pason Systems (TSE:PSI) Is Well Worth Watching
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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 the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
In contrast to all that, I prefer to spend time on companies likePason Systems(TSE:PSI), which has not only revenues, but also profits. Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. 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 Pason Systems
In the last three years Pason Systems's earnings per share took off like a rocket; fast, and from a low base. So the actual rate of growth doesn't tell us much. Thus, it makes sense to focus on more recent growth rates, instead. Like the last firework on New Year's Eve accelerating into the sky, Pason Systems's EPS shot from CA$0.36 to CA$0.81, over the last year. You don't see 125% year-on-year growth like that, very often.
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. The good news is that Pason Systems is growing revenues, and EBIT margins improved by 12 percentage points to 33%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
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 Pason Systems.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own Pason Systems shares worth a considerable sum. Indeed, they have a glittering mountain of wealth invested in it, currently valued at CA$177m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations between CA$1.3b and CA$4.2b, like Pason Systems, the median CEO pay is around CA$2.8m.
The Pason Systems CEO received CA$2.3m in compensation for the year ending December 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. 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. It can also be a sign of a culture of integrity, in a broader sense.
Pason Systems's earnings per share have taken off like a rocket aimed right at the moon. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The sharp increase in earnings could signal good business momentum. Big growth can make big winners, so I do think Pason Systems is worth considering carefully. 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 Pason Systems is trading on a high P/E or a low P/E, relative to its industry.
Although Pason Systems certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Why Core-Mark Holding Company, Inc.'s (NASDAQ:CORE) 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). We'll apply a basic P/E ratio analysis to Core-Mark Holding Company, Inc.'s (NASDAQ:CORE), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,Core-Mark Holding Company has a P/E ratio of 37.35. In other words, at today's prices, investors are paying $37.35 for every $1 in prior year profit.
See our latest analysis for Core-Mark Holding Company
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Core-Mark Holding Company:
P/E of 37.35 = $39.12 ÷ $1.05 (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.
If earnings fall then in the future the 'E' will be lower. That means unless the share price falls, the P/E will increase in a few years. A higher P/E should indicate the stock is expensive relative to others -- and that may encourage shareholders to sell.
Core-Mark Holding Company's earnings made like a rocket, taking off 61% last year. On the other hand, the longer term performance is poor, with EPS down -3.1% per year over 3 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. The image below shows that Core-Mark Holding Company has a higher P/E than the average (19.9) P/E for companies in the retail distributors industry.
Its relatively high P/E ratio indicates that Core-Mark Holding Company shareholders think it will perform better than other companies in its industry classification. Clearly the market expects growth, but it isn't guaranteed. So investors should delve deeper. I like to checkif company insiders have been buying or selling.
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).
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.
Core-Mark Holding Company has net debt worth 12% of its market capitalization. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
Core-Mark Holding Company trades on a P/E ratio of 37.4, which is above the US market average of 18.2. The company is not overly constrained by its modest debt levels, and its recent EPS growth is nothing short of stand-out. So on this analysis a high P/E ratio seems reasonable.
Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. 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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The Global Big Data Market Meets RYAH Medtech's Unique Vaporizer -- CFN Media
Seattle, Washington--(Newsfile Corp. - July 2, 2019) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article discussingRYAH Medtech. The company is a subsidiary of PotBotics. The creation was a blend of merging thePotBoticsand RYAH data ecosystems, ahead of the company becoming a public entity. The process is ongoing, with the company expecting to be listed on the Canadian Securities Exchange under the ticker ("RYAH"-pending).
The output of analyzing large blocks of information, or "big data" as it is generally known, to identify trends is one of the most valuable commodities today. One of the beauties of big data is that it can pinpoint trends at all scales, from an individual to an entire country. Another is that it transcends all industries, including the burgeoning medical plant intake industry, with companies likeRYAH Medtech Inc.utilizing artificial intelligence (AI) to aggregate and correlate HIPAA-compliant medical data for the purpose of helping doctors and patients personalize cannabis to better predict treatment outcomes.
Figure 1: RYAH & Smart Cartridges
To view an enhanced version ofFigure 1, please visit:https://orders.newsfilecorp.com/files/5503/46007_cfn2.jpg
Prime Blockchain Inc.just announced that they have entered into a binding letter of intent("LOI") with Potbotics Inc. o/a RYAH, a leading data aggregation and technology company focused on the global plant-based medical market. The LOI outlines the proposed terms and conditions by which Prime Blockchain and RYAH will accomplish a business combination that will result in a reverse takeover of Prime Blockchain by RYAH and its security holders.
Greg Wagner, RYAH's Chief Executive Officer, commented, "This new Letter of Intent was executed for the purpose of accelerating our listing plans on the CSE and further reflects our commitment to provide liquidity, transparency and new opportunities to strategic partners, future investors and current investors alike."
Click Here for Additional Investor Information and Corporate Updates
PotBotics is the developer ofPotBot, a top cannabis appon Apple and Android. The free app has more than 180,000 downloads (and a 4.9-star user rating on Apple). The app is part of a complete medical plant intake ecosystem, developed from the ground up over the last half-decade, aggregating data from around the world to understand where future research can lead the industry.
A cornerstone of RYAH's predictive analysis model is itseponymous vaporizer, a leading technology that is not simply a traditional-style tool. In fact, it is theworld's firstdose-measuring vaporizer. While the RYAH device incorporates improvements such as a straight vapor pathway and diffused mouthpiece to make the user experience better, the technology at its core sets the vaporizer apart from anything today.
This means things like smart QR capsules keeping track of each session and an airflow sensor measuring each dose in 5 mL increments as part of the analytics package.
The accompanying mobile application captures all of the data, down to the plant strain, temperature and dose stats in real time to generate a profile for a consistent and reliable vaporizing experience.
Via theRYAH cloud solution, doctors and patients can track the effects and specifics of plant strains to communicate on the optimal therapeutic program for the patient's needs. This product is being branded under the moniker "RYAH MD".
Furthermore, the data is integrated intoRYAH's comprehensive AI platformto provide licensed cultivators, dispensaries, laboratories and pharmaceutical companies with a growing body of data on their plant strains and most appropriate medical indications.
From seed to therapeutic effect, the RYAH systemaggregates and analyzes data, a key to not only improving outcomes, but also standardizing the fragmented industry, an area of unmet need to protect consumers.
The Launch Has Begun
Earlier this month, RYAH hit a major developmental milestone, receiving aMedical Device Establishment License(MDEL) from Health Canada for the commercial grade dry herb cartridges that are used in the dose-measuring vaporizer and AI-powered system. The license makes RYAH one of only a small handful of companies in the market to have an accredited vaporizer/cartridge solutions in Canada.
Click Here for Additional Investor Information and Corporate Updates
"The [MDEL from Health Canada] further proves to the medical, data intelligence and institutional communities that we are both serious and focused in leading medical plant data analysis market in the U.S., Canada and far beyond," commentedGregory Wagner, CEO of RYAH, in a statement disclosing the new license. Wagner, a 20 year Wall Street veteran and startup boffin, assumed the role of the top executive and President at RYAH in March ahead of the going public transaction.
Last month, RYAH also brought inMichael Hart as VP Business Development. Hart will be headquartered in London and tasked with establishing a footprint in Europe, as well as South American markets.
The Ball Gets Rolling: United States, Canada, Next Up the European Union
CEO Wagner & VP of Business Development Hart will be working tirelessly to continue building the client base for the new RYAH products as they have been gaining momentum this year. The company first cracked the Washington State markets in January for its vaporizer via apartnership with Green Revolution, a leading producer/processor in Washington that is actively pursuing expansion into other states, namely the massive California markets.
Washington State is recognized as a pioneer in the legal cannabis market, passing legal recreational marijuana by a ballot vote in November 2012, at the same time as Colorado, to become the first two states in the country to end prohibition. In cases such as this where recreational marijuana is allowed, individuals have the opportunity to use the novel features of the RYAH vaporizer and app to create a controlled regimen for themselves.
The launch is comprised of an initial array of four different cartridges, targeted towards the health and wellness market.
RYAH's move into Washington was followed by penetrating the Oklahoma markets in March through apartnership with The Peak Dispensary, marking the first medical-only state to carry RYAH's state-of-the-art vaporizer. The agreement means that the RYAH Vaporizer will be available on the shelves at Peak's nine establishments statewide.
Click Here for Additional Investor Information and Corporate Updates
Speaking to the quality of the product, ThePeak Dispensary CEO Corbin Wyatt said, "Because it enables patients to properly create a dosing regimen, the RYAH vaporizer clearly contributes to our long-standing goal of ensuring that Oklahoma patients are provided with an unrivaled experience, be it from a product or from a service perspective."
In yet anotherstrategic moveRYAH Medtech announced recently that the company has entered into a signed agreement with Northern Green Canada Inc., for distribution of the RYAH vaporizer, the first dose-measuring dry herb vaporizer along with the RYAH signature dry herb cartridges.
"I am pleased to announce the commencement of RYAH's footprint in Canada via our new distribution agreement. Northern Green Canada is a best-in-class LP with strong European ties that complements our model of delivering IoT devices along with AI powered data analytics in the medical plant industry. We are focused on commercial relationships that will accelerate commercialization of our products abroad, and the agreement with NGC is the first step towards achieving that goal globally," said Gregory Wagner, CEO of RYAH.
RYAHannounced this weekthey have received the CE Mark for its vaporizer. This certification is essential for the company's critical expansion into the European Union.
"The CE mark of the RYAH vaporizer is an important milestone for RYAH's global aspirations and we expect to shortly initiate our launch in Europe," says Jordan Medley, Head of Product Operations at RYAH.
A Data Opportunity Made in Heaven
The Global Big Data market is estimated byWiseGuyReportsat $23.56 billion in 2015 and is expected to reach $118.52 billion by 2022 growing at a CAGR of 26.0%. The global plant material market, according toGrandview Market Research, is growing 23.9% annually and will reach $66.3 billion by the end of 2025.
Safe to say that there is a clear market opportunity where the twain meet. While it's still relatively new, the entrance of big data in the medical plant intake industry could be one of the most disruptive market segments out there.
There is a new age upon us. Consumers, once paranoid about their habits being known, are growing accustomed to big data as a means of improving life. To that end, RYAH is hitting on all the industry's pressure points. Consumers love sharing their knowledge and experiences (take how popular Leafly is) and RYAH's also in that sweet spot. Technology takes over with smart vaporizers to improve experiences and collect even more robust data sets for aggregation, analysis and generation of insightful data. RYAH being first to market with a dose-measuring vaporizer, QR embedded cartridges is a strong addition to being able to control temperature.
Big data is interesting because it by definition takes a lot of it to work. However, a tiny piece of information gleaned from big data can be a game changer, a lynchpin to a domino effect. Every piece of information collected through an AI system like that ofRYAH Medtech Inc.has value to people and companies throughout the entire industry.
Click Here for Additional Investor Information and Corporate Updates
To Stay Up to Date with Ryah Click Here
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The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:https://www.cannabisfn.com/legal-disclaimer.
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Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:http://www.cannabisfn.com/legal-disclaimer/
PotBotics/RYAH ContactSteven HartInvestor Relationsinvest@ryah.comus.RYAH.com
Frank Lane206-369-7050Flane@cananbisfn.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46007
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Vivakor Commences Manufacturing its Remediation Processing Centers in Utah Opportunity Zone
Opportunity Zone Designation Brings Enormous Advantages for Investors
LAS VEGAS, NV / ACCESSWIRE / July 2, 2019 /Vivakor Inc. (OTC PINK: VIVK), a technology and asset acquisition company with a focus in the area of natural resources, has commenced manufacturing of its Remediation Processing Centers (RPCs) in a Utah Opportunity Zone, creating an enormous potential tax savings for its investors. The warehouse facility is located in South Salt Lake City, UT, and is currently operated by a qualified opportunity zone company, RPC Design and Manufacturing, LLC.
"The first Remediation Processing Center is well underway, and anticipated to be complete in the next 45 days, where it will be deployed to Eastern Utah to begin immediately in the remediation of oil sands and production of the enormous bituminous materials in that area," stated Chief Executive Officer Matt Nicosia. "We plan to build more than 30 units over the course of the next 18 months at this facility, with each unit projected to produce 250 barrels of hydrocarbons a day."
Vivakor's RPCs are based on its patent pending technology for remediation and extraction of hydrocarbons from soil material. After having conducted multiple, successful pilots in Eastern Utah, the Company is poised to deploy these units throughout the world, providing a solution to the worlds need for clean and environmentally conscious hydrocarbon extraction. Vivakor operates the RPCs through its VivaVentures Energy Group Inc. division currently operating in Utah and Kuwait.
About Vivakor, Inc.
Vivakor, Inc. (VIVK), a technology and asset acquisition company with a focus in the area of natural resources. Vivakor's corporate mission is to create, acquire and accumulate distinct assets, intellectual properties, and exceptional technologies that produce solid returns to its valued shareholders and partners. The company currently focuses on bitumen (heavy crude) extraction from shallow, oil-laden areas in Eastern Utah, along with petroleum based remediation projects across the globe. The technologies utilized are low-cost, proprietary and proving themselves industry disruptive when measured by a number of important factors. The general business model has been to be an acquisition hub, focused on building and acquiring cash-flowing assets in discrete areas that have an acknowledged technological advantage and enable a substantial market opportunity within significant target markets across the globe. Our research, and the technology we acquire are anchored by our relationships with synergistic partners and product-specific commercialization strategies. From the point of product or technology conception, or through acquisition, development and commercialization, we expect to have strategic partners, joint ventures or licensing arrangements in place for many of our products in order to sustain revenue attainment.
For more information, please visit our website:http://vivakor.com
FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including economic slowdown affecting companies, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor's filings with the Securities and Exchange Commission, which factors may be incorporated herein by reference. Forward-looking statements may be identified but not limited by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Contact:
Vivakor Investor RelationsOffice: (949) 281-2606info@vivakor.com
SOURCE:Vivakor, Inc.
View source version on accesswire.com:https://www.accesswire.com/550575/Vivakor-Commences-Manufacturing-its-Remediation-Processing-Centers-in-Utah-Opportunity-Zone
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Rise Gold Provides Grade Ranges and Clarifications for Initial Exploration Target
Vancouver, British Columbia--(Newsfile Corp. - July 2, 2019) - At the request of the Investment Industry Regulatory Organization of Canada, Rise Gold Corp. (CSE: RISE) (OTCQB: RYES) (the "Company") is pleased to provide a range of gold grades for the Initial Exploration Target previously disclosed and clarifications to our news release dated June 28th, 2019 for the Idaho-Maryland ("I-M") Gold Project.
https://www.risegoldcorp.com/uploads/content/June28RiseGoldAnnouncesSignificantExplorationTargetattheIdahoMarylandGoldProject.pdf
A range of grades for the Initial Exploration Target is presented in Table 1. The Initial Exploration Target is between 2,280,000 - 3,410,000 tons (2,068,000 - 3,094,000 tonnes) of mineralized material with grades ranging from 0.19 - 0.30 oz per ton gold (6.5 - 10.3 grams per tonne) and containing 432,000 - 1,019,000 oz gold.
TABLE 1 - Initial Exploration Target Summary
[["Block", "Zone", "Level", "LowCase", "BaseCase", "LowCase", "BaseCase", "", ""], ["A", "Idaho #2", "I2700L - B3280L", "540,000", "810,000", "0.18", "0.27", "97,000", "219,000"], ["B", "Idaho #2", "I2700L", "200,000", "300,000", "0.09", "0.19", "18,000", "57,000"], ["C", "Idaho #2 - Splays", "I2400L", "170,000", "250,000", "0.20", "0.24", "34,000", "60,000"], ["D", "Idaho #1 Morehouse", "I2400L - B3280 L", "170,000", "250,000", "0.30", "0.47", "51,000", "118,000"], ["E", "Idaho #1", "I2400L - B3280 L", "320,000", "480,000", "0.30", "0.47", "96,000", "226,000"], ["F", "Brunswick #1", "B1600L - B1880L", "290,000", "440,000", "0.20", "0.36", "58,000", "158,000"], ["G", "Brunswick #32", "B1300L - B1880L", "120,000", "180,000", "0.20", "0.23", "24,000", "41,000"], ["H", "Brunswick #10HW", "B1600L - B1880L", "80,000", "120,000", "0.12", "0.20", "10,000", "24,000"], ["I", "Brunswick #10 FW", "B1600L - B1880L", "90,000", "130,000", "0.09", "0.20", "8,000", "26,000"], ["J", "Brunswick #41", "B1880L - B2650L", "300,000", "450,000", "0.12", "0.20", "36,000", "90,000"], ["", "TOTAL", "", "2,280,000", "3,410,000", "0.19", "0.30", "432,000", "1,019,000"]]
[{"Block": "A", "Notes on Grade Assumptions": "Base Case: Weighted average of North Section (I-19-13, I-19-13A, & I-19-14A) & South Section (historic hole I-2800-05);Low Case: Composite Grade of historic hole I-2800-06"}, {"Block": "B", "Notes on Grade Assumptions": "Base Case: Weighted average (I-18-10 & historic hole I-2400-30);Low Case: Composite Grade of I-18-10"}, {"Block": "C", "Notes on Grade Assumptions": "Base Case: Weighted average of 2 intercepts in I-18-11 diluted to a minimum width of 8 ft;Low Case: Based on historic cutoff of 0.20 oz/ton gold (mapping reports \"fair\" to \"good\" grades)"}, {"Block": "D", "Notes on Grade Assumptions": "Base Case: Weighted average of historic channel sample on I-2400 west, diluted to 8 ft width;Low Case: Weighted average of 2 veins in historic drill hole I-2400-40 & historic channel samples in I-2400 West"}, {"Block": "E", "Notes on Grade Assumptions": "Base Case: Weighted average of historic channel sample on I-2400 west, diluted to 8 ft width;Low Case: Weighted average of 2 veins in historic drill hole I-2400-40 & historic channel samples in I-2400 West"}, {"Block": "F", "Notes on Grade Assumptions": "Base Case: Composite of drill intercept in B-17-01;Low Case: Based on historic cutoff of 0.20 oz/ton gold (mapping reports \"fair\" to \"good\" grades)"}, {"Block": "G", "Notes on Grade Assumptions": "Base Case: Composite of drill intercept in B-18-04;Low Case: Based on historic cutoff of 0.20 oz/ton gold (mapping reports \"fair\" to \"good\" grades)"}, {"Block": "H", "Notes on Grade Assumptions": "Base Case: Based on historic cutoff of 0.20 oz/ton gold (mapping reports \"fair\" grades);Low Case: Composite of drill intercepts B-18-04 & B-18-07"}, {"Block": "I", "Notes on Grade Assumptions": "Base Case: Based on historic cutoff of 0.20 oz/ton gold (mapping reports \"fair\" grades);Low Case: Composite of drill intercepts B-18-04 & B-18-08"}, {"Block": "J", "Notes on Grade Assumptions": "Base Case: Based on historic cutoff of 0.20 oz/ton gold (mapping reports \"fair\" to \"good\" grades);Low Case: Composite of drill intercepts B-18-06 which is adjacent to modelled shoot."}]
The Company clarifies that the Initial Exploration Target is only "conceptual in nature" and it is not an "estimate" of mineral resources. The Company retracts the use of the word "estimate" in conjunction with the calculation of the Initial Exploration Target.
The Company cautions investors that the potential quantities and grades of the Initial Exploration Target are conceptual in nature and there has been insufficient exploration to define a mineral resource. The exploration target therefore does not represent, and should not be construed to be, an estimate of a mineral resource or mineral reserve. It is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Company included photographs of selected core intervals in its previous news release. The Company cautions investors that photos of these selective intervals are of high-grade gold mineralization and are not representative of the average mineralization hosted on the property.
The Company has commenced engineering work to support an application for a Use Permit from Nevada County which will include an application for full commercial mining with onsite mineral processing. The Company will prepare design work necessary to support permit applications in order to advance the project. This engineering work requires assumptions in regard to planned throughputs and mining methods.
The Company cautions investors that no technical report has been filed to support that this rate of production can be achieved or that certain mining methods will be economic or successful.
The Company has not made a production decision at the Idaho-Maryland Gold Project at this time. The Company cautions that projects put into production without first establishing mineral reserves, supported by a technical report, and completion of a feasibility study have a much higher risk of economic and/or technical failure.
The Company noted in its previous news release that broken "ore" inventory in historic shrinkage stopes wasexcludedfrom the Initial Exploration Target. The Company retracts the use of the word "ore" for this material. "Ore" is a restricted term only to be used when referencing mineral reserves. No mineral resources or reserves have been delineated on the property. It is uncertain if this broken rock may be recoverable in the future.
The Company previously provided information regarding the mineral potential to depthbelow and excludedfrom the Initial Exploration Target. The Company believes that these drill intercepts are important. However, the Company cautions investors that these deep intercepts are at great distances from the existing underground working of the Idaho Maryland Mine and the Initial Exploration Target and the potential and significance of these deep drill intersections are unknown at this time.
Benjamin Mossman, P.Eng, CEO of Rise Gold, is the qualified person for the historic production disclosure and Initial Exploration Target contained in this news release. Historic production at the Idaho-Maryland Mine is disclosed in the Technical Report on the Idaho-Maryland Project dated June 1st, 2017 and available onwww.sedar.com.
About Rise Gold Corp.
Rise Gold is an exploration-stage mining company. The Company's principal asset is the historic Idaho-Maryland Gold Mine located in Nevada County, California, USA. Past production of the Idaho-Maryland for the period from 1866 to 1955 is estimated at 2,414,000 oz of gold at an average mill head grade of 17 gpt gold. Historic production at the Idaho-Maryland Mine is disclosed in the Technical Report on the Idaho-Maryland Project dated June 1st, 2017 and available onwww.sedar.com.Rise Gold is incorporated in Nevada, USA and maintains its head office in Vancouver, British Columbia, Canada.
On behalf of the Board of Directors:
Benjamin MossmanPresident, CEO and DirectorRise Gold Corp.
For further information, please contact:
RISE GOLD CORP.Suite 650, 669 Howe StreetVancouver, BC V6C 0B4T: 604.260.4577info@risegoldcorp.comwww.risegoldcorp.com
The CSE has not reviewed, approved or disapproved the contents of this news release.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks, uncertainties and assumptions related to certain factors including, without limitation, obtaining all necessary approvals, meeting expenditure and financing requirements, compliance with environmental regulations, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. Rise undertakes no obligation to update forward-looking statements or information except as required by law.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46003
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Brooks Laich Says Julianne Hough Was a Warrior During Super Challenging IVF Process
Brooks Laich is in awe of his wife Julianne Hough. On a recent episode of his iHeartRadio podcast How Men Think , the NHL player and entrepreneur, 36, revealed he and Hough began the IVF process shortly before she turned 30 last July. The couple arent pregnant yet, but Laich tells PEOPLE hes more appreciative than ever for Hough, who has been a warrior through the process. Knowing she has endometriosis , it could potentially make things challenging in the future to conceive naturally, he says of their decision to start IVF. That was just a looking at the big picture and what we want as a family. In addition to starting IVF, the Americas Got Talent judge, 30, also froze some of her eggs last year, and the commitment that she made to us having a family is something Ill never forget, he adds. Want all the latest pregnancy and birth announcements, plus celebrity mom blogs? Click here to get those and more in the PEOPLE Parents newsletter . Brooks Laich and Julianne Hough | Michael Tran/Getty RELATED: Brooks Laich Says Wife Julianne Hough Taught Him About True Intimacy: Shes Vastly More Evolved Calling Hough a champion, Laich says she had three shots a day for two weeks, and dealt with mood swings from the hormones. As a husband, I just go into full support mode. Whatever my wife needs, whatever I can do, Im fighting the smallest portion of the fight with her, he says. There are certain things in my wifes life that I know she appreciates that help her feel calm and help her feel relaxed, so I double those efforts during that time just to show that Im there with her and I support her. While the athlete acknowledges going through IVF is a usually private experience, he and Hough who has been open about her struggle with endometriosis want to fight the stigma that may come with fertility issues by speaking out. Story continues The outpouring has been incredible, he says of the support theyve received since going public with their own journey. Text messages from friends that I didnt even know were considering it, messages on Twitter and Facebook, Instagram, people thanking us for opening up about that. I just hope it helps people. View this post on Instagram Happiest here experiencing new adventures with my love. A post shared by Julianne Hough (@juleshough) on May 24, 2019 at 12:08pm PDT Celebrating two years of marriage on July 8, Laich says the couple feels closer than ever. Shes super supportive and at the same time super challenging, he says of Hough. Weve been together five-and-a-half years, and I cant even remember life before her. Its crazy! For all the details on Brooks Laich and Julianne Houghs decision to start IVF, pick up the latest issue of PEOPLE, on newsstands Friday.
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Tom Holland turns Will Smith into one fly secret agent in 'Spies in Disguise' trailer
In the new Spies in Disguise trailer, Will Smith ‘s Lance Sterling is already pretty fly for a super spy, but Tom Holland ‘s Walter Beckett makes him the flyest. Everybody knows Lance’s name, especially around the water cooler of his secret agent facility. But that’s not exactly great when you’re trying to execute incognito missions. Walter, a scientist experimenting with biodynamic concealment, has the ultimate disguise to bestow on the super suave agent… a pigeon. The new trailer for Fox’s animated Christmastime release teases more of their opposing dynamics — one is smooth and confident, the other is not — as Walter transforms Lance into the wide-eyed bird. He says, “Pigeons are everywhere and nobody notices them. It’s the most perfect form a spy could take.” And with the world in peril, Lance is gonna have to get over it so this unlikely pair can work together. There are still lots more characters we haven’t met yet, like Rashida Jones ( Angie Tribeca ) as Agent Marcy Kappel, DJ Khaled as Ears, and Karen Gillan ( Guardians of the Galaxy Vol. 2 ) as Eyes. Ben Mendelsohn ( Captain Marvel ) and Masi Oka ( The Meg ) also star. Directed by Troy Quane and Nick Bruno, Spies in Disguise opens in theaters this Christmas. Related content: Will Smith, Tom Holland are a secret agent team in Spies in Disguise trailer Spider-Man: Far From Home stars Tom Holland and Jake Gyllenhaal sling a pose for EW’s cover shoot Academy invites Sterling K. Brown, Lady Gaga, Tom Holland, 842 new members to vote for Oscars
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What Kind Of Shareholder Owns Most Prudential Financial, Inc. (NYSE:PRU) Stock?
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The big shareholder groups in Prudential Financial, Inc. (NYSE:PRU) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
Prudential Financial has a market capitalization of US$41b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about PRU.
See our latest analysis for Prudential Financial
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Prudential Financial already has institutions on the share registry. Indeed, they own 67% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Prudential Financial, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Prudential Financial. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of Prudential Financial, Inc.. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$106m of stock. It is always good to see at least some insider ownership, but it might be worth checkingif those insiders have been selling.
The general public holds a 33% stake in PRU. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It's always worth thinking about the different groups who own shares in a company. But to understand Prudential Financial better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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OPEC Output Cut Extended to 2020: Will These ETFs Gain?
Offering the much-needed relief to the investing world,OPEC has decided to extend the oil production cut into 2020, in an effort to boost oil prices. Russia will also join the OPEC in doing the same. Concerns over global demand growth and steady output gains in America’s shale fields led to the extension of the output cut.
Investors should note that OPEC and non-OPEC leaders first decided to reduce output on Nov 30, 2016, in Vienna. Then, OPEC and non-OPEC oil behemoth Russia decided in late-2017 to extend oil production cuts until the end of 2018 only to renew the agreement in late 2018 and prolong the deal for the first six months of 2019.
Now, the deal has been extended for another nine months, till March 2020. Russia should be pleased to prolong the cut by nine more months as Russian oil companies find it tough to raise production over winter, per an article published on Bloomberg. The idea of a longer-than-expected extension was first broached by President Vladimir Putin at the G-20 summit in Japan on meeting Saudi Arabia’s crown prince.
On Saturday, Russian President Vladimir Putin indicated that he had agreed with Saudi Arabia to prolong global output cuts of 1.2 million barrels per day, or 1.2% of global demand, for an additional six to nine months.
Why Continue the Cut?
“It was observed that the oil demand growth for 2019 has been revised down to 1.14 million barrels a day (mb/d), while non-OPEC supply in 2019 is expected to grow at a robust pace of 2.14 mb/d year-on-year,” per OPEC.
Sluggish growth in China and India led to reduced demand growth while the shale boom places the United States close to becoming a net oil exporter. Investors should also note that the output cut strategy led the Organization of Petroleum Exporting Countries’ share of the global oil market to slip to the lowest since 1991.
Impact on the Oil Patch
We expect moderate price gains in oil in the near future given continuation of the OPEC output cut, U.S. sanctions on Iran and Venezuela, the ongoing Iran-induced tension in the strait of Hormuz and a looming conflict in Libya. Iran's exports have slipped to 0.3 million barrels per day in June from as much as 2.5 million bpd in April 2018 due to fresh U.S. sanctions (read: Iran Downs U.S. Drone: Sector ETFs & Stocks to Gain).
However, a lot depends on the US-China trade relation. If the duo will be able to cut a long-lasting deal, oil prices should rise on improved demand outlook. However, no concrete truce term has been decided yet, which could keep oil prices volatile in the near term.
ETFs in Focus
This has compelled many investors to look into the oil commodity world and these ETFs (see all Energy ETFs here).
United States Brent Oil FundBNO
United States Oil FundUSO
Invesco DB Oil FundDBO
US Commodity Funds United States 12 Month OilUSL
We highlight a few regular energy ETFs that should also be watched closely.
Invesco S&P SmallCap Energy ETFPSCE
VanEck Vectors Unconventional Oil & Gas ETFFRAK
SPDR S&P Oil & Gas Exploration & Production ETFXOP
John Hancock Multifactor Energy ETFJHME
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Click to get this free reportInvesco S&P SmallCap Energy ETF (PSCE): ETF Research ReportsUnited States Brent Oil Fund LP (BNO): ETF Research ReportsVanEck Vectors Unconventional Oil & Gas ETF (FRAK): ETF Research ReportsJohn Hancock Multifactor Energy ETF (JHME): ETF Research ReportsUS Commodity Funds United States Oil Fund (USO): ETF Research ReportsInvesco DB Oil Fund (DBO): ETF Research ReportsSPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research ReportsUS Commodity Funds United States 12 Month Oil (USL): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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Apple boss Tim Cook attacks report claiming to reveal the truth about iPhone designer Jony Ive's departure
Apple boss Tim Cook has attacked a report that claimed to shed light on the process that led to the departure of Jony Ive , the design chief and creator of the iPhone, iMac and more. A long report in the Wall Street Journal suggested that Sir Jony had become "dispirited" by Mr Cook's approach to the company. It suggested that he was focused more on operations and sales than the design and innovation of new products. That rift continued until the designer revealed in a shock announcement that he would quit the company and create his own design firm. The same report claimed to reveal a host of details about the souring relationship between Mr Cook and Sir Jony, including suggestions the British designer had stopped turned up to meetings, disagreed with other leaders of Apple, and was having his central ideas stifled. But Mr Cook has since spoken out against the report, calling it "absurd" and that "the conclusions just don't match with reality". "At a base level, it shows a lack of understanding about how the design team works and how Apple works," the chief executive told NBC News. "It distorts relationships, decisions and events to the point that we just don't recognise the company it claims to describe." Over the weekend, Sir Jony announced that he is leaving Apple to start his own design firm, but will continue to work with the iPhone maker as one of its clients . Sir Jonathan was knighted in a ceremony at Buckingham Palace in 2012. The 52-year-old studied design at Newcastle Polytechnic - now Northumbria University - and founded his own design company called Tangerine before being recruited by Apple. He will not be immediately replaced and two of his deputies will report directly to the company's chief operating officer, Jeff Williams. An exact date for his departure has not been given. Additional reporting by agencies
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CoreSite Realty Corporation (NYSE:COR) 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 we'll take a look at whether insiders have been buying or selling shares inCoreSite Realty Corporation(NYSE:COR).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for CoreSite Realty
The Senior Vice President of Engineering & Product, Brian Warren, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$115 each. So we know that an insider sold shares at around the present share price of US$115. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we note insiders sold 10500 shares worth US$1.2m. Insiders in CoreSite Realty 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 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 significant insider selling at CoreSite Realty. In total, Chief Accounting Officer Mark Jones dumped US$60k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that CoreSite Realty insiders own 1.0% of the company, worth about US$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
An insider hasn't bought CoreSite Realty stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since CoreSite Realty is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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.
But note:CoreSite Realty 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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Trade War Truce a Relief for Agricultural Equipment Industry
The prospect of renewed talks to end the prolonged trade dispute between the world's two largest economies — the United States and China — comes as a boon for the agricultural industry which has been hit hard by the prevalent tensions.Presidents Donald Trump and Xi Jinping agreed to resume trade talks after Trump said he would refrain from imposing additional tariffs on Chinese imports. Trump also mentioned that U.S. companies can resume business with Huawei Technologies. China, in turn, has agreed to purchase U.S. farm products.
This is welcome news for the Manufacturing - Farm Equipment industry which had been witnessing a downtrend for the past few years due to low commodity prices and sluggish farm incomes which adversely impacted spending on farm equipment. While tariffs imposed by the Trump administration on steel and aluminum hurt manufacturers by inflating raw-material costs, China’s retaliation with tariffs on U.S. food and agricultural exports equally hit the industry hard, given that China is the largest export market for U.S. agriculture producers. High tariffs disrupted normal marketing patterns, flaring up costs by forcing producers to find new markets for clearing the surplus stock. Moreover, stringent and cumbersome entry procedures affected the quality and marketability of perishable crops, escalating marketing costs for producers.
Greener Pastures Ahead
Earlier President Trump had authorized the U.S. Department of Agriculture (USDA) to provide a $16-billion aid for American farmers who have been affected by the trade war. Additionally, the government plans to spend around $1.4 billion to purchase surplus commodities affected by trade retaliation, such as fruits, vegetables, some processed foods, beef, pork, lamb, poultry, and milk which would then be utilized in food banks, pantries and school meal programs. The USDA also intends to implement a $100-million trade promotion program for livestock producers and certain crops to help industry sectors develop new markets.
Inclement weather has delayed the planting season in most productive farming regions in the United States, which affected crop supply while demand remains high. This imbalance will support prices, which bodes well for farmers.
Also, per the USDA’s latest available projections, following a decline of 16% in 2018, net farm is anticipated to increase 10% year over year in 2019. Improving farm income will enable farmers to invest in equipment purchases.
Deere & CompanyDE, one of the major names in the industry, with a market capitalization of $52.5 billion, is expected to be one of the main beneficiaries of improving farm equipment demand in the United States. Also, considering that the company generates around 39% of its revenue overseas, positive developments in the U.S-China negotiations will boost growth.
Industry Outperforms S&P, Valuation is Inexpensive
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. The Manufacturing - Farm Equipment industry, which is part of the broader Industrial Products Sector, currently carries a Zacks Industry Rank #38, which places it at the top 15% of 256 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Stocks in the Manufacturing - Farm Equipment industry have collectively gone up 15.1% over the past month, outperforming the S&P 500’s gain of 7.2% and Industrial Products Sector’s rise of 9.2%.
On the basis of trailing 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing farm equipment stocks, we see that the industry is currently trading at 10.84 compared with the S&P 500’s 11.26X and Industrial Products sector’s 14.62X.
Investors keen on the industry may consider Kubota Corp. KUBTY, currently sporting a Zacks Rank #1 (Strong Buy) and AGCO Corporation AGCO, carrying a Zacks Rank #2 (Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here. Investors may also consider Titan International, Inc. (TWI), which carries a Zacks Rank #3 (Hold) currently and has positive growth estimates for the current fiscal year.
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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 reportDeere & Company (DE) : Free Stock Analysis ReportKubota Corp. (KUBTY) : Free Stock Analysis ReportAGCO Corporation (AGCO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
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Looking At CRA International, Inc. (NASDAQ:CRAI) From All Angles
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of CRA International, Inc. (NASDAQ:CRAI), it is a financially-robust company with a strong track record of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on CRA International here.
In the past couple of years, CRAI has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did CRAI outperformed its past performance, its growth also exceeded the Professional Services industry expansion, which generated a 25% earnings growth. This is an optimistic signal for the future. CRAI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that CRAI has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CRAI seems to have put its debt to good use, generating operating cash levels of 0.52x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
CRAI is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CRAI's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the professional services industry, CRAI is also trading below its peers, relative to earnings generated. This supports the theory that CRAI is potentially underpriced.
For CRA International, I've put together three pertinent factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for CRAI’s future growth? Take a look at ourfree research report of analyst consensusfor CRAI’s outlook.
2. Dividend Income vs Capital Gains: Does CRAI return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from CRAI as an investment.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of CRAI? 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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2019 NFL preview: Broncos, John Elway still searching for a QB
Yahoo Sports is previewing all 32 teams as we get ready for the NFL season, counting down the teams one per weekday in reverse order of our initial 2019 power rankings. No. 1 will be revealed on July 31, the day before the Hall of Fame Game kicks off the preseason. (Yahoo Sports graphics by Paul Rosales) The Denver Broncos have struggled to replace a legendary quarterback before. Funny enough, the first time also centered around John Elway. When Elway retired after the 1998 season, the Broncos had a hard time finding someone to take his place. Brian Griese was OK, for a while. So was Jake Plummer. Jay Cutler, Kyle Orton and Tim Tebow had their moments. But none of them was Elway. The bar was very high. Then came Peyton Manning. Elway helped land him in his new general manager role, and Manning was great. He had three phenomenal individual seasons. Manning hit the wall and struggled badly in his fourth season but the football gods paid him back for some tough luck and he went out as a Super Bowl champion. Manning retired and the next phase started for Elway and the Broncos. [Join or create a 2019 Yahoo Fantasy Football league for free today] Sometimes Brett Favre retires (for a minute, anyway) and Aaron Rodgers steps in. Joe Montana gets replaced by Steve Young. Those teams are lucky. The 2016-18 Broncos were not. Elway’s succession plan was Brock Osweiler, but he left as a free agent and it’s clear he wouldn’t have been the answer anyway. Then the Broncos scrambled. They whiffed badly on first-round pick Paxton Lynch. They tried tricking themselves into believing Trevor Siemian would work out. Last year they paid Case Keenum on the chance he could replicate what he did with the 2017 Vikings. None of it worked. And, if we’re being honest, it’s hard to imagine Joe Flacco changing who he is at age 34 and making people forget about Manning. Flacco isn’t bad, but other than a great playoff run with the 2012 Ravens, he has never been great either. It’s hard to start 11 years with the same team and not make one Pro Bowl, but Flacco did it. Maybe rookie Drew Lock will be the answer, but second-round quarterbacks have a low success rate and if the Broncos really thought Lock was great, they wouldn’t have drafted a tight end and offensive lineman before getting to him. Story continues Elway has been ripped for his inability to find a quarterback , and he has made mistakes. It’s also really hard to find a quarterback. Some teams spend decades trying. Replacing a legend makes it even harder. It’s not like Griese and Plummer were terrible in the post-Elway era, but good luck living up to Elway. Manning has an argument as the greatest quarterback ever, and a big part of that is what he did in Denver. It’s not like the Broncos have even had a Plummer or Griese since Manning retired, but anyone is going to be in a heck of a shadow. Quarterback gets all the attention, but the truth is that the Broncos had an expiration date as a great team. It’s not like this team is as good as the 2015 version, just waiting on a decent quarterback. The defense is still good, but not great. The offense around the quarterback has taken a step back. Some horrific drafts by Elway have taken a big toll on the roster. It’s hard to say if Vance Joseph was a bad coach or was dealt a bad hand, but that hire didn’t work out and it also set Denver back in its post-Manning world. Now former Chicago Bears coordinator Vic Fangio comes in. While the rest of the league is sifting through the sand to find any young offensive mind with a connection to Sean McVay, the Broncos hired a 60-year-old defensive guru who is finally getting his first shot to be a head coach. There’s nothing wrong zigging as the rest of the league zags. Very little has gone right for the Broncos since Super Bowl 50. The beauty of the NFL is that can change fast. Last year’s Broncos draft was good, and this year’s looks pretty good too. The defense isn’t what the legendary 2015 unit was, but it’s still good. It might even be great again very soon, with edge rushers Von Miller and Bradley Chubb as the foundation. Fangio hasn’t been a head coach before, but his résumé speaks for itself. The man knows football and maybe he’s another Bruce Arians, who just needed a shot and didn’t get one until he was 60. The Broncos will need something from the quarterback to break their streak of losing seasons, which is at two in a row for the first time since 1971-72. And they’ll need to settle on a real quarterback of the future, whether it’s Lock or someone they draft down the road. Those challenges have been a lot tougher than expected. Joe Flacco is the latest attempt for the Broncos to fix their quarterback issue. (AP) We’ll get to the Joe Flacco trade a little more in a moment, but let’s say it was uninspiring. The Broncos paid right tackle Ja’Wuan James $51 million over four years, with $32 million guaranteed, to fix the line. That’s a lot, but he’ll help. Kareem Jackson (three years, $33 million, $23 million guaranteed) and Bryce Callahan (three years, $21 million, $10 million guaranteed) were signed to bolster the secondary. The Broncos were aggressive in free agency, but that’s nothing new for John Elway. They surprisingly let center Matt Paradis leave without much of a fight, and they lost other veterans like guard Billy Turner, cornerback Bradley Roby and linebackers Shaquil Barrett and Brandon Marshall. The draft does look like another winner, with Denver trading down and grabbing tight end Noah Fant, then getting offensive lineman Dalton Risner and quarterback Drew Lock in the second round. GRADE: B The Broncos had what looks like a productive draft in 2018, especially if you factor in Pro Bowl running back Phillip Lindsay, who was undrafted. The centerpiece was pass rusher Bradley Chubb. Chubb was overshadowed a bit because there were a few impact rookie defenders, but he had 12 sacks and looked like every bit of the prospect he was projected to be before last year’s draft. Von Miller is still a star as well. Most teams struggle to find one top-flight pass rusher, and the Broncos have two. Vic Fangio will be able to get quite creative with Chubb and Miller. The Broncos have some interesting options in the passing game, but individually they all have uncertainty. Courtland Sutton is intriguing, but didn’t do much with a bigger role following the trade of Demaryius Thomas last season. Emmanuel Sanders is a fine player but is 32 years old and coming off a torn Achilles. It’s still uncertain if he’ll be ready for the start of training camp. DaeSean Hamilton could be a productive slot receiver but doesn’t seem to have huge upside. Noah Fant is talented but almost every rookie tight end struggles. We might look back at the end of the season and be very excited about this group of pass catchers — clearly there’s potential here, specially with Sutton and Fant — but a lot of questions need to be answered first. What was the point of trading for Joe Flacco? Even if we say Flacco is better than Case Keenum, it’s not by much. And Keenum was already on the roster. Flacco cost a fourth-round pick, and a team coming off back-to-back losing seasons can’t just give away mid-round picks. Flacco hasn’t had a passer rating higher than 84.2 since 2014. He has never made a Pro Bowl (he was invited twice as a replacement but declined). Flacco is nine starts from passing Joe Ferguson for the most starts by a quarterback in NFL history without one Pro Bowl appearance . Flacco has had a remarkable playoff career, but it’s hard to bank on getting that Flacco when the larger body of work says he’s a middle-of-the-road quarterback. It’s unlikely that changes at age 34. Maybe John Elway has the last laugh and Flacco has the best years of his career in Denver but it seems like a strange trade, settling for mediocrity when the Broncos already had mediocrity at the position. The way the Broncos handled the Chris Harris situation this offseason was curious. They had to know when they signed Kareem Jackson to a deal worth $11 million per season that four-time Pro Bowler Harris would want a raise from his base salary of $7.8 million. Harris asked for a new deal or a trade. The Broncos didn’t trade him, but didn’t give him an extension either. Harris got a raise to a little more than $12 million, but can be a free agent next offseason. The Broncos balked at Harris’ price for an extension, reported to be about $15 million per season, and maybe that’s the prudent move considering he is 30 years old. But it also means the Broncos risk losing one of their core players next offseason. At least the Broncos get at least one more season out of Harris, one of the best cornerbacks in football, and he should be motivated to have a big year. From Yahoo’s Scott Pianowski: “Most teams offer some utility in the passing game, but there’s no guarantee the 2019 Broncos will. Joe Flacco has been a below-average quarterback for four straight years, and is now stepping into an age-34 season. “If you have to dip into this receiver pool, Courtland Sutton makes the most sense. He made some splashy plays as a rookie (42-704-4, 16.8 YPC), but he only caught half of his targets and struggled with drops. With the notable exception of the 2014 season, rookie wideouts are usually in learn mode more than play mode. Sutton wasn’t a home run as a rookie, but he got on base. “Sutton isn’t exactly a giveaway at the table — his ADP is 89 in early Yahoo drafts (it’s 18 slots cheaper in recent NFFC runs). If you want to go a cheaper route, perhaps second-year slot man DaeSean Hamilton is your target. Hamilton wasn’t used as much as Sutton last year, but he did snag 25 catches in the last four weeks, albeit they went for a modest 182 yards. His ADP is cheap in Yahoo (153), a little pricier in NFFC (129). “Emmanuel Sanders is the X-factor, a former Pro Bowler coming off a torn Achilles. He’s 32, entering his 10th season. Generally I’d rather be a year early than a year late with this type of player. On average, he’s going about a round before Hamilton. “We’ll spend the rest of the summer trying to judge who Flacco seems to be clicking with. But we’ll also stay open-minded to the reality that some questions ultimately have no quality answers.” Phillip Lindsay became the first undrafted offensive rookie in NFL history to make a Pro Bowl. It’s surprising that had never happened before, but Lindsay earned it. He rushed for 1,037 yards and nine touchdowns. It will be interesting to see how the Broncos use Lindsay going forward. They still have 2018 third-round pick Royce Freeman, a fine talent who had to play through a high ankle sprain as a rookie. We could see Lindsay get fewer carries but more receptions (he had 35, which seems low for someone with his skill set) and still be a quality producer for the Broncos. WHAT WILL HAPPEN WITH DREW LOCK? A lot about the Broncos’ pick of Lock was logical, but parts of it made no sense at all. Denver didn’t have to pay a heavy price for Lock, considered by many a potential first-round pick. They need a quarterback and maybe he pays off. That’s fine. At the same time, the Broncos aren’t in a position to be wasting second-round picks. Either they believe Lock is a future starter — in which case they shouldn’t have been waiting until No. 42 to pick him — or they don’t believe he’s that good and they wasted a top 50 pick. Lock has a great arm but decision-making is an issue (read Eric Edholm’s draft profile for a full rundown ). He has some promise but more than a few warts. Perhaps this is the rare case in which a quarterback selected beyond the first round benefits from sitting behind a veteran and becomes a star, but go find recent examples of that happening. Spoiler alert: There aren’t many. There’s also the potentially uncomfortable situation of Joe Flacco being mediocre or worse, and fans clamoring for Lock by midseason. Broncos fans acted like Chad Kelly was the savior last season before Kelly stumbled into a house uninvited and got himself cut; they’re sure to be impatient if Flacco isn’t great. Perhaps Lock will be a great starter for the Broncos but it’s all a little weird, though weird might be the best way to describe the Broncos’ ongoing quarterback search. Clearly the Broncos think they just need an improvement in quarterback play to be playoff contenders. If not, they wouldn’t have traded a fourth-round pick for a 34-year-old quarterback. It doesn’t matter whether anyone else believes that, or believes that Joe Flacco is the guy to give the Broncos that improved quarterback play, because John Elway obviously believes it. “He’s played in a lot of big games and he has a lot of good football left in him at 34 years old,” Elway said, according to the team’s site . “We feel like he’s just really coming into his prime.” So let’s roll with that for this section. If Flacco plays well and the Broncos defense is a clear top-five unit — let’s not forget the Vic Fangio factor here — then Denver could be much better. That might not solve everything, but Broncos fans aren’t patient and they don’t want another losing season. Winning the AFC West probably isn’t happening, but a run at a wild card? Maybe. Let’s say John Elway is wrong and 34-year-old Joe Flacco isn’t “coming into his prime.” And maybe there’s good reason Drew Lock was bypassed by every team, and we see by the end of the season he was just another DeShone Kizer-level second-round prospect. Then what, the Broncos just let Elway try to pick the next quarterback? The Broncos have looked like a team that should go for a rebuild, but that’s not Elway’s style. So they’ve basically been stuck, not good enough to be in the playoff race but not bad enough to land a top prospect at quarterback. Yet again this season, they don’t seem good enough to be in the playoffs or bad enough to be in position to land a top-flight 2020 quarterback prospect. Then next year’s preview will read a lot like this one. Being stuck in NFL mediocrity is the worst. I’m not sure why this Broncos team will be much better than last year. The upgrade in quarterback play probably isn’t much of an upgrade. Maybe Vic Fangio is an instant head-coaching star, but other than that, it looks a lot like the team that went 6-10 last year. It’s really hard to concoct a scenario, with a tough schedule (second toughest in the NFL, according to Warren Sharp , who calculates strength of schedule based on Las Vegas projected win totals), in which the Broncos make a leap up to double-digit wins. An 8-8 record seems to be the realistic ceiling. What fun. 32. Arizona Cardinals 31. Miami Dolphins 30. Oakland Raiders 29. New York Giants 28. Cincinnati Bengals 27. Tampa Bay Buccaneers 26. Washington Redskins 25. Detroit Lions 24. Buffalo Bills 23. New York Jets – – – – – – – Frank Schwab is a writer for Yahoo Sports. Have a tip? Email him at shutdown.corner@yahoo.com or follow him on Twitter! Follow @YahooSchwab
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Non-OPEC members back cartel's extension of production cuts
VIENNA (AP) — OPEC members won the support Tuesday of other major oil producing nations to extend a production cut for another nine months in a bid to shore up prices at a time of waning demand. Member nations of the Organization of the Petroleum Exporting Countries on Monday agreed to the extension. With strong backing from Russia, the biggest member of the non-OPEC group meeting Tuesday, the others unanimously approved the proposal. "In order to help maintain the current stable status of the market and avoid buildup of inventories, we have decided to keep the level and the magnitude of the cuts intact," Russian Energy Minister Alexander Novak told the forum after the vote. The 10 non-OPEC nations present at the meeting at OPEC's headquarters in Vienna also included Mexico, Bahrain, Oman and Kazakhstan. The United States, one of the world's major oil producers, is not involved in the discussions and won't be bound by any agreement. Opening the Tuesday meeting, Novak urged approval of the extension. "In the current unstable market and the huge uncertainty we are seeing, our coordinated action aimed at consecutive and stable supply to the market and ensuring its stability are key to give us longer visibility," Novak said. Heading into the meeting, OPEC heavyweight Saudi Arabia said the nine-month extension was the right move to make given the current market conditions. "I see demand picking up strongly in the second half of the year and I see compliance greatly improving," Saudi Arabia's Energy Minister Khalid Al-Falih told reporters. "And I see the length of this agreement as nine months sufficiently long to bring inventories down and to balance the market." The current deal to support prices reduced production by 1.2 million barrels per day starting from Jan. 1 for six months, and will now run into next year with the extension. Most of the cuts came from OPEC nations, who agreed to reduce 800,000 barrels per day, with the rest of the cuts coming from Russia and other non-OPEC countries, though not from the United States. Story continues The cuts were aimed to put upward pressure on the price of oil and reduce oversupply. Though tensions between the U.S. and Iran and attacks on tankers near the Strait of Hormuz have pushed up oil prices in recent days, there are concerns among members that over the longer term demand could weaken due to slower global growth. The International Energy Agency, a group of oil consuming countries, cut its demand estimate earlier this month. The price of Brent crude, the international standard, dropped 0.5 percent Tuesday to $64.76 a barrel. _____ Rising reported from Berlin
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Don't do your boss any favors buying gift cards — it's likely a scam
We've had the"one ring" phone scam, thefake IRS phone calls, the scam that tricks you into thinking thatyour Social Security number has been connected to some car in Texas that was involved with running drugsacross the border.
And now we have the "Can you do me a favor?" scam.
Sure, you're thinking, "Hey, I know quite a few folks who ask for favors and run that scam everyday."
But trust us, this one has a new twist.
"Usually, it starts with an email," said Amy Nofziger, AARP fraud expert.
The email could look like it's from your boss, maybe your minister or pastor, maybe the principal of your school.
A 31-year-old woman who had just started a job in April didn't think twice when she got an email from her boss asking for help in early May.
"My boss was on vacation but he said he was going to be working remote," said the Florida woman, who asked that her name not be used because she didn't want more emails from scammers.
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She works at a company that sells high-end appliances and her job often involves handling different projects for her boss.
So she wasn't taken aback when he sent an email and asked her to buy four $500 gift cards to be used as prizes for employees. And she received other emails supposedly from her boss during the process.
"He kept asking: 'Where are we on this?'" she said.
In the end, she bought two Best Buy gift cards and two Target gift cards.
She lost $2,000 in total after she charged the gift cards on her credit card.
At some point, she started thinking something was off once the boss asked for more gift cards. And then somehow, she checked on the balances on the four cards she already had bought and discovered they were all at $0.
She had sent her "boss" the codes off the gift cards and the crooks were able to access the money. She later googled scams and discovered a warning about crooks sending fake emails pretending to be your boss.
Her advice now: "As soon as you get an email like that, call your boss. Just make sure it's him or her."
Consumers are warned that these sorts of scams can start innocently enough.
The message in the initial email might be something like: "Jane, could you please email me back? I need a favor."
Or "Sally, are you available at the moment? I need you to handle a project. Very busy at the moment. Can't talk. Just send an email when you receive this. Thanks."
And remember, the phishing email is crafted to appear legitimate, often signed by someone we know. So, sure, we want to help. The email address is even similar to your supervisor's email, too. So many of us don't think twice.
"We want to please people and we certainly want to please people that are in a position of authority," Nofziger said.
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Liking to please people, of course, makes you a good target for scammers.
Once we respond to the first email, we're going to get another email.
The note could say something like: "Good to hear from you. I need to get three iTunes gift cards for my niece. It's her birthday but I can't do this now because I'm currently traveling. Can you get them for me from any store around you? I'll pay back next week when I get back home."
Or the email might state: "I need you to pick up three Home Depot gift cards for our project."
Gail Engel, 63, got a text out of the blue from Pastor Joseph saying that a friend of his has cancer and he asked her to help him buy some gift cards as a get well gift. He was at the hospital right now.
Engel, who lives in Loveland, Colo., said she works with Father Joseph but a Pastor Joseph? The wording sounded odd.
The timing of the text worked against the scammers, too.
Engel – who is retired but heads a nonprofit for grandparents raising their grandchildren – was attending a meeting of that group at a church building. The speaker was from the AARP and discussing scams.
So Engel did text back saying: "No, I can't help you but call this number and they might be able to help you." She texted a number for the AARP fraud hotline.
How do the scammers even know the name of your boss?
Consumer watchdogs say the fraudsters could be using some sort of organizational chart that is easily found online. Look up a school, you're going to have easy access to finding the emails for teachers, as well as the name of the principal. The same's true for some online church directories or online information for a company's staff.
"Scammers are using technology and the amount of personal information we put online to exploit us," Nofziger said.
"It's so creative – let's give them some credit," she said. "It's creative in the way they're social engineering you."
"It does seem to be targeting an audience that is working or is involved in a social group," Nofziger said.
Once the gift cards are bought, the impersonators will ask you to take photos of the numbers on the back of the gift cards and text them the photos.
Often, the person in authority says the photo is needed as a record so you can be reimbursed. But once you send those photos, you're never, ever going to get your money back.
Crooks are able to use the numbers to download the value quickly and you're stuck holding the bag. The money is gone and almost impossible to trace.
If you think your "Boss" sent you a text or email asking you to buy gift cards and send them the gift card numbers along with the PIN information, you better double check with your "real boss" or you might be out some serious cash. It's a SCAM!!#BossGiftCardScampic.twitter.com/6swK2H9v8n
The scammers in the case with the four $500 gift cards somehow seemed to know that the young woman's boss was on vacation or maybe that she was even new on the job. In retrospect, the woman said she realizes that if her company wanted her to spend that kind of money, they probably would have given her a credit card to do so.
"It was just too weird," said the young woman, who has a toddler and a baby on the way.
She joked that she told her husband that she knew he'd be upset about her being scammed but says she reminded him that she was pregnant, so don't get too upset.
The couple worked it out and her husband helped her deal with the added expense.
Consumer watchdogs say some gift cards requested in scams include: Home Depot, Best Buy, Amazon, Google Play, iTunes, Steam, MoneyPak and, oddly enough, even Sephora, a retailer specializing in cosmetics, skincare and fragrances.
Some consumers lose $500 and some lose as much as $5,000.
The Federal Trade Commission has warned that more scammers aredemanding payment on gift cardsthan ever before.
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The AARP Fraud Network said it is seeing an uptick of phishing emails supposedly from your boss, your minister, the principal of your school, all asking for a favor.
No, the scam isn't as widespread as one where someone pretends to be your grandson or son who is in desperate need of help. (Maybe they just got into an auto accident and they're requesting Home Depot gift cards. Why Home Depot? The police officer needs to go out and buy tools to fix the light pole that was knocked over in the accident.)
And no, the do-me-a-favor scam isn't as constant as the latest Social Security scam where someone needs to confirm your Social Security number so you can clear your name and prove you weren't laundering money or hauling drugs.
But Nofziger said the scam is growing and consumers need to be made more aware of it before it hits an epidemic level. Consumers can report scams or get more information atwww.aarp.org/FraudWatchNetworkor call the AARP Fraud Watch Network helpline at 877-908-3360.
So do yourself a big favor, don't immediately respond to emails asking for a favor. Maybe pick up the phone first, call the person and ask if they really need any extra help.Contact Susan Tompor:313-222-8876orstompor@freepress.com.Follow her on Twitter@tompor.
This article originally appeared on Detroit Free Press:Don't do your boss any favors buying gift cards — it's likely a scam
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Despite Its High P/E Ratio, Is Park National Corporation (NYSEMKT:PRK) Still Undervalued?
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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 Park National Corporation's (NYSEMKT:PRK), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,Park National has a P/E ratio of 14.88. That means that at current prices, buyers pay $14.88 for every $1 in trailing yearly profits.
Check out our latest analysis for Park National
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Park National:
P/E of 14.88 = $99.99 ÷ $6.72 (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 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. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. Then, a lower P/E should attract more buyers, pushing the share price up.
Park National increased earnings per share by 8.1% last year. And its annual EPS growth rate over 5 years is 6.4%.
We can get an indication of market expectations by looking at the P/E ratio. You can see in the image below that the average P/E (12.9) for companies in the banks industry is lower than Park National's P/E.
That means that the market expects Park National will outperform other companies in its industry. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should always consider the P/E ratio alongside other factors, such aswhether company directors have been buying shares.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
Such 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.
Park National has net debt worth 25% of its market capitalization. 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.
Park National's P/E is 14.9 which is below average (18.2) in the US market. EPS grew over the last twelve months, and debt levels are quite reasonable. If growth is sustainable over the long term, then the current P/E ratio may be a sign of good value.
Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
Of courseyou might be able to find a better stock than Park National. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Is Restaurant Brands International Inc.'s (NYSE:QSR) ROE Of 29% Impressive?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Restaurant Brands International Inc. (NYSE:QSR).
Our data showsRestaurant Brands International has a return on equity of 29%for the last year. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.29 in profit.
View our latest analysis for Restaurant Brands International
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Restaurant Brands International:
29% = US$599m ÷ US$3.8b (Based on the trailing twelve months to March 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. 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 yearly profit. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies.
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 you can see in the graphic below, Restaurant Brands International has a higher ROE than the average (14%) in the Hospitality industry.
That's clearly a positive. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
It seems that Restaurant Brands International uses a lot of debt to fund the business, since it has a high debt to equity ratio of 3.25. So although the company has an impressive ROE, that figure would be a lot lower without the use of debt.
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. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of courseRestaurant Brands International 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 PRA Health Sciences's (NASDAQ:PRAH) 142% Share Price Increase Well Justified?
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It hasn't been the best quarter forPRA Health Sciences, Inc.(NASDAQ:PRAH) shareholders, since the share price has fallen 11% in that time. But that doesn't change the fact that the returns over the last three years have been very strong. The share price marched upwards over that time, and is now 142% higher than it was. To some, the recent share price pullback wouldn't be surprising after such a good run. Only time will tell if there is still too much optimism currently reflected in the share price.
See our latest analysis for PRA Health Sciences
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During three years of share price growth, PRA Health Sciences achieved compound earnings per share growth of 45% per year. The average annual share price increase of 34% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It is of course excellent to see how PRA Health Sciences has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
Over the last year PRA Health Sciences shareholders have received a TSR of 4.9%. Unfortunately this falls short of the market return of around 8.4%. But the (superior) three-year TSR of 34% per year is some consolation. Even the best companies don't see strong share price performance every year. Is PRA Health Sciences cheap compared to other companies? These3 valuation measuresmight help you decide.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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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Is Coherent, Inc.'s (NASDAQ:COHR) CEO Paid Enough Relative To Peers?
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John Ambroseo has been the CEO of Coherent, Inc. (NASDAQ:COHR) since 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Coherent
At the time of writing our data says that Coherent, Inc. has a market cap of US$3.3b, and is paying total annual CEO compensation of US$9.5m. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$800k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.2m.
Thus we can conclude that John Ambroseo receives more in total compensation than the median of a group of companies in the same market, and of similar size to Coherent, 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.
You can see a visual representation of the CEO compensation at Coherent, below.
Coherent, Inc. has increased its earnings per share (EPS) by an average of 36% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Boasting a total shareholder return of 52% over three years, Coherent, 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 compared total CEO remuneration at Coherent, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Coherent shares (free trial).
Important note:Coherent may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Santacruz Silver Acquires 50% Interest In Carrizal Mining
Vancouver, British Columbia--(Newsfile Corp. - July 2, 2019) -Santacruz Silver Mining Ltd. (TSXV: SCZ)(the "Company" or "Santacruz") announces that, further to its press release of May 22, 2019, Santacruz, through its wholly-owned subsidiary Carrizal Holdings Ltd., has acquired a 50% shareholding in PCG Mining, S.A. de C.V. ("PCG") which is a holding company that owns 100% of Carrizal Mining, S.A. de C.V. ("Carrizal"), a private Mexican mining company. The shares were purchased from one of PCG's shareholders who is at arm's-length to Santacruz (the "Vendor").
Consideration for the share acquisition was as follows:
1. A cash payment by Santacruz to the Vendor of US$500,000;
2. The forgiveness of approximately US$264,000 in debt owed by the Vendor to Carrizal; and
3. Other consideration in the aggregate amount of approximately US$680,000, including the transfer of a life-insurance policy and three vehicles from Carrizal to the Vendor, valued at US$494,000 and US$180,000 respectively.
As previously reported, the Company entered into a parallel agreement, with binding effect as of May 21, 2019, to acquire the remaining 50% of the outstanding shares of PCG that are owned by Carlos Silva (the "Silva Acquisition"), Santacruz's COO. The consideration to be paid by Santacruz to Mr. Silva with respect to the Silva Acquisition is 30,000,000 shares of Santacruz (the "Consideration Shares") at a deemed price of CDN$0.05 per share.
The Silva Acquisition remains subject to receipt of final approval from the TSX Venture Exchange (the "Exchange"), as well as the Company obtaining approval from the disinterested shareholders of the Company pursuant to Exchange requirements, since the Consideration Shares will represent more than 10% of the Company's outstanding shares prior to closing. Carlos Silva does not currently hold any common shares of the Company. On completion of the Silva Acquisition, Mr. Silva would hold 30,000,000 common shares of the Company representing approximately 14.7% of the Company's then issued and outstanding shares (assuming no other shares are issued subsequent to the date hereof other than the Consideration Shares).
Carrizal's assets include a 20% working interest in the Company's Veta Grande Project. The primary reason for the Company to acquire PCG is to effectively buy-back such 20% interest and regain 100% ownership rights of the subject property interests.
Carrizal also operates the Carrizal and Mina Monte mines (collectively the "Zimapan Mine") (34 mining concessions covering an area of 5,139 ha) located seven kilometers northwest from the town of Zimapan, Hidalgo, Mexico under a 10-year lease agreement with Minera Cedros, S.A. de C.V. ("Minera Cedros"), a wholly-own subsidiary of Grupo Peñoles, S.A.B. de C.V. Unless otherwise amended or extended, the lease agreement with Minera Cedros expires on July 31, 2019. The Company understands that Carrizal and Minera Cedros are currently in negotiations with respect to Carrizal acquiring outright the Zimapan Mine from Minera Cedros. This is an additional potential benefit from acquiring Carrizal but there can be no assurance that Carrizal will be successful in completing such acquisition. Accordingly, the acquisition by Carrizal of the Zimapan Mine is not a condition to completing the Silva Acquisition.
Arturo Prestamo, Santacruz's CEO stated, "The acquisition of a 50% interest in Carrizal is an important first step towards returning to 100% ownership rights in the Veta Grande Project, subject to receiving the necessary approvals to complete the purchase of the remaining 50% of Carrizal. It also offers the Company a chance to acquire an indirect interest in an operating mine in a potentially accretive transaction that could enhance Santacruz's operations."
All scientific and technical information contained in this news release has been reviewed and approved by Van Phu Bui, P.Geo., who is an independent consultant of the Company and a "qualified person" within the meaning of National Instrument 43-101Standards of Disclosure for Mineral Projects.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects (Veta Grande Project and Rosario Project) and two exploration properties (Minillas Property and Zacatecas Properties, which are associated with the Veta Grande Project). The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.
'signed'
Arturo Préstamo Elizondo,President, Chief Executive Officer and Director
For further information please contact:
Arturo PrestamoSantacruz Silver Mining Ltd.Email:info@santacruzsilver.comTelephone: (011) (52) 81 8378 5707
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.
Forward looking information
Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including statements relating to completion of the Silva Acquisition. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, that the Company's financial condition and development plans do not change as a result of unforeseen events, that third party mineralized material to be milled by the Company will have properties consistent with management's expectations, that the Company will receive all required regulatory approvals, including approval of the Exchange in respect of the Silva Acquisition, and that future metal prices and the demand and market outlook for metals will remain stable or improve. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to above prove not to be valid or reliable, which could result in lower revenue, higher cost, or lower production levels; delays in and/or failure to obtain necessary regulatory and shareholder approvals of the Silva Acquisition; delays and/or cessation in planned work; changes in the Company's financial condition and development plans; risks associated with the interpretation of data (including in respect of the third party mineralized material) regarding the geology, grade and continuity of mineral deposits; the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's continuous disclosure filings filed under the Company's profile atwww.sedar.com. There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.
Rosario Project
The decisions to commence production at the Rosario Mine, Cinco Estrellas Property and Membrillo Prospect were not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but rather on a more preliminary estimate of inferred mineral resources. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed site analysis according to and in accordance with NI 43-101.
Veta Grande Project
The decision to commence production at Veta Grande Project was not based on a feasibility study on mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably due to the absence of a complete and detailed site analysis according to and in accordance with NI 43-101.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46006
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Berry Global Acquires RPC Group, Revises Business Structure
Berry Global Group, Inc.BERY, yesterday, announced that it has successfully completed the acquisition of U.K.-based RPC Group Plc. The transaction value was approximately $6.5 billion. Notably, the company had expressed its interest for the acquisition this March.Concurrently, the company has announced revision in its business structure, enabling it to offer better services to customers and enhance shareholders’ value.Notably, the company’s share price increased roughly 2.3% yesterday, closing the trading session at $53.81.RPC Group specializes in providing recycled solutions and plastic packaging. Its products are mainly used by customers both in the non-packaging and packaging markets. The company operates in 33 countries and had roughly 25,000 employees. Revenues totaled $4.8 billion for the year ended Sep 30, 2018, while adjusted earnings before interest, tax, depreciation and amortization for the same period was $768 million.Details of BuyoutNotably, Berry Global paid approximately $4.3 billion in cash for purchasing the equities of RPC Group, while the rest $2.2 billion was paid toward net debt and funding for transaction costs. The transaction was financed through funds raised from the offering of $1.25 billion of 4.875% senior notes (secured) due to expire in 2026, $500 million of 5.625% of senior notes (secured) due to expire in 2026, $4.25 billion of term loan and €1.075 billion of term loan.This acquisition is likely to enhance Berry Global’s growth opportunities by creating a leader in the plastic and recycled packaging industry. The combined entity will operate across 290 locations globally, especially in Australia, Europe, South and North America, Asia, and Africa. Employee strength will be roughly 48,000 and revenues will be approximately $13 billion. Also, the buyout will generated annual cost synergies of $150 million.With the completion of RPC Global buyout, Berry Global has revised its business segments from the earlier three segments (Engineered Materials; Health, Hygiene & Specialties; and Consumer Packaging) to four segments — Health, Hygiene, and Specialties; Consumer Packaging – International; Engineered Materials; and Consumer Packaging – North America.Strengthening Portfolio Through BuyoutsAcquisition is one of the favored growth options for Berry Global. Clopay Plastic Products Company, Inc. was added to the portfolio in February 2018, while Laddawn, Inc. was bought in August 2018. In the second quarter of fiscal 2019 (ended Mar 30, 2019), acquired assets added roughly 3.9% to sales.Zacks Rank & Key PicksWith a market capitalization of nearly $6.9 billion, Berry Global currently carries a Zacks Rank #4 (Sell). Its financial performance in second-quarter fiscal 2019 was lackluster, with earnings lagging estimates by 14.3%. Escalating debts, forex woes, costs and operating expenses, and acquisition-related integration risks are concerning. We believe the company’s acquisitive nature will help boost its growth opportunities.In the past 60 days, earnings estimates for the company have been lowered, indicating bearish sentiment. The Zacks Consensus Estimate for earnings is pegged at $3.54 for fiscal 2019 (ending September 2019) and $3.82 for fiscal 2020 (ending September 2020), suggesting a decline of 5.6% and 4.3% from the respective 60-day-ago figures.Berry Global Group, Inc. Price and Consensus
Berry Global Group, Inc. price-consensus-chart | Berry Global Group, Inc. QuoteFurther, the company’s share price has declined 1.9% in the past three months against 1% growth recorded by the industry it belongs to.Some better-ranked stocks in the industry are Aptargroup, Inc. ATR, UFP Technologies, Inc. UFPT and Graphic Packaging Holding Company GPK. While Aptargroup sports a Zacks Rank #1 (Strong Buy), both UFP Technologies and Graphic Packaging carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, earnings estimates for the current year improved for Aptargroup and UFP Technologies, and remained unchanged for Graphic Packaging Holding. Further, AptarGroup, UFP Technologies and Graphic Packaging Holding had a positive earnings surprise of 8.27%, 9.14% and 3.93%, respectively, in the last reported quarter.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 reportGraphic Packaging Holding Company (GPK) : Free Stock Analysis ReportAptarGroup, Inc. (ATR) : Free Stock Analysis ReportBerry Global Group, Inc. (BERY) : Free Stock Analysis ReportUFP Technologies, Inc. (UFPT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Here is Why Growth Investors Should Buy National Storage (NSA) Now
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
National Storage (NSA) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this real estate investment trust a great growth pick right now.
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for National Storage is 14.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 9.9% this year, crushing the industry average, which calls for EPS growth of 1.2%.
Cash Flow Growth
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for National Storage is 32.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 13.3%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 94.5% over the past 3-5 years versus the industry average of 17.5%.
Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for National Storage. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.
Bottom Line
National Storage has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that National Storage is a potential outperformer and a solid choice for growth investors.
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 reportNational Storage Affiliates Trust (NSA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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China says Turkey president offered support over restive Xinjiang
BEIJING (Reuters) - Turkey recognizes the fact that the people of China's Xinjiang lead happy lives, Chinese state media on Tuesday cited Turkish President Tayip Erdogan as saying, a region where China has been running a controversial de-radicalization scheme. China has faced growing international opprobrium for setting up what it calls vocation training centers to combat extremism in Xinjiang, home to the mostly Muslim Uighur people who speak a Turkic language, which many Western countries view as internment camps. Turkey is the only Muslim nation to have regularly expressed concern about the situation in Xinjiang, including in February at the U.N. Human Rights Council, to China's anger. But meeting Chinese President Xi Jinping in Beijing, Erdogan struck a more positive note, according to a Chinese state media read out of the event. "It is a fact that the peoples of China's Xinjiang region live happily in China's development and prosperity," state television paraphrased Erdogan as saying. "Turkey does not permit any person to incite disharmony in the Turkey-China relationship. Turkey firmly opposes extremism and is willing to increase mutual political trust with China and strengthen security cooperation." Xi told Erdogan that the two countries should take practical steps to promote counter-terror cooperation, the report added. China appreciates Erdogan's numerous comments saying that he will not permit "any forces to carry out anti-China activities in Turkey and attaches great store on Turkey stressing many times its support of China fighting terrorism", Xi added. Hundreds have died in unrest in recent years in Xinjiang, blamed by Beijing on Islamist extremists and separatists. Beijing says its de-radicalization efforts in Xinjiang have brought unprecedented stability, pointing to a lack of violence in the past two years or so. (Reporting by Ben Blanchard; Editing by Nick Macfie)
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DS Smith Plc (LON:SMDS): What Does The Future Look Like?
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On 30 April 2019, DS Smith Plc (LON:SMDS) released its earnings update. Generally, it seems that analyst forecasts are substantially optimistic, with earnings expected to grow by a high double-digit of 97% in the upcoming year, relative to the historical 5-year average growth rate of 14%. Presently, with latest-twelve-month earnings at UK£262m, we should see this growing to UK£517m by 2020. Below is a brief commentary around DS Smith's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here.
See our latest analysis for DS Smith
The 13 analysts covering SMDS view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of SMDS'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.
From the current net income level of UK£262m and the final forecast of UK£397m by 2022, the annual rate of growth for SMDS’s earnings is 13%. This leads to an EPS of £0.29 in the final year of projections relative to the current EPS of £0.20. Margins are currently sitting at 4.2%, which is expected to expand to 5.6% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For DS Smith, there are three important factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is DS Smith 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 DS Smith is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DS Smith? 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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5 Top Performing Bank Stocks Worth Betting on in 2H19
The banking sector witnessed a significant turnaround in the first half of 2019 following a disappointing performance in 2018. The KBW Nasdaq Bank Index and SPDR S&P Regional Banking ETF KRE rallied 14.2% and 14.1%, respectively, in the first half despite several concerns plaguing the sector. Both the indexes had ended 2018 in red.One of the major factors for the bullish stance seems to be banks’ efforts to restructure operations (streamlining and expansion) to diversify footprint and revenue base. Driven by easing of stringent regulations and lower corporate tax rates that freed up capital, the banking sector is witnessing a rise in consolidation. This is expected to provide banks with additional cushion during a downturn.Also, banks are undertaking measures to align their businesses for technology driven clients. More and more banks are spending substantially on technology to upgrade existing/new branches and ATMs with more advanced features. This is expected to lower costs and improve operating efficiency.Further, a decent lending scenario — mainly in the areas of commercial and industrial and consumer – during first-half 2019 will support banks’ net interest income growth amid yield curve inversion, trade war concerns and the Fed’s dovish stance related to interest rate hikes. Also, efforts to focus more on non-interest income will boost top-line growth to some extent.Moreover, the U.S. economy is growing (against expectations of slowdown). With the health of the nation being the main driving factor for banks’ financial health, this will continue to provide support.Picking the Potential WinnersThe above-mentioned factors are expected to keep supporting the banking sector in the second half of 2019 as well. Nonetheless, investors should keep an eye out for issues faced by the sector as these could have an adverse impact on bottom-line growth.It’s not an easy task to select a handful of banking stocks that still have upside left. So, with the help of the Zacks Stock Screener, we selected bank stocks that carry a Zacks Rank #2 (Buy) or better and have current-year earnings growth expectation of 5% or more.Also, these banks have outperformed the aforementioned bank indexes in first-half 2019.Here are the five bank stocks that met the above criteria:Headquartered in Cincinnati, OH,Fifth Third BancorpFITB has rallied 18.5% in the first half of the year. With a Zacks Rank of 2, the company’s earnings are expected to grow 10.6% in 2019.CNB Financial CorporationCCNE, based in Clearfield, PA, carries a Zacks Rank #2 and has rallied 23% in the first six months of 2019. The company’s current-year earnings are projected to increase 12.2%.Shares ofMetropolitan Bank Holding Corp.MCB have surged 42.6% in the first half. This New York-based bank’s earnings are expected to grow 23.9% in 2019. It sports a Zacks Rank 1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.OFG BancorpOFG, based in San Juan, PR, sports a Zacks Rank #1. Its shares have surged 44.4% during the first six months of 2019. The company’s earnings are expected to grow 14.5% in 2019.Veritex Holdings, Inc.VBTX has a Zacks Rank #2 and its 2019 earnings are projected to increase 37.5%. Shares of Dallas, TX-based company have rallied 21.3% in the first half.
First-half 2019 Price Performance
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 reportFifth Third Bancorp (FITB) : Free Stock Analysis ReportOFG Bancorp (OFG) : Free Stock Analysis ReportCNB Financial Corporation (CCNE) : Free Stock Analysis ReportSPDR S&P Regional Banking ETF (KRE): ETF Research ReportsVeritex Holdings, Inc. (VBTX) : Free Stock Analysis ReportMetropolitan Bank Holding Corp. (MCB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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How Should Investors React To ProAssurance Corporation's (NYSE:PRA) CEO Pay?
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Stan Starnes has been the CEO of ProAssurance Corporation (NYSE:PRA) since 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 ProAssurance
At the time of writing our data says that ProAssurance Corporation has a market cap of US$1.9b, and is paying total annual CEO compensation of US$2.1m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$955k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
A first glance this seems like a real positive for shareholders, since Stan Starnes is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at ProAssurance has changed over time.
Over the last three years ProAssurance Corporation has shrunk its earnings per share by an average of 22% per year (measured with a line of best fit). Its revenue is up 13% over last year.
Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Since shareholders would have lost about 12% over three years, some ProAssurance Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that ProAssurance Corporation remunerates its CEO below most similar sized companies.
Stan Starnes is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. So you may want tocheck if insiders are buying ProAssurance shares with their own money (free access).
Important note:ProAssurance may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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3 Things Limiting Aurora Cannabis' Upside
The marijuana industry is expected to see up to $75 billion in global (legal) sales by 2030, and it has dozens upon dozens of pot stocks for investors to choose from. But when it comes to popularity, no marijuana stockis more actively held by investorsthanAurora Cannabis(NYSE: ACB).
Aurora Cannabis projects as thelargest Canadian marijuana producerby peak output. Already yielding more than 150,000 kilos on an annual run-rate basis at the end of March, the company is targeting at least 625,000 kilos per year of run-rate production by the midpoint of 2020 (which would be the end of its fiscal year in 2020). With the exception ofCanopy Growth, and nowFlowr Corp.following the announcement of amajor acquisition in Portugal, no other growers are within a stone's throw of Aurora's peak yearly output.
Image source: Getty Images.
No growers can hold a candle toAurora's international push, either. This is a company with a cultivation, processing, export, or research presence in 24 countries around the world, including Canada. With the exception of Canopy Growth, few other cannabis stocks have the international appeal that Aurora possesses. These external sales channels should prove their worth in a few years' time, when dried cannabis flower becomes oversupplied in Canada.
Investors also seem to appreciate Aurora's stated focus on medical marijuana patients. Although this is a smaller consumer pool than adult-use cannabis, medical pot patients use the product more frequently, buy cannabis more often, and are far more willing to purchase higher margin derivatives (e.g., oils, edibles, concentrates, tinctures, infused beverages, topicals, vapes, and so on). In other words, focusing on medical marijuana patients is Aurora's means of bolstering its margins, in addition to recognizing economies of scale as its larger grow operations come on line.
Combine these catalysts, and we get the primary bull thesis for Aurora Cannabis.
Yet, take a closer look at the company's stock and you'll notice something disheartening: It hasn't delivered for shareholders over the past 18 months. Aurora's stock is up a meager 2% in that time, with a number of its peers running circles around it over the same period.
Aurora's underperformance is likely tied to three upside-limiting factors.
Image source: Getty Images.
Although Aurora optimists absolutely loathe hearing aboutshare-based dilution, it's easily one of the biggest reasons the company's stock has run in place for the past 18 months.
Since August 2016, Aurora Cannabis has made 15 acquisitions, nearly all of which have been paid for with the company's common stock. Between share issuances to raise capital for the construction of existing greenhouse projects, to acquisitions to bolster the company's production or international supply chain, issuing shares or selling convertible debentures have been Aurora's primary means of raising capital.
On the plus side, yes, adding new businesses or products does add value to the company. But that value is being spread out over a greater number of outstanding shares. In just the past 19 quarters (4 3/4 years), Aurora's outstanding share counthas grown by roughly 1 billion. The company simply cannot issue 1 billion shares and not expect adverse consequences for its share price.
Management has made it evident that inorganic growth will play a big role in Aurora's future. And while that's not inherently bad, Wall Street will need to see a serious slowdown in share issuances and stock-based compensation if these adverse effects of dilution on the company's share price are to ease.
Image source: Getty Images.
The second reason Aurora Cannabis is getting minimal love from big-money investors has to do with its acquisition-heavy strategy. Though these purchases have been instrumental in growing its capacity, diversifying its product portfolio, and expanding its international reach, the premiums it's paid for these deals have become an eyesore on the company's balance sheet.
As of the end of the fiscal third quarter (March 31, 2019), Aurora Cannabis recognized3.18 billion Canadian dollars ($2.42 billion) in goodwill, which was up from about CA$3.06 billion in the sequential second quarter, and just CA$760 million in the prior-year quarter. Goodwill represents the amount Aurora has cumulatively paid above and beyond tangible assets for the companies it has acquired. While some amount of goodwill is to be expected, Aurora's CA$3.18 billion makes up 57.2% of its total assets.
Ideally, it is going to be able to quickly integrate and develop its acquired assets to begin recouping significant amounts of this premium paid, thereby reducing or eliminating the goodwill on its balance sheet. But a scenario thatcould be just as likelyis Aurora being unable to recoup all of its goodwill and taking a substantial writedown. This would lead to a large one-time loss, and it would reduce the company's total assets and shareholder equity.
In short, until Aurora's goodwill is addressed, the stock could struggle to motor higher.
Image source: Getty Images.
Lastly, not every finger should be pointed at Aurora Cannabis and its management team. In some ways, the regulatory agency Health Canada has let the entire industry down. And since Aurora is currently the largest producer, it's been let down more than most other growers.
As of January 2019, Health Canada was contending with a backlog of licensing applications thatreached nearly 840. Considering that it has approved fewer than 190 since 2013, this monstrous backlog has meant that even major growers have had to wait months, or even longer than a year, to get approval to plant, harvest, process, and sell cannabis.
Health Canada's laundry list of regulations surrounding packaging and branding have also been a work in progress for marijuana middlemen. Since recreational marijuana was legalized in mid-October, there's been apersistent shortage of compliant packaging solutionsthroughout the country. This has left unfinished cannabis sitting on the sidelines.
Health Canada does havesolutions it's implementingto help resolve the supply-side issues plaguing the Canadian weed market, but it's unlikely to happen with the flip of a switch.
So, yes, Aurora Cannabis offers plenty of potential. But it also has a handful of tangible reasons for its upside to be limited.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
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Markets Pause As Trade Hopes Fade, EU Leadership In Question, RBA Slashes Interest Rates
The U.S. futures are flat and slightly lower in early Tuesday trading. The pause comes just a day after the broad-market surged to a new all-time high. The high was sparked by a so-called trade-truce between the U.S. and China that did little to assuage market fears. Donald Trump says the new round of trade talks has already started, traders are warned not to expect too much too soon. Trump also said any deal would have to skew in favor of Washington, a sentiment that does not bode well for bipartisan cooperation.
Adding to the negative trade-vibe is the word the Trump administration is considering another round of tariffs on EU goods. The new round of levies would be aimed at up to $4 billion worth of goods and is intended to battle EU subsidies for aircraft manufacturers. The U.S. and EU have been locked in a fierce battle at the WTO over the EU’s subsidies for Boeing rival Airbus. The U.S. tariffs would affect goods ranging from olives to Italian cheeses and Scotch whiskey.
In other news, OPEC says the non-OPEC members of OPEC+ have agreed to extend production cuts for another 9 months. The production cuts are intended to tighten the global oil market and drive prices higher. The policy is designed to fight rising U.S. production which has eclipsed that of Saudi Arabia and Russia. There is no economic data today, later this week be on the lookout for the ADP and NFP jobs reports.
The EU indices are mixed in early trading as trade hopes, the threat of new tariffs, and uncertainty over future EU leadership grip the market. The UK FTSE 100 is in the lead at midday with a gain of 0.50%. The move is contrary to today’s data which shows UK construction PMI posted its sharpest contraction in years. The downturn in activity is directly linked to the Brexit situation and likely not to change in the near-term.
In politics, leaders from all 28 EU member nations are locked in the third day of talks trying to decide who will lead the EU next year. EU President Paul Juncker is slated to step down soon with no replacement in sight. In stock news, shares of Galapagos NV soared nearly 7.0% after its U.S. counterpart Gilead announced it would re-submit applications for key drugs to the FDA.
Asian markets were mixed in the wake of Wall Street’s big move on Monday. The Hang Seng led advancing issues with a gain of 1.17% as it reopens from holiday. The Nikkei and Australian ASX were the only other indices to post gains and those less than 0.10%. In Australia, equities were supported by the RBA’s decision to cut rates by 25 bps. The move is meant to assist faster progress toward the RBA’s inflation target by easing access to capital markets. The Shanghai Composite and Korean Kospi both posted small losses.
Thisarticlewas originally posted on FX Empire
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Should You Be Adding Ferrari (NYSE:RACE) To Your Watchlist Today?
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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 Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
So if you're like me, you might be more interested in profitable, growing companies, likeFerrari(NYSE:RACE). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
Check out our latest analysis for Ferrari
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. It's no surprise, then, that I like to invest in companies with EPS growth. I, for one, am blown away by the fact that Ferrari has grown EPS by 40% per year, over the last three years. That sort of growth never lasts long, but like a shooting star it is well worth watching when it happens.
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). Ferrari maintained stable EBIT margins over the last year, all while growing revenue 3.0% to €3.5b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Ferrari'sfutureprofits.
Since Ferrari has a market capitalization of €31b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at €3.1b. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations over €7.1b, like Ferrari, the median CEO pay is around €10m.
The CEO of Ferrari only received €270k in total compensation for the year ending December 2018. That's clearly well below average, so at a glance, that arrangement seems generous to shareholders, and points to a modest remuneration culture. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.
Ferrari's earnings per share have taken off like a rocket aimed right at the moon. The sweetener is that insiders have a mountain of stock, and the CEO remuneration is quite reasonable. The strong EPS improvement suggests the businesses is humming along. Ferrari certainly ticks a few of my boxes, so I think it's probably well worth further consideration. Now, you could try to make up your mind on Ferrari by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
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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Duke Energy Arm to Acquire Bloom Energy's Fuel Cell Projects
Duke Energy Corporation’s DUK subsidiary, Duke Energy One, recently announced intention of acquiring a portfolio of distributed fuel cell technology projects from Bloom Energy Corporation BE. The alliance will enable the company to offer cost-effective clean energy solutions to customers.Details of the DealPer the terms, Duke Energy One will purchase approximately 37 megawatts of solid oxide fuel cell generation servers from Bloom Energy. Over the next 18 months, the two companies will deploy these servers at more than 30 sites across a portfolio of customers, including hospitals, technology companies, data centers and universities.Why Choose Bloom Energy?Bloom Energy’s fuel cell generation servers are known for uniquely producing clean energy by converting natural gas or biogas into electricity without combustion. This further helps in reducing greenhouse-gas emissions. Moreover, these servers do not generate combustion-related pollutants, such as sulphur oxides, nitrogen oxides or other particulate matter.Since Duke Energy is steadily focusing on expanding its clean energy footprint, choosing Bloom Energy’s fuel cell technology seems to be an appropriate decision for the utility major, as this will help it reap benefits of the booming global renewable energy market.With the deployment of the solid oxide fuel cell generation servers, the company can also provide baseload power all week long to industrial customers, leading to fewer intermittent interruptions in power flow for their facilities and operations. This move will help the company expand operations and attract new customers.Growing Global Prospect of Fuel Cell TechnologyIn recent times, utility companies have shown an increasing willingness in adopting fuel cell technology, as it generates clean electricity with high-power density. The demand for fuel cell technology is gaining popularity on the back of reliability and cheaper-than-conventional power sources. Going ahead, the global fuel cell market size is projected to reach $24.81 billion at a CAGR of 20.9% by 2025 from 2014, per Grand View Research.As a result, the market is likely to witness aggressive alliances in the days ahead, with companies looking to expand their end-user segments in emerging markets. The recent acquisition of fuel cell technology projects made by Duke Energy is one such example.Furthermore, the rising popularity of fuel cell technology has also encouraged alternative energy producer like Plug Power PLUG to acquire Canada-based EnergyOr Technologies that manufactures advanced lightweight and compact PEM hydrogen fuel cell systems. Similarly, in 2018, Ballard Power Systems BLDP acquired fuel cell assets from AFCC.Price PerformanceThis Zacks Rank #3 (Hold) stock has gained 10.3% compared with the industry’s growth of 10.4% in the past year. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This Could Be the Fastest Way to Grow Wealth in 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 reportDuke Energy Corporation (DUK) : Free Stock Analysis ReportBallard Power Systems, Inc. (BLDP) : Free Stock Analysis ReportPlug Power, Inc. (PLUG) : Free Stock Analysis ReportBloom Energy Corporation (BE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Here's Why I Think ePlus (NASDAQ:PLUS) Might Deserve Your Attention Today
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In contrast to all that, I prefer to spend time on companies likeePlus(NASDAQ:PLUS), which has not only revenues, but also profits. Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
Check out our latest analysis for ePlus
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. It's no surprise, then, that I like to invest in companies with EPS growth. Over the last three years, ePlus has grown EPS by 15% per year. That's a pretty good rate, if the company can sustain it.
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). Not all of ePlus'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. ePlus's EBIT margins are flat but, of some concern, its revenue is actually down. Suffice it to say that is not a great sign of growth.
You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
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 ePlus EPS100% free.
I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. As a result, I'm encouraged by the fact that insiders own ePlus shares worth a considerable sum. To be specific, they have US$24m worth of shares. That's a lot of money, and no small incentive to work hard. Even though that's only about 2.4% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.
One important encouraging feature of ePlus is that it is growing profits. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider thisfreediscounted cashflow valuationof ePlus.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa 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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Read This Before Buying Parkland Fuel Corporation (TSE:PKI) For Its Dividend
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Could Parkland Fuel Corporation (TSE:PKI) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A slim 2.9% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Parkland Fuel could have potential. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Parkland Fuel paid out 61% of its profit as dividends, over the trailing twelve month period. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Parkland Fuel paid out 51% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
As Parkland Fuel has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. With net debt of 3.11 times its EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of 4.50 times its interest expense is starting to become a concern for Parkland Fuel, and be aware that lenders may place additional restrictions on the company as well.
We update our data on Parkland Fuel every 24 hours, so you can always getour latest analysis of its financial health, here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Parkland Fuel has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was CA$2.03 in 2009, compared to CA$1.19 last year. The dividend has shrunk at around 5.2% a year during that period.
We struggle to make a case for buying Parkland Fuel for its dividend, given that payments have shrunk over the past ten years.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Earnings have grown at around 8.2% a year for the past five years, which is better than seeing them shrink! The rate at which earnings have grown is quite decent, and by paying out more than half of its earnings as dividends, the company is striking a reasonable balance between reinvestment and returns to shareholders.
To summarise, shareholders should always check that Parkland Fuel's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Parkland Fuel's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments. Overall we think Parkland Fuel is an interesting dividend stock, although it could be better.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 8 analysts we track are forecasting for Parkland Fuelfor freewith publicanalyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Genesee & Wyoming (GWR) to Get Acquired Via an $8.4B Deal
Genesee & Wyoming, Inc. GWR is set to be acquired by Brookfield Infrastructure Partners LP BIP and GIC in a cash and debt deal valued at $8.4 billion. As the news broke, shares of the company started rising and closed yesterday’s trading session 8.8% higher.While Brookfield Infrastructure Partners is a Canada-based global infrastructure company operating high-quality, long-life assets, GIC is a Singapore-based sovereign wealth fund.Once purchased, Genesee & Wyoming will become a privately held company. However, it will carry on with its usual operations, focusing on high-quality safety, premium service and strategic goals.
Genesee & Wyoming, Inc. Price
Genesee & Wyoming, Inc. price | Genesee & Wyoming, Inc. Quote
Per the agreement, shareholders of the company will receive $112 per share in cash, representing a premium of 39.5% to the Mar 8 share price (the day before speculations of a possible transaction began) for the current shareholders. For long-term investors holding the company’s shares since the past two decades, the sale price means a return of more than 5,400%.Banking on Brookfield Infrastructure and GIC’s experience in real estate and technology as well as their connections with rail-related portfolio companies, Genesee & Wyoming should be able to strengthen its business through the buyout.The company will receive $500-million equity investment from Brookfield Infrastructure. The remainder of the company will be owned by Brookfield Infrastructure’s institutional partners and GIC.Subject to closing conditions, regulatory and stockholders’ approval, the deal is expected to close by year-end or early 2020.With the transaction process underway, the company will not release monthly carloads. Neither will it hold its second-quarter earnings conference call. The company is anticipated to file 10-Q for the same on Aug 9.Zacks Rank & Key PicksGenesee & Wyoming carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader Transportation sector are Canadian Pacific Railway Limited CP and Fly Leasing Limited FLY, both carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Canadian Pacific and Fly Leasing have rallied more than 33% and 24%, respectively, in a year.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 reportFly Leasing Limited (FLY) : Free Stock Analysis ReportGenesee & Wyoming, Inc. (GWR) : Free Stock Analysis ReportCanadian Pacific Railway Limited (CP) : Free Stock Analysis ReportBrookfield Infrastructure Partners LP (BIP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Hammond: no-deal Brexit will cost UK Treasury £90bn
UK chancellor Philip Hammond. Photo: Dinendra Haria/SOPA Images/LightRocket via Getty Images The governments own figures suggest the Treasury would face a £90bn hit from a no-deal Brexit, the UK chancellor said on Tuesday. Philip Hammond also refused to rule out voting down a Conservative government in a no-confidence motion to stop Britain leaving without a deal, and hinted he may work with other MPs to block such an outcome. The figures suggest a no-deal Brexit could blow open a huge hole in public finances as the government deals with the economic fallout of a sharp and sudden break from Britains biggest trading partner. The chancellor said there would be no money available for longer-term tax cuts and spending hikes under a chaotic no-deal Brexit, in a thinly veiled attack on the two men running to be the next UK prime minister. READ MORE: Pound falls as Brexit blamed for constructions worst month in a decade Both Boris Johnson and Jeremy Hunt have confirmed their willingness to leave the EU without a deal if necessary, with Hunts plans for an emergency budget recently dominating headlines. Hammond said in parliament it was highly unlikely he would remain chancellor under the next prime minister. Many Brexit-supporting MPs are hostile to Hammond, who backed Remain in the referendum and has sounded a downbeat note about the impact of Brexit on the economy. The entrance to the HM Treasury building, in Westminster, central London. Photo: Press Association READ MORE: The big dilemma for UK firms stockpiling for Brexit Weve built up around £26-27bn of fiscal headroom and the purpose of having that headroom is precisely in order to protect the UK economy from the immediate effects of a possible no-deal exit, the chancellor said in the Commons. But I have no doubt whatsoever that in a no-deal exit we will need all of that money and more to respond to the immediate impacts of the disruption of a no-deal exit, and that will mean there is no money available for longer-term either tax cuts or spending increases. But let me go further the governments analysis suggests that in a disruptive no-deal exit there will be a hit to the Exchequer of about £90bn. Story continues The fiscal firepower we have built up in case of a No-Deal Brexit will only be available for extra spending if we leave with an orderly transition. If not, it will all be needed to plug the hole a No Deal Brexit will make in the public finances. Philip Hammond (@PhilipHammondUK) July 1, 2019 Hammond said official analysis showed all the regions, nations, and sectors of the UKs economy would suffer from lower output compared to either the status quo or prime minister Theresa Mays deal with Brussels. Such significant costs would have to be factored in to future spending and tax decisions, he said in a clear message to Hunt and Johnson. Replying to Labours shadow chancellor John McDonnell, Hammond said he agreed it would be wrong for a British government to seek to pursue no deal as a policy. I believe that it will be for the House of Commons of which I will continue proudly to be a member to ensure that that doesnt happen, he said. Hammond warned earlier this week the fiscal firepower he had built up in preparation for Brexit would only be available if Britain and the EU agreed to a far smoother Brexit. READ MORE: Jeremy Hunt plans £6bn no-deal war chest
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Is Polaris Industries Inc.'s (NYSE:PII) CEO Paid At A Competitive Rate?
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Scott Wine has been the CEO of Polaris Industries Inc. (NYSE:PII) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Polaris Industries
Our data indicates that Polaris Industries Inc. is worth US$5.5b, and total annual CEO compensation is US$9.3m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. 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, Scott Wine is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Polaris Industries 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.
The graphic below shows how CEO compensation at Polaris Industries has changed from year to year.
On average over the last three years, Polaris Industries Inc. has shrunk earnings per share by 1.2% each year (measured with a line of best fit). In the last year, its revenue is up 13%.
The lack of earnings per share growth in the last three years is unimpressive. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. 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.
With a total shareholder return of 12% over three years, Polaris Industries Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Polaris Industries 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.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, 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! Whatever your view on compensation, you might want tocheck if insiders are buying or selling Polaris Industries shares (free trial).
Important note:Polaris Industries may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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10 Financial Commandments for Your 20s
Getty Images Thou shalt not be broke forever. It just may feel that way when you're first starting out on the road to financial independence. Managing your finances for the first time can be overwhelming--what with the daily expenses, big-ticket costs such as housing and health care, heavy debts and long-term goals, including your ridiculously distant retirement. But the sooner you start making a financial plan for yourself, the brighter your future will be. "Building habits, especially in your 20s, is so important for long-term success," says John Deyeso, a financial planner in New York City, who works with a lot of younger people. Here are the 10 things you should do in your 20s to take control of your finances: SEE ALSO: Knight Kiplinger's 8 Keys to Financial Security 1. Develop a Marketable Skill Getty Images Before you can start worrying about what to do with your money, you need to earn some. Think in terms of your career, not just a job. Because let's face it: You're probably not going to love your first job, and it won't be your last job. But you should try to make the best of it. My first job consisted mostly of fetching documents for colleagues and doing data entry. Ho-hum. But I learned all I could. Sure, sometimes the lesson of the day was: "I never want to do this again." But I also learned basic skills, such as the magic of Excel as well as proper office phone and e-mail etiquette, which are still extremely useful in my career. SEE ALSO: 30 of the Best Jobs for the Future Most importantly, I established a valuable skill (writing) and looked for and created opportunities to use it. I talked to my bosses about my writing, and I wound up penning our press releases, editing an online column and writing anything that needed writing at our small company. Outside the office, I blogged and took on various freelance assignments--some for no money--to practice my craft and build my network. Story continues Don't be afraid to experiment. "You may need to take risks when you're younger," says Erin Baehr, a financial planner in Stroudsburg, Pa., and author of Growing Up and Saving Up . "You may take one job over another and find it doesn't work out. But when you're younger, you have the ability to do that. And then that can parlay into a bigger return down the road." 2. Establish a Budget Getty Images Once you're bringing home the bacon, you'll have to figure out how to slice it up. Without a budget, you risk overspending on discretionary items and undersaving for important big-ticket purchases. "The big thing is really to differentiate between your needs, your wants and your dreams," says Lauren Locker, a financial planner in Little Falls, N.J., who also teaches a personal finance course to undergraduate students at William Paterson University. First, lay out all your daily expenses (such as commuting costs and food bills) and recurring monthly payments (rent, utilities, debts). When you know where all your money is going, you can more easily see how to cut costs. For example, when I first made a budget, I was stunned to learn how much I was spending on take-out food. Being aware of the cost allowed me to trim it by ordering less food, less often. SEE ALSO: The Power of Living Within Your Means Next, factor in your short- and long-term savings goals, such as an emergency fund (see commandment #5) and retirement kitty (commandment #6). And if you ever expect to settle down and buy a house, you should probably start saving for the down payment as soon as possible. A budgeting site such as Mint.com can be a big help if you want to digitize your budget. For more on how such sites work, see 7 Budgeting Tools to Get Your Finances in Order . 3. Get Insured Getty Images Mayhem truly is everywhere (as Allstate has dramatized ), and as an adult, you are responsible for protecting yourself and all your stuff from it. When horrible things happen to you--say, a trip to the emergency room or a fire in your apartment--insurance may save you from shelling out thousands of dollars all at once. SEE ALSO: Does Insurance Cover That? For more on health care, see How New Grads Can Buy Health Insurance . If you rent your home, see Why Renters Need Insurance . And if you have a car, take our quiz, Car Insurance: Are You Covered? 4. Make a Debt-Repayment Plan Getty Images Debt is a reality for most young adults. But letting it linger--or, worse, grow--can set you back for years to come in the form of greater interest payments and lower credit scores. For your student loans, be sure you have a good repayment plan in place--see Smart Ways to Manage Your Student Loans --and consider some programs that can help reduce the burden , such as the Peace Corps or Americorps. A much easier way to trim this cost is to set up automatic payments for your federal student loans; doing so cuts 0.25% off your interest rate. SEE ALSO: How to Tame Your Student Loans Work out a plan to tackle your credit card debt, too. Hopefully, being so young, you haven't had time to bury yourself in much. But if you've been quick on the swipe, your first step is to establish a budget (see commandment #2) and rein in your spending. You should then start paying down debt on your highest-rate cards first. Try our Credit Card Payoff Calculator and Student Loan Refinance Calculator to see how quickly you can get out of debt. 5. Build an Emergency Fund Getty Images Insurance alone (see commandment #3) won't cover all of your problems. You still need to have liquid savings on hand as an added precaution. Some call it a rainy day fund. I think of mine as a polar vortex fund. One frigid winter in our early years of homeownership, my house's heat pump gave up. A new HVAC unit cost me and my husband about $4,000. Home insurance was no help, but our emergency fund saved us from going into debt to cover the replacement or (ack!) asking our parents for the money. SEE ALSO: Emergency Funds Can Reduce Stress Kiplinger's recommends stashing enough to pay three to six months' worth of expenses in a safe and easy-to-access savings account. Contributing to your fund should be a top priority in your budget. Aim to sock away at least 10% of each paycheck until you reach your goal, and add a boost any time you luck into some extra income, such as a bonus or birthday gift. To help speed up the process, see 7 Strategies to Build an Emergency Fund . 6. Start Saving for Retirement Getty Images I know, I know, retirement seems like forever from now. But it's more important than ever for us to focus on this savings goal as soon as possible. "Our generation, the twenty- and thirtysomethings, may be the first to have to save for retirement for as long as your work career," says Deyeso. The sooner you start saving, the better. Because of the magic of compounding, time will fatten up your retirement kitty. For example, if a 25-year-old saves just $100 a month, assuming an 8% return and quarterly compounding, she'll have $346,039 by the time she turns 65. SEE ALSO: Young & Scrappy -- And Saving for Retirement Don't think of saving for retirement as subtracting money from your paycheck or checking account. Rather, consider them automatic payments to your future self. If you participate in your company's 401(k)--as you should--your contribution can be automatically deducted from each paycheck before taxes. If you have a Roth IRA ( also highly recommended ), you can set up automatic transfers through your bank or brokerage. "It hurts at first, but people adapt," says Deyeso. "That money gets forgotten about." 7. Build Up Your Credit History Getty Images You'll need to take on some debt ("having no credit is as bad as having bad credit," says Locker) and show that you know how to manage it well (see commandment #4) in order to build up your credit history and earn a good credit score. This number, along with the credit report on which it's based, is the key to many milestones in your financial life. A good score means lower rates on credit cards and loans. Landlords may consider your score before offering you a lease. And employers might take a look at your credit report during the hiring process. SEE ALSO: 7 Habits of People With Excellent Credit Scores Unfortunately, because you're young, you're at a disadvantage. The length of your credit history counts for 10% of your FICO score, the most widely used model. But a lot of your score, 35%, depends on your payment history. So you can easily raise your financial grade by paying all your bills on time. Another 30% of your score is based on how much you owe, calculated as a percentage of your available credit. In other words, maxing out your credit card every month is bad, even if you always pay off the entire balance. Be sure to use your card sparingly. "FICO high achievers," who score at least 750 on a scale of 300 to 850, typically use just 7% of their available credit. 8. Quit the Bank of Mom and Dad Getty Images What better way to show your parents that you love them than to set them free of your financial responsibilities? "In your 20s, the main goal is becoming self-sufficient," says Baehr. "Look to get off of your parents' payroll and onto your own." SEE ALSO: Talk to Your Parents About Caregiving Obviously, financial independence starts with a job (see commandment #1). You also ought to cut the cord by getting your own insurance (commandment #3), car, cell-phone plan, home, everything. Slightly less obvious, you don't want to resort to getting help from Mom and Dad even in a pinch--hence, the need for an emergency fund (commandment #5). Of course, all of this is easier said than done. If you do need financial assistance from your parents, approach them maturely and responsibly. 9. Clean Up Your Online Presence Getty Images Time to put down the red cups, folks, or at least scrub them from your public image. Like it or not, your social media activity is viewable by the entire Web-surfing world, including all your current or potential employers. Get your digital act together by searching for yourself online. Check Spokeo.com and Pipl.com , as well as the obvious Google, to see what's already out there, and double-check your privacy settings on Facebook, Instagram and other networks to make sure you're not adding to the mix unintentionally. SEE ALSO: Can My Boss Do That? Add to your positive persona by pumping up the good stuff in cyberspace. For example, your LinkedIn account should be a glowing representation of your professional potential. And if you're an expert on a certain subject, you can show off your knowledge via Twitter, Tumblr, WordPress or other sites. 10. Get Your Key Financial Documents in Order Getty Images You--not your parents--should have your birth certificate, Social Security card and other official IDs in your possession. Also keep a list of all your banking and investment accounts, household bills and insurance policies, along with any online usernames and passwords. SEE ALSO: The Worst Things to Keep in Your Wallet Be sure to get details on any funds your parents might have administered for you, such as custodial accounts, as well as any lingering savings bonds. Store all this important information in a secure place, such as an actual safe, and make sure someone you trust knows where it's located. Other documents you might need to keep in mind: your apartment lease, roommate agreement , and car registration and title. EDITOR'S PICKS 10 Financial Commandments for Your 20s 10 Financial Commandments for Your 30s Start Investing Now? Uh, Yeah Copyright 2019 The Kiplinger Washington Editors
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Freeport (FCX) Provides Operational Update, Revises Q2 View
Freeport-McMoRan Inc.FCX announced an update on operations and guidance at PT Freeport Indonesia (PT-FI). Moreover, the company provided revised estimates for the second quarter of 2019 as well as reaffirmed earlier announced 2019 guidance for consolidated copper and gold sales volumes.In second-quarter 2019, PT-FI achieved significant milestones related to its newly commissioned underground mining operations in Grasberg. The company stated that the undercutting in the Grasberg Block Cave surpassed 20,000 sq. meters, more than 20% from prior forecast.Moreover, extraction of ore ramped up from an average of 5,000 metric tons per day during the first quarter to roughly 9,000 metric tons per day in June 2019. The company expects ore extraction to reach 15,000 metric tons per day by the end of 2019.The company expects to produce 8 billion pounds of copper and 8 million ounces of gold from the Deep Mill Level Zone (DMLZ) underground mine over its life. In June, undercutting in the DMLZ underground mine initiated on the second production block for mine extraction. Production at the mine rose to an average of around 9,000 metric tons of ore per day in June from an average of 6,800 metric tons of ore per day during the first quarter. The company expects production from the mine to reach 11,000 metric tons of ore per day by the end of 2019.Regarding the Grasberg open pit, PT-FI continues to mine the final stages. In second-quarter 2019, PT-FI opened an additional mining area, which will extend pit life options into third-quarter 2019 and beyond. Access to high-grade material were delayed due to mine sequencing changes in the open pit during the second quarter. This led to lower gold and copper production from the open pit than the initial estimates provided by the company in April 2019.For second-quarter 2019, Freeport projects consolidated copper sales volumes to approximate the April 2019 estimates of 800 million pounds. Higher copper sales from the Americas are expected to offset lower copper sales from Indonesia. Gold sales are expected to be roughly 190,000 ounces, lower than the previous expectation of 265,000 ounces. The decline can be attributed to mine sequencing changes in the Grasberg open pit that delayed the company’s access to high-grade material.Moreover, Freeport expects copper sales to be recorded at an average price of roughly $2.73 per pound. In March, the company provisionally priced copper sales at its copper mining operations totaling 364 million pounds at average price of $2.94 per pound. However, the company anticipates that mark-to-market impact of lower copper prices in the second quarter to lower revenues by roughly $85 million.Notably, unit net cash costs from the Americas for the second quarter are expected to be in line with prior estimates. The company currently estimates consolidated unit net cash costs to be roughly 15% higher from the prior guidance of $1.67 per pound of copper given in April 2019.Based on the projected realized prices and updated gold sales and cost outlook for the second quarter, the company projects adjusted EBITDA to be roughly $430 million. It also expects to record a loss of roughly 5 cents per share to net income before any non-recurring items.The company projects consolidated sales for 2019 to be in line with the estimates provided in April. Consolidated gold sales are forecast to be 0.8 million ounces and consolidated copper sales are estimated to be 3.3 billion pounds.Freeport’s shares have lost 32.9% in the past year compared with the industry’s 13.6% decline.
Zacks Rank & Key PicksFreeport currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc. FSI and Fortescue Metals Group Ltd. FSUGY. These stocks currently sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 21.5% in the past year.Flexible Solutions has projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 159.3% in a year’s time.Fortescue Metals has an estimated earnings growth rate of 230.4% for the current year. Its shares have rallied 101.3% in the past year.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 reportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportFortescue Metals Group Ltd. (FSUGY) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportFreeport-McMoRan Inc. (FCX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
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Xencor (XNCR) Jumps: Stock Rises 7.4%
Xencor, Inc.XNCR was a big mover last session, as the company saw its shares rise more than 7% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company—as the stock is now up 42.5% in the past one-month time frame.The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.Xencor currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Xencor, Inc. Price
Xencor, Inc. price | Xencor, Inc. Quote
Investors interested in the Medical - Drugs industry may consider Eisai Co., Ltd. ESALY, which has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Is XNCR going up? Or down? Predict to see what others think:Up or Down
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 reportXencor, Inc. (XNCR) : Free Stock Analysis ReportEisai Co. (ESALY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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10 Top-Rated Industrial Stocks to Snap Up Now
Getty Images If you are looking for compelling investing opportunities, consider an often-overlooked area of the market: industrial stocks. Industrials frequently have made headlines because its components have been pressured by tariff volleys between the U.S. and China. But despite this, the industrial sector of the Standard & Poor's 500-stock index, at 12.6% returns, is the third-best-performing sector of the market behind technology and real estate. And profit growth could see industrial stocks continue to outperform the broader market. "We're living in a world where growth is declining," John Davi, chief investment officer at Astoria Portfolio Advisors, told CNBC back in March. "S&P 500 earnings are de-accelerating, so if you can get stocks that have above-average growth to the S&P, then that's really attractive." And while consensus estimates have been scaled back since then, FactSet's Earnings Insight still shows that industrials are expected to grow profits 5.2% this calendar year - better than the 3.2% projected for the S&P 500. The sector still faces headline risk, so you only want to buy the best of the best. To help with that, we've pinpointed 10 of the Street's best-rated industrials by using TipRanks' Stock Screener to scan only for companies in the industrial sector with a "Strong Buy" analyst consensus. The result: This group of 10 industrial stocks to buy. SEE ALSO: 50 Top Stocks That Billionaires Love Honeywell Getty Images Market value: $121.2 billion TipRanks consensus price target: $178.57 (7% upside potential) TipRanks consensus rating: Strong Buy Honeywell ( HON , $166.47) is a global industrial, diversified tech and manufacturing company with a digital focus. Its operations range from aerospace to chemicals to fire systems to sensors. Shares have surged by 26% year-to-date - double the return of industrial stocks broadly and well more than double the S&P 500's 9.5%. And Wall Street largely thinks Honeywell has a strong long-term growth profile. RBC Capital analyst Deane Dray reiterated his "Outperform" rating (equivalent of "Buy") on HON shares after attending the company's 2019 analyst meeting. Dray writes that the event underscored "the idea that Honeywell's transformation to a 'Software-Industrial' could largely be happening organically, rather than via some epic acquisition." "We came away particularly impressed with all the commentary and exhibits of the connected enterprise and all things digital," Dray wrote to investors. "We continue to like the company's strong balance sheet and de-risked pension plan at this point in the cycle. We also like the prospects for an eventual further positive re-rating." Story continues Credit Suisse analyst John Walsh, ramped up his price target on the stock last month from $170 per share to $185, citing "strong" organic sales growth of 8% and broad-based strength across several business segments. See what other top analysts have to say about HON on TipRanks. SEE ALSO: 57 Dividend Stocks You Can Count On in 2019 Lockheed Martin Getty Images Market value: $97.4 billion TipRanks consensus price target: $377.67 (10% upside potential) TipRanks consensus rating: Strong Buy U.S.-based global aerospace and defense company Lockheed Martin ( LMT , $344.56) is enjoying significant Wall Street support right now. Five of the six analysts who have made a call on LMT in the past month have come out on the "Buy" side. In a recent report, Cowen & Co. analyst Cai Rumohr - who receives five stars from TipRanks because of his accuracy - singles out Lockheed for praise, writing that "LMT remains our top defense big cap pick." Prompting this bullish analysis was the company's "blowout" first-quarter financial results. Lockheed reported a quadruple beat: Sales, operating margin, cash flow and book-bill all came in ahead of estimates. Earnings of $5.99 per share easily surpassed Wall Street expectations for $4.32. Looking forward, Rumohr writes, "Increased 2019 guide still appears to have upside; and we see further gains in 2020-21." Indeed, orders received for the second quarter already total $15.4 billion - 7% greater than expected sales. "Furthermore, Lockheed has several new foreign potentials (Morocco F-16, India Blackhawk) that could be booked in H2; and it's competing with Raytheon for LTAMDS. This is the successor to the Patriot radar, and a decision on the potentially multi-billion-dollar contract is expected by October." As a result, Rumohr thinks it's possible that backlog, which LMT said could be lower than 2018, ends up higher for the year. What are other financial experts saying about this major aerospace and defense stock? Find out on TipRanks. SEE ALSO: 10 Top-Rated Mega-Cap Stocks to Buy Now Ametek Getty Images Market value: $18.7 billion TipRanks consensus price target: $97.17 (18% upside potential) TipRanks consensus rating: Strong Buy Ametek ( AME , $82.16) is a leading global manufacturer of electronic instruments and electromechanical devices that had been logging annual sales of about $4 billion for years, but bumped that up in a big way ($4.8 billion) in 2018. AME shares have built up a head of steam, up 21% year-to-date. And it's one of the best-rated industrial stocks on Wall Street right now, grabbing eight back-to-back "Buy" ratings over the past three months. Ametek's M&A acumen and management reputation help make it one of the best industrial businesses in the sector, RBC Capital's Dray writes. "(Ametek) ranks among the highest-quality Multi-Industry Primes in our Framework analysis of three-year and 10-year operating track records ... We believe AME would garner a premium valuation even in the absence of value-creating deals." Oppenheimer's Christopher Glynn delivers a similar message. Glynn notes that Kevin Coleman, VP of investor relations, "highlighted AME's record of consistent shareholder returns via its highly successful growth model, with continued focus on leadership in niche markets." "We expect positive investor sentiment for Ametek," Glynn writes, citing a strong free cash flow position, as well as "strong backlog to underwrite outlook, with attention focused on solid orders trends." See why other top analysts are also bullish on Ametek . SEE ALSO: The 25 Best Blue-Chip Stocks to Buy Now (According to Hedge Funds) Xylem Getty Images Market value: $13.6 billion TipRanks consensus price target: $86.50 (14% upside potential) TipRanks consensus rating: Strong Buy "With the US economy in its ninth year of expansion and the Fed starting its tightening cycle, we expect that industrial investors will be inching up the quality curve toward more defensive names that have 'safe haven' appeal and sustainable long- term megatrend catalysts," RBC Capital's Deane Dray writes about the outlook for industrial stocks. That's good news for Xylem ( XYL , $75.67), which operates in more than 150 countries and is the largest pure play on water technology. The company aims to create smart technology solutions to "meet the world's water, wastewater and energy needs," making it a stellar safe-haven investment in the eyes of many Wall Street pros. The company did hit a stumbling block in its most recent earnings report. First-quarter profits missed expectations, and Xylem even cut its 2019 guidance. Dray blamed uncharacteristic glitches for the "rare execution misstep" including delays in a large analytics project. However, management says these issues have been resolved, and Dray says it's back to full steam ahead. "Our take is that neither of these two disappointments derails the long-term bull case," he wrote last month, reiterating XYL at "Outperform" with an $84 price target. Most of his cohorts agree, with seven of eight covering analysts giving the stock a "Buy" rating over the past three months. For further insights into Xylem stock, check out its analyst page on TipRanks . SEE ALSO: 20 of Wall Street's Newest Dividend Stocks ITT Inc. Getty Images Market value: $5.1 billion TipRanks consensus price target: $69.17 (19% upside potential) TipRanks consensus rating: Strong Buy Industrial stock ITT Inc. ( ITT , $58.04) is experiencing across-the-board operational momentum right now. With 10,000 employees worldwide, the company produces specialty components for the aerospace, transportation, energy and industrial markets. Shares are up roughly 20% year-to-date, thanks in part to the company's most recent quarterly earnings report, which included its seventh consecutive quarter of "solid year-over-year segment (operating income) margin expansion." Oppenheimer's Bryan Blair recently hosted CFO Tom Scalera at the firm's industrial growth conference. The discussion boosted his confidence in "our share gain + execution thesis and the sustainability of ITT's (double-digit) EPS growth over the intermediate term." Following the conference, Blair reiterated his "Outperform" rating with a $70 price target. He cites "positive growth ... a war chest of selfhelp opportunities across platforms, and significant dry powder (for further acquisitions)." Discover how the stock's 'Strong Buy' consensus breaks down on TipRanks here . SEE ALSO: 6 Tech Stocks to China-Proof Your Portfolio Ingersroll-Rand Getty Images Market value: $28.54 billion TipRanks consensus price target: $130.73 (8% upside potential) TipRanks consensus rating: Strong Buy Diversified manufacturing company Ingersroll-Rand ( IR , $120.76) produces everything from air motors to lifting machinery in its 51 plants worldwide. And Wall Street is convinced the industrial stock can improve upon its 32% year-to-date gains. Most recently, five-star Cowen & Co. analyst Gautam Khanna reiterated his "Outperform" rating on the stock with a $131 price target. The analyst walked away from a recent meeting with management, who provided an upbeat view of the demand environment and Ingersoll's positioning - with his bullish thesis reaffirmed. IR is merging its industrial business with Gardner Denver and splitting this $15 billion merged business from its climate business. "We continue to favor IR given its (sum of the parts) upside, and it was clear that management is well along in its planning to limit dis-synergies that will result from the Industrial separation," Khanna writes in response. BMO Capital analyst Joel Tiss, who also rates IR at "Outperform," ramped up his price target from $112 to $140 in May. He writes, "Ingersoll Rand shares continue to outperform most other industrial companies, as investors are clearly seeing the value-added strategies that management has been implementing for some time and are enthusiastic about Ingersoll's announced transaction to separate its climate-related businesses." See what other top analysts have to say about IR on TipRanks. SEE ALSO: Goldman Sachs: 5 Stock Picks to Survive the Trade War Roper Technologies Getty Images Market value: $36.1 billion TipRanks consensus price target: $366.00 (5% upside potential) TipRanks consensus rating: Strong Buy Roper Technologies ( ROP , $347.41) is a diversified industrial company that produces engineered products for global niche markets. The company has four main business lines: Industrial Technology, Radio Frequency Technology, Imaging, and Energy Systems. Wall Street views ROP as best-in-class among similar industrial stocks, and so far in 2019, it has earned its reputation. The company posted a high-quality first-quarter earnings beat, and shares have raced ahead by 30%. "The usual feel-goods of solid organic growth, high incrementals, and healthy FCF conversion were all showcased," RBC Capital's Dray wrote in May following the company's April earnings report. He singled out the recent acquisition of visual effects software company Foundry for particular praise, writing, "The recent Foundry deal - the first by the new CEO at the helm - looks Academy Award-worthy." The balance sheet is already reloaded for more M&A, too. Roper signaled that it can immediately splash out over $1.5 billion if the right opportunity presents itself. "We believe that the market is filled with potential software and network-based targets, and management will remain disciplined in sourcing niche, undervalued gems to deliver shareholder returns," Dray writes. The analyst's Street-high price target of $377 places Roper at a 35% premium to its peers based on 2020 estimates. What are other financial experts saying about this Florida-based industrial giant? Find out on TipRanks. SEE ALSO: The 7 Best ETFs to Beat Back Trade War Worries Kornit Digital Getty Images Market value: $926.2 million TipRanks consensus price target: $30.67 (17% upside potential) TipRanks consensus rating: Strong Buy Small-cap Kornit Digital ( KRNT , $26.31) is making a name for itself producing high-speed printers and pigmented ink for textiles such as clothing, curtains and bedcovers. This "Strong Buy" stock has enjoyed an explosive year-to-date rally of 41%, extending a three-year rally of 167%. What's behind the success? Kornit's revenues rocketed ahead by 65% between 2015 and 2018, and it continued its expansion with 22.6% year-over-year sales growth in its most recent quarter, thanks to its strongest-ever quarterly revenues from system sales. The company remains on track to reach its goal of a $500 million run rate (run rate is the annualizing of a shorter-term period; say, quarterly or monthly) by 2023. Kornit's was thrust into the spotlight in 2016 when it began selling Avalanche 1000 printers to Amazon, and that buzz grew when Amazon received an option to invest in the company in 2017. The five-year option has a potential value of $38 million. Kornit also recently revealed ambitious plans to splash $17.4 million on a new factory for 2020. Wall Street thinks there's still more upside ahead. For instance, Needham's James Ricchiuti reiterated his "Buy" rating while raising his KRNT price target from $30 to $32 following Q1 results. He also increased his estimates for second-quarter revenues from $46 million to $46.3 million. See why other top analysts are also bullish on Kornit . SEE ALSO: 20 More Best Stocks to Buy That You Haven't Heard Of TPI Composites Getty Images Market value: $758.4 million TipRanks consensus price target: $37.33 (72% upside potential) TipRanks consensus rating: Strong Buy TPI Composites ( TPIC , $21.68) is the largest American independent manufacturer of composite wind blades for global wind turbines. It also stands out on this list for an unfortunate reason - it actually has lost 12% of its value in 2019, versus gains for most of the aforementioned industrial stocks. The company reported a disappointing preliminary first-quarter results in May that included a cut in the company's full guidance. Although TPIC already warned of potential problems back in March, investors still were caught off guard and sent shares 16% lower in a single day. Standing out were strikes at a new factory in Matamaros, Mexico, that resulted in an estimated $25 million in damages. The company also anticipates that only 60% of the blade sets from Matamoros will be delivered this year. TPIC still plans to meet its long-term targets, however, with Matamoros expected to return to full capacity next year. The company expects to double revenues to more than $2 billion by 2021, and capture 20% to 25% of the global wind market. JMP Securities' Joseph Osha upgraded TPIC from "Market Perform" (equivalent of "Hold") to "Outperform" on March 1. He did lower his price target from $41 to $35 in May, but he still reiterated his "Buy" rating. "TPIC's competitive positioning and solid execution remain unquestioned, but we believe that risk expectations may need to be adjusted a little as the company manages through its labor challenges," the analyst explained. For further insights into TPIC stock, check out its analyst page on TipRanks here . SEE ALSO: 10 Small-Cap Value Stocks Analysts Love the Most Construction Partners Getty Images Market value: $681.2 million TipRanks consensus price target: $15.17 (15% upside potential) TipRanks consensus rating: Strong Buy Last but not least is Alabama-based small-cap industrial stock Construction Partners ( ROAD , $13.19). As the ticker suggests, ROAD specializes in building roads and preparing sites for new construction. Luckily for Construction Partners, favorable industry tailwinds - including deteriorating U.S. transportation infrastructure and increased public and private spending - are creating strong growth opportunities. Raymond James analyst Joshua Wilson highlighted ROAD as his favorite stock within construction materials back in late March. The analyst marginally lifted his price target from $14 to $15 (14% upside potential) and raised operational estimates. He cited two acquisitions: a liquid asphalt terminal and an asphalt production and paving company, both in Florida, for $19 million. M&A opportunities continue to be a source of possible upside, writes Wilson. And a new gas tax in Alabama "is expected to generate approximately $320 million in additional annual funding for investment in Alabama's roads and bridges when fully implemented," Construction Partners said in a March release. That could result in additional opportunities for the company. Shares have already surged 50% year-to-date, thanks in part to its most recent earnings that included a 38.3% year-over-year jump in revenues, to $164.3 million. Two other covering analysts raised their price targets on ROAD following the announcement. Discover how this price target breaks down on TipRanks here . Harriet Lefton is head of content at TipRanks, a comprehensive investing tool that tracks more than 5,000 Wall Street analysts as well as hedge funds and insiders. You can find more of their stock insights here . SEE ALSO: 10 Small-Cap Growth Stocks Analysts Love the Most EDITOR'S PICKS 10 Top-Rated Mega-Cap Stocks to Buy Now 20 More Best Stocks to Buy That You Haven’t Heard Of 50 Stocks That Billionaires Love Copyright 2019 The Kiplinger Washington Editors View comments
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10 Financial Commandments for Your 30s
Getty Images Your finances might have felt like a plague in your 20s, but thou shalt thrive throughout your 30s and beyond. Our list of Financial Commandments for your 20s helped you find your financial footing and establish a solid foundation. Now that you're older and (hopefully) wiser, this list of goals will help you continue to build your wealth and blaze a path to financial security. SEE ALSO: Knight Kiplinger's 8 Keys to Financial Security 1. Advance Your Career Getty Images In your 20s , you developed a marketable skill. Now it's time to apply that skill to increase your earnings. SEE ALSO: 30 of the Best Jobs for the Future Research potential career paths for workers with your skill. Identify the types of jobs and companies that might be a good match for you. Consider whether you should obtain some additional training and development, either on the job, using free online courses, going back to school or through some other means. You might even consider moving to a city where you can find more opportunities in your field. If you decide on a sharp career turn, understand that it can be worthwhile but also risky. You'll need a financial plan to keep your budget steady while you're changing course. 2. Rethink Your Budget Getty Images You established a budget in your 20s and perhaps accumulated some savings. But your income and expenses, as well as your needs, wants and dreams, will likely change from year to year. And your budget will need to adjust accordingly. SEE ALSO: Kiplinger's Budget Worksheet In other words, big life changes--such as moving, getting married, having kids or starting your own business--typically come with high costs. To ensure you can afford these transitions, you'll need to make room in your budget by identifying opportunities to save. And if you've gotten a raise or pulled in some extra income, you might consider ramping up your saving for emergencies (see commandment #5) and retirement (commandment #6). "It's a balancing act," says John Deyeso, a financial planner in New York City, who works with many young adults. "Once you get into your 30s, you have more money and more goals, so how do you spread that around?" Story continues 3. Adjust Your Insurance Coverage Getty Images As your assets grow, you may need more insurance to cover them. Maybe you rent a bigger or more private space now. Maybe you're buying a house (and need home insurance ) or car (and need auto insurance ). Maybe you have some loved ones who depend on you financially (and you need life insurance to make sure they're taken care of if anything happens to you). All of these situations call for additional protection. SEE ALSO: 11 Reasons You Need Umbrella Insurance Right Now Even if your situation hasn't changed, you should periodically reshop your insurance policies to make sure you're still getting the best deal. To compare auto insurance rates, try insuranceQuotes and CarInsurance.com . For life insurance, you can check rates at Accuquote and Insure.com . If you're changing jobs, be sure you understand your new benefits and how your health insurance premiums will differ from those at your old job. SEE ALSO: 12 Ways to Lower Your Auto-Insurance Premiums 4. Pay Off Nonmortgage Debt Getty Images In your 20s , you came up with a debt-repayment plan. Stick with it throughout your 30s, so you'll enter your forties focused on building your nest egg for the future--not paying off bills from your past. SEE ALSO: 10 Financial Decisions That Will Haunt You Forever 5. Increase Your Emergency-Fund Balance Getty Images Remember, your goal is to maintain three to six months' worth of living expenses in your emergency fund. As your income and expenses go up, so should the amount in your emergency fund. Worried that all that liquid cash isn't growing as quickly as it might if it were invested in the stock market? Consider these ways to get higher yields . SEE ALSO: 7 Smart Ways to Build Your Emergency Fund 6. Save At Least 15% of Your Income for Retirement When you started saving for retirement, you may only have been able to contribute enough of your paycheck to earn your employer's 401(k) match. Or maybe you've allowed your 401(k)'s auto-enrollment policy to dictate the percentage that you save--typically 3%. SEE ALSO: 14 Retirement Mistakes You Will Regret Forever But experts recommend saving 15% or more of your gross income for retirement. The good news: Your employer's 401(k) match or contribution counts. So if your boss gives you 4%, you just need to save 11% on your own. Every time you get a raise, bump up your nest-egg contributions. If you get a bonus or extra cash as a gift, consider saving it for Future You. Also start thinking about tax diversification, Deyeso suggests. Generally, if you benefit from a tax deduction now for contributing to a traditional IRA or 401(k), every dollar you withdraw in retirement will be taxed at your ordinary income-tax rate. By contributing or converting funds to a Roth IRA or Roth 401(k), you'll enjoy some tax-free income in retirement. 7. Diversify and Rebalance Your Investments Getty Images Now is the perfect time to diversify. "Once you get into your 30s and you have the basics [such as an emergency fund and other necessities] settled, you can take on more risk overall," says Erin Baehr, a financial planner in Stroudsburg, Pa., and author of Growing Up and Saving Up . SEE ALSO: 8 Great Vanguard ETFs for a Low-Cost Core Typically, sticking with mutual funds and exchange-traded funds can work well for all investors, especially newbies. These types of investments offer much-needed diversification at relatively low costs. Index funds, in particular, are simple and relatively stable, making them a good choice for the core of your portfolio. Depending on your comfort level and your know-how, you might consider investing in some members of the Kiplinger 25 , our favorite no-load mutual funds, too. At this age, you should invest mostly, if not entirely, in stocks because of their greater potential for long-term gains. Among those stocks, you should diversify between large, midsize and small company stocks, as well as domestic and international picks. Also, you should periodically rebalance your portfolio to make sure you maintain your chosen allocations. Doing so will force you to buy low and sell high. 8. Monitor and Improve Your Credit Getty Images Checking your credit report and scores has never been easier. Your bank and credit-card companies may now allow you to do for free, and you can still visit AnnualCreditReport.com to view your report from each of the three credit bureaus for free every year. See Best Places to Check Your Credit Reports and Scores for Free for other trusted resources. Regular reviews of your report could help you fix errors quickly, catch an identity thief at work or get on top of a potentially delinquent account. To dispute an error in your report, contact the credit bureau directly. If you notice a problem in one report, check reports from the other two bureaus as well. SEE ALSO: 7 Habits of People With Excellent Credit Scores 9. Write Your Will Getty Images Not convinced of your mortality yet? Try waking up in your 30s after a night of heavy partying--the hangover alone will convince you that you are old and going to die soon. So it's time to write a will. Without one, complete strangers will decide how to split up your estate and raise your children. SEE ALSO: What Do You Know about Wills and Trusts? You can make out a will on your own for $70 or less at a do-it-yourself Web site, such as www.legalzoom.com . If your circumstances are at all complex, you'll need a lawyer, who will charge about $300 to draw up a simple will and $1,000 to $3,000 for an estate plan that involves a will and a trust. Be sure to update these documents periodically to account for major events, such as the birth of a child. Several other documents--a durable power of attorney, a release-of-information form and a living will--will help loved ones manage your care and your finances if you become incapacitated. "These documents are not just for old people," says Lauren Locker, a financial planner in Little Falls, N.J. "They are critical to your life planning and well-being." Gloomy as it might be to consider, it's better that you clarify all these things ahead of time rather than leaving it to your mourners to figure out. 10. Thou Shalt Not Covet Thy Neighbor's Stuff Getty Images Though not verbatim, this commandment comes direct from on high--delivered by both Moses and Knight Kiplinger. While the stone tablets warn about the sin of envy and its effect on your immortal soul, Mr. Kiplinger focuses on the financial repercussions : "The biggest barrier to becoming rich is living like you're rich before you are." By your 30s, you should have a solid sense of what kind of lifestyle you can afford. And though social media and other advances in connectivity make it easier than ever to see what everyone else is doing and buying, you should resist the temptation of comparing yourself with others. If you try stretching your budget and taking on mountains of debt to keep up with your friends, family and the Kardashians, you're likely heading for financial ruin (and no closer to feeling content). So don't compare yourself or your stuff with others. Just focus on your financial goals, live within your means and be happy with your own life. You might even try being happy for your friends and family, too. (Just forget the Kardashians.) SEE ALSO: 14 Frugal Habits of the Super Rich and Famous EDITOR'S PICKS Does Insurance Cover That? 10 Timeless Financial Tips From Knight Kiplinger Millionaires in America: All 50 States Ranked Copyright 2019 The Kiplinger Washington Editors
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Does PerkinElmer, Inc.'s (NYSE:PKI) CEO Pay Compare Well With Peers?
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Rob Friel has been the CEO of PerkinElmer, Inc. (NYSE:PKI) since 2008. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for PerkinElmer
At the time of writing our data says that PerkinElmer, Inc. has a market cap of US$11b, and is paying total annual CEO compensation of US$14m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Rob Friel is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at PerkinElmer has changed over time.
PerkinElmer, Inc. has reduced its earnings per share by an average of 1.5% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 17% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, 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. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Most shareholders would probably be pleased with PerkinElmer, Inc. for providing a total return of 88% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Rob Friel is close enough to the median pay for a CEO of a large company .
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling PerkinElmer (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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UnitedHealth Group Announces Atlanta HBCU Partnership, $8.25 Million Investment in the Education of Future Data Scientists
• Investment funds Atlanta University Center Consortium Data Science Initiative
• Program expands access to training programs for minority undergraduate students
• Funding supports the launch of classroom education to teach data analytics and train a new generation of data scientists
ATLANTA–(BUSINESS WIRE)–UnitedHealth Group and the Atlanta University Center Consortium (AUCC), the oldest and largest consortium of historically black colleges and universities (HBCUs), are partnering on a new initiative to prepare students to meet the growing demand in the marketplace for data analytics experts.
The five-year, $8.25 million investment by UnitedHealth Group is part of an ambitious collaboration with AUCC and its membership: Clark Atlanta University, Morehouse College, Morehouse School of Medicine and Spelman College. The investment will fund the launch of the AUCC Data Science Initiative, which will offer technical classes for students who want to specialize in data science or learn data analysis to give them a competitive edge when they look for jobs in their field of study.
The partnership comes as the number of job openings in the United States for data professionals is projected to reach more than 2.7 million by 2020, according to a national study.
“Many universities have refocused existing programs or developed new efforts to respond to the need for this, yet these responses are still insufficient based on projected demand,” said AUCC Executive Director Todd Greene. “The UnitedHealth Group funding will help to establish the base for this broad initiative, including hiring an accomplished director. Additionally, through UnitedHealth Group internships, guest lectures, faculty development opportunities and other joint efforts, our students will greatly benefit from this partnership with the world’s largest managed health care company. We are grateful for UnitedHealth Group’s anchor investment in our vision, and we are in active conversations with other potential partners to assist us in other aspects of our plan.”
“Technology in general, and data science in particular, are critical to better meeting the needs of our customers,” said David S. Wichmann, CEO of UnitedHealth Group. “We are grateful for the opportunity to support this initiative because it aligns with our desire to ensure our workforce for the future is diverse and possesses the skills needed to propel our company for continued success.”
The AUCC has a long history of collaborating on impactful projects and producing leaders across many fields and disciplines. Its collective community of 9,000 students will help the new Data Science Initiative reach a broad spectrum of scholars. In addition to infusing data science across every academic discipline, the Data Science Initiative will teach students to use advanced data analytics techniques for academic research, particularly studies on disparities in minority communities. Certificate programs focused on data analytics and data science will also be developed.
“The colleges in the Atlanta University Center, for decades, have been in the vanguard of educating African Americans who succeed in STEM fields,” said Mary Schmidt Campbell, president of Spelman College. “This gift by UnitedHealth Group is an investment in our commitment to continue that primacy in STEM by making the AUCC a center of excellence for the study of data science across a range of disciplines in medicine and the liberal arts.”
“The AUCC Data Science Initiative brings together the collective talents and innovation of computer science professors from Morehouse College and other AUCC campuses into an academic program that will be the first of its kind for our students,” said David A. Thomas, president of Morehouse College. “Our campuses will soon produce hundreds of students annually who will be well-equipped to compete internationally for lucrative jobs in data science. This effort, thanks to UnitedHealth Group’s generous donation, is an example of the excellence that results when we come together as a community to address national issues such as the disparity among minorities working in STEM.”
“Rather than pursuing an incremental school-by-school approach, the four institutions have determined that a collective approach best leverages our resources to obtain our ambitious overall goal of being the largest producer of minorities with expertise and credentials in data science and data analytics,” said Lucille H. Maugé, interim president of Clark Atlanta University.
“The Data Science Initiative has the potential to make the Atlanta University Center Consortium a national resource for experts in data analytics,” said Dr. Valerie Montgomery Rice, president and dean of the Morehouse School of Medicine. “This program will not only produce talented data scientists who will be leaders in their fields, but increasing the number of degree offerings with data science competencies at HBCUs will assist in diversifying a career field that is currently made up of less than 7% of under-represented minorities.”
The partnership is just one way UnitedHealth Group is making significant investments in creating a 21st century health workforce that is ready to deliver personalized, culturally competent care, particularly in underserved communities. Since 2007, UnitedHealth Group has invested more than $20 million to fund nearly 2,600 scholarships for students pursuing careers as primary health care providers.
About the Atlanta University Center ConsortiumThe Atlanta University Center Consortium is the world’s oldest and largest association of historically Black colleges and universities. Comprised of four member institutions – Clark Atlanta University, Morehouse College, Morehouse School of Medicine, and Spelman College, the Consortium is a vibrant intellectual community with a long tradition of scholarship, service and community engagement. AUC Consortium, Inc. is a nonprofit organization that operates on behalf of its members to advance each institution’s mission and strategic goals by fostering collaboration, managing center-wide initiatives, offering services that benefit our students and community, and leveraging our shared resources.
About UnitedHealth GroupUnitedHealth Group (NYSE: UNH) is a diversified health care company dedicated to helping people live healthier lives and helping make the health system work better for everyone. UnitedHealth Group offers a broad spectrum of products and services through two distinct platforms: UnitedHealthcare, which provides health care coverage and benefits services; and Optum, which provides information and technology-enabled health services. For more information, visit UnitedHealth Group atwww.unitedhealthgroup.comor follow @UnitedHealthGrp on Twitter.
Click here to subscribe to Mobile Alerts for UnitedHealth Group.
Contacts
Media Contacts:AUCCand Partners:Ronna Charles, Director of Marketing & Communications, Morehouse School of Medicine, 678-592-3847;rcharles@msm.edu
UnitedHealth Group: L.D. Platt, 202-413-7763,ld_platt@uhg.com
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NVIDIA's new RTX Super cards are a pre-emptive strike on AMD
With AMD's next generation of GPUs just days away, NVIDIA is making good onits drawn-out teasewith a trio of new graphics cards: the RTX 2060 Super, RTX 2070 Super and the RTX 2080 Super. What does that "Super" mean? Well, there's not a single answer to that.
The first meaning of "Super" is "similar to card already on sale, but better." That's a lot like the Ti moniker NVIDIA often uses, and it accurately describes the most changed of the new cards, the RTX 2060 Super. The new card comes in at $399 -- $50 more than the regular edition -- and it actually has more in common with the original 2070.
In terms of new stuff, you get an extra 256 CUDA cores (giving 2,176 total) and 16 extra texture units (for 136 total). There's also an improved base clock of 1,470MHz (versus 1,365MHz prior), but on the negative side, there's a slightly reduced boost clock of 1,650MHz (down from 1,680MHz).
The most significant change, however, is memory: The 2060 Super has 8GB, as opposed to the regular card's 6GB. When combined with an improved 256-bit memory interface, this increases bandwidth by 33-percent to 448 GB/sec. That's a huge change for the better and should boost performance a lot.
Although the raw TFLOPs improvement doesn't look that impressive -- 7.2 at FP32 vs 6.5 -- all told, these tweaks should eke out an extra 15 percent of performance over the base model. NVIDIA says this puts the RTX 2060 Super almost on par with the original RTX 2070 and ahead of last generation's GTX 1080. Not bad for $399. The second price you pay is one of power draw: NVIDIA says the Super card will pull a peak of 175 watts from your PSU, up slightly from the previous 160W power envelope.
A side-note: NVIDIA packages CUDA cores and texture units inside a streaming multiprocessor (SM). In NVIDIA's current architecture, these SMs also house Tensor cores for AI and RT cores for ray-tracing. Although the spec sheet notes an increase of four SMs, which makes sense given the boost to CUDA cores, it doesn't mention a change to Tensor or RT core counts. Instead, it says the maximum Tensor FLOPS raises from 51.6 to 57.4, which is inline with the improvements elsewhere, suggesting there are additional active Tensor cores.
On the ray-tracing side, NVIDIA notes an increase from 5 Giga Rays to 6 Giga Rays. We're not entirely sure how the company calculates this, but a 20-percent increase is surprising given what we know about the rest of the hardware. Perhaps this figure factors in memory bandwidth, or perhaps it's just a side effect of rounding to the nearest billion, and the increase is actually more like the 10- to 15-percent improvement the Super card shows elsewhere.
Enter the second meaning of "Super": "A card that replaces the older, non-Super one." The RTX 2070 Super comes in at the same $499 as the original 2070, which has not been given a price reduction and, instead, looks set to be phased out.
The changes start with a mild bump to active hardware. This is a pared-back version of the original 2080's chip, with a lot of things deactivated. You again get an extra four SMs, with 256 CUDA cores (up to 2,560 total) and 16 more texture units (up to 160).
Memory was always identical between the 2070 and 2080, so it should come as no surprise there aren't any changes there. It's still 8GB at 14Gbps on a 256-bit interface -- although there is a slight bump to L1 cache. Where the 2070 Super is getting a lot of its increased power from is clock speeds. While the outgoing 2070 has a base clock of 1,410MHz and a boost clock of 1,620MHz, the Super replacement has a base of 1,605MHz and a boost of 1,770MHz.
NVIDIA claims the RTX 2070 Super is 16-percent faster than the regular 2070 on average, putting it above the GTX 1080 Ti, and mighty close to the original RTX 2080. It also says ray tracing improves by a similar margin, claiming the Super edition can handle "7 Giga Rays" versus the original's six.
Even though prices are the same, you have to pay for that extra power somewhere: The new card's expected peak draw is 215W, up 40W from the previous 175W. That seems like a huge increase, but when you consider this $499 card is going up against AMD's $449, 225-watt RX 5700 XT, it makes sense for NVIDIA to increase the power draw to ensure it stays ahead.
Rounding out the new GPUs is the RTX 2080 Super. Like the 2070, this will replace the old card in the lineup and costs the same $699 as the card it supplants. There's a less-significant change to the actual hardware here, as you're only gettingtwoextra SMs over the original. That means an addition of 128 CUDA cores, 16 Tensor cores, eight texture units and two RT cores. There are significant boosts to clock speeds, though, making the side-by-side look like this:
[{"Feature": "SMs", "RTX 2080": "46", "RTX 2080 Super": "48"}, {"Feature": "CUDA cores", "RTX 2080": "2,944", "RTX 2080 Super": "3,072"}, {"Feature": "Base clock (MHz)", "RTX 2080": "1,515", "RTX 2080 Super": "1,650"}, {"Feature": "Boost clock (MHz)", "RTX 2080": "1,710", "RTX 2080 Super": "1,815"}, {"Feature": "Tensor cores", "RTX 2080": "368", "RTX 2080 Super": "384"}, {"Feature": "RT cores", "RTX 2080": "46", "RTX 2080 Super": "48"}, {"Feature": "Texture units", "RTX 2080": "184", "RTX 2080 Super": "192"}]
If you've beenfollowing the leaks, you'll know there's an important detail absent from the above table: memory bandwidth. As rumored, the 2080 Super's memory data rate has risen from 14Gbps to 15.5Gbps, increasing total memory bandwidth to 496.1 GB/s. That's an 11-percent improvement over the original card's 448 GB/s.
Additional cores and higher clocks boost the new 2080's raw number-crunching capability to 11.1 TFLOPs, up from 10 TFLOPs. That's, again, an 11-percent improvement over the original card. (Note, though, that it's not such a huge leap over the Founders Edition or after-market cards with high boost clocks.) Power draw also goes up, creeping from 215W on the original model all the way up to 250W.
Then come the claims: NVIDIA says the new card is "faster than the Titan Xp." On paper, that might seem spurious. In terms of quoted power, (12.1TFLOPS for the Xp versus 11.1TFLOPS for the 2080 Super) it isn't, and despite the memory improvements, there's a 50GB/s decrease in bandwidth as well. However, the Titan Xp is built on NVIDIA's last generation architecture, Pascal, and it's likely the claim comes from in-game performance in modern titles.
Here's one last curio for you: Despite the changes to the hardware, NVIDIA is quoting the same "8 Giga Rays per second" figure for both the original and new 2080. Fair play to NVIDIA for being consistent on using overly broad rounding when it comes to ray tracing, even when it's to its detriment. On paper, we'd expect to see an RTX performance uplift somewhere between five and 10 percent, so that's something to keep an eye on when reviews of the 2080 Super start rolling in. And you won't have to wait long for that, as these cards are coming in hot.
The RTX 2060 Super and RTX 2070 Super will both be available from July 9th, with the RTX 2080 Super following on July 23rd. Here's what the RTX line-up will look like then, according to NVIDIA:
[{"GPU": "GeForce RTX 2060", "Starting price": "$349", "Availability": "Now"}, {"GPU": "GeForce RTX 2060 Super", "Starting price": "$399", "Availability": "7/9"}, {"GPU": "GeForce RTX 2070 Super", "Starting price": "$499", "Availability": "7/9"}, {"GPU": "GeForce RTX 2080 Super", "Starting price": "$699", "Availability": "7/23"}, {"GPU": "GeForce RTX 2080 Ti*", "Starting price": "$999", "Availability": "Now"}]
*The 2080 Ti Founders Edition is still officially $1,199.
The old-school RTX 2060 is ominous in its lack of... Super-ness, right? If we had to guess, we'd say NVIDIA was considering retiring it along with the 2070 and 2080, but decided otherwise. The RTX 2060 is, by all accounts, a great seller, and NVIDIA probably felt it needed to keep a card with its flagship branding at that price point, given AMD's new RX 5700 is launching at $379.
Will we see a 2080 Ti Super edition? Well, that depends on how hard AMD can push its new "Navi" GPUs. The initial cards based on the new architecture are mostly priced to compete with the 2060 and 2070, which is where NVIDIA has really focused on with this update. The 2080 Super was simply a necessity, given how similar the new 2070 is to the original 2080.
If AMD can produce a new flagship card that gets anywhere close to the performance of the 2080 Ti, you can bet NVIDIA will respond. It wouldn't even be a difficult task: The 2080 Ti leaves around 10 to 15 percent of raw performance on the table when compared to a fully configured workstation RTX card.
Away from fantasy land, NVIDIA's tweaks here generally make a lot of sense. They address a common complaint about its line-up: Unless you're into ray tracing, the 2070 and 2080 just aren't a big upgrade over the last generation in terms of price versus performance. The 10- to 15-percent gain in performance with the Super editions changes that. And of course, these new cards combat AMD's aggressive pricing on its RX cards quite nicely, too. The 2080 Super might need come down in price a bit if AMD enters that range, though.
Thefirst batch of Navi RX cards are due July 7th, and the 2070 Super and 2080 Super arrive two days later. Spec sheets can only tell you so much, and we have a busy time ahead of us putting all these cards through their paces, so stay tuned for our analysis on real-world performance in the coming weeks.
Update:7/7 is in fact July 7th, not June 7th as the article originally stated.
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Why the B-1 Bomber Is Such a Badass Plane
Photo credit: Mark Meyer - Getty Images From Popular Mechanics In December of 1998, seven years after the final shots of the Persian Gulf War, American pilots found themselves once again flying combat missions over Iraq. While the U.S.’s only supersonic heavy payload bomber had been sidelined throughout the Persian Gulf War, this new mission, dubbed Operation Desert Fox, would be the B-1B Lancer’s combat debut. The swing-wing bomber was a technological marvel capable of carrying more than two school busses worth of ordnance faster than the speed of sound while occupying less than one percent of the space a B-52 Stratofortress would on enemy radar screens. After decades of stop-and-go development and thirteen more years riding the bench, it was finally time to see what the Bone (as many aircrews took to calling it) could do. On December 17, two B-1Bs, joined by Navy escorts, crossed over the Iraqi border shortly after 1 a.m. local time, cruising near 550 miles per hour. They were aware of at least three Iraqi surface-to-air missile sites along their flight path and kept a close eye on them through their digital readouts. "Failure was not an option that night," recalled Lieutenant Colonel Gordon Greaney, a back-seat weapon systems operator in one of the bombers. "We all had very big chips on our shoulders after the Gulf War." Greaney remembers seeing the SAM site radar arrays pop on briefly before going dark again. It seemed the Iraqi military was aware of the radar-sniffing missiles aboard the Navy’s EA-6B Prowlers and were opting to save their missile sites rather than risk making them into targets themselves. Instead, long burnt-orange streaks of anti-aircraft fire tore across the sky, trying to rip holes in the fast moving aircraft as they soared overhead. As the bombers reached their targets, they opened their doors and unleashed dozens of 500-pound “dumb bombs” before executing a steep 3-G bank away from the fight and toward home. It wouldn’t be until a day later that the pilots would learn that their mission had been a success. Story continues "It was a surreal moment," Lt. Col. John Martin, 28th Operations Group deputy commander, explained . "At the time, it was tough to grasp the importance of the mission. We just cranked the jets, blasted off, bared our fangs and put steel on target like we had trained to do so many times while at Ellsworth." It was the start of a new era for the B-1B Lancer—not just as a combat operational aircraft, but as a platform that could do far more than its intended Cold War use as a nuclear warplane. An Era of Change Photo credit: Bettmann - Getty Images Originally intended to serve as a high-speed, high-altitude replacement for the aging B-52, the original B-1s were beset by criticism from politicians and defense officials alike, leading to the program’s cancellation not once — but twice . The canceled strategy was simple on paper: scale up the swing-wing design utilized by the successful F-111 medium-range bomber to create a heavy payload bomber that could defeat Soviet defenses through brute force. The 240 B-1As originally intended for the Air Force would head into combat with lots of power and even more fuel, blasting past Soviet air defenses at supersonic speeds. By the time Ronald Reagan took office, Soviet technology was once again forcing a reassessment of America’s bomber philosophy. The Soviet Mig-31, a fighter that was built to hunt the insanely fast SR-71 Blackbird, along with the introduction of the new SA-10 surface-to-air missile and the first Soviet Airborne Early Warning and Control (AWACS) systems all meant the anticipated survival rates for American bombers in Soviet airspace were plummeting. After decades of relying on speed and altitude to provide a protective barrier between U.S. aircraft and Soviet weapons, the Air Force now needed to find a new way to strike targets deep in enemy territory—and they found it in the twice-dead B-1 program. Reagan once again revived the dead bomber, this time with a few changes in its design and use. While older aircraft had survived simply by outrunning Soviet defenses, the new B-1 would avoid detection altogether, slipping into enemy territory by flying low to the ground, where radar would have trouble distinguishing it from terrain. Finding a Place in a New World Photo credit: Historical - Getty Images The new B-1B Lancer was undoubtedly a looming threat to the Soviet Union. With a combat radius of 3,000 miles without refueling, the ability to refuel mid-flight, and a payload capacity of 125,000 pounds, the Lancer could deliver nuclear payloads anywhere on the planet. The only problem was, the Soviet Union (and the threat of nuclear war) had both fallen by the early 1990s. The nuclear-capable B-1B had finally found its way into service, but now it didn't have a mission. With the Strategic Arms Reduction Treaty (START) signed in 1995, all B-1B Lancers in America’s fleet were to be rendered non-nuclear capable. The aircraft’s bombay was divided into two sections, hard points were removed, and software was changed to convert the aircraft into a conventional-ordnance-only platform. Despite this process starting more than 20 years ago, many nations and news outlets around the world still see the B-1B as a nuclear bomber. “Now when I see a B-1 photo alongside a nuclear-themed story, it means someone’s not done their homework,” journalist Oriana Pawlyk tells Popular Mechanics . Not only has she covered the B-1B extensively, she’s even spent time flying in one . The Bone’s old nuclear role had forced the bomber to sit out of the Persian Gulf War in the early 1990s, but removing the B-1B’s nuclear fangs meant the platform was now in play as a conventional bomber. The addition of Lockheed Martin’s Sniper Advanced Targeting Pod soon allowed the supersonic bomber to offer precise weapons guidance to new generations of smart munitions. Unlike the “dumb bombs” the B-1B had successfully carried into combat in Operation Desert Fox, the Lancer could now drop ordnance so accurately that the aircraft has found new life with close air support. Photo credit: Corbis - Getty Images The B-1B’s massive fuel stores and huge payload capacity have made it an unlikely hero in combat operations spanning from Iraq to Syria. It can loiter over a target for hours, providing real-time reconnaissance for both headquarters and troops on the ground—and that’s just until the fighting starts. When engaged, the B-1B can use relayed targeting data from ground troops or its sniper pod to accurately drop thousands of pounds of munitions on enemy positions. That unique combination of capabilities has quickly made the B-1B a surprise favorite for close air support. In fact, Boeing made headlines last year when they secured a patent for a retractable cannon design intended for the Bone, effectively converting the heavy bomber into a supersonic gunship akin to the legendary “Spooky” AC-130U. A Bomber Like No Other Photo credit: Getty Images - Getty Images In the years since World War II, the U.S. has seen a dramatic shift in its air strategy; moving away from dominance by volume (the number of aircraft) and toward dominance through technology. Despite first taking to the sky over forty years ago, updates and upgrades to the Lancer have made it a technological wonder. Like the F-14 Tomcat , another Cold War platform purpose-built for a World War that would never come, the B-1B’s variable-sweep wing design allows it to take off and land using shorter runways while carrying heavier payloads. Once airborne, the wings tuck back against the body of the aircraft, granting it an almost fighter-like profile. “When you sweep the wings the jet flies completely differently,” Major “Coyote” Laney, a B-1B pilot instructor from the 28th Bomb Squadron, tells Popular Mechanics . “With the wings back, it’s a lot more maneuverable.” Of course, with a payload capacity comparable to the mighty B-52, it takes a whole lot of power to move 370,000 pounds at fighter jet speeds. That’s where four General Electric F101-GE-102 turbofan engines (with afterburners) come in. “They’re tuned for down low and mid-level altitudes, so you pretty much get pushed back into your seat. The acceleration just keeps on coming—you can go right through the sound barrier pretty quick,” Laney explains. That speed comes in handy in today’s close air support operations as well. “I remember in Afghanistan where troops needed help across the entire country and I could go 1.2 Mach all the way there and still have enough gas to hang out when I got there,” Laney explains, “So you can take a platform that’s on the East side of Afghanistan and 15 or 20 minutes later, I’m showing up when there’s no one else for several hundred miles that could help.” Born before stealth technology became all the rage, the Bone relies on radar reflecting materials and its ability to fly at extremely low altitudes to stay undetected. Photo credit: Justin Sullivan - Getty Images “One of the craziest features we have in the B-1 is the terrain following system,” Laney says. “We can use the radar in order to fly low-level where the jet is going to look at the terrain out in front of us and provide pitch input to hug the earth as we fly at nine miles a minute .” At that altitude, most air defense systems have trouble distinguishing the B-1B from the terrain around it, especially when pilots plan their routes through mountainous terrain. “It’s already pretty crazy to fly at 200 feet, but we can do that at night or in weather where we can’t see anything. There’s something eerie about knowing there are 2,000 or 3,000 foot mountains around you and you’re flying between them at 200 feet. The margin for error is pretty low.” Entering Early Retirement? Photo credit: Handout - Getty Images The Air Force has already announced its intention to retire the B-1B Lancer in favor of the forthcoming deep penetration bomber, the B-21 Raider, though it seems unlikely that the Bone will be headed to the boneyard anytime soon. New weapons platforms are promising to make the B-1B an integral part of the recent shift in military strategy. In April 2018, a single B-1B successfully launched nineteen JASSM cruise missiles at targets in Syria. The JASSM’s extended range and stealthy characteristics make it an important addition to the B-1B’s arsenal, allowing it to fire its weapons from greater distances and in highly contested airspace. Perhaps even more importantly, the LRASM, or Long Range Anti-Ship Missile, also reached operational capacity on the Bone in 2018. “That kind of makes us the premier anti-ship platform, and who saw the B-1 doing that five years ago?” Laney says. “There’s a lot of smart people well above my pay grade planning the future of the B-1. So, even though we have a retirement date on the books, they’re not slowing down.” Today, the B-1B Lancer fleet is plagued by issues pertaining to its ejection seat systems, but it seems likely that these problems will soon be resolved and the Lancer will get back to what it does best. For how long? It’s hard to say…but two presidents and a whole lot of anti-aircraft fire have already tried to put the Bone to bed, and no one has managed to pull it off. Photo credit: Time Life Pictures - Getty Images ('You Might Also Like',) This Device Can Send Messages Without Cell Service The Best Portable BBQ Grills for Cooking Anywhere The Best Video Game the Year You Were Born
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What you need to remember before watching 'Stranger Things' Season 3
Things are about to get even "Stranger" than before. That is, if you can remember exactly how strange they were the first two times around. It's been a long 21 months since we've seen new episodes of Netflix's sci-fi nostalgia wonder "Stranger Things," and in a show with Demogorgons, demodogs, Upside Downs and a lot of Farrah Fawcett hairspray, you'd be forgiven for forgetting exactly where things left off when Season 2 wrapped up in October 2017. So before you binge-watch the third season when it debuts on July 4, we've rounded up the most important details. Now you can return to Hawkins, Indiana with a clear head, ready for monsters and teenage hormones aplenty. In Season 1, Will was stuck in the Upside Down, but in Season 2 it was stuck in him Season 1 of "Stranger" revolved around the disappearance of Will Byers (Noah Schnapp), whom we eventually discover was trapped in an alternate dimension known as the Upside Down. In Season 2, although he's seemingly safe and sound with his mother Joyce (Winona Ryder) and brother Jonathan (Charlie Heaton), he's experiencing "now memories," visions of the Upside Down in which he seems to go there, psychically. During one episode, he's possessed by the Mind Flayer, a new monster from the dimension, who makes him sick and controls his actions. Under the Mind Flayer's influence, Will leads agents from Hawkins Lab – who are trying to contain the threat of the Upside Down – into a trap. Joyce's dorky boyfriend Bob Newby (Sean Astin) dies trying to save Joyce, Will, Chief Hopper (David Harbour) and Mike (Finn Wolfhard) from the "demodogs," young, four-legged versions of Season 1's Demogorgon monster. Max and Steve join the party Middle-school emotions are thrown into high gear when Max (Sadie Sink) moves to Hawkins and becomes the object of affection of both Dustin (Gaten Matarazzo) and Lucas (Caleb McLaughlin). Her sadistic brother Billy (Dacre Montgomery) also shows up and vies for the top spot on the high school food chain. Mike, moody and depressed since Eleven (Millie Bobby Brown) vanished at the end of Season 1, lashes out at Max and anyone else he comes into contact with. Story continues Dustin also finds a slug-like creature in the rash that Will thinks is from the Upside Down. Dustin tries to keep little "Dart" as a pet before realizing he's a demodog (Dart ate his family's cat), and Dustin turns to Steve (Joe Keery) for help. Recently dumped by Nancy (Natalia Dyer), the former bully proves he's a sweet, sensitive guy. Steve forms an adorable friendship with Dustin and wields his trademark nail-studded bat to battle with the demodogs. Eleven does her own thing for awhile, but she returns to save the day At the start of Season 2, Eleven is in hiding at Hopper's old cabin, where he's keeping her cooped up and away from prying government eyes. But after the surrogate father and daughter have a big blowup (and Hopper becomes temporarily trapped in the Upside Down), Eleven leaves the cabin and goes looking for her birth mother, who eventually points the way to another victim of Hawkins Lab experiments, Eight (Linnea Berthelsen). Eleven's "sister" tries to pull her into a life of vengeance and murder, but El resists and goes home to save the friends she can (psychically) see are in trouble. Eleven saves the gang from a pack of demodogs, and reunites with Mike before heading to the lab to shut the gate to the Upside Down for good. Joyce, Jonathan and Nancy burn the Mind Flayer out of Will while Steve, Mike, Dustin, Lucas and Max lure the demodogs away from the gate to clear Eleven's path. The crisis is seemingly averted. Nancy and Jonathan get the truth out (sort of) After breaking things off with Steve, Nancy hits the road with Jonathan, seeking out the local conspiracy theorist (Brett Gelman) to help expose the lab for the experiments that took Eleven away from her mother and resulted in Barb's (Shannon Purser) death in Season 1. Before reuniting with the whole gang for the season's climax, they record incriminating audio inside Hawkins Lab and help leak it to the press (although most of the world thinks the problem was a chemical leak, not monsters and alternate dimensions). The government closes Hawkins Lab after the incident, and Eleven even gets to hang out in the real world, now with a birth certificate that says Hopper is her father. Everybody gets a perfect school dance at the end, but... The final scenes of Season 2 take place at the Hawkins Middle School Snow Ball, where Lucas and Max share a kiss, Mike and Eleven finally get to dance, Will gets asked to dance by a girl and Nancy bucks up Dustin after his classmates reject him. It's all very sweet and set to Cyndi Lauper's "Time After Time, but then the camera turns, well, upside down, and we see that the Mind Flayer is still very much alive, and looming over the Upside Down version of the school. All the "Things" you need to return to Hawkins: 5 returning summer shows to obsess over from 'Stranger Things' to 'Big Little Lies' From 'Stranger Things' to 'Hellboy' Sneak peek at 'Stranger Things' Season 3 trailer It's the end of the world on TV This article originally appeared on USA TODAY: 'Stranger Things' Season 3: What to remember before watching
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If You Had Bought Douglas Dynamics (NYSE:PLOW) Shares Five Years Ago You'd Have Made 111%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. One great example isDouglas Dynamics, Inc.(NYSE:PLOW) which saw its share price drive 111% higher over five years.
View our latest analysis for Douglas Dynamics
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Douglas Dynamics managed to grow its earnings per share at 22% a year. The EPS growth is more impressive than the yearly share price gain of 16% over the same period. So one could conclude that the broader market has become more cautious towards the stock.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Douglas Dynamics'searnings, revenue and cash flow.
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Douglas Dynamics the TSR over the last 5 years was 149%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted thetotalshareholder return.
Douglas Dynamics shareholders are down 15% for the year (even including dividends), but the market itself is up 8.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 20%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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OPEC Extends Output Cut to Boost Oil Prices: Winners & Losers
OPEC and its members have officially decided to extend production cut to shore up oil prices. The extension came at a time when U.S. production continues to rise and demand worries persist. Nonetheless, here’s a rundown on the OPEC production cuts’ big winners and losers —
Oil Prices Climb
Oil prices continue to edge up after OPEC and its allies agreed to extend supply cut by nine months. In electronic trading, West Texas Intermediate crude futures were up 18 cents at $59.27 a barrel, after hitting its highest level in over five weeks on Jul 1.
U.S. crude settled at $59.09 a barrel on the New York Mercantile Exchange, up 62 cents, or 1.1% in the last trading session. Dow Jones Market Data added that the front-month contract prices posted an eye-popping 9.3% gain in June.
Brent crude futures, by the way, were trading up 34 cents, or 0.5%, at $65.40 a barrel. The International benchmark increased 32 cents, or 0.5%, to settle at $65.06 a barrel on ICE Futures Europe on Jun 1.
OPEC Extends Production Cut
The production cut is till next March, a move particularly designed to put a check on oil prices falling on growing output. The United States, incidentally not a member of OPEC, continues to ramp up oil production at a fast clip. Needless to say, the boom in the Permian Basin has pushed the United States to the top spot as an oil producer.
Participating non-OPEC members also need to approve the agreement. And Russia, by far the most significant non-OPEC member, has given enough hints that it is willing to co-operate with the production cut.
During the Group of 20 leaders’ summit in Japan, Russian President Vladimir Putin said that both Russia and Saudi Arabia have decided to extend the oil production-reduction deal. Saudi Energy Minister Khalid al-Falih too confirmed that major alliances have “enthusiastically came together” to support the charter.
It’s worth pointing out that the alliance between Russia and OPEC does have a major hold in determining the world’s crude oil production. OPEC, individually, may control less than 50% of the world’s crude oil production but the coalition does exceed half of global oil production.
Growing U.S. Crude Production – Not the Only Concern
The demand outlook for global oil is bleak, which is also a reason for the OPEC production cut. The International Energy Agency confirmed that “a warm winter in Japan, a slowdown in the petrochemicals industry in Europe, and tepid gasoline and diesel demand in the United States” are all affecting world oil demand.
Analysts also believe that changes in modes of transportation, especially, rise of electric vehicles and government’s initiatives to reduce ill-effects on climate can easily dent demand for oil.
Energy Shares Gain
As demand for oil continues to scale, the energy sector is positioned to boost your portfolio. Most importantly, companies that are involved in hydraulic fracturing are poised to gain significantly. This is because a drop in oil price hurts their cost structure, killing the motive to pump. Thus, zeroing down on oil stocks poised to stand out as top investments for this year seems judicious.
Approach Resources, Inc.AREX focuses on the acquisition, exploration, development, and production of unconventional oil reserves in the United States. The stock currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has moved 32% up in the past 60 days. The company’s expected earnings growth rate for the current year is 23.1% compared with the Oil and Gas - Exploration and Production - United States industry’s projected decline of 9.4%.
Berry Petroleum CorporationBRY engages in the development and production of conventional oil reserves located in the western United States. The stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 6.1% in the past 90 days. The company’s expected earnings growth rate for the current year is 23.8% compared with the Oil and Gas - Exploration and Production - United States industry’s projected decline of 9.4%.
Panhandle Oil and Gas Inc.PHX acquires, develops, and manages oil and natural gas properties in the United States. The stock currently has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has climbed 81% in the past 60 days. The company’s expected earnings growth rate for the current year is 138.2% compared with the Oil and Gas - Exploration and Production - United States industry’s estimated decline of 9.4%. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Gold Edges Up
Gold prices are certainly expected to move north on higher oil prices. This is because as crude oil prices rise, prices of essential goods and commodities follow suit. And value of gold rises when inflation picks up. After all, it acts as a hedge against inflation. In fact, theoretically, more than 60% of the time gold and crude oil have a direct relationship. Given this bullishness, one should consider gold mining companies.
Royal Gold, Inc.RGLD acquires and manages precious metal streams, royalties, and related interests. The stock currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved 0.7% up in the past 60 days. The company, which is part of the Mining - Gold industry, is expected to record earnings growth of 23.4% in the current quarter.
Kinross Gold CorporationKGC engages in the acquisition, exploration, and development of gold properties in the United States. The stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has climbed 8.3% in the past 60 days. The company’s expected earnings growth rate for the current year is 30% compared with the Mining - Gold industry’s projected rally of 15.8%.
Aviation, Refiners to Take a Hit
Aviation stocks traditionally have an inverse relationship with oil price. So, it isn’t surprising that shares of aviation firms will decline after a sharp rise in crude oil prices. After all, fuel costs are major part of the operating costs of aviation firms; thus rise in oil prices will hit profit margins.
Refineries also stand to lose from higher crude oil prices as crude is their raw material. So, refineries’ net cash flow declines when crude oil prices pick up.
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 >>
Click to get this free reportKinross Gold Corporation (KGC) : Free Stock Analysis ReportRoyal Gold, Inc. (RGLD) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportBerry Petroleum Corporation (BRY) : Free Stock Analysis ReportPanhandle Royalty Company (PHX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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'Neighbours named the most successful soap for love
Kylie Minogue and Jason Donovan as Charlene and Scott Robinson (Credit: Neighbours/Grundy Television) If happy endings are what you’re after in a soap, then look no further than the iconic Australian show Neighbours , which has been named the number one ongoing drama for successful marriages. ITV’s Emmerdale has been identified as the worst. A recent study conducted by Tombola aimed to examine the luckiest and unluckiest soaps for love, and the Aussie series emerged as the victor with 63% of its marriages being successful – a true accomplishment in soap land. Fans of the show will of course remember the iconic wedding scene between Kylie Minogue’s Charlene Robinson and Jason Donovan’s Scott Robinson, which wasn’t interrupted by anyone and absolutely no one died. Their wedding episode was watched by nearly 20 million viewers (Credit: Neighbours/Grundy Television) Meanwhile, Emmerdale has been named the soap with the most amount of divorces, with 68% of marriages failing on the show. Read more: Emmerdale leaves viewers squealing with laughter A heavy-hearted 61% of couples have ended up in the divorce courts in the 46 years of the Yorkshire based soap. A divorce happens on average every 189 episodes, making it the divorce capital of soap world. Unlucky in love? (Tombola) For example, Charity Dingle (Emma Atkins) has had three unsuccessful marriages dating back to 2001, first to Chris Tate, then Jai Sharma in 2012 and most recently Declan Darcey in 2014. Charity Dingle (Emma Atkins) in Emmerdale (ITV) Read more: Coronation Street star's pregnancy joy at 42 The second least successful soap for love is Eastenders , which has seen 60% of its couples end up in the divorce courts, and another 7% end in five other forms of split. Hollyoaks comes in at third, followed by Coronation Street , and then Home & Away , the figures reveal. In Coronation Street, around13% of marriages end in other forms of split, with the most common reason being because one of the couple is already married.
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7 Winning Construction Stocks of 1H With Room to Run
The first half of 2019 was dynamic for the construction market. After a sharp selloff in the second half of 2018, rising demand, declining mortgage rates and solid economic fundamentals took most of the sting out of this hostile situation.The construction sector grew almost 25% in the first six months of 2019, higher than the broader market’s (S&P 500) rally of 16.1%. Increased infrastructure spending, mainly in non-residential areas, along with the Fed’s dovish stance, ongoing job growth and rising wages, is contributing to the gradual improvement in marketplace.Notably, spending grew in double digits in areas like highway and street, sewage and water disposal, transportation, water supply, and manufacturing during the first five months of 2019. Meanwhile, although residential outlays remained in a soft patch as home building fell for the fifth straight month in May, per the latest Commerce Department report, the only positive is new multi-family homes spending, which was up 9.3% during the period.
Insights Into Sector’s Prospects for 2HAfter GDP growth of 2.9% in 2018, U.S. economic growth is expected to shift to lower gear at a 2.1% pace in 2019, according to Fed projections. GDP advanced at a 3.1% annualized rate in the first quarter, driven by a large increase in inventories of unsold goods and an improved trade balance, neither of which is expected to be repeated. The U.S. economy is expected to grow at a 1.5% annualized rate in the second quarter, the Atlanta Federal Reserve’s GDPNow forecast model showed on Jul 1.Indeed, the construction market, the fate of which is tied to broader economic growth, is expected to suffer thanks to rising raw material costs, a weak housing market and a slowdown in global economy. Meanwhile, trade tensions with China and Mexico have been upsetting businesses and dampened consumer confidence.Nonetheless, the truce in trade war is a boon to the construction market. In a tentative plan to end the trade war, President Donald Trump de-escalated the ongoing trade war with China on Jun 29 at the G20 summit in Japan, where he announced that the United States would not be adding the planned 25% tariffs on $300 billion worth of Chinese goods.Also, the Fed recently signaled that it will cut interest rates if damage from President Trump’s trade battles with China and Europe, slowing global growth and geopolitical tensions threaten to curtail the U.S. economy further.In a nutshell, lower interest/mortgage rates along with steady job and wage growth is expected to drive the construction sector. Although spending on residential construction has been weak for a number of months, builders are hopeful that declining mortgage rates will spur a rebound.
Construction Stocks that Led the Way
The positive developments led to a few winners in the construction equity space in the first half of 2019 that not only crushed the broad market returns, but also have the potential to outperform in the latter part. Of these, we have selected seven stocks with the help of our Zacks Stock Screener that have a Zacks Rank #1 (Strong Buy) or 2 (Buy), justifying their strong fundamentals. These are, namely, TopBuild BLD, Construction Partners ROAD, Great Lakes Dredge & Dock GLDD, KBR KBR, Altair Engineering ALTR, Jacobs JEC and Eagle Materials EXP.As per the Zacks Sector Rank, the Zacks Construction sector is currently #2 out of 16 (top 14%), mirroring analysts’ optimism on the market’s earnings growth potential.A solid sector rank and a VGM Style Score of B or better is quite a combination to look out for in stocks, especially for investors beefing up their portfolio in the second half amid volatility and uncertainty. You can seethe complete list of today’s Zacks #1 Rank stocks here.Take a quick look at the best 1H2019 stocks and their key metrics in the table below:
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 reportTopBuild Corp. (BLD) : Free Stock Analysis ReportEagle Materials Inc (EXP) : Free Stock Analysis ReportJacobs Engineering Group Inc. (JEC) : Free Stock Analysis ReportGreat Lakes Dredge & Dock Corporation (GLDD) : Free Stock Analysis ReportKBR, Inc. (KBR) : Free Stock Analysis ReportAltair Engineering Inc. (ALTR) : Free Stock Analysis ReportConstruction Partners, Inc. (ROAD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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How Many Peoples Financial Services Corp. (NASDAQ:PFIS) Shares Did Insiders Buy, In The Last Year?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 in Peoples Financial Services Corp. ( NASDAQ:PFIS ). What Is Insider Selling? It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required. Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Peoples Financial Services Peoples Financial Services Insider Transactions Over The Last Year Senior EVP & COO Thomas Tulaney made the biggest insider purchase in the last 12 months. That single transaction was for US$328k worth of shares at a price of US$41.00 each. So it's clear an insider wanted to buy, at around the current price, which is US$44.50. 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. The good news for Peoples Financial Services share holders is that insiders were buying at near the current price. In the last twelve months insiders purchased 20246 shares for US$835k. But insiders sold 100 shares worth US$4.2k. Overall, Peoples Financial Services insiders were net buyers 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! Story continues NasdaqGS:PFIS Recent Insider Trading, July 2nd 2019 Peoples Financial Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying. Are Peoples Financial Services Insiders Buying Or Selling? There was some insider buying at Peoples Financial Services over the last quarter. Director Ronald Kukuchka bought US$8.5k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own. Insider Ownership of Peoples Financial Services Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Peoples Financial Services insiders own 8.1% of the company, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. So What Do The Peoples Financial Services Insider Transactions Indicate? Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Peoples Financial Services and we see no evidence to suggest they are worried about the future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow . If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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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Exabeam buys Israeli cloud security firm SkyFormation
TEL AVIV (Reuters) - California-based cybersecurity firm Exabeam said on Tuesday it acquired SkyFormation, an Israeli cloud application security company. Financial details were not disclosed. As Exabeam's first acquisition and following its recent $75 million funding round, the investment will enable Exabeam to establish an office in Israel, provide access to talent and help more customers move their businesses and their security to the cloud, the company said. SkyFormation allows organizations to collect logs from over 30 cloud services into any security information and event management tool, such as Exabeam's. (Reporting by Tova Cohen)
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How Novice Investors Should Read Earnings Reports
It would be hard to find a podcast-hosting duo more fully invested in answering your financial questions than Alison Southwick and Robert Brokamp -- they even put "Answers" in their show's name! This week they're at it again, combing through theMotley Fool Answersmailbag in search of conundrums to address for their listeners. But because three heads are better than two, for this episode, they have recruited senior analyst -- and frequent podcast guest -- Ron Gross to help out.
In this segment, they give a student some advice about how an investing beginner can, and should, make sense of the number salad that is a quarterly earnings report.
To catch full episodes of all The Motley Fool's free podcasts, check out ourpodcast center. A full transcript follows the video.
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This video was recorded on June 25, 2019.
Alison Southwick:The next question comes from Montash. "I'm a student who's just beginning to get into the world of investing. I always hear that you should read earnings reports for the companies you invest in. What can I do to make sense of the numbers? I have no idea if the numbers are good or bad. Should I just be reading more other financially literate people's analyses?"
Ron Gross:This we did discuss a little bit...
Southwick:I did, yes.
Gross:...but we can revisit it. This is good. I think it's always good to read what a company says focusing on the words first. Let's leave the numbers aside. That has to do with what a company does, and how it makes money; but, each quarter how's it doing. The CEO will make comments. There'll often be a conference call where analysts can ask questions. So it's really nice to just hear what the company has to say.
Then you can look at the numbers and focus on the trends. You don't have to be an expert about what a good gross margin is, or a good operating margin is, or how to calculate free cash flow. Look at the trends. Is the company increasing their revenue each year? Are they increasing their profits each year? Does it [continuously go up and down]? Are those things maybe deteriorating and going down? Looking at trends can tell you a lot and used in conjunction with what the CEO is telling you about their business should be really enough, I think, for the average investor.
Southwick:Do you listen much to the earnings calls?
Gross:I read them more than I listen to them.
Southwick:I'm wondering how often you can just tell from a CEO's tenor how excited he or she is about the future of the company? If they're like, "Ohhh!"
Gross:You have to be careful, because some CEOs are sales-y, and you don't really like that. I don't like when CEO's talk about their stock price a lot. I want them to talk about the business and let the stock worry about itself. But you can gauge if someone's really upbeat about the business, but if it doesn't jive with the way the numbers look then it seems a little fishy, so you want the two things to go hand in hand.
Southwick:What about reading other people's analyses?
Gross:Always good if you can get your hands on other people's analyses. It's sometimes quite difficult to maybe get your hands on aGoldman Sachsreport or aMorgan Stanleyreport; but we are here, as Fools, for our members and that's what we do all day long, is read these reports and offer our opinions. Definitely this is one place you can trust. AndGoogleis there for you, too. You can always google a company and you'll get an article here or there from a financial expert or perhaps an analyst. All that information is useful, too.
Alison Southwickhas no position in any of the stocks mentioned.Robert Brokamp, CFPhas no position in any of the stocks mentioned.Ron Grosshas 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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JinkoSolar Commissions Solar Project, Focuses on Low Emission
JinkoSolar Holding Company LimitedJKS recently announced that the solar project in Sweihan, Abu Dhabi is now fully operational. The AED 3.2-billion project was constructed by Marubeni Corp. and Emirates Water and Electricity Company (EWEC) using JinkoSolar's high efficient mono panels. The project has a generation capacity of 1,177-megawatt Peak (MWp).
The newly-developed project isin line with the sectors’ transformation strategy, which focuses on increasing electricity generation from alternative energy sources. UAE's Energy Strategy 2050 aims to increase the contribution of clean energy in the total energy mix from 25% to 50% by 2050 and reduction of carbon emission by 70%.
High-Efficiency Mono Panels
Courtesy of consistent research and development, the company provides efficient solar modules and solar system integration services as well as develops commercial solar power projects. JinkoSolar’s cutting-edge technologies — 60- and 72-cell Cheetah P-type mono-PERC modules — provide peak power outputs of up to 400 Watt peak (Wp). It is claimed to be the highest-performing commercially mass-produced monofacial module in the market.The company offers high-efficient Monocrystalline modules with PERC technology.
The high-efficiency modules lower the cost of utility scale solar projects compared with the conventional energy source power projects. JinkoSolar's panels have attracted the world’s most competitive tariff during the bid submission for the aforementioned project, whichindicates high demand in the solar market.
Increase in Renewable Energy Usage
Increasing awareness against greenhouse gas emission has raised the usage of renewable clean energy sources for power generation on a global scale. Per a report by International Renewable Energy Agency (IRENA), the share of renewable energy in primary energy supply will grow to nearly two-thirds by 2050 from the current level of less than one-sixth.
Solar is avital part of renewable energy, which is expected to grow and provide clean energy to fulfill customers’ increasing needs. Companies like SunPower Corporation SPWR, Canadian Solar Inc CSIQ and First Solar Inc FSLR will also benefit from rising consumption usage of solar energy.
Zacks Rank & Price Performance
JinkoSolarcurrently sports a Zacks Rank #1(Strong Buy).You can seethe complete list of today’s Zacks #1 Rank stocks here.
Shares of the company have surged around 54.5% in the past 12 months compared with the industry’s rally of 36.4%.
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 reportJinkoSolar Holding Company Limited (JKS) : Free Stock Analysis ReportFirst Solar, Inc. (FSLR) : Free Stock Analysis ReportCanadian Solar Inc. (CSIQ) : 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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What Does Compass Minerals International, Inc.'s (NYSE:CMP) P/E Ratio Tell You?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll show how Compass Minerals International, Inc.'s (NYSE:CMP) P/E ratio could help you assess the value on offer. Based on the last twelve months,Compass Minerals International's P/E ratio is 30.05. In other words, at today's prices, investors are paying $30.05 for every $1 in prior year profit.
See our latest analysis for Compass Minerals International
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Compass Minerals International:
P/E of 30.05 = $56.1 ÷ $1.87 (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 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. That means unless the share price falls, the P/E will increase in a few years. A higher P/E should indicate the stock is expensive relative to others -- and that may encourage shareholders to sell.
Compass Minerals International's 90% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive. Unfortunately, earnings per share are down 14% a year, over 5 years.
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 (9.5) for companies in the metals and mining industry is a lot lower than Compass Minerals International's P/E.
That means that the market expects Compass Minerals International will outperform other companies in its industry. The market is optimistic about the future, but that doesn't guarantee future growth. 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. 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).
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).
Compass Minerals International's net debt is 67% of its market cap. This is enough debt that you'd have to make some adjustments before using the P/E ratio to compare it to a company with net cash.
Compass Minerals International trades on a P/E ratio of 30.1, which is above the US market average of 18.2. Its meaningful level of debt should warrant a lower P/E ratio, but the fast EPS growth is a positive. So it seems likely the market is overlooking the debt because of the fast earnings growth.
When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
You might be able to find a better buy than Compass Minerals International. 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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Oil & Gas Stock Roundup: Shell's Canada Asset Sale, Marathon Oil's UK Exit & More
It was a week where oil prices eked out another gain. Meanwhile, natural gas futures erased some of the sharp losses that have taken the commodity to lows not seen since May 2016.
On the news front,Royal Dutch ShellRDS.A agreed to sell gas assets in Alberta for C$190 million, whileMarathon OilMRO closed the divestment of its North Sea assets.
Overall, it was a good week for the sector. West Texas Intermediate (WTI) crude futures rose 1.8% to close at $58.47 per barrel, while natural gas prices moved up 5.6% for the week to finish at $2.308 per million Btu (MMBtu). (See the last ‘Oil & Gas Stock Roundup’ here: Anadarko's Mozambique FID, Archrock's Acquisition & More)
The U.S. crude benchmark hit the highest settlement level since May 22 with OPEC and its allies agreeing to extend their supply cut deal until March 2020. Signs of progress in the resolution to the US-China trade spat also send oil prices higher. On a further bullish note, the U.S. Energy Department's latest inventory release showed that crude stockpiles slumped nearly 13 million barrels in the biggest weekly drawdown since September 2016 as exports hit a record high.
Natural gas prices also gained following a smaller-than-expected increase in weekly supplies and expectations of above-average temperatures over the next few days that could trigger strong power sector demand for the fuel.
Recap of the Week’s Most Important Stories
1. Royal Dutch Shell is set to jettison natural gas assets in Alberta to Canada’s Pieridae Energy for C$190 million ($144.77 million). Pieridae intends to use the production from these assets to secure natural gas supply required for the first train of the flagship Goldboro LNG project.
Per the deal, the Anglo-Dutch giant will offload all upstream and midstream assets in Alberta’s Foothills region. The upstream assets to be acquired by Pieridae netted approximately 29,000 barrels of oil equivalent per day to Shell in first-quarter 2019. This constituted about 120 million cubic feet per day (MMcf/d) of natural gas, 5,600 barrels per day (bbl/d) of natural gas liquids, and 3,200 bbl/d of condensate and light oil.
Pieridae will also acquire three sour gas plants namely Jumping Pound, Caroline and Waterton, with a combined capacity of 750 MMcf/d. The firm will also take possession of a 1700-kilometer pipeline network and 14% stake in a sulfur plant. The deal is to be funded by cash and the issuance of stocks. Subject to satisfactory closing conditions and regulatory approvals, the transaction is set for closure in third-quarter 2019. (Read more Shell to Divest Alberta Gas Assets to Pieridae for C$190M)
2.Marathon Oilrecently closed the divestment of North Sea operations, marking a complete exit from the United Kingdom. In accordance with the deal that was inked in February 2019, the company jettisoned a 40% operating stake in the Greater Brae Area and 28% stake in BP plc-operated Foinaven oilfield to RockRose Energy for $95 million.
Over the past few years, the Texas-based energy explorer inked several deals to sell non-core assets that do not fit into the company’s long-term growth plan. With the closure of this deal, Marathon Oil bided goodbye to 10 countries since 2013. Markedly, while the Zacks Rank #3 (Hold) company will derive total oil production from the United States, it will retain LNG operations in Equatorial Guinea.
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The strategic sell-offs not only bolstered its portfolio but also boosted financials of the firm. We believe that Marathon Oil’s high emphasis on exiting the non-core business, focus on strategic acquisitions and strengthening balance sheet will drive growth. The company, which intends to optimize its portfolio with high-return and low-risk investments, wants to deepen focus on prolific U.S. shale plays.(Read more Marathon Oil Bids Adieu to UK to Deepen Focus on US Plays)
3.W&T Offshore, Inc.WTI recently agreed to acquireExxon Mobil Corporation’s XOM stakes in hydrocarbon producing assets located offshore Alabama in the U.S. Gulf of Mexico (GoM). The deal, including related onshore processing facilities for properties in the eastern region of the Gulf of Mexico, is valued at $200 million.
The transaction encompasses nine offshore fields and an onshore treating facility. Notably, the properties lie adjoining to the company’s existing assets in the region. Total net proved reserves of the properties are estimated at 74 million barrels of oil equivalent (BOE), of which 22% is predicted to be liquids. Markedly, 99% of the reserves are classified as proved developed producing.
ExxonMobil’s vending of Gulf of Mexico assets is in line with its divestment program of $15 billion. The company is also expected to sell its remaining stakes in Norwegian offshore oil and gas fields. The assets, which include interests in 20 producing fields and several license areas, are estimated to be valued at $3-$4 billion. (Read more W&T Offshore to Acquire $200M GoM Assets From ExxonMobil)
4.QEP Resources, Inc.’sQEP shares rallied 16% to $7.11 on Jun 26, following reports that Elliot Management Corporation is in advanced talks to acquire the former. While there hasn’t been any formal confirmation from either party yet, the deal could be finalized within weeks, per Bloomberg.
Notably, QEP Resources received an acquisition proposal from shareholder Elliott Management Corp. earlier this year. Elliott expressed plans of taking over all outstanding shares of the upstream energy player for a consideration of $8.75 a share, which was at 44% premium to the stock’s closing price on Jan 4.
After scrapping the deal to divest Williston assets amid falling commodity prices, QEP Resources has been exploring other strategic options like merging with other firms or selling off the company. With the divestment of gas-weighted assets in the Haynesville Shale, Uinta Basin and Pinedale Anticline, QEP Resources has pivoted from a multi-basin strategy to a become a more focused Permian operator. Elliott supports QEP Resources’ move to become a pure-play Permian firm but believes that its constructive efforts are yet to get reflected in the stock price.(Read more QEP Resources' Stock Spikes 16% Yesterday: Here's Why)
5. In a bid to forge ahead with divestment goals,PetrobrasPBR has commenced the process of offloading four refineries namely Rnest, Rian, Repar and Refap. The move is part of a broader plan of the Brazilian oil giant to jettison eight of its refineries that constitute 50% of refining capacity in the country.
The company’s CEO believes that the divestment of eight refineries could fetch Petrobras as much as $15 billion. It intends to close the sale of one of the refineries by 2019-end. Fuel distribution firms like Raizen, oil explorers in Brazil and trading firms could be potential buyers of the refineries that Petrobras put up for sale.
Notably, in June, the company inked an agreement with the Brazilian antitrust regulator CADE regarding the divestment of eight refining assets to encourage greater competition in the industry by attracting new players to the business. The divestment plans are in sync with Petrobras’ aim of cutting debt levels and streamlining portfolio.(Read more Petrobras to Divest Refinery Assets to Trim Leverage)
Price Performance
The following table shows the price movement of some the major oil and gas players over the past week and during the last 6 months.
[{"Company": "XOM", "Last Week": "-1.4%", "Last 6 Months": "+9.9%"}, {"Company": "CVX", "Last Week": "-0.4%", "Last 6 Months": "+12.8%"}, {"Company": "COP", "Last Week": "+1.1%", "Last 6 Months": "-1.8%"}, {"Company": "OXY", "Last Week": "-0.7%", "Last 6 Months": "-19.7%"}, {"Company": "SLB", "Last Week": "+2.2%", "Last 6 Months": "+5.7%"}, {"Company": "RIG", "Last Week": "+1.9%", "Last 6 Months": "-9.7%"}, {"Company": "VLO", "Last Week": "+4.5%", "Last 6 Months": "+11.5%"}, {"Company": "MPC", "Last Week": "+6.1%", "Last 6 Months": "-7.6%"}]
The Energy Select Sector SPDR – a popular way to track energy companies – edged up 0.2% last week. The best performer was downstream operatorMarathon Petroleum CorporationMPC whose stock surged 6.1%.
Longer-term, over six months, the sector tracker is up 9%. Integrated energy major Chevron was the major gainer during this period, experiencing a 12.8% price increase.
What’s Next in the Energy World?
As usual, market participants will be closely tracking the regular releases i.e. the U.S. government statistics on oil and natural gas -- one of the few solid indicators that comes out regularly. Energy traders will also be focusing on the Baker Hughes data on rig count.
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 reportPetroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis ReportMarathon Petroleum Corporation (MPC) : Free Stock Analysis ReportRoyal Dutch Shell PLC (RDS.A) : Free Stock Analysis ReportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportW&T Offshore, Inc. (WTI) : Free Stock Analysis ReportQEP Resources, Inc. (QEP) : Free Stock Analysis ReportMarathon Oil Corporation (MRO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Lindsay Lohan posts nude Instagram snap in birthday suit after show cancellation
Birthday suit!
Lindsay Lohan took to Instagram on Monday to share a nude selfie ahead of her 33rd birthday on Tuesday. The former "Freaky Friday" star appears to be fully nude -- save for some diamond earrings, a diamond ring and some bracelets -- in the snap, which sees her sitting on the floor in an empty room and taking a photo of herself in the mirror.
She captioned the sultry photo with a birthday cake emoji and a pink bow emoji.
See the snap in the gallery below:
This isn't the first time that the star has posted nude photos of herself on her Instagram page. In January,she sparked controversyby posting a throwback from her 2011 Marilyn Monroe-inspired photo shoot for Playboy.
The "Mean Girls" actress also shares videos from a "pre-birthday" dinner on her Story, as well as a video of her dancing at sunset "doing the LiLo," which was a callback to the viral dance video that came out of her short-lived MTV reality show, "Lindsay Lohan's Beach Club."
The show wasrecently cancelled after one season, despite itbeing marketed as Lohan's highly-anticipated comeback. Her club, Lohan Beach House in Mykonos, is reportedly closed permanently.
See more photos of Lindsay Lohan:
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GSK-Pfizer JV gets conditional approval from S.Africa's competition regulator
July 2 (Reuters) - GlaxoSmithKline Plc and Pfizer Inc's planned joint venture received conditional approval from a South African regulator on Tuesday, clearing a hurdle in the creation of a consumer health giant with sales of 9.8 billion pounds ($12.38 billion).
South Africa's Competition Commission said although the deal was not likely to reduce competition, it would impact local manufacturers of pharmaceuticals for Pfizer.
To address those concerns, the regulator suggested the merging parties continue using Spechpharm Holdings, a South African firm that provides manufacturing and packaging services, for three years.
($1 = 0.7919 pounds) (Reporting by Shashwat Awasthi in Bengaluru; Editing by Anil D'Silva)
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Chart Industries Completes Buyout of Harsco's AXC Business
Chart Industries, Inc.GTLS, yesterday, announced that it has successfully completed the acquisition of the Industrial Air-X-Changers (“AXC”) business of Harsco Corporation HSC. The buyout, valued at $592 million, was announced on May 9.Before we proceed further with the buyout details, it’s worth mentioning that Harsco’s AXC business specializes in manufacturing air coolers (ranging from small to large as well as custom designed), largely driven by hydraulic motor, engine and electric motor configurations. Products are mainly used in chemical plants, oil refining, power generation, gas compression and other applications.The business’ revenues and earnings before interest, tax, depreciation and amortization (EBITDA) margin are anticipated to be roughly $260 million and 23%, respectively, in 2019.Details of the BuyoutNotably, the acquired assets will help Chart Industries strengthen its businesses in the industrial energy and gas market. With easy access to the compression market, the company now will be able to benefit from heavy demand for air-cooled heat exchangers required for production and transportation of natural gas and oil.The buyout will have immediate positive impacts on Chart Industries’ gross, operating and EBITDA margins. Cost synergies of roughly $20 million are anticipated in the initial year of the completion, while the transaction’s asset purchase structure will help the company realize $90 million in tax benefits in the future.Also, with this acquisition, Chart Industries revised its reporting business segments to Distribution & Storage East, Distribution & Storage West, Energy & Chemicals Cryogenics, and Energy & Chemicals FinFans. Notably, the Energy & Chemicals FinFans segment will comprise operations of Chart Cooler Services, Air-X-Changers and Hudson Products (acquired in September 2017).With a market capitalization of $2.8 billion, Chart Industries currently carries a Zacks Rank #2 (Buy). The company anticipates gaining from healthy contribution from its LNG projects (revenues from Calcasieu and Golar Gimi projects are predicted to be $28-30 million) and acquisition of Harsco’s AXC business.The company currently predicts earnings for 2019 to be $2.85-$3.20 per share, higher than the original guidance of $2.50-$2.85 and the previously mentioned $2.70-$3.05. Adjusted earnings in 2020 are predicted to be $5.05-$5.35 per share. Revenues are projected to be $1.41-$1.46 billion, above the previously mentioned $1.29-$1.34 billion and the original guidance of $1.26-1.31 billion.Further, earnings estimates for the company have been revised upward in the past 60 days. Currently, the Zacks Consensus Estimate for Chart Industries is pegged at $3.00 for 2019 and $5.14 for 2020, indicating growth of 3.4% and 28.8% from the respective 60-day-ago figures.Chart Industries, Inc. Price and Consensus
Chart Industries, Inc. price-consensus-chart | Chart Industries, Inc. QuoteYear to date, the company’s share price has increased 16.3% compared with growth of 28% recorded by the industry.
Two other top-ranked stocks in the industry are Roper Technologies, Inc. ROP and RBC Bearings Incorporated ROLL. While Roper Technologies currently sports a Zacks Rank #1 (Strong Buy), RBC Bearings carries a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, earnings estimates for the two stocks have improved for the current year. Further, average earnings surprise for the last four quarters was positive 8.43% for Roper Technologies and 8.36% for RBC Bearings.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 reportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportChart Industries, Inc. (GTLS) : Free Stock Analysis ReportRBC Bearings Incorporated (ROLL) : Free Stock Analysis ReportHarsco Corporation (HSC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Stocks edge higher as trade enthusiasm wanes
By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stocks managed modest gains on Tuesday after holding near the unchanged mark for much of the session as enthusiasm over the U.S.-China trade truce faded after the United States threatened tariffs on additional European goods.
Washington's proposed tariffs on $4 billion worth of European Union goods in an extended dispute over aircraft subsidies came just as trade tensions with China seemed to be easing.
Still, stocks have rallied to push the S&P 500 to a record for a second straight session in the wake of the U.S. trade truce with China. The benchmark index finished Monday's session well off its highs, however, as investors questioned the lack of details in the agreement.
The S&P 500 had rallied nearly 7% in June on hopes the two largest economies in the world would find a way to end their trade war.
With U.S. and global economic data showing signs of slowing, the focus for investors will now turn to monetary policy and the upcoming earnings season.
"We’ve got a wait and see on the trade deal, a wait and see on the Fed, a wait and see on earnings and all of that is in front of us by at least two weeks," said Art Hogan, chief market strategist at National Securities in New York.
"I am not surprised at all to see this market shift into sideways action."
The Dow Jones Industrial Average rose 69.25 points, or 0.26%, to 26,786.68, the S&P 500 gained 8.65 points, or 0.29%, to 2,972.98 and the Nasdaq Composite added 17.93 points, or 0.22%, to 8,109.09.
The softening data triggered a drop of about 3% in crude oil prices despite an agreement among oil producers to extend supply cuts and pushed the energy sector down 1.74%, the biggest drag on markets. The defensive real estate, up 1.82% and utilities, up 1.24% sectors were the best performers on the session.
Oil majors Exxon Mobil Corp and Chevron Corp declined more than 1% each, while Apache Corp slumped more than 6%.
Cleveland Fed President Loretta Mester, a Federal Reserve policymaker, on Tuesday expressed skepticism that a U.S. interest rate cut is the right move until there are more signs the economy is moving to a truly weaker path.
Market participants still expect the Fed to cut interest rates at its July 30-31 policy meeting, despite the latest developments in trade talks.
Automatic Data Processing lost 2.66%, pressuring the tech-heavy Nasdaq, after market sources said brokerage Jefferies is re-offering 8 million of the company's shares at a discount.
L3Harris Technologies gained 4.28%, making it the best performer on the S&P 500, after Jefferies added the defense contractor to its top picks for aerospace and defense electronics for the second half of 2019.
Investors are now awaiting the monthly jobs report on Friday, which is expected to show the private sector added 160,000 jobs in June, after May's sharp slowdown in jobs growth.
Advancing issues outnumbered declining ones on the NYSE by a 1.24-to-1 ratio; on Nasdaq, a 1.30-to-1 ratio favored decliners.
The S&P 500 posted 41 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 65 new highs and 55 new lows.
About 6.36 billion shares changed hands in U.S. exchanges, compared with the 7.02 billion daily average over the last 20 sessions.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
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Trade truce euphoria eases and markets tread water
LONDON (AP) — Global stock markets traded in fairly narrow ranges Tuesday as investors moved on from the latest truce in the costly U.S.-Chinese trade war. Investors were encouraged Monday by the agreement between Presidents Donald Trump and Xi Jinping of China at a weekend meeting of the Group of 20 major economies to resume trade negotiations. Forecasters warned, however, the two sides still face the same differences that caused talks to break down in May. The Trump administration has also ratcheted up tensions with the European Union by proposing additional tariffs on $4 billion of European imports in a dispute over subsidies to aircraft manufacturers. "Yesterday's optimism in equity markets is beginning to look a little over-eager, with some already drawing worrying parallels to the November 2018 G-20 summit, which was followed up by a dramatic fall for equities," said Chris Beauchamp, Chief Market Analyst at IG. "The past is not prologue, and the central bank outlook is very different to the end of 2018, as easing comes back on to the agenda, but with volumes drying up ahead of Independence Day and the next earnings season rapidly approaching equities are looking vulnerable to some near-term weakness." In Europe, London's FTSE 100 rose 0.5% to 7,536. Germany's DAX was flat at 12,519 while France's CAC 40 was steady at 5,570. On Wall Street, the futures for the Standard & Poor's 500 index and Dow Jones Industrial Average were both down 0.1%. Earlier In Asia, Tokyo's Nikkei 225 gained 0.1% to 21,754.27. Hong Kong's Hang Seng added 1.2% to 28,875.56 after the latest bout of political protests was quelled with relatively little violence. The Shanghai Composite Index was off 1 point at 3,043.94 and Seoul's Kospi shed 0.4% to 2,122.02. AUSTRALIA RATE CUT: Australia's central bank cut its benchmark interest rate by a quarter of a percentage point to a record low 1% in a bid to stimulate economic activity. It was the second cut in two months after the Reserve Bank of Australia had held steady for three years. The central bank governor, Philip Lowe, said the cut will "will support employment growth." Lowe said uncertainty generated by the trade and technology disputes was affecting investment. ENERGY: In the oil markets, traders were digesting the news that OPEC members won the support of other major oil producing nations to extend a production cut for another nine months in a bid to shore up prices at a time of waning demand. Given that the decision was widely anticipated, there was barely any move in markets. Benchmark U.S. crude fell 79 cents to $58.30 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price international oils, slipped 37 cents to $64.33 per barrel. CURRENCY: The euro was up 0.1 percent at $1.1297 while the dollar fell 0.3 percent to 108.14 yen. View comments
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Reebonz Shares Sharply Higher After Announcing Expansion Plan
Reebonz Holding Limited(NASDAQ:RBZ) shares are trading higher after the companyexpanded its "Sell to Reebonz" servicein Malaysia, Indonesia, Hong Kong, Taiwan and Australia.
Reebonz is a platform for buying and selling luxury goods. The "Sell to Reebonz" service aims to make the selling and buying of luxury and pre-owned designer products to luxury consumers easy.
If an item isn't available in the catalog, the sellers can send pictures of their items through WhatsApp to a Reebonz Atelier to receive a quote.
Reebonz launched the service in Singapore in May.
Reebonz shares traded higher by 17.2% at $4.42 in Tuesday's pre-market session. The stock has a 52-week high of $83.52 and a 52-week low of 94 cents.
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XRP Keeps Retreating
On the daily time-frame the ascending trend of theXRPhas “stumbled over” a long-term resistance line. After a divergence formed on MACD, the price started declining until it broke through the local support line. It might imply further decline up to the long-term support line around 0.2990. Resistance line should be marked at 0.4785; breaking through this line will signal the start of a stable ascending trend.
On H4 the XRP tries to take hold at the lower projected channel. The short-term goal of the decline is the support area around 0.3525. Bearing in mind the Stochastic in the overbought area, a drop to 0.3980 is possible after reaching the local goal.
The financial world is not ready for new solutions,saysTechnical Director of Ripple David Schwartz in his interview to CB Insights. He states that the technical solutions by Ripple, such as xRapid and xCurrent, have solved the problem of inter-bank transactions, which was the major issue of the banking system SWIFT. However, banks are not too eager to implement new technologies, being conservative and slow by their nature.
Schwartz says that new solutions for payment systems are aggressive, swift, mobile and oriented on accelerated target-hitting. It helps save the time and money. Banks will adopt the new schemes sooner or later, but they are not ready yet.
The main problem is that the aspects of market regulation are not thoroughly worked out yet, so the bank ecosystem does not feel completely protected, which is understandable. At the same the very nature of digital assets and blockchain-based approaches is still immature, which also prevents banks from implementing modern technologies.
This year the XRP is rising in price slower than the leading currency BTC or other altcoins. It might be due to investors waiting for stronger fundamental catalysts that will provide for long-term rise of the XRP.
By Dmitriy Gurkovskiy, Chief Analyst atRoboForex
Disclaimer
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Thisarticlewas originally posted on FX Empire
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Pfizer, Sanofi, to boost South African Biovac's vaccine output
* Move will secure vaccines supply in S.Africa-Biovac
* Says has capacity to ramp up output as eyes Africa sales
* Companies tight-lipped on commercial details of deal
By Wendell Roelf
CAPE TOWN, July 2 (Reuters) - South Africa's Biovac Institute will start local production of Sanofi's Hexavalent vaccine next year and Pfizer's anti-pneumonia Prevnar 13 vaccine in 2021, boosting supply of life-saving drugs in its main market, its CEO said.
Local output of the two human vaccines is a step change for Biovac, a public-private partnership 47.5%-owned by the South African government with long-term ambitions of expanding sales into the continent.
The new production lines follow years of technology transfers and skills upgrades with partners Sanofi and Pfizer in Africa's largest pharmaceutical market. The companies were tight-lipped about commercial details of the partnership.
"We start production of Hexavalent in Q3 2020," Morena Makhoana, Biovac's chief executive said at its state-of-the art facility in Cape Town.
The plant, modernized at a cost of around 1 billion rand ($70 million), will produce four million doses of Hexavalent vaccine a year and has capacity to ramp up significantly as it explores new markets in neighbouring Namibia, Mozambique and Angola, he said.
South Africa's government buys about 95% of the total 25 million doses of vaccine supplied annually by Biovac, covering diseases such as tuberculosis, cervical cancer and influenza.
Biovac's dose of Hexavalent, a six-in-one vaccine for several diseases including diphtheria, tetanus and polio, is the only one in the world that is fully liquid and unlike other versions on the market, Makhoana said, does not have to be mixed before injecting. This makes it easier to administer in remote and resource-poor clinics across Africa, he added.
"On this particular six-in-one vaccine we are the only tech transfer partner with Sanofi in the world, so we are very proud," Makhoana told Reuters.
Sanofi said it will continue to invest in South Africa's vaccine programme as it looks to bolster its position.
"South Africa, and Africa for that matter, is an emerging market and showing strong growth year-on-year and hence will remain a priority for Sanofi," Merilynn Matthew, who heads Sanofi's South African vaccines unit, said.
Around one-in-five African children do not get immunized, with measles alone accounting for 61,000 preventable deaths a year on the continent, according to the World Health Organisation.
SECURITY OF SUPPLY
Biovac, the rest of which is owned by a consortium led by local investment holding firm Immunotek, has also made progress preparing Pfizer's pneumonia vaccine for infants, Prevnar 13, Makhoana said. It expects full output of 3 million doses to start in the first half of 2021.
Under a five-year agreement signed with Pfizer in 2015, Biovac only packaged labelled syringes but it is now acquiring the formulation and filling processes ahead of the new product line launch.
"Security of supply is one big issue and the second is the economic benefits local production brings, while making sure that prices are equally benchmarked and South Africa pays a fair price in line with other middle income countries such as Brazil or Turkey," Makhoana said.
At the partnership launch four years ago, a cabinet minister said the pneumonia vaccine alone used up 40% of South Africa’s total budget for vaccines, with the government then paying around 185 rand ($13.11) per single dose of imported Prevenar 13. Each infant will eventually need three doses. Pfizer did not provide the current cost of the vaccine.
"The technology transfer process has enabled significant knowledge transfer, job creation and direct investment," said Rhulani Nhlaniki, Pfizer's country manager.
($1 = 14.1249 rand) (Reporting by Wendell Roelf; editing by Emelia Sithole-Matarise)
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The Latest: US: Hong Kongers should be able to express views
HONG KONG (AP) — The Latest on protests in Hong Kong (all times local): 8:30 p.m. The U.S. consul in Hong Kong has condemned violence among government critics but says all should have the right to express their views peacefully, including foreign residents with longstanding ties to the Asian financial hub. Kurt Tong delivered his comments to an audience of hundreds of business and political leaders at a U.S. Independence Day celebration on Tuesday, saying Hong Kong had been through a "tough time" recently. But he said the intentions of those seeking to bring change were good and Hong Kong has "the right ideas and the right values." He said the U.S. was disappointed to see the violence and vandalism at the Legislative Council building Monday night. But he said the U.S. would continue to voice its concerns about political and economic issues in the city. ___ 5:30 p.m. Britain's foreign secretary says authorities in Hong Kong must not use an outbreak of vandalism during protests as a "pretext for repression." Jeremy Hunt says Britain condemns "violence on all sides" after hundreds of demonstrators stormed the Hong Kong legislature and daubed graffiti on the walls. But he said the authorities need to "understand the root causes of what happened, which is a deep-seated concern by people in Hong Kong that their basic freedoms are under attack." Britain is the former colonial power in Hong Kong, which returned to China in 1997. Hunt said Britain remained solidly behind the 1984 U.K.-Chinese declaration enshrining the "one country, two systems" principle of Hong Kong autonomy. Hunt said: "we stand foursquare behind that agreement, foursquare behind the people of Hong Kong, and there will be serious consequences if that international binding legal agreement were not to be honored." ___ 3:30 p.m. China's foreign ministry has condemned the occupation and vandalization of Hong Kong's legislature by pro-democracy protesters as "serious illegal acts that trample on the rule of law and endanger social order." Story continues Spokesman Geng Shuang said Beijing condemns the events, in which several hundred demonstrators broke through glass and steel barriers to enter the building overnight. Geng said Tuesday that China's central government strongly supports Hong Kong's government and its police force in dealing with the incident in accordance with law. He also reiterated China's rejection of any foreign nation commenting on or intervening in protest actions in Hong Kong, saying such matters are a purely Chinese affair and other countries "must not support any violent criminals in any form, and not send any misleading signals or take any erroneous actions." ___ 1:40 p.m. Pro-Beijing lawmakers in Hong Kong have condemned the violence and vandalism of government facilities by protesters. Regina Ip, a former security secretary in the semi-autonomous territory, said such behavior was not acceptable in "civilized society." She said there was nothing that could justify "the sort of violence we saw last night." She and other lawmakers were protesting over the damage done to the legislative chamber by protesters who forced their way in late Monday as tens of thousands of people marched in the streets. They also were urging the protesters to cool off and calm down after weeks of demonstrations over a government attempt to change extradition laws to allow suspects to be sent to China for trial. ___ Noon Chinese state media have run footage of police in Hong Kong clearing protesters from streets in a break with its silence over past days of pro-democracy demonstrations. Footage aired Tuesday showed police moving into roads surrounding the legislative council, where protesters had smashed through glass and metal barriers to occupy the space for about three hours on Monday night. Beijing had sought to suppress news of the weeks of protests coinciding with celebrations of Chinese rule. The demonstrations reflect mounting frustration with Hong Kong's leader for not responding to demands after several weeks of protests sparked by a government attempt to change extradition laws to allow suspects to be sent to China for trial. Protesters vacated the chamber as police cleared surrounding streets with tear gas and then moved inside.
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Should Value Investors Buy ASPEN PHARMACR (APNHY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is ASPEN PHARMACR (APNHY). APNHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.50. This compares to its industry's average Forward P/E of 7.98. APNHY's Forward P/E has been as high as 13.39 and as low as 5.42, with a median of 6.64, all within the past year.
Investors should also note that APNHY holds a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APNHY's PEG compares to its industry's average PEG of 1.21. Over the last 12 months, APNHY's PEG has been as high as 1.40 and as low as 0.79, with a median of 0.96.
Investors should also recognize that APNHY has a P/B ratio of 0.88. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.09. APNHY's P/B has been as high as 2.60 and as low as 0.76, with a median of 1.25, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that ASPEN PHARMACR is likely undervalued currently. And when considering the strength of its earnings outlook, APNHY sticks out at as one of the market's strongest value stocks.
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 reportASPEN PHARMACR (APNHY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Why Steel Dynamics, Inc. (NASDAQ:STLD) Could Have A Place In Your Portfolio
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Steel Dynamics, Inc. (NASDAQ:STLD) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of STLD, it is a financially-robust , dividend-paying company with a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at thereport on Steel Dynamics here.
STLD has a strong track record of performance. In the previous year, STLD delivered an impressive double-digit return of 31%. Unsurprisingly, STLD surpassed the Metals and Mining industry return of 13%, which gives us more confidence of the company's capacity to drive earnings going forward. STLD is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that STLD manages its cash and cost levels well, which is an important determinant of the company’s health. STLD seems to have put its debt to good use, generating operating cash levels of 0.58x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
STLD is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Steel Dynamics, there are three relevant factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for STLD’s future growth? Take a look at ourfree research report of analyst consensusfor STLD’s outlook.
2. Valuation: What is STLD 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 STLD is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of STLD? 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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Crypto market cap sinks after huge BTC dump
Cryptocurrencies dropped another $20 billion in combined market value on Monday – less than 24 hours after posting a similar drop over the weekend. The sharp decline in market value was triggered after a single trader unloaded 20,000 Bitcoin on the Bitfinex exchange. In the span of roughly 16 hours, the total cryptocurrency market cap has fallen by over $30 billion, according to TradingView. The total value of the entire market is now $283 billion – the lowest since June. With the exception of Tether (USDT), which has seen its market cap swell in recent months, all of the top-20 coins by market cap were trading lower on Monday. Looking at the chart above, we can see the crypto market has now pulled back a whopping $78 billion from its yearly peak, when it touched $380 billion. Still, the long-term trend remains intact as it’s still above the 20-day EMA. In the past, we’ve seen similar price consolidations during bullish seasons, meaning there’s no reason to panic at all. Last week , I wrote about how the long-term trend of Bitcoin remains positive and that I’m expecting the price to hit $20,000 by the end of the year. What I’m doing personally is taking this opportunity to increase my main portfolio. Whether you want to bet on some prominent altcoins or just buy BTC’s dips, my point is it’s a good idea to take these opportunities to average your buy-ins to disperse your risk over time. Try to buy on a daily or weekly basis instead of waiting for a certain price range. It’s always a safer choice! Huge short-seller looks like someone just claimed 20,000 $BTC in shorts on bitfinex… wow pic.twitter.com/QQXiZ1oaFb — Crypto Loomdart (@loomdart) June 30, 2019 In other news, it seems the most recent dip was caused by a huge short-seller who unloaded around 20,000 BTC on the Bitfinex market. Story continues Bitcoin’s sharp correction over the last 24 hours has had a cascading effect on the broader cryptocurrency market. At 60% market dominance , Bitcoin exerts a strong gravitational pull on altcoins and tokens. As a result, Bitcoin’s renewed volatility has knocked billions off altcoin values over the past five days. Of course, that followed a parabolic surge that drove the overall market to a high close to $390 billion. If a single sell order was responsible for Bitcoin’s sharp correction, then investors can expect a swift recovery in the short term. Bitcoin whales (oversized holders of the virtual currency) seem to have been responsible for at least two major price reversals in recent months. Each time, markets bought the dip and drove the price to new yearly highs. One of the more dramatic examples of a Bitcoin whale dump occurred in mid-May when prices plunged by more than $1,000 in the span of a few hours. The selloff was caused by a single trader who unloaded 5,000 units of BTC on Bitstamp, a leading digital currency exchange. It’s expected during bull markets for whales to take profits while Bitcoin rises to new yearly highs. I personally will take these opportunities to accumulate some more coins. Safe trades! The post Crypto market cap sinks after huge BTC dump appeared first on Coin Rivet .
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Is Principal Financial Group, Inc. (NASDAQ:PFG) A Smart Pick For Income Investors?
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Is Principal Financial Group, Inc. (NASDAQ:PFG) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
With Principal Financial Group yielding 3.7% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. The company also bought back stock during the year, equivalent to approximately 3.6% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Explore this interactive chart for our latest analysis on Principal Financial Group!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 38% of Principal Financial Group's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Plus, there is room to increase the payout ratio over time.
Consider gettingour latest analysis on Principal Financial Group's financial position here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Principal Financial Group has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was US$0.45 in 2009, compared to US$2.16 last year. This works out to be a compound annual growth rate (CAGR) of approximately 17% a year over that time.
With rapid dividend growth and no notable cuts to the dividend over a lengthy period of time, we think this company has a lot going for it.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see Principal Financial Group has been growing its earnings per share at 13% a year over the past 5 years. A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. At the right price, we might be interested.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Firstly, we like that Principal Financial Group has a low and conservative payout ratio. We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments. Principal Financial Group fits all of our criteria, and we think there are a lot of positives to it from a dividend perspective.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 8 Principal Financial Group analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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McDonald’s Japan is one of the most popular places on Facebook
Foot traffic to McDonald’s Japan is booming.
McDonald’s locations in Japan are officially the third most tagged places on Facebook,according to data from Thinknum, a company that surfaces alternative data culled from the web.
Upon pulling and analyzing data from Facebook’s “We’re Here,” a tool to measure consumer check-ins and location sharing, more people have checked into McDonald’s Japan than the rest of the McDonald’s franchise. Social media engagement, including check-in and location tags, often serves as a proxy for foot traffic.
So what makes the list of top ten most tagged places on Facebook? They are as follows:
Given that there are just under 30,000 Starbucks (SBUX) stores worldwide and roughly over 37,000 McDonald’s (MCD) locations around the world, it makes sense that the two companies ranked two and four on the list, respectively. However, with only about 2,975 locations, it is surprising to think that McDonald’s Japan was able to land on number three on the list, ahead of Olive Garden (DRI) and Applebee’s (DIN).
There could be a couple of reasons for the popularity. First,McDonald’s menus are often unique in countries outside of the U.S.McDonald’s is one of the most recognizable brands around the world, and the unique menu items could be a reason to visit while traveling abroad. For instance, in France, McDonald’s offers the Blue Cheese and Bacon Burger; in New Zealand, customers can buy Georgia Pies. McDonald’s Japan has items such as the Teriyaki Burger and Ebi (Shrimp) Burger.
Finally, in addition to the unique menu items, overall tourism to Japan has been on the rise.According to the Japan National Tourism Organization, from 2013 to 2018, the number of tourists has been breaking record after record. Last year, over 31 million people visited Japan. Thus, an overall surge in tourism could also be a big reason for the spiking foot traffic at McDonald’s Japan stores.
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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter:@heidi_chung.
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Could Premier Financial Bancorp, Inc. (NASDAQ:PFBI) Have The Makings Of Another Dividend Aristocrat?
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Today we'll take a closer look at Premier Financial Bancorp, Inc. (NASDAQ:PFBI) 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 popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
With Premier Financial Bancorp yielding 4.0% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. Some simple research can reduce the risk of buying Premier Financial Bancorp for its dividend - read on to learn more.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Premier Financial Bancorp paid out 39% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time.
Remember, you can always get a snapshot of Premier Financial Bancorp's latest financial position,by checking our visualisation of its financial health.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Premier Financial Bancorp's dividend payments. During the past ten-year period, the first annual payment was US$0.32 in 2009, compared to US$0.60 last year. Dividends per share have grown at approximately 6.5% per year over this time.
Dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Earnings have grown at around 5.9% a year for the past five years, which is better than seeing them shrink! It's good to see decent earnings growth and a low payout ratio. Companies with these characteristics often display the fastest dividend growth over the long term - assuming earnings can be maintained, of course.
To summarise, shareholders should always check that Premier Financial Bancorp's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Firstly, we like that Premier Financial Bancorp has a low and conservative payout ratio. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. Premier Financial Bancorp might not be a bad business, but it doesn't show all of the characteristics we look for in a dividend stock.
See if management have their own wealth at stake, by checking insider shareholdings inPremier Financial Bancorp stock.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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'Top Gear' host Chris Harris denies claims he's being bullied by fellow presenters
Chris Harris, Paddy McGuinness, Freddie Flintoff in new Top Gear . (BBC) Top Gear presenter Chris Harris has denied claims by fans that he is being bullied by co-hosts Paddy McGuinness and Freddie Flintoff. The 44-year-old motoring journalist described his fellow hosts as “two of the kindest people I’ve worked with” and said he has never felt bullied by them. Viewers shared their frustrations on social media following Sunday’s episode of the BBC car show, which featured numerous segments in which Flintoff and McGuinness appeared to pick on Harris. Need to tell you all that Fred and Paddy are two of the kindest people I’ve worked with. We’re good pals and I’ve never felt remotely picked-on. I’m small - so what? We all give as good as we get. And who gets to slide the supercars? Me! It’s just telly, and I’m loving it! — chris harris (@harrismonkey) July 1, 2019 At one point, former cricketer Flintoff lifted Harris into the coffin space of a hearse and he later smashed half a watermelon on his co-host’s head. In response to the claims, a Top Gear producer said the show does not “condone bullying in any shape or form” and added the presenters are “great friends who enjoy teasing each other relentlessly”. Sorry but this overstepped the boundary from banter into bullying honestly not funny one iota! #topgear pic.twitter.com/ldH3JKBfxF — All In The Name Of Emmerdale (@Ishipvanity) June 30, 2019 Why does #TopGear inevitably return to bullying Chris Harris? — (((Neil))) 👁🗨 (@dungeekin) June 30, 2019 Anyone else feel like they bully Chris Harris a bit much? Kind of uncomfortable #TopGear — Cat (@catmiles) June 30, 2019 Harris shared his side of the story on Twitter and defended both Flintoff and McGuinness. Story continues “We’re good pals and I’ve never felt remotely picked-on,” he wrote. He added: “I’m small - so what? We all give as good as we get. “And who gets to slide the supercars? Me! It’s just telly, and I’m loving it” Chris Harris, Freddie Flintoff, Paddy McGuinness in Top Gear . (BBC) Harris also appeared with Piers Morgan and Susanna Reid on Good Morning Britain this morning to discuss the return of Top Gear and said Flintoff and McGuinness were “national treasures and brilliant entertainers”. Addressing the relationship between himself and Flintoff, Harris said he loves “a bit of rough and tumble”. He added: “If you mess around with your mates, you get into rough and tumble, then you remember you're in your mid-40s and you can’t land the way you used to, so it's great fun." Read more: Flintoff admits to Top Gear crashes Harris joined Top Gear in 2016 as a recurring guest and became a full-time host alongside Matt LeBlanc and Rory Reid for the March 2017 series. The current run of the show has been praised for its new attitude and chemistry between the hosts. Top Gear airs on BBC Two on Sunday evenings.
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18 of America’s Best Cities for a Long Weekend
You have one long weekend and a suitcase full of wanderlust. Whether you want to escape the commotion for the mountains or leave your quiet town for the action of a buzzing metropolis, here are 18 U.S. cities—ranging from Colorado ghost towns to coastal cultural hubs—where three or four days is just enough. Let’s go. RELATED: 5 Unexpected, but Totally Worthwhile, American Wine Trips Ann Arbor, Michigan Visit in the fall for a game at the Big House or in the summer to explore the renowned city art fair . Either way, Ann Arbor is so much more than your average college town. Get your nature fix by exploring the arboretum , nosh on some Cuban-inspired street food at Frita Batidos and embark on a scavenger hunt for the tiny fairy doors built into buildings and trees around the city. Where to stay: Stay right on campus at the Inn at the League , a university building with lots of charm. Asbury Park, New Jersey This funky resort town is experiencing a major resurgence at the moment. In the summer, start your morning with sunrise yoga on the Asbury Hotel’s Baronet roof space, and then head to the famous Asbury Park Beach before you do dinner and movie back on the Baronet. Want a night out? The city has a surprisingly robust LGBTQ scene (check out Paradise for a drag show) and rock music culture (the Stone Pony, aka the birthplace of “The Boss,” is a must). Where to stay: Stay in a former Salvation Army building turned hip hotel, The Asbury Hotel . Asheville, North Carolina This southern city dropped in the Blue Mountains is a breathtaking little enclave for artists and hippies. Peruse the River Arts District to find something unique for over the mantel, and replenish at funky eateries like The Admiral (which transforms into a dance party post-dinner). Hike the three-mile Pisgah Trail for the best views of the city and wind down with a beer (there are more breweries in Asheville per capita than in any other U.S. city). Story continues Where to stay: Instead of merely visiting the famous Biltmore House , why not stay there? Bozeman, Montana This cowboy town is seeing lots of development in a very short amount of time; but locals are committed to maintaining its original character. The outcome? Plenty of buildings dating back to the 1890s, galleries, shops, restaurants and coffee shops ( lots of coffee shops) to peruse. Meander around Main Street’s independent book shops, and then splurge on a pair of custom kicks from Carter’s Boots . And if you want to get your Ansel Adams on, take a photography workshop at F11Photo (just don’t forget to pack your camera when you hike Drinking Horse Mountain ). Where to stay: Designed to help you get the most out of southern Montana, The LARK is all about bringing old and new Bozeman together. Cincinnati, Ohio Beer lovers may flock to Asheville or Seattle, but Cincinnati is a treasure trove of brews. In fact, it’s home to more than 40 breweries with its very own beer trail: The Brewery Heritage Trail. Once you get your buzz going, make sure to save ample time for the Over-the-Rhine district, one of the largest, most in-tact urban historic districts in the U.S. Oh, and it’s got some really great food, too. Where to stay: Right across the Ohio River is the waterfront Hotel Covington . Sure, it’s technically in Covington, Kentucky, but its rates will make the short trek so worth it. Charleston, South Carolina With its waterfront promenades, iconic architecture and cobblestone streets, this seaport city is brimming with things to do over a long weekend—and much of it involves food. Make sure to make a fancy dinner reservation at FIG, Husk or the Charleston Grill. And no trip to Charleston would be complete without a visit to nearby Boone Hall Plantation—where countless movies have been filmed. And if you have extra time on your hands, island hop to Kiawah Island, where you’ll undoubtedly stumble upon your own private beach. Where to stay: Charleston is all about elegance. So do it up in style at the Belmond Charleston Place . RELATED: Your Guide to Charleston, South Carolina Columbia, South Carolina If Charleston is Marcia Brady, Columbia is Jan. But that’s fine by us. As Soda City experiences its urban revival, we’re fine keeping this best-kept secret to ourselves. With old gems like the Robert Mills House & Gardens and Lula Drake , a cozy, historic wine bar, this super-walkable, charming city feels like a small-town getaway within a big city. Where to stay: The brand-new Aloft Columbia Downtown is walking distance to everything. Litchfield Hills, Connecticut One word: antiquing. From estate sales to flea markets and barn-inspired stores that would make Chip and Joanna Gaines’ hearts flutter, a weekend in Litchfield means discovering hidden gems. Need a break from the dust? Take to the skies and get a bird’s-eye view of it all from a hot-air balloon . Where to stay: The 18 luxury cottages at Winvian Farm each have their own unique spin—like a whimsical-chic tree house, a refurbished helicopter and a nautical lighthouse. Louisville, Kentucky Even if you don’t make it there for the famed Kentucky Derby, there’s so much do in Bourbon County, including, of course, the Urban Bourbon Trail , where you can spend a buzzy afternoon hopping between distilleries. Of course, there’s also baseball, bluegrass and mint juleps (c’mon, you have to have one here). Where to stay: Art lovers: You must try the 21c Museum Hotel in downtown Louisville. Nashville, Tennessee From honky-tonk bars up and down Broadway to the Grand Ole Opry , there’s really no escaping live music when you’re in Nashville. If you want real-deal country, head to Robert’s Western World . Want to spot the next big thing? Make sure you get to the 90-person venue at Bluebird Café early. Bring home an epic keepsake from Hatch Show Print , the letterpress design shop known for its iconic posters. Where to stay: For some straight-up Southern hospitality, The Hermitage is a must (they’ll even walk your dog for you). RELATED: Your Guide to Nashville, Tennessee Palm Springs, California Desert sunsets, mountain views and perfect weather—it’s no wonder this SoCal city has been an old Hollywood escape for years. Sip on a martini at Johannes and be transported back to the 1950s, take an architecture tour of the mid-century modern homes and, most importantly, enjoy the weather poolside. Where to stay: The hotel scene in Palm Springs is legendary, and the Saguaro Hotel is a fresh take on a classic, replete with lots of bright color, a pool and mountain views. RELATED: Your Guide to a Long Weekend in Palm Springs Petaluma, California The sleepy town across the Golden Gate is a wonderful little reprieve from the hustle and bustle of SF. Book a walkabout in the olive tree fields at McEvoy Ranch (save time for an olive oil tasting!); eat duck confit cassoulet at The Drawing Board and follow it up with a cocktail at Barber Cellars , Petaluma’s first tasting room for small-production, single-vineyard wines. Mmm . Where to stay: The revamped Art Deco Hotel Petaluma , which dates back to 1924. RELATED: Petaluma’s the New Hot Spot (We Promise) and Here’s Where to Go Philadelphia, Pennsylvania Philly may be stoked in history, but it’s currently booming, and no, we’re not just talking cheesesteaks or the Liberty Bell (although, hey, nothing wrong with either). The thriving food scene sates even the snootiest East Coast foodies. (OK, we’re looking at you, New Yorkers.) From classics like the tomato pie at Marchiano’s Bakery to newbies like Danlu , a smart-looking Taiwanese street food restaurant, there’s no shortage of interesting things to taste or do. Book your rezzies accordingly. Where to stay: Aloft Philadelphia Downtown blends the city’s rich history with contemporary vibes. Portland, Oregon The dream of the ’90s is alive in Portland! Well, at least according Fred Armisen and Carrie Brownstein. But it’s time you checked out this hipster paradise for yourself. Feast on craft coffee, cider, doughnuts and all the farm-to-table cuisine you can stand in line for (we kid, we kid). Beyond the city’s quirky culture, you’ll also have to make time to explore the beautiful Pacific Northwest landscape. Where to stay: Get the best of both worlds at the River’s Edge Hotel , right at the junction of downtown Portland and the tranquil Willamette Valley. San Antonio, Texas While all the bachelorette parties are heading to Austin, you should make way to this riverside city (even if all you recall about this Texas town from history class is “Remember the Alamo!”). Start with the River Walk . It may be touristy, but we’re suckers for the water taxis that let you hop between food, drink and shopping. There’s also the Pearl District , the 1881 brewery turned sprawling development that’s become a trendy hot spot with live music, farmers markets and so much more. And of course, nothing beats a picturesque picnic in Hill Country. Where to stay: For rooftop pool and complimentary Electra cruiser bikes, you should most definitely stay at Hotel Emma . Santa Fe, New Mexico It’s the city where art meets nature. Hike amid the aspen trees (which turn a gorgeous orange come fall) and meander through the city’s countless galleries, sculpture gardens and artisan turquoise shops. If you’re a fan of George R.R. Martin, or the avant-garde, you must take time for Meow Wolf , the multilevel interactive art museum filled with VR, audio engineering and a strong dose of mystery. Where to stay: For a historic and iconic getaway, try the Inn and Spa at Loretto . Sonoma, California Sure, there’s lots to do in this glorious West Coast region. But we all know why you’re here: wine. Sip your way through the city at tasting rooms like La Crema or the 140-year-old cellars at Simi . Make sure to make time for—drumroll, please—more wine at Sonoma-Cutrer Vineyards , where you can drink wine and play croquet on the courts. Where to stay: Want a bargain? This tiny house-style cottage is a Sonoma steal priced at $140 a night. St. Petersburg-Clearwater, Florida Sure, everyone’s going to Miami, but if you’ve only got the weekend, why not try to beat the crowds? This Gulf Coast city has everything you could want in a Florida vacay: perfect weather, gorgeous beaches and some great indoor activities to keep you busy when you need a break from the sun— the Salvador Dali Museum or vintage shopping , anyone? Where to stay: Go for classic at The Don CeSar , aka the "pink palace." RELATED: 100 Free Things to Do in American This Summer
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Is Rogers Communications Inc.'s (TSE:RCI.B) P/E Ratio Really That Good?
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Rogers Communications Inc.'s (TSE:RCI.B), to help you decide if the stock is worth further research.Rogers Communications has a price to earnings ratio of 17.82, based on the last twelve months. That is equivalent to an earnings yield of about 5.6%.
View our latest analysis for Rogers Communications
Theformula for price to earningsis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Rogers Communications:
P/E of 17.82 = CA$70.1 ÷ CA$3.93 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. 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.'
Earnings growth rates have a big influence on P/E ratios. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. Then, a lower P/E should attract more buyers, pushing the share price up.
Rogers Communications's earnings per share grew by -3.4% in the last twelve months. And its annual EPS growth rate over 5 years is 4.5%.
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 (23.1) for companies in the wireless telecom industry is higher than Rogers Communications's P/E.
This suggests that market participants think Rogers Communications will underperform other companies in its industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to checkif company insiders have been buying or selling.
Don't forget that the P/E ratio considers market capitalization. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Rogers Communications has net debt equal to 45% of its market cap. You'd want to be aware of this fact, but it doesn't bother us.
Rogers Communications trades on a P/E ratio of 17.8, which is above the CA market average of 14.9. Given the debt is only modest, and earnings are already moving in the right direction, it's not surprising that the market expects continued improvement.
Investors should be looking to buy stocks that the market is wrong about. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
But note:Rogers Communications may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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NASA is working on 12 projects ahead of 2024 moon mission
NASA has been putting the Artemis program together over the past months in hopes of returning to the moon by 2024. Afterpickingthe first three commercial moon landing service providers, NASA has nowchosenthe 12 science and technology projects they're bringing to Earth's faithful companion. All 12 will help us study the moon in preparation for our return in a few years' time -- a rover called MoonRanger, for instance, will create 3D maps of the lunar surface.Astrobotichas signed a $5.6 million NASA contract to build the lightweight autonomous rover, which will also demonstrate a long-range communication system for lunar exploration.
Another project called Heimdall is, as you might be able to guess from the name, a camera system that'll help us understand the moon's geological features a lot better. It will also keep an eye out for potential landing and traffic hazards for our spacecraft and vehicles. Most of the other instruments will look more closely into the moon's composition, heat flow and other properties. The Lunar Environment heliospheric X-ray Imager, however, will capture images of the solar wind.
Some of the instruments will also use components from previous missions. The Lunar Magnetotelluric Sounder will use a magnetometer made for theMAVENspacecraft to study the electric and magnetic fields of the moon. Meanwhile, the Lunar Surface Electromagnetics Experiment will use repurposed hardwave from MAVEN and other missions to monitor the electromagnetic phenomena on the surface of the moon.
All 12 projects will make their way to the lunar surface on future flights through NASA's Commercial Lunar Payload Services project as early as 2021. Thomas Zurbuchen, associate administrator of NASA's Science Mission Directorate in Washington, said:
"The selected lunar payloads represent cutting-edge innovations, and will take advantage of early flights through our commercial services project. Each demonstrates either a new science instrument or a technological innovation that supports scientific and human exploration objectives, and many have broader applications for Mars and beyond."
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Medtronic's Titan Spine Buyout to Boost Spine Surgery Range
Medtronic, plcMDT recently completed the acquisition of titanium spine interbody implant and surface technology company, Titan Spine. The deal’s closure was announced back in May 2019 and is expected to fortify the company’s position in the field of procedural solutions for spine surgery.
Financial terms of the deal were kept under wraps.
Titan Spine currently leads the category of surface-enhanced titanium interbody implants with its unique nanoLOCK platform. Notably, interbody implants are parts that can be inserted between the vertebrae during spinal fusion surgery. This helps relieving pressure on the nerves and holding the vertebrae in place while fusion occurs.
According to Medtronic, the implant material and shape plays a pivotal role in the bone growth process during fusions and currently, titanium interbody devices witness buoyant demand in the spine surgery market.
Medtronic expects this purchase to be strategic for its portfolio as Titan Spine’s surface-enhanced titanium implants when combined with Medtronic’s comprehensive biologics portfolio can improve patient outcomes in spinal procedures.
Financial Impact of the Pact
The buyout is expected to be inconsequential to Medtronic's fiscal 2020 adjusted earnings per share. However, it is estimated to meet Medtronic's long-term financial metrics for acquisitions.
Market Potential in Spine Space
Per a Mordor Intelligence report, the global Spinal Surgery Devices market is projected to reach a value worth $16.6 billion by 2021 at a 5% CAGR from 2016 onward. Taking such abundant prospects into account, we believe, the company’s latest development is a strategic fit.
Medtronic’s Advancement in Spine Arm
In a bid to grow in the field of robotics spine surgery, Medtronic earlier bought Mazor Robotics, an Israel-based robotic surgical guidance systems company, for a consideration of $1.64 billion. Per Medtronic, this consolidation is a calculated move in favor of the company's brisk spine surgery business.
The buyout has combined Medtronic's market-leading spine implants, navigation and intra-operative imaging technology with the acquired company's robotic-assisted surgery (RAS) systems. Following the conclusion of this takeover, Medtronic launched the Mazor X Stealth Edition robotics guidance platform in January and has already received a positive feedback for this integration of best-in-class robotics and navigation capability.
Share Price Performance
Over the past year, shares of Medtronic have outperformed its industry. The stock has gained 14.1% compared with the industry’s 9.5% rise.
Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are DENTSPLY SIRONA XRAY, Penumbra PEN and CONMED Corporation CNMD, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DENTSPLY’s long-term earnings growth rate is expected to be 11.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
CONMED’s long-term earnings growth rate is estimated at 13.3%.
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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 reportPenumbra, Inc. (PEN) : Free Stock Analysis ReportMedtronic PLC (MDT) : Free Stock Analysis ReportCONMED Corporation (CNMD) : Free Stock Analysis ReportDENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
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Why Hubbell (HUBB) is a Great Dividend Stock Right Now
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Hubbell in Focus
Hubbell (HUBB) is headquartered in Shelton, and is in the Industrial Products sector. The stock has seen a price change of 32% since the start of the year. The electrical products manufacturer is currently shelling out a dividend of $0.84 per share, with a dividend yield of 2.56%. This compares to the Manufacturing - Electrical Utilities industry's yield of 2.58% and the S&P 500's yield of 1.88%.
Taking a look at the company's dividend growth, its current annualized dividend of $3.36 is up 6.7% from last year. In the past five-year period, Hubbell has increased its dividend 5 times on a year-over-year basis for an average annual increase of 10.94%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Hubbell's current payout ratio is 45%, meaning it paid out 45% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for HUBB for this fiscal year. The Zacks Consensus Estimate for 2019 is $8.11 per share, representing a year-over-year earnings growth rate of 11.25%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that HUBB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
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 reportHubbell Inc (HUBB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Ensign Group (ENSG) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of The Ensign Group (ENSG)? Shares have been on the move with the stock up 7.6% over the past month. The stock hit a new 52-week high of $58.88 in the previous session. The Ensign Group has gained 47% since the start of the year compared to the 8.4% move for the Zacks Medical sector and the 27.2% return for the Zacks Medical - Nursing Homes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2019, Ensign Group reported EPS of $0.55 versus consensus estimate of $0.54 while it missed the consensus revenue estimate by 1.27%.
For the current fiscal year, Ensign Group is expected to post earnings of $2.27 per share on $2.33 billion in revenues. This represents a 20.74% change in EPS on a 13.48% change in revenues. For the next fiscal year, the company is expected to earn $2.53 per share on $2.54 billion in revenues. This represents a year-over-year change of 11.67% and 9.01%, respectively.
Valuation Metrics
Ensign Group may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ensign Group has a Value Score of B. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 25.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 20.5X versus its peer group's average of 4.1X. Additionally, the stock has a PEG ratio of 1.68. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Ensign Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ensign Group meets the list of requirements. Thus, it seems as though Ensign Group shares could have potential in the weeks and months to come.
How Does Ensign Group Stack Up to the Competition?
Shares of Ensign Group have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including Genesis Healthcare (GEN), Molina Healthcare (MOH), and WellCare Health Plans (WCG), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 2% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Ensign Group, even beyond its own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Ensign Group, Inc. (ENSG) : Free Stock Analysis ReportWellCare Health Plans, Inc. (WCG) : Free Stock Analysis ReportMolina Healthcare, Inc (MOH) : Free Stock Analysis ReportGenesis Healthcare, Inc. (GEN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Why 1st Source (SRCE) is a Great Dividend Stock Right Now
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
1st Source in Focus
Headquartered in South Bend, 1st Source (SRCE) is a Finance stock that has seen a price change of 15.07% so far this year. The holding company for 1st Source Bank is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 2.33% compared to the Banks - Midwest industry's yield of 2.57% and the S&P 500's yield of 1.88%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.08 is up 12.5% from last year. In the past five-year period, 1st Source has increased its dividend 4 times on a year-over-year basis for an average annual increase of 11.80%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. 1st Source's current payout ratio is 33%, meaning it paid out 33% of its trailing 12-month EPS as dividend.
SRCE is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $3.55 per share, which represents a year-over-year growth rate of 12.34%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, SRCE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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 report1st Source Corporation (SRCE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
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Amazon Prime Day Rivals Black Friday and Cyber Monday
Black Friday and Cyber Monday are arguably the most anticipated shopping days of the year, but a new research suggests Amazon Prime Day may be giving them some competition.
Amazon Prime Day is a sales event in which consumers who are part of Amazon’s Prime membership program gain access to exclusive discounts on items purchased on the shopping platform. This year, Amazon Prime Day will be a two-day event, taking place July 15-16.
In asurveyof more than 1,000 people by consumer engagement firm Valassis, more than two-thirds of respondents — 68% — said they have either shopped on Prime Day in the past, or will do so this year. Among current Prime members, an overwhelming percentage — 91% — have either shopped on Prime Day in the past or will do so this year.
Those who have shopped on Prime Day in the past appear to be pleased with their experience as 46% of respondents said they find greater savings on Amazon Prime Day than they do on Black Friday or Cyber Monday.
The popularity of Amazon Prime Day also fuels the back-to-school shopping season, according tonew researchfrom savings platform RetailMeNot. In fact, a survey of 1,031 parents who will be doing back-to-school shopping found that 64% of them will be taking advantage of Prime Day this year, spending on average $162 on Amazon Prime Day — or 35% of their total back-to-school shopping budget.
The RetailMeNot study also revealed that Prime Day-related offers from retailers have grown in recent years. In 2018, the number of offers increased by 45% over the year before. RetailMeNot also predicts that more than 250 retailers will feature deals on Prime Day or throughout that week. In addition, RetailMeNot surveyed retailers and found that 84% said the week of Prime Day is the most important time for online sales during the back-to-school shopping season. The average parent expects to shop at 11 retailers during the Prime Day sales period, the RetailMeNot survey found.
Last year, more than 100 million products were sold on Prime Day with estimated total sales of $4 billion — a 33% increase over the year before, according to wealth management firm WedBush Securities.
“Amazon Prime Day has become the Black Friday of summer, creating much anticipation over what deals will be offered, while also resulting in opportunities for other retailers to join this competitive, mid-summer shopping holiday,” said Carrie Parker, vice president of marketing for Valassis, in a press release.
Preparing for the new school year can take a toll on your budget, so it’s a good idea to make a plan forshopping for back-to-school supplies. Once you have a list of what you will need to buy, you can begin to comparison shop for the best prices. One good thing about checking out Amazon Prime Day sales is that the shopping event happens early in the back-to-school shopping season. If you don’t find what you’re looking for, you’ll still have time to search for a good deal.
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The Preferred Bank (NASDAQ:PFBC) Share Price Is Up 100% And Shareholders Are Boasting About It
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price ofPreferred Bank(NASDAQ:PFBC) stock is up an impressive 100% over the last five years. And in the last month, the share price has gained 6.1%. But the price may well have benefitted from a buoyant market, since stocks have gained 7.5% in the last thirty days.
Check out our latest analysis for Preferred Bank
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Preferred Bank managed to grow its earnings per share at 26% a year. This EPS growth is higher than the 15% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 10.04.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Preferred Bank has improved its bottom line lately, but is it going to grow revenue? You could check out thisfreereport showing analyst revenue forecasts.
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Preferred Bank's TSR for the last 5 years was 117%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted thetotalshareholder return.
While the broader market gained around 8.4% in the last year, Preferred Bank shareholders lost 26% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 17%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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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IRS Reform Bill: 12 Ways the IRS Would Be More Taxpayer-Friendly Under the Taxpayer First Act
Getty Images Let's face it...the IRS isn't the most popular government agency out there. It's not just that they take your money. They also have a (undeserved?) reputation for tough stances on deductions and credits, aggressive tax collectors, poor customer service and generally being difficult if you happen to disagree with them. Wouldn't it be nice to have a kinder, gentler IRS? You'd still have to pay your taxes, but at least you wouldn't have to deal with some of the IRS's rougher edges anymore. Well, guess what...Congress just passed a bill that would reform the IRS and make it a little more taxpayer-friendly. It's called the Taxpayer First Act , and it's now on President Trump's desk. Here are 12 ways the bill will improve the IRS's bad reputation if the president signs it. SEE ALSO: All 50 States Ranked for Taxes Greater Access to Independent Review Process Getty Images You claim a sizable deduction on your tax return, but an IRS auditor says you're not eligible or that the amount deducted is too high. You go back and forth with the auditor, but you remain at an impasse. To avoid the hassle of litigation, you ask for an independent review of the auditor's decision by the IRS Office of Appeals...but they say no. Looks like it's off to court you go! The IRS already has a process for reviewing its own decisions, but the law doesn't guarantee access to it. As a result, many tax disputes don't get a second look by the IRS before going to court. If signed by the president, the Taxpayer First Act will make sure the IRS independent appeals process is available to all taxpayers with a legitimate claim. If a request for review is denied, the IRS would have to provide written notice of the reason to the taxpayer and to Congress. Before the dispute is reviewed, the IRS would also have to turn over its case file to individual taxpayers with adjusted gross income of $400,000 or less in the contested tax year (or business taxpayers with gross receipts of $5 million or less). This could make a big difference for taxpayers with limited resources who are up against the might of the IRS. Story continues TAKE OUR QUIZ: Can You Tell If These Tax Deductions Are Legit? Improved Customer Service Getty Images It's bad enough to be told that the IRS is digging into your tax return...but frustration levels go through the roof if you're tied up with an IRS customer-service representative who can't help you or runs you around in circles. That's why Congress wants to force the IRS to develop a comprehensive customer service strategy. Among other things, the IRS will have to adopt best practices of private sector customer-service providers, update guidance and training materials for customer-service employees, and develop metrics and benchmarks for quantitatively measuring the progress of its customer-service strategy if President Trump signs the Taxpayer First Act. SEE ALSO: 14 Tax Breaks You Won't Believe Are Real Easier Settlement Procedures Getty Images If you can't pay your tax bill, the IRS might be willing to settle for a lesser amount under the Offer-in-Compromise (OIC) program . However, an up-front payment and application fee are required before the IRS will look at your offer. These payments and fees are generally waived for low-income taxpayers...but the IRS isn't required by law to do so. If signed by the president, the Taxpayer First Act will make the OIC initial payment/application fee waiver mandatory for certain low-income taxpayers. It would apply to any taxpayer with adjusted gross income below 250% of the poverty level, which is based on location and size of the family. SEE ALSO: 14 Nice-Try Tax Breaks Rejected by the IRS Limited Seizure of Property Getty Images The ability to take your property is one of the IRS's most powerful enforcement tools...and it doesn't just apply when you fail to pay your taxes. For example, cash transactions over $10,000 must be reported to the government. If you break up payments or structure them in some other way to get around the reporting requirement, the IRS can seize any related property. Congress wants to limit this type of property seizure to situations where the property taken derived from an illegal source or the cash transaction was structured for the purpose of concealing criminal activity (e.g., money laundering). If the Taxpayer First Act is signed, new post-seizure notice and hearing requirements will also be put in place to protect taxpayers who had property taken by the IRS for violating the reporting rules. Plus, if you get your property back after a hearing, any interest that comes along with it would be tax-free. SEE ALSO: 12 Tax Breaks for Homeowners Greater Protection for Innocent Spouses Getty Images When a joint return is filed, it's not unusual for one spouse to sign the return without really knowing what's on it. But what happens when the spouse who completes the return cheats on the couple's taxes...is the other spouse responsible for any unpaid tax? Generally, the answer is "yes"...but the tax code includes three types of "innocent spouse" provisions that can be used to get the spouse who simply signed the return off the hook. If the first two methods don't apply, the third can provide relief if, considering all the facts and circumstances, it's "inequitable" (i.e., unfair) to hold the unaware spouse liable for the taxes owed. If enacted, the Taxpayer First Act will make it easier for innocent spouses to get this kind of equitable relief. Courts reviewing an IRS denial of equitable relief could also consider newly discovered or previously unavailable evidence if the IRS reform bill is signed. Currently, there is no set rule allowing this, so spouses in one state might be able to introduce new evidence while spouses in another state cannot. Spouses could also request equitable relief for any unpaid tax before the statute of limitations expires or for any tax already paid before the time limit for claiming a refund or credit ends. SEE ALSO: 20 Most-Overlooked Tax Breaks and Deductions Fewer "John Doe" Summonses Getty Images When the IRS thinks someone is not paying taxes but doesn't know his or her identity (e.g., holders of offshore bank accounts or investors in a tax shelter), it can issue a summons to a bank or other third party to get the name of the suspected tax cheat. This is called a "John Doe" summons. However, some people believe the IRS uses John Doe summonses to conduct unlawful fishing expeditions. To stop this practice, the Taxpayer First Act would prevent the IRS from issuing a John Doe summons unless the information it seeks is closely related to the failure (or potential failure) to comply with the tax law and it identifies a specific tax code provision that is being violated. SEE ALSO: The 10 Least Tax-Friendly States in the U.S. Curbed Use of Private Tax Collectors Getty Images Did you know that the IRS hires private companies to help them collect unpaid taxes? They started outsourcing some tax collection duties in April 2017. However, as you may have guessed, there have been some problems with the program. One problem Congress is worried about is low-income taxpayers entering into payment plans with the private companies that they can't afford. To prevent this from happening, the Taxpayer First Act would ban private companies from collecting tax from any person with adjusted gross income below 200% of the poverty level, which is based on location and size of the family. Certain taxpayers on disability would be protected from private debt collectors, too. Taxpayers would also be given more time to pay under installment plans offered by private companies...from a maximum of five years to seven years. SEE ALSO: 18 Red Flags for IRS Auditors Earlier Notice of Third-Party Questioning Getty Images Say you're a business owner and your tax return is being audited. As part of its examination, the IRS wants to question one of your customers about a few transactions, which they can do. That could have a devastating impact on your business and reputation. Under current law, the IRS at least has to give you "reasonable notice" before contacting other people. But that's such a squishy requirement. What's "reasonable"...a week, a day, an hour? The Taxpayer First Act would do away with the "reasonable" standard and establish a hard, 45-day notice requirement before contact with a third-party can be made. In addition, the contact period with each third-party would be limited to one year. This would give you more time to reach out to the other person in advance to explain the situation, and prevent the IRS from hounding them forever. SEE ALSO: 9 IRS Audit Red Flags for Retirees Limited Access to Taxpayer Information Getty Images Tax returns and other taxpayer information are generally confidential and can't be disclosed to non-IRS employees. This is an important protection for taxpayers, but there are exceptions. For instance, outside attorneys and other contractors hired to help in special situations (such as complex litigation) can access taxpayer books, records, papers and other data obtained by summons. They can also participate in the questioning of witnesses summoned by the IRS. Congress wants to clamp down on the disclosure of taxpayer information to these contractors. If the Taxpayer First Act is signed into law, contractors won't be allowed access to any books, papers, records or other data obtained by summons, except when they need the information to provide expert evaluation and assistance to the IRS. In addition, only IRS employees would be able to question a summoned witness under oath. SEE ALSO: The 10 Most Tax-Friendly States in the U.S. Listening to the Taxpayer Advocate Getty Images The National Taxpayer Advocate (NTA) is on your side. This person is an IRS employee, but his or her job is to make sure all taxpayers are treated fairly and understand their rights. When the NTA identifies a problem affecting a group of taxpayers, he or she can issue a Taxpayer Advocate Directive requiring the IRS to make administrative or procedural changes to protect the rights of taxpayers, prevent an undue burden, ensure fair treatment or provide an essential service to taxpayers. However, there's concern about the IRS not paying enough attention to NTA directives. That's not good for taxpayers. See Also: Insider Interview: IRS Taxpayer Advocate Nina Olson To make the IRS more responsive to NTA directives, the Taxpayer First Act would force the IRS to modify, reject or ensure compliance with any NTA directive within 90 days. The NTA would also be able to appeal any modification or rejection. The IRS would then have to either ensure compliance with the directive or provide the reason for other action. The NTA's annual report to Congress would also identify any directive that is not honored by the IRS in a timely manner. See Also: Nina Olson: The Softer Side of the IRS Greater Identity Theft Protection Getty Images There are several anti-identity theft measures in the Taxpayer First Act. Many require "behind-the-scenes" actions by the IRS to discover and prevent identity theft, but there are a few new requirements that would affect taxpayers directly. For example, within five years, any concerned taxpayer--not just people who have already had their identity stolen--would be able to request a special identity protection personal identification number (IP PIN) to use when filing tax returns. In addition, a single point of contact within the IRS would be available for any identity theft victim. The contact person or team would be responsible for tracking the taxpayer's case to completion and coordinating with other IRS employees to resolve the taxpayer's issues as quickly as possible. The IRS would also be required to notify a taxpayer if it detects or suspects the unauthorized use of his or her identity. The IRS would have to let the taxpayer know how to: file an identity theft police report; allow law enforcement to access his or her personal information during the investigation; protect against further harm relating to the identity theft; and get an identity protection personal identification number. Additional notice would be required under the bill concerning whether (1) an investigation has been initiated and its status, (2) an investigation substantiated any unauthorized use of the taxpayer's identity, and (3) any action that has been taken (such as a referral for prosecution). If someone is criminally charged with identity theft, the IRS would have to notify the taxpayer as soon as possible so that civil actions can also be pursued. TAKE OUR QUIZ: 8 Ways You Might Be Cheating on Your Taxes Accepting Credit and Debit Card Payments Getty Images Right now, the IRS isn't allowed to directly accept credit or debit card payments for taxes, because it isn't allowed to pay the fees charged by the credit/debit card companies. To get around this, the IRS uses a third-party processor to accept these payments--but they charge their own fees. If the president signs the Taxpayer First Act, the IRS will be allowed to directly accept credit and debit card payments for taxes, as long as the fee is paid by the taxpayer. The tax agency would also be required to seek out ways to minimize the fees when entering into contracts with the credit card companies. This would likely result in lower overall fees for taxpayers. See Also: What Are the Income Tax Brackets for 2019 vs. 2018? EDITOR'S PICKS 15 States With a \"Marriage Penalty\" in Their Tax Brackets 9 States With the Scariest Death Taxes Claim These Tax Deductions Even If You Don\'t Itemize Copyright 2019 The Kiplinger Washington Editors
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5 Stocks in Limelight on New Analyst Coverage
Most investors have immense faith in research work by analysts as they fear that lack of information while exploring on their own might trigger inefficiencies. Here, analysts play a vital intermediary role with their extensive access to relevant data.Coverage initiation of a stock by analyst(s) usually portrays higher investor inclination. Investors, on their part, often assume there is something special in a stock to attract analysts to cover it. In other words, they believe that the company coming under the microscope definitely has some value.Obviously, stocks are not randomly chosen to cover. New coverage on a stock usually reflects a reassuring future envisioned by the analyst(s). At times, increased investors’ focus on a stock motivates analysts to take a closer look at it. After all, who doesn’t love to produce something that is already in demand? Hence, we often find that analysts’ ratings on newly added stocks are more favorable than their ratings on continuously covered stocks.It is needless to say, the average change in broker recommendation is more preferable than a single recommendation change.How Does Analyst Coverage Influence Stock Price?The price movement of a stock is generally a function of the recommendations on it from new analysts. Stocks typically see an upward price movement with a new analyst coverage compared to what is witnessed with a rating upgrade under an existing coverage. Positive recommendations – Buy and Strong Buy – generally lead to a significantly positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.Now, if an analyst gives a new recommendation on a company that has very few or no existing coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.So, it’s a good strategy to bet on stocks that have seen increased analyst.Screening CriteriaNumber of Broker Ratings now greater than the Number of Broker Ratings four weeks ago(This will shortlist stocks that have recent new coverage).Average Broker Rating less than Average Broker Rating four weeks ago('Less than' means 'better than' four weeks ago).Increased analyst coverage and improving average rating are the primary criteria of this strategy but one should consider other relevant parameters to make the strategy foolproof.Here are the other screening parameters:Price greater than or equal to $5(as a stock below $5 will not likely create significant interest for most investors).Average Daily Volume greater than or equal to 100,000 shares(if volume isn’t enough, it will not attract individual investors).Here are five of the 10 stocks that passed the screen:Napco Security Technologies, Inc.NSSC, a manufacturer and seller of security products and software worldwide, currently carries a Zacks Rank #1 (Strong Buy). Shares have gained 57.8% year to date, outperforming its industry’s rally of 31.2%. The company's earnings estimates have risen 11.9% for the current year over the past 60 days, depicting analyst optimism over the stock’s earnings potential. You can seethe complete list of today’s Zacks #1 Rank stocks here.iQIYI, Inc.IQ, an online entertainment service provider under the iQIYI brand in China, currently has a Zacks Rank #2 (Buy). Shares of the company have gained 39.4% year to date, outperforming its industry’s rise of 11%. The company's loss estimates have narrowed to $1.38 per share from $1.64 for the current year over the past 60 days.Village Farms International, Inc.VFF, a producer, marketer and distributor of greenhouse-grown tomatoes, bell peppers and cucumbers primarily in North America, currently carries a Zacks Rank #3 (Hold). Village Farms’ earnings estimates have risen 40% for the current year over the past 30 days.Plantronics, Inc.PLT, a global leader in audio communications for businesses and consumers, currently carries a Zacks Rank #3. Although the company’s shares have underperformed its industry year to date, the stock has solid growth potential. The company’s earnings for the current year are expected to grow 17.6%.Aerojet Rocketdyne Holdings, Inc.AJRD designs, develops, manufactures, and sells aerospace and defense products and systems in the United States. The stock currently carries a Zacks Rank #3 and its shares have gained 27.7% year to date, compared with its industry’s rally of 30.3%. The company's earnings estimates have risen 18.4% for the current year over the past 90 days.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportPlantronics, Inc. (PLT) : Free Stock Analysis ReportAerojet Rocketdyne Holdings, Inc. (AJRD) : Free Stock Analysis ReportNAPCO Security Technologies, Inc. (NSSC) : Free Stock Analysis ReportiQIYI, Inc. Sponsored ADR (IQ) : Free Stock Analysis ReportVILLAGE FARMS (VFF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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How Seacor Holdings Inc. (NYSE:CKH) Can Impact Your Portfolio Volatility
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Anyone researching Seacor Holdings Inc. (NYSE:CKH) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
View our latest analysis for Seacor Holdings
Looking at the last five years, Seacor Holdings has a beta of 0.80. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. This suggests that including it in your portfolio will reduce volatility arising from broader market movements, assuming your portfolio's weighted average beta is higher than 0.80. Beta is worth considering, but it's also important to consider whether Seacor Holdings is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of US$885m, Seacor Holdings is a small cap stock. However, it is big enough to catch the attention of professional investors. Small companies often have a high beta value, but they can be heavily influenced by company-specific events. This might explain why this stock has a low beta.
The Seacor Holdings doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. In order to fully understand whether CKH is a good investment for you, we also need to consider important company-specific fundamentals such as Seacor Holdings’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are CKH’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has CKH 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 CKH's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Evaluating PFB Corporation’s (TSE:PFB) Investments In Its Business
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Today we are going to look at PFB Corporation (TSE:PFB) to see whether it might be an attractive investment prospect. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business.
First up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. Then we'll determine how its current liabilities are affecting its ROCE.
ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. 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 PFB:
0.14 = CA$10m ÷ (CA$90m - CA$16m) (Based on the trailing twelve months to March 2019.)
Therefore,PFB has an ROCE of 14%.
View our latest analysis for PFB
ROCE can be useful when making comparisons, such as between similar companies. It appears that PFB's ROCE is fairly close to the Building industry average of 13%. Independently of how PFB compares to its industry, its ROCE in absolute terms appears decent, and the company may be worthy of closer investigation.
The image below shows how PFB's ROCE compares to its industry, and you can click it to see more detail on its past growth.
It is important to remember that ROCE shows past performance, and is not necessarily predictive. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for PFB.
Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way 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.
PFB has total liabilities of CA$16m and total assets of CA$90m. As a result, its current liabilities are equal to approximately 18% of its total assets. Low current liabilities are not boosting the ROCE too much.
This is good to see, and with a sound ROCE, PFB could be worth a closer look. PFB shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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CEO Waives Salary and Bonus Forever in Bet on Tech Firm’s Stock
(Bloomberg) -- Avast Plc’s new chief executive officer and co-owner, Ondrej Vlcek, gave up his salary and bonus forever, signaling to other shareholders his confidence in the technology company that has gained 46% in the past year.
A day after taking the helm of the Prague-based anti-virus software maker, Vlcek “indefinitely” slashed his overall annual pay to $1 and said he would donate his annual board director’s fee of $100,000 to charity, according to a statement from Avast. The CEO now holds 2% of the equity and will continue to be remunerated with shares under the company’s long-term incentive plan.
Vlcek, 42, is tying his income to the market pricing of one of the world’s biggest cybersecurity firms, which has outperformed most industry peers over the past year and is likely to gain further, according to all analysts tracked by Bloomberg. He replaces Vincent Steckler, who steered Avast’s global expansion and helped to take the company public last May in London’s biggest-ever technology-focused IPO.
The board has reviewed and accepted Vlcek’s proposal to waive his annual salary and bonus. “We respect and commend his decision, which is a testament to his belief in Avast’s long-term value creation potential,” Ulf Claesson, chairman of the remuneration committee, said in the statement.
The shares were little changed at 307 pence as of 1:34 p.m. in London, valuing the company at about 3 billion pounds ($3.8 billion). The IPO pricing 14 months ago was 250 pence a share.
To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net
To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, John Viljoen, Monica Houston-Waesch
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P.
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Calculating The Fair Value Of Radware Ltd. (NASDAQ:RDWR)
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Radware Ltd. (NASDAQ:RDWR) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Radware
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 start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2020": "$53.0m", "2021": "$61.0m", "2022": "$65.7m", "2023": "$69.7m", "2024": "$73.3m", "2025": "$76.5m", "2026": "$79.5m", "2027": "$82.3m", "2028": "$85.0m", "2029": "$87.7m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 7.63%", "2023": "Est @ 6.16%", "2024": "Est @ 5.13%", "2025": "Est @ 4.41%", "2026": "Est @ 3.91%", "2027": "Est @ 3.55%", "2028": "Est @ 3.31%", "2029": "Est @ 3.13%"}, {"": "Present Value ($, Millions) Discounted @ 9.14%", "2020": "$48.6", "2021": "$51.2", "2022": "$50.5", "2023": "$49.1", "2024": "$47.3", "2025": "$45.3", "2026": "$43.1", "2027": "$40.9", "2028": "$38.7", "2029": "$36.6"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $451.2m
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$88m × (1 + 2.7%) ÷ (9.1% – 2.7%) = US$1.4b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$1.4b ÷ ( 1 + 9.1%)10= $585.78m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.04b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $22.08. Compared to the current share price of $24.72, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Radware 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 9.1%, which is based on a levered beta of 1.076. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Radware, I've put together three pertinent aspects you should further examine:
1. Financial Health: Does RDWR 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 RDWR'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 RDWR? 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 NASDAQ 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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Why EBITDA Matters to Investors
It would be hard to find a podcast-hosting duo more fully invested in answering your financial questions than Alison Southwick and Robert Brokamp -- they even put "Answers" in their show's name! This week, they're at it again, combing through the Motley Fool Answers mailbag in search of conundrums to address for their listeners. But because three heads are better than two, for this episode, they have recruited senior analyst Ron Gross to help out. In this segment, they are presented with a simple question: "Why do we care about EBITDA?" Well, that acronym stands for "earnings before interest, taxes, depreciation, and amortization," and it's a shorthand tool for estimating operating cash flow. And there are plenty of reasons investors will want to know that. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center . A full transcript follows the video. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market This video was recorded on June 25, 2019. Alison Southwick: The next question comes from P.T. in Utah. "Why do we care about EBITDA?" Robert Gross: Good question! Southwick: "I know what it stands for, I know what it means, but I must not know what it means because I always think, 'Why not tell me E-A-B-I-T-D-A? Earnings after...'" Oh, my goodness! Now we've got a lot. Ron Gross: We'll get into it. Southwick: "EBITDA is like G-B-P-B-P-C-I-S [grades before parties, beer parties, and calling in sick.]" Oh, so funny! Gross: Oh, boy! For the rest of the audience, let's define EBITDA: earnings before interest, taxes, depreciation, and amortization. It's a quick-and-dirty method of estimating operating cash flow. All over Wall Street investment bankers -- all over the world right now -- are talking about EBITDA because it's just a really quick way to think about cash flow. Story continues Now I say operating cash flow rather than total cash flow or free cash flow because this just focuses on the operating business. It removes interest because it's before interest. Interest is not an operating decision of management -- it's a financing capital decision of management. It's different than do you make a good product and do you sell it for a fair price and make a profit? So if you want to just look at the operating business, let's remove the effect of interest. We also take out taxes because there's a lot of decisions that affect taxes. Everybody has to pay them by law but if we really just want to focus on do you sell your product and do you make a profit, let's just remove taxes for analysis purposes. And finally the bigger deal, here, is we want to remove the impact of depreciation and amortization, which are non-cash expenses. When you buy a big manufacturing facility for $500 million, GAAP accounting lets you divide that amount by 15 or 20 years and deduct from your income that 1/15th as an expense, which lowers your profits, which lowers the taxes you have to pay. So it's a tax benefit. But it's non-cash. You didn't really have that expense. So we adjust for it to get an idea of the actual cash flow a company has. If you owned 100% of that company yourself, how much actual cash could you put in your pocket at the end of each year? That's different than GAAP net income. It's not the same thing. So we make adjustments, here, to look at operating cash flow to get a better understanding of how this business is performing and how much cash they're actually producing. Southwick: And you're fine with EBITDA? Gross: I'm a big fan! Brokamp: A big fan! The Motley Fool has a disclosure policy .
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4 Top-Ranked Oil Stocks to Buy on OPEC Cuts, Trade Truce
On Jul 2, OPEC decided to extend the existing production cuts till March 2020. In doing so, the oil cartel successfully tided over internal differences, agreeing instead to reaffirm measures that supported oil prices in the recent past. Surging U.S. shale output and global economic sluggishness have forced the production bloc to renew such measures several times now.
However, only a lasting U.S.-China trade deal can provide oil with sufficient upside in the second half of the year. Last week, both sides made major concessions, declaring a truce. Notably, Trump agreed to ease restrictions on Huawei, gladdening investors.
A near-term rate, which looks increasingly likely, would also support higher levels of demand. This is why it still makes sense to bet on select oil stocks at this time.
OPEC Extends Production Controls
Even though the core group has decided to provide an extension to production controls, the deal still needs approval from non-member countries. However, Saudi Energy Minister Khalid al-Falih said on Jul 2 that he was sure these countries, particularly Russia, would agree to the extension.
Currently, production controls stand at around 1.2 million barrels per day. A major factor for enforcing such controls has been the jump in U.S. oil production, particularly from shale-related sources.
However, al-Falih thinks, “U.S. shale will peak and the decline like every other basin in history” over time. And till then such measures would be “prudent for us that have a lot at stake” as well as for those concerned about the global economy, he feels.
Trade Truce, Rate Cuts Key to Upside in 2H19
Despite the extension of production controls, the future of oil prices will largely be determined by trade relations between the United States and China. According to Energy Aspects’ chief oil analyst Amrita Sen, the price outlook will largely be guided by the outcome of the next round of U.S.-China talks.
Speaking to CNBC on Tuesday, Sen said that a lot depends on a U.S.-China trade deal since global demand has declined considerably. But she thinks that there “will be some momentum to solve some of these trade wars,” probably alluding to the run-up to the U.S. presidential elections. Trump would want to do little to roil markets and the economy at this point.
Another factor potentially creating upside for oil prices for the rest of the year is the increasing likelihood of a near-term rate cut. With the Federal Reserve intent on fashioning policy, which would support America’s growth momentum, oil market demand could improve in the near future, thinks Sen.
Our Choices
OPEC’s decision to extend production controls until early next year will go a long way in supporting oil prices in the near future. Upside potential has also been improved by the rising likelihood of better U.S.-China trade relations, especially in the run-up to U.S. presidential elections.
A near-term rate cut by the Federal Reserve would also go a long way in supporting oil market demand. This is why it remains prudent to invest in oil stocks. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and good VGM Score. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Oasis Midstream Partners LPOMP is a master limited partnership company which owns, develops, operates and acquires a diversified portfolio of midstream assets primarily in North America.
Oasis Midstream Partners has a VGM Score of A. The company’s projected growth rate for the current year is 79.1%. The Zacks Consensus Estimate for the current year has improved by 9.4% over the past 30 days.
Plains GP Holdings, L.P.PAGP is an owner and operator of midstream energy infrastructure in Canada and the United States.
Plains GP Holdings has a VGM Score of A. The Zacks Consensus Estimate for the current year has improved by 23% over the past 30 days.
Calumet Specialty Products Partners, L.P.CLMT is a leading independent producer of high-quality, specialty hydrocarbon products in North America.
Calumet has a VGM Score of B. The company’s projected growth rate for the current year is 13.2%. The Zacks Consensus Estimate for the current year has improved by 11.5% over the past 60 days.
RGC Resources, Inc.RGCO and its subsidiaries are in the energy services business.
RGC Resources has a VGM Score of B. The company’s projected growth rate for the current year is 11.6%.
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.
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Click to get this free reportCalumet Specialty Products Partners, L.P. (CLMT) : Free Stock Analysis ReportPlains Group Holdings, L.P. (PAGP) : Free Stock Analysis ReportRGC Resources Inc. (RGCO) : Free Stock Analysis ReportOasis Midstream Partners LP (OMP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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If You Had Bought Pegasystems (NASDAQ:PEGA) Shares Five Years Ago You'd Have Made 239%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long termPegasystems Inc.(NASDAQ:PEGA) shareholders would be well aware of this, since the stock is up 239% in five years.
Check out our latest analysis for Pegasystems
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
Pegasystems's earnings per share are down 12% per year, despite strong share price performance over five years. This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
We doubt the modest 0.2% dividend yield is attracting many buyers to the stock. On the other hand, Pegasystems's revenue is growing nicely, at a compound rate of 10% over the last five years. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think Pegasystems willearn in the future (free profit forecasts).
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Pegasystems, it has a TSR of 245% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
It's nice to see that Pegasystems shareholders have received a total shareholder return of 32% over the last year. And that does include the dividend. That's better than the annualised return of 28% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before spending more time on Pegasystemsit might be wise to click here to see if insiders have been buying or selling shares.
But note:Pegasystems may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Does Recipe Unlimited Corporation (TSE:RECP) Have A Particularly Volatile Share Price?
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Anyone researching Recipe Unlimited Corporation (TSE:RECP) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. 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.
View our latest analysis for Recipe Unlimited
As it happens, Recipe Unlimited has a five year beta of 0.93. This is fairly close to 1, so the stock has historically shown a somewhat similar level of volatility as the market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Recipe Unlimited fares in that regard, below.
Recipe Unlimited is a small cap stock with a market capitalisation of CA$1.6b. Most companies this size are actively traded. Small companies often have a high beta value because the stock price can move on relatively low capital flows. So it's interesting to note that this stock historically has a beta value quite close to one.
It is probable that there is a link between the share price of Recipe Unlimited and the broader market, since it has a beta value quite close to one. However, long term investors are generally well served by looking past market volatility and focussing on the underlying development of the business. If that's your game, metrics such as revenue, earnings and cash flow will be more useful. In order to fully understand whether RECP is a good investment for you, we also need to consider important company-specific fundamentals such as Recipe Unlimited’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Future Outlook: What are well-informed industry analysts predicting for RECP’s future growth? Take a look at ourfree research report of analyst consensusfor RECP’s outlook.
2. Past Track Record: Has RECP 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 RECP's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how RECP 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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NASA tests abort system on astronaut capsule built for moon missions
By Joey Roulette CAPE CANAVERAL, Fla. (Reuters) - An unmanned full-scale NASA crew capsule blasted off from a Florida launchpad on Tuesday in a successful test of the spacecraft's abort thrusters, an astronaut safety device that will be key as the agency works to return humans to the moon by 2024. The Orion crew capsule, nearly identical to the model slated to carry astronauts as soon as 2022 atop NASA's Space Launch System, was lofted more than eight miles (13 km) atop a ballistic missile test booster from an Air Force station in Florida at 7 a.m. EDT (1100 GMT) before firing its three abort thrusters, which would be used to jettison astronauts to safety in the event of a rocket failure. "It looked like a complete mission success to me," said Blake Watters, a launch-abort-system propulsion engineer at Lockheed Martin Corp <LMT.N>, Orion's manufacturer. "This is the big check in the box on putting astronauts on board." Using Orion and NASA's Space Launch System, which is being built for a debut flight in late 2020, the U.S. space agency is aiming to return humans to the moon by 2024 in an accelerated timeline set in March by the Trump administration. No humans have launched from U.S. soil since the space shuttle was retired in 2011. The 22,000-pound (9,979-kg) Orion test vehicle used in Tuesday's abort simulation plunged into the ocean at speeds of 300 miles per hour (483 km per hour) after separating from the booster, without using the parachutes that would be deployed to ensure a crew landed safely. Engineers intend for launch abort thrusters to be rarely needed, as they would be used only during a rocket failure in flight. A two-person crew inside Russia's Soyuz capsule, used by the United States to carry its astronauts to the International Space Station, last year used its abort system 31 miles (50 km) above the surface of the Earth when the rocket malfunctioned. That was the first such mishap in over 30 years for the launch system. NASA has contracted Elon Musk's SpaceX and Boeing Co <BA.N> to build separate crew capsule systems capable of carrying astronauts to the space station. SpaceX's Crew Dragon capsule exploded on a test stand in April just before engineers test-fired its abort engines, triggering an investigation that could delay the pod's first crewed flight by several months. (Reporting by Joey Roulette; Editing by Scott Malone and Jonathan Oatis)
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