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Marshall Wace’s Return, AUM, and Holdings
Marshall Waceis a London-based hedge fund that was started 22 years ago byPaul MarshallandIan Wace, hence the name Marshall Wace. The fund manages around $39 billion in assets under management. Though located in England, the fund offers additional offices in Hong Kong and New York. Before co-founding the fund with Paul Marshall, Ian Wace, its CEO and CRO, honed his investment acumen at Deutsche Morgan Grenfell, being in charge of Equity and Derivatives Trading. At the same time Paul Marshall, the fund’s CIO, sharpened his investment skills as a CIO for European Equities at Mercury Asset Management. He graduated from St John’s College at Oxford with a BA (Hons) and from INSEAD Business School, with an MBA.
The fund relies on a combination of investment basics with quantitative and systematic strategies in order to generate the best possible returns to its clients. On its website, the fund reports being “a leading global alternative investment manager specializing in long/short equity” and also the biggest alternative investment management firm with more 240 employees in offices in London, Hong Kong, and New York. Marshall Wace is known for creating the MW TOPS Alpha Capture System as part of its systematic strategy, which is considered the first ‘Alpha Capture’ application in the world. This is a“proprietary system that collects investment ideas from over two hundred sell side institutions and independent research providers, that has resulted in the execution of millions of trades annually. The TOPS architecture allows for global, diversified portfolios with differing risk and trading profiles”.The fund’s fundamental strategies are focused on specific industries and locations, and are aiming to attain stock-based idiosyncratic alpha. In addition, the fund runs several UCTIS funds.
[caption id="attachment_746893" align="aligncenter" width="473"]
Paul Marshall of Marshall Wace[/caption]
In order to see what has this combination of strategies brought back, we’ve gathered some of the fund’s performance figures. For instance, its MW Market Neutral TOPS Class A (USD) fund, which utilized equity market neutral investment strategy, brought back 12.38% in 2016, and generated a 3-year compound annual return of 14.87% from 2014 to 2016.
Its Marshall Wace Global Opportunities fund that relies on long/short investment strategy returned 13.37% in 2013, and a 3-year compound annual return (ending December 2013) of 15.47%.
Marshall Wace's flagship Eureka fund returned 0.58% in 12 months to February 28th, 2017, compared to 15% it brought back in the same period one year earlier. And, last year, it brought back 0.6%, whereas its MLIS – Marshall Wace TOP UCITS Fund (Mkt Ntrl) B – USD returned -4.14% in 2018, MW Global Financials M/N A USD generated 0.14%, Marshall Wace Market Neutral TOPS brought back -0.6%, MW Global Opportunities returned 2.9%, and its MW Liquid Alpha Ucits Fund had a better year, delivering 4.27%.
Its MW Global Opportunities A USD delivered 13.34% in 2013, 6.31% in 2014, 6.47% in 2015, -0.28% in 2016, and 12.88% in 2017. In 2018, through October it generated a return of 3.97%. Its total return amounted to 195.68% for a compound annual return of 11.98%, while its worst drawdown was 7.60.
Insider Monkey’s mission is to identify promising (and also terrible) hedge fund stock pitches and share them with our subscribers. We launched a long activist investing strategy in our monthly newsletter 2 years ago. This strategy’s stock picks returned 61% in 2 short years, vs. a gain of 21% for the S&P 500 Index ETF (SPY). Last October we shared one of our stock picks, Ascendis Pharmaceuticals (ASND), in a free sample issue of our monthly newsletter (you can stilldownload it free of charge). The stock doubled in less than 5 months.
We have also been very successful at identifying stocks that will decline even in a bull market. We launched our short strategy a little more than 2 years ago and share our short stock picks in our quarterly newsletter. This strategy’s picks lost 30.9% since then, vs. a gain of 24% for the S&P 500 Index. This means our short strategy actually outperformed the market by nearly 55 percentage points (let us know if you don’t understand how the outperformance for a short strategy is calculated).
Recently our monthly newsletter identified another undervalued stock that is expected to increase its earnings by more than 10% annually and trades at only 10 times its 2019 earnings. We expect this stock to return 60% in the next 12-24 months. We take a closer look at hedge funds like Marshall Wace in order to identify their best and worst ideas.
Moving on to Marshall Wace 13F portfolio, which was valued $38.87 billion at the end of March, up by 274.88% from $10.37 billion at the end of the last quarter of 2018. Having a very diversified portfolio, the fund held more than 2,000 positions at the end of the quarter. Some of them, such asAmazon.com, Inc. (NASDAQ:AMZN)andMicrosoft Corporation (NASDAQ:MSFT)were among30 Most Popular Stocks Among Hedge Funds in Q1 of 2019. In Amazon, the fund reported $130.8 million worth a position, on the account of 73,451 shares outstanding, and in Microsoft it held $12.36 million worth a stake, counting 104,823 shares.
Among the biggest positions Marshall Wace decided to sell in the quarter were those inCitrix Systems, Inc. (NASDAQ:CTXS), D.R. Horton, Inc. (NYSE:DHI),andThe Brink's Company (NYSE:BCO).The fund dropped $40.66 million worth a position on the account of 396,825 shares in Citrix Systems, $30.97 worth of stake on the basis of 893,599 shares in D.R. Horton, and its position in Brink’s, which was valued $28.51 million and counted 441,006 shares outstanding.
Click hereto read the rest of this article, where we present Marshall Wace’s Q1 2019 top positions.
Disclosure:None
This article was originally published atInsider Monkey.
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A Major Shareholder Has Divested From Exxon
One of ExxonMobil’s biggest shareholders, Legal & General Investment Management, has removed the company from its $6.3 billion “Future World” funds over its failure to respond to climate change. LGIM, among Britain’s largest asset managers, has divested Exxon from the funds, which include companies that are socially responsible. LGIM says it will use its remaining Exxon shares that aren’t in the Future World funds to vote against CEO Darren Woods' re-appointment as board chair in 2020. What does this mean for Exxon? Though LGIM is one of Exxon’s top 20 shareholders, its divestment puts only a small dent in Exxon’s equity -- LGIM owns about 0.6% of the company’s shares. Still: This is a fairly significant symbolic step. Big asset management companies or pensions like LGIM often pressure companies to better address their influence on climate change or make themselves more sustainable, but rarely follow through with divestment Why now? LGIM told Bloomberg it took the step to divest because of the risk climate change poses to long-term investing, and fund holders' inability to directly engage companies as investors: “People in the street who have their own pension that’s going to mature in 30 years time don’t get a chance to talk to Exxon themselves.” Bigger picture: It’s not just LGIM. A shareholder proposal to break up Woods’ dual role as chair and CEO received a considerable 41% of the vote at the company’s shareholder meeting this year. That followed a larger, well-publicized campaign to vote against Woods’ re-election after the SEC allowed the company to leave a climate change proposal off the ballot. ---Elizabeth Thompson Photo: REUTERS / LUCAS JACKSON
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Business Process Outsourcing Serves As A Life Raft As Carriers Struggle To Stay Afloat During Uncertain Economic Times
As freight conditions continue to deteriorate, along with tariffs imposed on a variety of goods and a prolonged U.S.-China trade war, some less-than-truckload (LTL) carriers are closely examining their operational budget to remain competitive.
And it doesn't look like freight volumes will rebound anytime soon, said Tim Denoyer, vice president and senior analyst for ACT Research.
"Freight remains soft, as expected, and while we see reasons for recovery in the second half of 2019, escalating trade tensions raise the risk of freight recession," Denoyer said.
U.S., China talking again
Tariffs and the threat of more being imposed on imported and exported goods were discussed at the G-20 Summit in Japan last week. President Donald Trump and Chinese leader Xi Jinping reached agreement on restarting trade talks at the Summit in Japan, but it is not the end of the concern. Despite agreeing to return to the negotiating table on tariffs, no timetable was set for completion of talks. The countries did agree to an easing of restrictions against Chinese tech company Huawei and increased U.S. farm product exports to China.
Furthermore, new tariff concerns were raised when Trump suggested the U.S. could go after Vietnamese goods, claiming in part that some products are being relabeled "Made in Vietnam" to avoid tariffs.
During these uncertain economic times, an increasing number of carriers – as well as 3PLs – are turning to companies that specialize in business process outsourcing (BPO) as a life raft. Chad Crotty ofDDC FPOin Evergreen, Colorado, is witnessing this first-hand.
"Tariffs not only raise the cost of products in the U.S., but also impact the entire supply chain," said Crotty.
Outsourcing for flexibility
Estes Express Lines, a long-time partner of DDC which has approximately 8,500 LTL drivers, said outsourcing back office processes helps it remain competitive as customer requirements become more complex and constantly change.
Mike Campese, vice president of customer integration of Estes in Richmond, Virginia, said he recently had a conversation involving a local company that was heavily impacted by tariffs.
"That company hired very rapidly earlier in the year and now they are going through a big reduction in workforce," Campese said. "The ability to use a business process outsourcer allows companies to scale up or scale down with less disruption to the business and the workforce – this is huge in our industry."
"In the less-than-truckload business, customer expectations and requirements have gotten more complex every year," Campese said. "We are a big trucking company and have a high volume of shipments on a daily basis. The processing of those transactions has to happen fast and be turned around very quickly."
FreightWaves' Outbound Tender Volume Index in SONAR shows that the amount of contracted freight in the U.S. in June dropped nearly 6 percent from a year ago.
Attention to detail
Less freight volume, which can be attributed in part to tariffs (real or threatened), means trucking companies must ensure no mistakes are made regarding tariff codes on imported and exported goods.
Luna Boyd, vice president of client solutions for DDC, works with carrier and 3PL partners to ensure data accuracy – this includes verifying that tariff codes are entered properly for each shipment.
"It's a very critical process because if the wrong tariff code is entered, it could cost them a large amount of money," she said. "We can help them avoid those penalties."
It appears that tariffs and tariff threats will remain part of the negotiating strategy for the U.S. for the foreseeable future, whether it is China, Mexico, Vietnam or another locale, leaving in place a continuing level of uncertainty and complexity for supply chain businesses. Getting necessary assistance in navigating this new landscape has never been more important.
To learn more about DDC's authority in freight business processes and how the company safeguards 25% of the top transportation companies as ranked by revenue, visittheir site here.
Image Sourced by Pixabay
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• Broker Efficiency Starts With The Back Office
• Commentary: Will Facebook's New Cryptocurrency Be A Good Or Bad Thing?
• Greenbrier Misses Expectations And Guidance Much Worse
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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House Dems Sue Treasury Department for Trumps Tax Returns
House Democrats filed a lawsuit Tuesday against the Trump administration to compel the release of the presidents tax returns. Representative Richard Neal (D., Mass.), chairman of the Ways and Means Committee, filed the lawsuit against the IRS and the Treasury Department in a final attempt to obtain tax returns that his panel has now demanded for months. The move is sure to exacerbate ongoing tensions between congressional Democrats and the various administration officials who have flatly refused to comply with their oversight requests for documents and witness testimony. Democrats have long demanded Trumps tax returns, citing a 1924 law that grants lawmakers the authority to review any Americans income-tax return. The administration and its allies, meanwhile, have adopted a more narrow view of congressional oversight, insisting that lawmakers lack a legitimate legislative purpose for requesting the documents because their actual motivation is to embarrass a political opponent. Trump broke with decades of tradition by refusing to publish his tax returns during the 2016 campaign a breach of protocol he justified by suggesting an ongoing audit precluded him from releasing the documents. Neal first demanded six years of Trumps personal and business tax returns from 2013 to 2018 in a series of letters sent to the administration in April. Neal then subpoenaed Secretary of the Treasury Steve Mnuchin and IRS commissioner Charles Rettig demanding the documents, which he claimed he needed access to in order to investigate possible corruption related to Trumps ongoing ownership stake in Mar-a-Lago and other properties that may have benefited from his elevation to the presidency. The most recent lawsuit adds to a plethora of legal actions that congressional Democrats have resorted to in response to the administrations stonewalling. In two similar cases the administration has attempted to block the House Oversight Committee, the House Intelligence Committee, and the House Financial Services Committee from accessing the presidents bank records and those of his businesses. Trial-level judges have thus far ruled in favor of lawmakers, finding that they are entitled to review records that are clearly pertinent to their investigative duties. Story continues There can be no doubt as to the power of Congress, by itself or through its committees, to investigate matters, federal judge Edgardo Ramos said at a court hearing in May. Without the power to investigate . . . Congress could be seriously handicapped in its efforts to exercise its constitutional function wisely and effectively. The Trump administration is in the process of appealing both court decisions. More from National Review NY Senate Passes Bill Allowing Congress Access to Trumps State Tax Returns Donald Trump Will Need to Hand Over His Tax Returns The Trump Era Should Make Libertarians of Us All
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If You Had Bought Catalyst Biosciences (NASDAQ:CBIO) Stock Three Years Ago, You'd Be Sitting On A 68% Loss, Today
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If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the last three years have been particularly tough on longer termCatalyst Biosciences, Inc.(NASDAQ:CBIO) shareholders. Regrettably, they have had to cope with a 68% drop in the share price over that period. And over the last year the share price fell 36%, so we doubt many shareholders are delighted. Furthermore, it's down 22% in about a quarter. That's not much fun for holders.
See our latest analysis for Catalyst Biosciences
With zero revenue generated over twelve months, we don't think that Catalyst Biosciences has proved its business plan yet. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, they may be hoping that Catalyst Biosciences comes up with a great new product, before it runs out of money.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Some Catalyst Biosciences investors have already had a taste of the bitterness stocks like this can leave in the mouth.
When it last reported its balance sheet in March 2019, Catalyst Biosciences had cash in excess of all liabilities of US$99m. That's not too bad but management may have to think about raising capital or taking on debt, unless the company is close to breaking even. With the share price down 31% per year, over 3 years, it seems likely that the need for cash is weighing on investors' minds. The image below shows how Catalyst Biosciences's balance sheet has changed over time; if you want to see the precise values, simply click on the image. You can click on the image below to see (in greater detail) how Catalyst Biosciences's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? I would feel more nervous about the company if that were so. It only takes a moment for you tocheck whether we have identified any insider sales recently.
The last twelve months weren't great for Catalyst Biosciences shares, which cost holders 36%, while the market wasupabout 8.4%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 31% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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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Barbara Now A Hurricane, Movement On Mississippi Improving
Tropical update:Barbara went from a Tropical Storm early yesterday to a Hurricane by the evening. Based on the latest report from the National Hurricane Center at 11:00 p.m. Hawaii time on July 1 (5:00 a.m. Eastern time on July 2), Barbara's center was located about 2,000 miles east-southeast of Honolulu, Hawaii, with maximum winds of 110 mph. This puts the hurricane at Category 2 strength, and Barbara is forecast to become a Category 3 storm (winds of 111-129 mph) sometime today as it moves closer to the central Pacific. Barbara is no threat to anyone on land right now, but ocean freighters will have to steer clear.
Flooding update:Water levels along the Mississippi River and its tributaries are receding in many areas.Barge movementon the Mississippi is improving, but still remains sluggish, despite all locks reopening on the upper Mississippi. After being closed for weeks, locks are back open in the St. Louis area except for theCostello Lock and Dam, about 40 miles south of the city in Modoc, Illinois.
Another stormy day in the Plains:Showers and thunderstorms will once again be scattered from the Rockies to the East Coast. The focus for severe storms producing large hail, damaging winds, localized flooding and/or isolated tornadoes today/tonight is from southern Montana to eastern Wyoming and the Dakotas. Drivers may have to slow down at times on I-90 and I-94 from Butte and Billings to Bismarck and Fargo, as well as from Sheridan to Rapid City to Aberdeen. A few severe storms could also pop up from Omaha and Des Moines to Chicago, Cleveland, Baltimore and Philadelphia.
Image sourced from Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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CORRECTED-UPDATE 1-Vale CFO, ex-CEO should be indicted for manslaughter-Brazil Senate panel
(Corrects number of recommended indictments related to manslaughter to 14 from 16 in paragraph 3)
By Jake Spring
BRASILIA, July 2 (Reuters) - Iron ore miner Vale SA's chief financial officer and its former chief executive should both be indicted for manslaughter, a Brazilian Senate committee that has been investigating a deadly dam collapse in late January, recommended on Tuesday.
The committee is also seeking the indictment of Vale itself as a company, as well as dam stability auditor TÜV SÜD, for environmental damages and corporate responsibility for the actions of their employees in the disaster that killed nearly 250 people.
The 400-page report recommended a total of 16 indictments, including the two corporate ones and another 14 of individual executives and others, all of them for manslaughter and other crimes.
Fabio Schvartsman stepped down as Vale's CEO under pressure from prosecutors in March. Luciano Siani, also targeted by the committee, continues to serve as CFO.
Vale did not immediately respond to a request for comment.
Vale shares fell after the recommendations were announced and were down more than 2% in early afternoon trading.
Although the committee's recommendations are not binding, they could influence prosecutors who are continuing to investigate Vale and its executives for negligence regarding the disaster.
(Reporting By Jake Spring Editing by Susan Thomas)
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Jake Gyllenhaal, Tom Holland and Zendaya Bring 'Spider-Man: Far From Home' to Children's Hospital
The stars of Spider-Man: Far From Home took the time to brighten some very special fans’ day. On Thursday, June 27, Tom Holland , Jake Gyllenhaal and Zendaya visited the Children’s Hospital Los Angeles, where they surprised some young patients who were right in the middle of watching an advance screening of the new movie. "We are here about to surprise some of the patients here," Holland explains in a video while dressed as the web-slinging superhero. "We wanted them to be the first people here on the West Coast to see it. This is going to be really fun." Next, viewers are shown a number of touching encounters, beginning with the trio crashing the aforementioned screening to a round of applause. Next, they went room to room chatting with the young patients, signing autographs and snapping photos. At one point, one little boy tells the 23-year-old movie star, "I love you and that you shoot webs." Holland never misses a beat, responding, "I actually used all my webs on the way over here." Also included is brief interaction with a tiny child, who is pushed by Holland in a stroller as they pretend to chase after Gyllenhaal, who is decked out in Mysterio’s elaborate costume. View this post on Instagram Spider-Man, Mysterio and M.J. in the house! @sonypictures’ Spider-Man: Far From Home stars @tomholland2013, @jakegyllenhaal and @zendaya visited Children’s Hospital Los Angeles to surprise patients at an advance screening of the new movie. Though the film doesn’t open until July 2, these kids got a first look, and then a surprise Q&A with the stars, who showed up in full costume. Tom, Jake and Zendaya brought high fives, autographs, back flips, selfies and infinite smiles to the kids. Thank you Spider-Man, Tom Holland, Zendaya, Jake Gyllenhaal and Sony Pictures for making this visit special for the kids at Children's Hospital Los Angeles. See the full video: https://bit.ly/Spider-ManVisitsCHLA or via our link in bio #spidermanfarfromhome A post shared by Children's Hospital L.A. (@childrensla) on Jul 1, 2019 at 2:29pm PDT ET chatted with Zendaya at the premiere for Far From Home last week, where she shared that she still has moments where she marvels at the things she gets to do as an actress. " It's pretty cool ," Zendaya said, appreciating the magnitude of her surroundings. "I'll always have pinch me moments. You know, like right now, this is crazy.” "Especially remembering being super young and coming to different premieres and, like, barely getting onto the carpet," she added. "It's a cool thing." Spider-Man: Far From Home swings into theaters today. Story continues Check out the cast's heartwarming hospital visit up above. RELATED CONTENT: Jake Gyllenhaal Adorably Reflects on How His Sister Maggie Inspired Him to Act (Exclusive) Jake Gyllenhaal Jokes He's Not Speaking With Ryan Reynolds After Best Friends Day Feud (Exclusive) 'SPIDER-MAN: Far From Home' Trailer Introduces Jake Gyllenhaal's Mysterio Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear
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Did CMS Energy Corporation (NYSE:CMS) Insiders Sell Shares?
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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 before you buy or sellCMS Energy Corporation(NYSE:CMS), you may well want to know whether insiders have been buying or selling.
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for CMS Energy
The Chairman of the Board, John Russell, made the biggest insider sale in the last 12 months. That single transaction was for US$930k worth of shares at a price of US$55.35 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$57.66. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 5.3% of John Russell's stake.
In the last twelve months insiders netted US$2.7m for 49804 shares sold. CMS Energy insiders didn't buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like CMS Energy better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
The last quarter saw substantial insider selling of CMS Energy shares. Specifically, insiders ditched US$1.8m 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CMS Energy insiders own about US$110m worth of shares (which is 0.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that CMS Energy is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for CMS Energy.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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USA vs England: Live stream searches for Women's World Cup game surge as fans seek free ways to watch semi-final
Online searches for links to watch the semi-final of the 2019 Women’s World Cup between the USA and England have surged, despite cyber security concerns. Google searches for free ways to watch the Women’s World Cup , which kicks off at 8pm BST on Tuesday, surged in the hours leading up to the game, but experts warn that search results could contain malware that could put people’s financial and personal details at risk. The match will be broadcast live on BBC One in the UK, allowing anyone with a TV license to watch the game either online or through their television sets. Follow The Independent's live coverage of the Women's World Cup semi-final between the USA and England In the US the game is shown on Fox and Telemundo, meaning soccer fans will need a paid subscription. This is likely to cause many people to seek illicit ways of watching the match, either via online search engines, or through links shared to social media platforms like Twitter. Viewing figures for the 2019 tournament have already broken previous records, with the final matches anticipated to be even more popular. England’s previous match against Norway, which the Lionesses won 3-0, reached a peak TV audience of 7.6 million viewers on the BBC in the UK. This audience has grown from the 6.1 million viewers who tuned in to watch England’s first game against Scotland on 9 June. (Getty) Google searches for ‘World Cup streaming’ and ‘World Cup live stream’ rose more than 16-fold in the hours leading up to kickoff, reaching higher levels than any point of the tournament so far. Cyber security experts warned earlier this summer that criminals and hackers will be targeting anyone turning to illegal streaming sites . “Fake sites and redirects are a popular tactic used by cyber criminals and the fans paying to watch tonight’s match need to be aware of them, even if they look legitimate," Joseph Woodruff, a threat intelligence analyst at cyber security firm EclecticIQ, told The Independent last month ahead of England's Nations League match against the Netherlands. Story continues "Cyber criminals use these sites to target users by telling them they have malware on their machine, recommending they call a support number and during the phone call, installing software which allows them into the system. It’s from here that other damage can be done, whether that is stealing payment details or installing ransomware." Other ways hackers can compromise the safety of viewers is through something called 'typo-squatted domains', where fake URLs host sites that appear legitimate.
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3 Energy Stocks to Trade Now With Confidence
There was a time where crude oil prices (and energy stocks in general) were the hot topic like bitcoin andBeyond Meat(NASDAQ:BYND) are now. But crude oil now sits 60% below its 2008 highs, so it is far from its glory days. Furthermore, there is a chance that it will never get back to those levels.
But this doesn’t mean that we cannot trade energy stocks. There are always opportunities, especially in the oil stocks likeChevron(NYSE:CVX) andExxon Mobile(NYSE:XOM). But before we delve into those particulars, we need to evaluate the commodity itself first.
If you listened to the oil and energy experts, you probably got misled several times on the direction of oil prices. The popular opinion is often wrong. Big-name trading houses make high-profile calls about big moves in oil but they often peter out.
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This happened in the last two months. When oil was rallying, consensus became that crude was headed back up to $75 per barrel and higher. I shorted oil in April on that headline and won. Then again, after it fell, the meme flipped bearish and the experts called for crude to fall to $45 or lower. So I went long on that warning and again won.
The point of this is not to gloat, but to say that logic works better than any expert opinion when dealing with oil. So ignore their opinions and trade your own thesis.
To that, there are certain things that are fact. If oil is too cheap, then OPEC loses money and they prop prices up. Conversely, if it gets too expensive then they lose market share so they manipulate prices lower.
Their current good balance zone is below $60, but above $52 per barrel, where crude oil is under current conditions. This level here has been pivotal since 2015. So I don’t chase prices when they stray too far from it in either direction.
I know these arguments draw chuckles at in a room full of oil experts, but they haven’t failed me yet. So I will share my opinion on the stocks that depend heavily on the price of oil.
Exxon and Chevron are the two largest oil companies and so these stocks make good vehicles for trading energy prices. They have been the class of the field for decades and this is not going to change anytime soon. They have the know-how and the budget to remain the leaders and the best proxies oil.
• 10 Best Stocks to Buy and Hold Forever
XOM and CVX are not always a buy, so you won’t see a pump job here today. Rather, you’ll see a realistic evaluation based on a blend of technical and fundamental observations. The methods of chasing the breakouts or breakdown vary based on personal preference. For example, I prefer using options, especially with relatively slower moving stocks like these. I like to sell puts or spreads to take bullish directional bets and sell call spreads for bearish ones.
Source:Mike Mozart via Flickr (Modified)
In the post 2007 financial debacle era, Exxon stock has had a solid floor around $70 per share. This is not a coincidence because it’s the pivot zone for the last 12 years. Fundamentally, XOM stock is reasonably priced at a price-to-earnings ratio of 15 and 1.1X sales. So if oil prices are stable there is no obvious reason to short the stock. So as long as the equity markets are rising, then it owning XOM is relatively safe.
From an investment perspective XOM pays a hefty 4.5%dividend. This is huge since the central banks are stingy, so a guaranteed dividend is a good alternative and a viable, trade-able thesis.
But from a trading perspective, this is not the greatest strategy because of the shorter time frame. So for the purpose of finding tactical ways to trade XOM, traders need to find more surgical entry points on the charts.
Technically, it’s not ideal to keep testing support on a chart. XOM has been doing this for years and since the May 2014 high it has done so from lower highs. But this gives traders a reasonably predictable pattern to time.
The range in XOM is tightening and a move is coming. There are trigger lines just above and below current prices. So not to guess the direction and risk losing money, I’d wait for the breach of either sides to chase in that direction.
For a bullish trade, I chase the breakout above Monday’s highs; $78 per share has been pivotal since April and it marks the start of a potentially bullish pattern. The buyers will chase the breakout for a momentum trade to target $81.50 per share and fill the open gap there. If that happens, there will be resistance between $79 and $80 per share.
For the bearish bet, I would short XOM if the bulls fail to hold $75.50 per share. This should be support and losing it would denote unusual weakness that could offer a chance to press but with tight stops. Why? because XOM is too close to its decade long support zone.
However, there is a small risk of a big correction scenario to $55 per share if that support fails. This is not my forecast and for that to happen the current macro economic conditions will have to drastically change.
Source:swong95765 via Flickr (Modified)
Unlike XOM, Chevron stock is close to its highs. So fundamentally it carries a little richer valuation on Wall Street but only from the price times sales perspective. CVX also pays a slightly lower dividend yield, but still a respectable 4%.
There isn’t a clear entry point for an investment in CVX stock yet given that it’s close to its highs while energy prices are volatile. I’d like to get it closer to $115 per share before considering it from the long side. This is especially true for the traders but it also makes for a better starting point, even for those looking for an investment.
The fundamentals on CVX stock are stable, just like XOM, but there is no urgent need to start long now and suffer loss of capital soon after opening the position. This is where the investors would do good to wear their traders’ hats and wait for a clear breakout before starting a long position.
CVX has been setting slightly lower highs since January of 2018. The current range between that high and the December lows has tightened into a point. So a move is likely coming, but we don’t yet know its direction.
So traders should wait for the clues from the chart. This is where fundamentals need the help of technicals. They provide unbiased opinions to help with the allocation of risk based on actual developments, not conjecture.
If CVX stock closes above $126.20, then it would invite momentum buyers at $127.40 per share. They like to chase trend line breakouts. The idea is to buy high and sell higher. Should that happen, there will be resistance around $132 per share. While this would be a good opportunity for the traders among us, investors who intend on holding the shares a long time can also use the breakout to enjoy a good start to the position.
• 10 Small-Cap Stocks That Look Like Bargains
Conversely, if Chevron stock falls below $123, it could target $120.50 where it’s likely to find footing. Even if that happens, it wouldn’t change the fundamental setup for the stock. This would merely be the 50% retracement of the recent rally from $114 in May.
Source: Shutterstock
Unlike CVX or XOM, theSPDR S&P Oil & Gas Exploration & Production ETF(NYSEARCA:XOP) is not a company stock, but rather an exchange-traded fund that mimics owning the major exploration companies likeAnadarko Petroleum(NYSE:APC),Diamondback Energy(NASDAQ:FANG) andPioneer Natural Resources(NYSE:PXD).
The prices for these stocks are definitely sensitive to the movement of the commodities they explore, so the XOP tracks the energy prices pretty tightly.
The intrinsic value of the XOP’s components don’t hold up as well as XOM or CVX when oil prices fall. Case in point, the price of XOP is at least 60% off its all-time highs. And the trend is not stable either, as it has been in a descending channel of lower highs and lower lows for about five years.
I usually don’t like to buy down-trending tickers like this and hope for a turnaround. It is better to wait for the bottom to form. And since they don’t ring bells at the bottom, we look for the right collection of signs.
First, XOP has to form a trough, so it needs to stop making lower lows. It is also important for it to start making higher lows. At this point, it is OK for it to continue to set lower highs as long as the range is tightening.
To this, we can argue that this is happening now since the December low. But so we don’t chase a fake-out breakout, I’d wait for a close above $29 per share first and then above $31.8 per share before I chase. There will be strong resistance near $30.50, as it is a point of interest for the last 10 months.
Nicolas Chahine is the managing director ofSellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room freehere.
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What does Spire Inc.'s (NYSE:SR) Balance Sheet Tell Us About Its Future?
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Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Spire Inc. (NYSE:SR), with a market capitalization of US$4.2b, rarely draw their attention from the investing community. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. SR’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto SR here.
Check out our latest analysis for Spire
Over the past year, SR has ramped up its debt from US$2.6b to US$2.8b – this includes long-term debt. With this increase in debt, SR currently has US$11m remaining in cash and short-term investments , ready to be used for running the business. Moreover, SR has produced US$445m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 16%, meaning that SR’s operating cash is less than its debt.
Looking at SR’s US$1.3b in current liabilities, it appears that the company may not have an easy time meeting these commitments with a current assets level of US$794m, leading to a current ratio of 0.59x. The current ratio is the number you get when you divide current assets by current liabilities.
Since total debt growth have outpaced equity growth, SR is a highly leveraged company. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can check to see whether SR is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In SR's, case, the ratio of 3.44x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as SR’s high interest coverage is seen as responsible and safe practice.
Although SR’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. However, its low liquidity raises concerns over whether current asset management practices are properly implemented for the mid-cap. Keep in mind I haven't considered other factors such as how SR has been performing in the past. I recommend you continue to research Spire to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SR’s future growth? Take a look at ourfree research report of analyst consensusfor SR’s outlook.
2. Historical Performance: What has SR's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Jason Sudeikis Gets Caught Up in Sex, Drugs and Sports Cars in 'Driven' Trailer (Exclusive)
Jason Sudeikis and Lee Pace are taking on the so-crazy-it-must-be-true story of John DeLorean and the undercover drug bust to frame the "most successful auto executive in living memory" -- and ET can exclusively debut the trailer. In the '80s-set Driven , Sudeikis plays Jim Hoffman, an ex-con who strikes up an unlikely friendship with DeLorean (Pace). DeLorean doesn't know his new friend works as an FBI informant, however, and when he confides in Hoffman the financial woes threatening the DeLorean Motor Company, the latter sees an opportunity to get out of his own sticky situation. "I've hit a cash flow problem," DeLorean explains in the trailer. "I need to raise $30 million dollars in the next 10 days. Can you help me, Jim?" What ensues is a scheme to traffic millions of dollars' worth of cocaine, all while being dogged by an ambitious FBI special agent (played by Corey Stoll). Driven is directed by Nick Hamm ( Killing Bono ) from a script by Colin Bateman and Alejandro Carpio and co-stars Judy Greer and Justin Bartha. The crime comedy opens in theaters and will be available digitally and On Demand on Aug. 16. See exclusive stills below. RELATED CONTENT: Watch Jason Sudeikis Do His Best Impersonation of Bradley Cooper in 'A Star Is Born' Judy Greer Breaks Down Crying While Discussing Her Friendship With Jennifer Garner Summer Movie Preview 2019: 27 Films We Can't Wait to See Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear
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Spider-Man: Far From Home stars Zendaya and Tom Holland are 'very competitive' with each other
Zendaya has a mace. Not the kind you spray, but the kind you swing — if, say, you’re an extra on the fields of Winterfell , or a high school student abroad who just happens to be visiting a medieval museum when something supernatural attacks, and you grab the closest weapon-y thing you can find. Dressed far from her own much-documented personal style in an unassuming Henley and jeans, the 22-year-old actress sat down with EW last August on the London set of Spider-Man: Far From Home to talk about the evolution of MJ, the hazards of challenging Tom Holland to air hockey, and which ‘90s pop-culture icon inspired her character. ENTERTAINMENT WEEKLY: When you came on for Far From Home , did you get to read the script in full? ZENDAYA: Well we do, but it changes so much that you don’t know what’s gonna happen. Because of course certain things in Avengers: Endgame can effect what happens here. Did they have to fill you in and then swear you to secrecy? Not necessarily! I mean, you can kind of gather context clues from the script obviously, but the only thing that’s difficult is you can only read a full script if you are in a Sony or Marvel space and they can control it, so whatever they would send me, things that were key to Endgame or any type of spoiler would be blacked out. So it’s kind of like looking at the Mueller report. [ Laughs ] Yeah, essentially. Your MJ has definitely developed a different vibe than the more traditional Mary Jane we’re used to. Was that really clear from the beginning as well? Well I always knew that she would be MJ at the end of the day, she’s just Marvel cinematic’s version of what she would look like in this universe. So she’s the MJ of the MCU, if that makes any sense. [Director] Jon [Watt] wanted to create something that was modern and different but still pay tribute to the original, and also spoke I think to the awkwardness of teenage life — just allowing for different kind of characters, especially female ones, to be seen on screen. There weren’t really any rules. I think in the first movie we don’t really know much about her, she’s kind of mysterious. And once we find out she’s MJ, we kind of know where the relationship will go in the future with her and Peter, but it’s really sweet because she kind of has this guard up — this defense mechanism where she feels like you have to tell the truth all the time, even if it hurts your relationships. She just does it, which is kind of her thing, and I think it’s cool because we’re in a world full of people who don’t tell the truth anymore. But the fact that she’s a bit of an outcast and Peter’s a bit of an outcast and they find comfort and kind of feel seen with each other, I think that’s something really special and definitely lucky. Story continues She kept reminding me of Daria , and the girls in Ghost World . Yeah! Actually Daria was a reference that Jon literally told me when we first met during Homecoming . Were you familiar with her? You weren’t even born yet when that was on MTV in the mid-’90s. It’s just kind of a pop culture thing, you know? Jon actually gave the cast a list of ‘80s teenage coming-of-age movies, which I think has a lot of inspiration for him. He definitely knew who MJ was when I came in, which is nice. He handpicked the books that I read and they all have a meaning. He handpicked the T-shirt with Joan of Arc [that I wear in a scene] which was kind of a nice homage to my Met Ball outfit that year. What’s funny is I think this character is me dialed-up, just on level 10. Me all the way. I think I agree with a lot of things she says and a lot of her thinking. I just think she’s dope, and when you feel that way about your character you have a lot of fun playing her. I just wish I read as much as she did! I wish I was as smart as she is. [ Laughs ] Jay Maidment/Sony Pictures Anyone who’s friends with Peter Parker will probably be in danger at some point, but it never seems like you’re just there to be rescued. Yeah, the cool thing is, obviously my character’s not a superhero but she’s very smart, she’s always watching so she always knows what’s going on before anyone else does. I didn’t really have to demand anything, it was already in the script. Jon was very perceptive and very much wanted her to be her own person, not just waiting for Spidey to come and do whatever Spidey needed to do. This sort of wrecking ball thing with the spikes you have in the scene I watched you shoot, what it is called? It’s a mace. I’ve never lugged a mace around for no reason in anything I’d participated in before. [ Laughs ] No, it’s really fun and sweet because MJ’s doing the best she can trying to help out, and it allows her to have a little bad-ass moment. They actually added it to my toy — you know, the Funko pop thing , they have the mace and fans are gonna be like, “Why does she have a mace?” But all the kids [on this class trip to Europe] are being put out of their comfort zone. They’re in a different places and different countries and they’re only, what, 16 years old, and figuring things out in a really awkward time in their life. Putting them in all these crazy situations and then adding all the crazy things that keep happening around them, it’s been really cool. When I spoke to Tom Holland, he talked a lot about improvising his lines. Do you do that as well here? My character doesn’t trip over words — she’s usually very calculated in the things she says so she rarely makes mistakes, whereas Peter’s like [stuttering] “uh, eu, euh,” he’s constantly kind of tripping and able to go on the fly. Everything MJ says is very intentional so it’s much harder to go off the cuff. What was your take on the romance here, and how it develops? It’s cool because it doesn’t feel pushed at all. It’s not like we start and they’re just together and it happens and they’re in love. It’s more of a natural progression of a 16-year-old’s relationship where you have a crush on somebody. Maybe there’s someone you suddenly see differently, like “Whoa what is this? I’ve always seen you as a friend, and now I have real feelings and this is weird,” which we’ve all discovered and been through before. And with that comes a lot of awkwardness and a lot of funny moments, just living in the realism of being a teenager and feeling these feelings for the first time. Your Lip Sync Battle with Tom in 2017 is pretty legendary. Was there ever a rematch on set? Oh no no no. But we are very competitive with everything just because of that. I feel like now I have to beat him in everything else in life because that specific moment happened. There was air hockey for sure, while we were working on the movie. I’m trying to think of other things. I don’t know… I need to pick more fights with him obviously. [ Laughs ] Tom says he’s definitely in this film series for the long haul. Do you feel the same way? As long as we have Jon at the head, because he understands and has created such a beautiful Spider-Man world, then yeah for sure. The possibilities are endless. Related content: Tom Holland went undercover at a real high school for Spider-Man prep On the set of Spider-Man: Far From Home : EW exclusive Watch Tom Holland and Jake Gyllenhaal interview each other for EW’s first digital cover View comments
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Can We See Significant Institutional Ownership On The Dollarama Inc. (TSE:DOL) Share Register?
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The big shareholder groups in Dollarama Inc. (TSE:DOL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of CA$15b, Dollarama is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about DOL.
See our latest analysis for Dollarama
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 50% of Dollarama. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Dollarama's historic earnings and revenue, below, but keep in mind there's always more to the story.
Dollarama is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Dollarama Inc.. The insiders have a meaningful stake worth CA$160m. Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checkingif those insiders have been selling.
The general public, with a 49% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It's always worth thinking about the different groups who own shares in a company. But to understand Dollarama better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Swan kills dog swimming in pond as horrified pet owner helplessly watches from shore
A swan viciously mauled a swimming dog as the pet's owner helplessly looked on from the shore Saturday in an attack that ultimately proved fatal.
The unidentified dog owner had taken his female cocker spaniel to swim in a duck pond at Bushy Park in Terenure, Ireland, around 11 a.m. when the animal unwittingly approached a group of swans and cygnets, or baby swans, theIrish Timesreports.
Sensing a threat to the flock, one of the mature swans broke away from the others and made a beeline for the pup.
An eyewitness told the outlet that the dog's distraught owner tried calling her name to get her attention while other onlookers tried to distract the swan, but that all their attempts were fruitless.
"We started screaming at the swan, trying to distract it," he recalled. “The poor dog didn’t realize what was going on and swam straight for the swan."
The eyewitness, who was feeding ducks at the time of the incident, said the swan lifted up its wings and then beat down on the dog "with one wing and then the other."
"That stunned the poor thing," he told theIrish Times. "Three or four more slaps and she was gone."
The man described the attack, which lasted "no more than a few seconds," as extremely upsetting to both the dog owner and other onlookers.
"They need to put up signs telling people to keep their dogs on leads around the pond," he said. "The swan was just protecting its cygnets."
Peter Duignan, a Dublin City Council park ranger who helped retrieve the dog's body from the pond, described the incident as out of the ordinary.
"I have never heard of anything like this happening before," he said.
A spokesman for the Dublin City Council toldTheJournal.iethat in response to the attack, "temporary signage will be put up to alert people of the danger of dogs entering the pond."
"Swans are wild birds and while it was only protecting its young, it led to an unfortunate outcome," the council added.
Although swans may appear to be elegant creatures, they are known to beaggressive— especially male swans protecting their nests during peak nesting season, which occurs every year from April to June.
In April 2012, a 37-year-old man who worked for a company that provides swans to keep geese away from residential properties, was killed by a swan, theBBCreports.
Anthony Hensley, a father of two, set out in a kayak across a pond at a residential complex in Des Plaines, Illinois, to tend to a group of swans when one of the birds charged his boat and capsized it. The victim tried to swim to shore but eyewitnesses said the swan appeared to actively block his attempts, leading him to drown.
However, swan-related fatalities are apparently a rarity, according to John Huston of the Abbotsbury Swannery in Dorset, U.K.
"If you approach a swan nest on the river, they might get aggressive and hiss and flap their wings, but the danger is over-rated and it's a myth that they will break your leg or arm with their wings," he told the BBC. "They are not that strong and it's mostly show and bluster."
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Tom Holland Open to Gay ‘Spider-Man,’ Agrees MCU Needs More Than Just ‘Straight White Guys’
Tom Holland Open to Gay ‘Spider-Man,’ Agrees MCU Needs More Than Just ‘Straight White Guys’ Click here to read the full article. Will Peter Parker come out as gay in the Marvel Cinematic Universe? Probably not, considering his blossoming relationship with MJ (Zendaya), but it’s an idea actor Tom Holland would whole-heartedly embrace. In a new interview with The Sunday Times , Holland said he’d be open to his Marvel superhero coming out as gay and agreed with the overwhelming sentiment that the Marvel Cinematic Universe needs to start getting more inclusive on the LGBTQ front as soon as possible. “Yeah, of course,” Holland answered when asked if he’d be okay with Spider-Man/Peter Parker being gay. “I can’t talk about the future of the character because honestly I don’t know and it’s out of my hands. But I do know a lot about the future of Marvel, and they are going to be representing lots of different people in the next few years.” Related stories Josh Brolin Keeps Calling Marvel Studios About 'Deadpool' Future, Not Getting Answers Tom Holland A Bit Heartbroken Gwyneth Paltrow Didn't Remember Acting in 'Spider-Man' Holland added, “The world isn’t as simple as a straight white guy. It doesn’t end there, and these films need to represent more than one type of person.” Marvel Studios president Kevin Feige has already gone on record saying the next phase of Marvel films will include the MCU’s first openly gay character. “We haven’t been shy about saying that that’s coming and that there’s much more prominent LGBT heroes in the future,” the executive told i09 last month. “[It’s] coming soon.” The MCU got a bit of blowback earlier this year over the release of “Avengers: Endgame,” which included a rather inconsequential moment featuring an openly gay character. The person was played by co-director Joe Russo, who gave an interview with Deadline before the film’s release to explain why it was so important for the film to include this brief LGBTQ moment. Russo’s interview led many to question whether or not Marvel was pandering or actually genuine. Story continues “That was never meant to be our first focused character,” Feige said about the backlash. “That was just meant to be a matter of fact and a matter of life and a matter of truth. … It was never meant to be looked at as our first hero. I guess it’s the first reference so it does, of course, get a lot of attention.” One persistent rumor posits that the first openly gay star character in the MCU will be introduced in “The Eternals,” the upcoming tentpole from filmmaker Chloe Zhao set to star Richard Madden, Angelina Jolie, and Kumail Nanjiani. “ Spider-Man: Far From Home ” is in theaters today. Sign up for Indiewire's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
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DTE Energy Company (NYSE:DTE) Has A ROE Of 11%
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of DTE Energy Company ( NYSE:DTE ). Our data shows DTE Energy has a return on equity of 11% for the last year. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.11 in profit. Check out our latest analysis for DTE Energy How Do I Calculate ROE? The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for DTE Energy: 11% = US$1.2b ÷ US$11b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. What Does Return On Equity Signify? Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the yearly profit. The higher the ROE, the more profit the company is making. So, as a general rule, a high ROE is a good thing . That means ROE can be used to compare two businesses. Does DTE Energy Have A Good Return On Equity? Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. The image below shows that DTE Energy has an ROE that is roughly in line with the Integrated Utilities industry average (11%). Story continues NYSE:DTE Past Revenue and Net Income, July 2nd 2019 That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. The Importance Of Debt To Return On Equity Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. Combining DTE Energy's Debt And Its 11% Return On Equity DTE Energy does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.31. The company doesn't have a bad ROE, but it is less than ideal tht it has had to use debt to achieve its returns. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. But It's Just One Metric Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company . If you would prefer 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. 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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EUR/USD Price Forecast – Euro sideways on Tuesday
The Euro initially tried to rallyduring the trading session on Tuesday but gave back quite a bit of the gains to show signs of lackadaisical weakness. We are sitting just above the 50 day EMA though, so at this point it’s very likely that we are going to see a lot of back-and-forth heading into the July 4 holiday, and of course the jobs number which will be crucial as well. Ultimately, this is a week that could be worth forgetting until we get the jobs number on Friday, which quite often will settle nothing in the end anyway.
Above, I see the 1.1350 level as significant resistance, as it had been support for several days. If we were to break above that level then will probably go looking towards the highs again, perhaps even reaching towards the 1.1450 level after that. To the downside, if we were to clear the 50 day EMA we could open up the door to the 1.12 area, but I think it will be most important to pay attention to whether or not we have formed a “higher low” after doing so. I like the idea of stepping to the sidelines and waiting to see what happens next, because quite frankly this is one of the worst trading weeks of the year, and this is a pair that looks like it could go in either direction given some type of catalyst. This looks like a bottoming pattern longer term, and these are always messy and slow-moving affairs.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
• Forex Recap – Greenback Managed to Hold Gains Despite Adverse US Data
• Gold Price Prediction – Prices Whipsaw and Settle Unchanged
• EUR/USD Price Forecast – Euro stabilizes
• Crude Oil Price Forecast – Crude oil markets bounced slightly on Wednesday
• E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – July 3, 2019 Forecast
• GBP/JPY Price Forecast – British pound looking for buyers
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Tom Brady's on-course cursing, J.R. Smith's clubhouse shopping spree, and golf's new power couple shares a sweet (social media) moment
Welcome to another edition of The Grind where we love when a great story writes itself. And over the weekend, there was plenty of that happening . You had a guy overcoming tragedy to win on the PGA Tour for the first time. A guy overcoming a rat poison accident as a toddler to win on the European Tour for the first time. And an older guy finally overcoming decades of mental—and probably rough-induced physical—scar tissue to win a USGA event for the first time. Steve Stricker poses with the trophy in front of the scoreboard after winning the 2019 U.S. Senior Open. Stacy Revere/Getty Images OK, so the last example wasn’t quite as difficult, especially since the grass on Notre Dame's football field is taller (in particular, for that famed 1993 game against Florida State ) than the grass on the university's golf course . But you get the point. There's a lot to talk about. WE'RE BUYING Nate Lashley: After an entire weekend of hearing Jim Nantz and everyone else re-tell this guy’s heartbreaking story, I won’t waste your time with the details . On a serious note, this guy has overcome arguably more tragedy than any golfer in history so it was great to see someone who was flipping real estate a few years ago winning a $1.3 million check at a golf tournament sponsored by a mortgage company. The Open Qualifying Series - Rocket Mortgage Classic DETROIT, MI - JUNE 30: Nate Lashley acknowledges the gallery on the 18th hole during The Open Qualifying Series, part of the Rocket Mortgage Classic at Detroit Golf Club on June 30, 2019 in Detroit, Michigan. (Photo by Michael Cohen/R&A/R&A via Getty Images) Michael Cohen/R&A On a less serious note, if he and his girlfriend wind up getting married, her name would be Ashley Lashley. I wish them the best, but that’s definitely something that needs to be considered before they take the next step. And what is up with this photo? GOLF: JUN 30 PGA - Rocket Mortgage Classic DETROIT, MI - JUNE 30: Nate Lashley addresses the media during the press conference following the conclusion of the inaugural PGA Rocket Mortgage Classic on June 30, 2019 at Detroit Golf Club in Detroit, Michigan.(Photo by Scott W. Grau/Icon Sportswire via Getty Images) Icon Sportswire So artsy! Steve Stricker: If people thought Pebble Beach played too easy for the U.S. Open, where was all the outrage over the low numbers at Notre Dame’s golf course? This wasn’t your father’s U.S. Senior Open. Regardless, the Strick Show put on a championship show that would impress even Rudy. And then he joined the Golf Digest Podcast to talk about it all. The 52-year-old opened with 62 and went wire-to-wire, breaking basically every scoring record in tournament history. I haven’t seen such abuse of seniors since Ben Stiller’s character in Happy Gilmore. The win gives Stricker a second PGA Tour Champions major in the past two months and in both instances, he won by six shots. Watch out, Bernhard Langer. There’s a new Senior Sheriff in town. And he's, well, probably the nicest guy in golf . Story continues The Pine Valley pro shop: Well, at least, that’s what J.R. Smith did. After checking the famed course off his bucket list, the NBA star bought a few bucket hats among other items. Lots and lots of other items: That’s a lot of money to plunk down, but it could be a savvy investment. Smith is probably on the move this off-season and he could make new friends quickly on another team by distributing some of this stuff. WE'RE SELLING Condensed schedule winners: Overall, I’m still a fan of the PGA Tour’s revamped schedule. The move of the Players to March and the PGA to May created more buzz for those events and the FedEx Cup will undoubtedly benefit from moving away from football season. HOWEVAH—and I invoke Stephen A. specifically because I sympathize with his pain as a Knicks fan this week—you can’t tell me it’s created the list of winners the tour was hoping for. Since the Masters, here's who has won individual non-major events (not including the Memorial): C.T. Pan, Max Homa, Sung Kang, Kevin Na, Rory McIlroy (OK, OK), Chez Reavie, and Nate Lashley. Yes, there have been some great human-interest stories like Lashley during that stretch, but it seems like an awful lot of big names are choosing to rest in between the biggest tournaments more than ever. I hope I'm wrong about this becoming a trend. Christiaan Bezuidenhout's ban: The more I read about this story , the more mad I get. This promising player received a two-year ban (later reduced to nine months) for taking beta blockers related to a stuttering problem he developed from accidentally ingesting rat poison as a toddler. How is that fair? Even worse was the timing of the penalty because it kept him from completing a longtime dream of playing for his native South Africa in the 2014 World Amateur Team Championship. "It felt like my life was over," he recalled. Just awful. But on the bright side, five years after that unjust ruling, the 25-year-old won his first European Tour title. Unappreciated highlights: My golf game isn’t what I’d want it to be right now (Fortunately, I still have a month before the 2019 HGGA Championship at Turning Stone), but you can’t say I don’t GRIND. During another 18-hole struggle (sadly, carrying my bag in 90-degree heat is turning into a death march), my short-game magic— they I don’t call me “Mr. 60” around the office for nothing—managed to give the fans a thrill with a sweet chip-in on No. 18 from a downhill lie in the rough. Sadly, it was for par, and even sadder was no one, not even my three playing partners saw it. What a shame. What a waste. ON TAP The PGA Tour heads to Minnesota for the inaugural 3M Open at Twin Cities Golf Club, AKA that place where senior golfers have shot low scores the past two decades. Combined with last week’s new Rocket Mortgage (Instant) Classic, apparently, we’ve reached the Inaugural Swing of the tour schedule. Random tournament fact: Nearly half of Minnesota’s 10,000 lakes (weird flex, but OK) are on this Arnold Palmer design. At least, that’s what it’s going to feel like for those struggling off the tee. RANDOM PROP BETS OF THE WEEK — Brooks Koepka will win the 2019 3M Open: 8-to-1 odds (Actual odds) — Brooks Koepka will win the 2019 British Open: 7-to-1 odds (Actual odds, crazy) — Brooks Koepka will cry less than Steve Stricker if he wins either: LOCK PHOTO OF THE WEEK Steve Stricker hugs his daughters, Bobbi Stricker and Izzi Stricker, after winning the 2019 U.S. Senior Open Championship. Stacy Revere Look at that wholesome family! You’ve got Steve the champ. His wife and caddie Nicki. And two daughters, Bobbi and Izzy, both promising golfers as well. Following the win, the four piled into the family truckster and drove four hours home. Perfect. VIRAL VIDEO OF THE WEEK This guy wanted to play golf so badly that he lied to his wife (not uncommon) and then brought his work clothes to convince her he wasn’t playing hooky from work (uncommon): Now that’s dedication to the game. Not to anything else, but to the game. Respect. ARCHIVE VIRAL VIDEO OF THE WEEK Check out this old Reebok Pump commercial featuring. . . Greg Norman? Yep, Greg Norman. And listen for a nice little random dagger at Curtis Strange: https://twitter.com/SharkGregNorman/status/1144191212833902592 Who says basketball sneaker-golf shoe crossovers are a new thing? QUOTE OF THE WEEK “Yeah, I came in here with a chip on my shoulder. I talked about being ornery and maybe I need more of that.” — Is the world ready for an “ornery” Steve Stricker? Again, Bernhard better watch his back. THIS WEEK IN CELEBRITY GOLFERS A couple of legendary quarterbacks turned heads on the golf course this week. First, Brett Favre showed off his short-game skills: https://twitter.com/JoshScobee10/status/1144653352971710469 And then Tom Brady showed off his swing and potty mouth, forgetting his kids were in the cart: https://twitter.com/TomBrady/status/1145095269828177920 LOL dad life, am I right? Just say "ear muffs" next time, Tom. But seriously, I don't know where that shot went, but the swing is looking good. Maybe you should hang up the football cleats and do this celebrity golf thing full time. . . You've won enough Super Bowl rings. . . Just a thought. . . THIS WEEK IN PHIL BEING PHIL Mickelson got his mom in the mix for episode 2 of “Phiresidewith Phil”: https://twitter.com/PhilMickelson/status/1145173542989942784 Keep ‘em coming, Phil! And congrats on being named Golf Digest/The Loop's CONTENT KING of the PGA Tour! Check out the full ranking here . THIS WEEK IN DUSTIN JOHNSON-PAULINA GRETZKY BROOKS KOEPKA-JENA SIMS PUBLIC DISPLAYS OF AFFECTION No one piles up majors and thong pics like Brooks Koepka . No one. THIS WEEK IN OTHER TOUR PROS PUBLIC DISPLAYS OF AFFECTION Aspiring PGA Tour player Maverick McNealy put out this public plea to see more of girlfriend Danielle Kang during this past week’s LPGA event: https://twitter.com/MavMcNealy/status/1145413172787994624 Awww. What a sweetie. Kang, of course, appreciated the support: https://twitter.com/daniellekang/status/1145471766531387394 The couple that watches each other's golf tournaments together, stays together. Or, something like that. THIS AND THAT Sung Hyun Park won the LPGA's NW Arkansas Championship to move back to No. 1 in the world. On the flip side, Zach Johnson fell out of the top 100 in the Official World Golf Ranking for the first time since April 2004, AKA my last full month in college. Good run, Zach. I also shudder to think how much more money he's made than me these past 15 years. . . . Michelle Wie announced she is taking the rest of the year off to rest her bad wrist. And probably, to wedding plan. Good luck with both, Michelle. . . . Tom Watson shot his age or better three of the four rounds at the U.S. Senior Open. That had only been done twice before. The guy is a freak. . . . Doc Redman Monday qualified and finished solo second at the Rocket Mortgage Classic to earn a PGA Tour special temporary membership for the rest of the season. The Clemson product won the U.S. Amateur less than two years ago and I had totally forgotten about him already. Wow, are there a lot of great golfers out there. . . . And finally, I tried Costco’s new “mini chocolate chip cookies” instead of their regular and amazing regular chocolate chip cookies. You know, for “research” purposes: Not surprisingly, they didn’t disappoint. RANDOM QUESTIONS TO PONDER Who is Brett Favre’s short-game coach? What’s the point of being a Knicks fan? Which cookies should I buy this weekend? WATCH MORE VIDEOS FROM THE LOOP See the video. See the videos. Originally Appeared on Golf Digest
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The Next Big Thing after YouTube and Instagram
Google-ownedYouTubeis the unrivaled king of video hosting and has astaggering 75 percentmarket share. Facebook-owned Instagram, meanwhile, has a billion users. Together, these platforms arehome to the world’s finest influencers—colorful, crowd-pleasing arbiters of style, who will willingly gush recommendations to their millions of followers on behalf of grateful brands.
But on planet Instagram, there are signs of discontent (and dis-content too). Influencers aretiringof the carefully contrived, rainbow-hued “Instagram look.” And YouTube’s blanket system of moderation—to guard against unsavory content—is making it progressively harder for content creators to win the advertising revenue they rely on from brands.
As a result, influencers such top YouTuber Felix Kjellberg (known online as ‘PewDiePie) and actor/content creator Matthew Espinosa, are looking for pastures new. And a raft of blockchain startups are dangling a larger slice of the revenue pie–and a hands-off approach to censorship–to influencers willing to launch channels on these new platforms. One of those, the soon to be launched, Vid claim to have poached battalions of users and an impressive stable of influencers. Is the tide turning on the tech 2.0 giants or are we entering a no-holds-barred age of influence?
It was a PewDiePie video, featuring anti-Semitic imagery and language, that sparked YouTube’s evermore restrictive content policies, the so-called ‘Adpocalypse.’ The result has been algorithms unable to distinguish between a video debunking white supremacy and another promoting it.
Channels have been purged from ad networks and forced to wait to find out if their accounts meet YouTube’s rigorous new standards. Smaller creators have lost what little ad revenue they had.
The money that Vid is making from the brands is going directly to creators’ pockets.They are taking care of the creators that are taking care of the platform.
—Matthew Espinosa
Influencers like David Doel, host of popular YouTube series ‘The Rational National’, areturning tocrowdfunding through websites likePatreonand looking to diversify via streaming platformtwitch.tv, “because you never know what might happen.” Some have gone even further.
PewDiePie was one of the first major influencers to actively endorse one of the new blockchain-based platforms.In Aprilhe announced that he was joining live streaming platformDLiveon the Steem blockchain, which also features content creation platformDtube.
These platforms allow users to upvote or downvote content in a self-censoring environment where unpopular videos are pushed down the search rankings. But their key feature is that they allow users to get paid for creating and curating content, establishing a more direct relationship between providers and users.
One of the latest to turn to the new breed of channels isMatthew Espinosa. The American actor, YouTube vlogger, and Instagrammer (he has 5 million followers,)isa dab hand at the “look-at-my-crazy-life” genre of YouTube, but has recently been a victim of the video hosting site’s over-enthusiastic algorithms.
“Daily stories I’m posting—whatever it may be—a lot of that we can’t monetize,” he toldDecryptin an email.
The 21-year-old announced last week that he’s joiningVid, a new blockchain-based, short-form video sharing application where AI auto-generates videos from content synced to user-chosen music. Users can selectively reveal their content publicly to brand advertisers and “monetize their memories.”
The platform is due to launch in beta this month with 50 major influencers. Among others, actor/rapperJerry Purpdrank(9.2 million followers on YouTube-competitor Vine and 3 million on Instagram,) and actor/InfluencerPiques(9 million Facebook followers and 2 million on Instagram) have jumped on board.
The blockchain powered bits of these networks use zero-knowledge encryption, the basis for privacy-oriented cryptocurrency networks likeZCash, ensures consumer data is always secure–something YouTube hasstruggled withthis year.
Where YouTube pays outan average $7.60 for every thousand viewsof a video, Vid pays 1-10c every time someone clicks a video featuring an ad. Unlike YouTube, which skims off a commission, Vid users and influencers retain 100 percent of ad revenue and instead pay a $1.99 a month flat fee to use the platform.
“The money that Vid is making from the brands [is] going directly to creator’s pockets,” says Espinosa. “As a content creator, someone who needs to pay the bills—just like anyone else, that helps out a lot. They are taking care of the creators that are taking care of the platform.”
Technology influencer and Forbes 30 under 30 entrepreneurEvan Luthrahas a more modest following of half a million on Twitter and Instagram. His decision to sign up was largely driven by the presence of other influencers.
“I love the fact that they have a huge influencer network with a combined following of 375 million people ready to use the platform,” he toldDecrypt. If even one percent of those followers convert into users, that’s more users then Ethereum has today!”
Vid co-founder 29-year-old Jag Singh and his brother-partnerspent two years and $1.5 million of their own money building the product (which has seven patents pending). They made their fortunes founding a niche fuel company in the UK, which reached £25 million in annual revenue within two years.
The idea for Vid came about when they took a Go-Pro along with them on a ski trip and couldn’t find a platform to create the professional looking footage found on YouTube, he toldDecrypt.
“A lot of influencers have two or three editors, a cinematographer and all sorts of things for the YouTube videos they create. And here, with the click of a button, they can get a one-minute long video that they can monetize.”
But Singh believes that where other blockchain-based platforms, like Steemit, have failed is in thinking it’s enough to be a like-for-like YouTube copy.
“Automated videos of your life are the next iteration,” he firmly believes, and that’s separate to the blockchain element which lives quietly under the hood. “The average user may not even realize this, but I think it’s very important to have that transfer of value”—the feature enables the platform’s users to deal directly with brands.
Analystsestimate that the influencer market will be worth as much as $16 billion by 2020, as brands increasingly look to influencers to fuel growth. These user-brand connections are more efficient than traditional platforms; they automate workflows and eliminate the middlemen so that social networks are free to scale faster than ever.
But could they trigger the starting pistol for a social experiment many don’t want to be part of—a race to the bottom in the lengths creators are willing to go to serve audiences? Unfettered by moderators, these new content platforms open a pandora’s box of censorship-free content creation that’s beyond copyright infringement.
These are factors that YouTube is well aware of, as it ties itself in knots of self-censorship. Its response to demands by influential advertisers to remove controversial videos and channels has meant that the once experimental platform has been branded ‘Hollywoodesque’—safe, bland. Boring. A place made unprofitable due to its unfriendly algorithms.
Pew Research suggests that45 percent of teensare now online on a near-constant basis, and video content is expected to comprise nearly80 percentof all web traffic over the next year.Millennials, starved of choice, are looking for alternative video-centric platforms, with many valuing the increased authenticity and privacy that comes with them. The influencers, like modern-day Pied Pipers, will call the tune. YouTube will be hoping it’s not yet loud enough to lure users away.
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Venezuela's June oil exports recover to over 1 million bpd: data
By Marianna Parraga
(Reuters) - Venezuela's oil exports recovered in June from a sharp drop the month before, helped by increased deliveries to China, which is now state-run oil firm PDVSA's primary destination for its crude, according to company records and Refinitiv Eikon data.
PDVSA and its joint ventures exported 1.1 million barrels per day (bpd) of crude and refined products last month, a 26% increase over May. Chinese buyers took 59% of the shipments, followed by India with 18% and Singapore with 10%, the documents showed.
June data show the OPEC member nation has been able to restore the level of exports it maintained earlier this year, after the U.S. imposed sanctions on PDSVA in January designed to starve the nation of oil revenue. PDVSA has since reorganized its businesses to continue crude exports, which are the country's main source of revenue.
PDVSA did not reply to a request for comment.
The United States this year barred U.S. companies from dealings with PDVSA and recognized Venezuelan congress chief Juan Guaido as the country's legitimate leader on the grounds that President Nicolas Maduro's 2018 re-election was a sham.
Venezuelan oil exports to China have risen consistently since the sanctions hit, the data showed. In February, the volume shipped was 233,000 bpd, and in June it almost tripled to 656,000 bpd. However, PDVSA's exports to India, another large receiver, have declined to 200,000 bpd, while deliveries to Europe have remained around 85,000 bpd in recent months.
Under oil-for-loan agreements with China and Russia that have supplied billions of dollars to Venezuela in the last decade, PDVSA must deliver the largest portion of its oil exports to China National Petroleum Corp and Russia's Rosneft to repay the credits. Another share of the exports is exchanged for fuel purchases.
PDVSA imported 117,100 bpd of fuel in June, the third consecutive monthly drop. Rosneft and Spain's Repsol were the main suppliers of products, including gasoline, diluting naphtha, diesel and liquefied petroleum gas, according to the data.
Last month, PDVSA began tests to reshuffle crude production to favor exports of grades favored by Asian refiners. U.S. refiners that once were among Venezuela's largest receivers took no crude last month. Exports to Cuba last month declined after a May jump, the documents showed.
(Reporting by Marianna Parraga; editing by Jonathan Oatis)
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Gold Price Forecast – Gold markets rally
Gold markets rallieda bit during the trading session on Tuesday, reaching towards the $1400 level. That’s an area that of course causes a lot of resistance based upon the large, round, psychologically significant figure, and of course the gap that sits just above there. With that in mind I am still waiting to see some type of supportive candle that I can take advantage of, perhaps at one of the $25 level. The $1400 level of course is crucial, but then again the $1375 level will and then of course the $1350 level will as well.
The $1350 level is not only important from a structural standpoint considering that we can break above there, but the fact that there is a big gap there as well. It’s also the 50% Fibonacci retracement from the move higher, so I think there’s plenty of reason to think that we should be buying in that area. At this point, the market is very likely to be noisy, but I think that there will be plenty of buyers underneath as we continue to see the Federal Reserve cut interest rates, and therefore the market is trying to price at end. We got a little ahead of ourselves though, so a pullback makes quite a bit of sense.
Beyond that, we could get some type of shock to the system more negativity between the United States and China to turn Gold back around to the upside as well, so at this point I think it’s much easier to be a buyer on dips that if anything.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
• Natural Gas Price Fundamental Daily Forecast – Traders Looking for EIA Build of 85 Bcf
• USD/JPY Price Forecast – US dollar finds support on Wednesday
• Gold Price Prediction – Prices Whipsaw and Settle Unchanged
• E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – July 3, 2019 Forecast
• Natural Gas Price Forecast – Natural gas rallies to close out Wednesday
• GBP/USD Price Forecast – British pound looking for a bottom
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With A 2.8% Return On Equity, Is SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) A Quality Stock?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), by way of a worked example.
Over the last twelve monthsSS&C Technologies Holdings has recorded a ROE of 2.8%. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.028 in profit.
View our latest analysis for SS&C Technologies Holdings
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for SS&C Technologies Holdings:
2.8% = US$133m ÷ US$4.7b (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else equal,investors should like a high ROE. That means ROE can be used to compare two businesses.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see SS&C Technologies Holdings has a lower ROE than the average (9.7%) in the Software industry classification.
That's not what we like to see. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. Nonetheless, it could be useful todouble-check if insiders have sold shares recently.
Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
SS&C Technologies Holdings does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.71. Its ROE is quite low, even with the use of significant debt; that's not a good result, in my opinion. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of 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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10 Surprising Things Automation is Doing Right Now
In the early days of automation, machines took over repetitive tasks from manual laborers on assembly lines -- but these days, robots are taking on ever more complex tasks.
Today's advanced androids are preparing our meals,managing our money, filling our medical prescriptions and performing other tasks you'd probably never imagine.
Here are 10 futuristic uses of automation that — surprise! — are already here.
If you ever take in a game atDodger Stadium in Los Angeles, check out the tater tots and chicken tenders made by "Flippy."
Flippy is a robotic arm that was originally used to flip hamburgers at a Pasadena burger joint called CaliBurger. During its trial run at the Dodgers' ballpark last season, the device was able to produce up to 80 baskets of fried foods per hour.
Need some help with your own food prep? A company called Moley Robotics has designed arobotic kitchenthat does all the cooking for you by downloading and reproducing even complex gourmet recipes.
Rescue missions are often hindered by rough terrain — but not for much longer. Since traditional robots with wheels have limited mobility in disaster areas, a new breed of rescue-bots is now being designed specifically for rough topography.
MIT developed amechanical cheetahthat can navigate rugged terrain at almost 30 mph. It also can jump, spin, climb stairs and walk on three legs.
Meanwhile, Stanford researchers have been hard at work on an inflatablerobotic snakedesigned to grow and squeeze through tight gaps that are impossible for human rescuers to get through.
In the near future, you may get your prescriptions filled by a robot.
Human pharmacists are traditionally tasked with counting out and packaging pills, and mistakes happen. But the University of California San Francisco Medical Center found thatusing a robotcalled PillPick cut the prescription error rate from around 3% to nearly zero.
Robots also are also being used in hospitals to prep IVs and carry food, fresh linens and other items to patients.
While couture and handmade designer garments can't be produced by robots, machines are starting to take on simpler jobs in apparel-making, such as embroidery and the manufacturing of T-shirts.
Among the pioneering "sewbots" being tested, one named Lowry has shown itself capable of turning out17 times moreT-shirts per hour than a human worker.
Researchers hope robots like Lowry can one day become regular factory fixtures, and lead to declines in sweatshops and offshoring.
Thanks to technology, you don’t need to be rich to make wise investments in the stock market. Automation is making investing easier and more accessible than ever.
Available through smartphone apps,"robo-advisors"offer a wide range of services backed by smart algorithms that build and manage your portfolio and reinvest your dividends — for a fraction of the cost of traditional financial advisers.
With anautomated investing servicelike Wealthsimple, you choose your investing goals, how much you’d like to invest and how much risk you’re willing to take on. The system does all the work and even makes automatic adjustments to your portfolio as needed.
The hotel industry is full of routine, not-so-fun jobs that are perfect for robots, such as carrying luggage and delivering room service to guests.
Bots have been added to the staff at a few hotels around the world, but none have gone to the same extremes as the Henn-na Hotel in Nagasaki, Japan. Robotic dinosaurs checked guests in, and other androids carried bags and provided concierge recommendations.
But the hotel decided to unplug many of its automatons early in 2019 because they demonstrated the limits of the technology. They didn't perform their jobs very well, The Wall Street Journalreported.
In irresponsible hands, aerial drones can be a nuisance — or worse. But through lawful uses, drones are slowly changing our world.
Companies includingAmazonand UPS have begun experimenting with ways to make drone delivery a reality, which could lower carbon monoxide emissions from traditional delivery trucks.
The medical industry has pioneered the use of drones to handle remote shipments of much-needed blood for transfusions. Australia is even using drones to patrol beaches looking for sharks.
Robots are helping meet the health care demands of anaging population.
A robot in Singapore is used as a personal trainer to help keep older people in shape. The "robocoach" takes seniors through a series of exercises and can detect whether the routine is being done correctly.
Another elder care robot is the Paro seal, an adorable and responsive plush toy robot designed to bring the benefits of animal therapy to people with dementia. In Europe, a large, humanized robot named Mario provides companionship for dementia patients.
He may not be able to offer heartfelt condolences, but a robot named Pepper has been taught to bang a drum and deliver Buddhist sutras during traditional funeral services in Japan.
The bot also can also livestream a funeral, so loved ones who can't be there in person can be there in spirit.
Pepper's skills on behalf of the dearly beloved are still in the development stage, but some funeral homes are hoping the use of robotic officiants could ultimately help cut down service costs for low-income families.
Experts say automated cars will be taking over our roads any day now — but what about the skies?
Most commercial airplanes already fly on autopilot for several hours, and some advanced planes are programmed with the ability to land themselves if needed. Fully automated pilotless airplanes are already in the works.
Pilotless planes would have clear benefits for the military, as they have the potential to significantly reduce the loss of human life in combat and rescue operations.
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Roger Ver Compares Bitcoin Maximalists to Violent Left Extremists
In a five-minute video blog this week, Roger Ver compared violent leftists to Bitcoin maximalists, concluding that they share tactics and ideology.
A group of “Antifa” or anti-fascist demonstrators recentlybeat up a journalist, which has reignited the conversation around “free speech.”
Ver then discussed the “punch a Nazi” meme or the question of whether or not it’s okay to punch a Nazi. Touching briefly on what happened to a journalist at an Antifa rally, Ver gets to the point: the same group thinking, violent mentality deployed by Antifa is prevalent among Bitcoin “maximalists.”
For years, Ver has asserted thatmoderating on Reddit and BitcoinTalkamount to “censorship” of dissenting views. Ver has always believed that increasing the block size was the first and most valid way to scale the Bitcoin blockchain.
Gradually, a philosophical divide emerged between Ver and other veteran members of the community. Over years, these groups solidified into “big block” and “small block” camps.
Each has enough people to form a “community,” and that’s precisely what they did in 2017, with the establishment of Bitcoin Cash.
Read the full story on CCN.com.
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I Ran A Stock Scan For Earnings Growth And Old Second Bancorp (NASDAQ:OSBC) Passed With Ease
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inOld Second Bancorp(NASDAQ:OSBC). 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.
See our latest analysis for Old Second Bancorp
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). That makes EPS growth an attractive quality for any company. It certainly is nice to see that Old Second Bancorp has managed to grow EPS by 32% per year over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Not all of Old Second Bancorp'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. Old Second Bancorp maintained stable EBIT margins over the last year, all while growing revenue 16% to US$123m. That's progress.
You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
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 Old Second Bancorp EPS100% free.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. So it is good to see that Old Second Bancorp insiders have a significant amount of capital invested in the stock. To be specific, they have US$16m worth of shares. That's a lot of money, and no small incentive to work hard. Even though that's only about 4.2% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.
For growth investors like me, Old Second Bancorp's raw rate of earnings growth is a beacon in the night. I think that EPS growth is something to boast of, and it doesn't surprise me that insiders are holding on to a considerable chunk of shares. Fast growth and confident insiders should be enough to warrant further research. So the answer is that I do think this is a good stock to follow along with. Now, you could try to make up your mind on Old Second Bancorp 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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Silver Price Forecast – Silver markets filled the gap
Silver marketswent back and forth during the trading session on Tuesday as we started to fill the gap. That being the case, the 50 day EMA also offer support underneath the $15.00 level which of course is also a psychologically important level to pay attention to. Overall, I think that the buyers are going to come back into the market relatively soon, but this market could need a little bit help from the gold market as it is a long way away from the gap underneath over there that could lift the market.
If we can break above the top of the candle stick for the trading session on Tuesday, then the market probably goes looking towards the $15.50 level above, which is a major resistance barrier. If we can clear that level, then we could go looking towards the $16.00 level. Overall, this is a market that could move based upon the US dollar as well, so pay attention to how it is behaving. If it starts to fall that could lift silver by proxy, so therefore I believe that the currency markets will have their say when it comes to precious metals as well.
Expect a lot of choppy nonsense in the meantime though, as we are currently in the middle of summer and of course a lot of questions still haunt the markets based upon central bank actions, global growth, and the US/China trade situation as well. In other words, confusion still is the main feature of global markets, with silver being no different.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
• Natural Gas Price Fundamental Daily Forecast – Traders Looking for EIA Build of 85 Bcf
• GBP/JPY Price Forecast – British pound looking for buyers
• Gold Price Futures (GC) Technical Analysis – Traders Respecting Short-Term Pivot at $1413.80
• Crude Oil Price Forecast – Crude oil markets bounced slightly on Wednesday
• USD/JPY Price Forecast – US dollar finds support on Wednesday
• Forex Recap – Greenback Managed to Hold Gains Despite Adverse US Data
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S&P 500 Price Forecast – Stock markets tread water
The S&P 500continues to go sideways overall as we don’t really have a direction yet. Yes, we gapped higher to kick off the week, but since then really haven’t done anything as we are waiting for the next catalyst. The next catalyst of course will be the jobs number on Friday, as we now have gotten at least a bit of positive movement of the US/China variety. Ultimately though, we have yet to fill the gap so we could get a short-term pullback towards the 2950 level. As long as that level holds, it’s very likely that we will continue to find buyers.
We also recognize the 3000 level above as a significant barrier, so if we can break above there it could send this market much higher. I think it’s going to be difficult, but in the meantime it’s likely that we are going to see a bit of volatility, but we can get a decent jobs number in America without it being too strong or weak, we could see this market continue to go higher. Obviously, we are in a bullish trend but the reality is that we don’t have much in the way of a reason to expect the market to rally between now and Friday. Having said that, I don’t necessarily see a reason to start selling either. Ultimately, we are essentially in a holding pattern as we are getting ready to head into a major holiday in the United States, leaving only minor electronic trading during parts of the week.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
• S&P 500 Price Forecast – Stock markets reached towards highs again
• Crude Oil Price Forecast – Crude oil markets bounced slightly on Wednesday
• Natural Gas Price Fundamental Daily Forecast – Traders Looking for EIA Build of 85 Bcf
• E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – July 3, 2019 Forecast
• Silver Price Forecast – Silver markets all over the place on Wednesday
• Crude Oil Price Update – Test of $55.54 to $54.42 Could Attract Buyers
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Is There An Opportunity With STAAR Surgical Company's (NASDAQ:STAA) 48% Undervaluation?
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How far off is STAAR Surgical Company (NASDAQ:STAA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the foreast future cash flows of the company and discounting them back to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
Check out our latest analysis for STAAR Surgical
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2020": "$14.2m", "2021": "$40.1m", "2022": "$62.9m", "2023": "$88.4m", "2024": "$114.2m", "2025": "$138.4m", "2026": "$160.1m", "2027": "$179.0m", "2028": "$195.3m", "2029": "$209.3m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 56.7%", "2023": "Est @ 40.51%", "2024": "Est @ 29.18%", "2025": "Est @ 21.24%", "2026": "Est @ 15.69%", "2027": "Est @ 11.8%", "2028": "Est @ 9.08%", "2029": "Est @ 7.17%"}, {"": "Present Value ($, Millions) Discounted @ 8.12%", "2020": "$13.1", "2021": "$34.3", "2022": "$49.8", "2023": "$64.7", "2024": "$77.3", "2025": "$86.6", "2026": "$92.7", "2027": "$95.8", "2028": "$96.7", "2029": "$95.8"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $706.8m
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 8.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$209m × (1 + 2.7%) ÷ (8.1% – 2.7%) = US$4.0b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$4.0b ÷ ( 1 + 8.1%)10= $1.83b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $2.53b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $56.94. Relative to the current share price of $29.74, the company appears quite undervalued at a 48% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at STAAR Surgical as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.1%, which is based on a levered beta of 0.905. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For STAAR Surgical, I've put together three additional aspects you should look at:
1. Financial Health: Does STAA 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 STAA'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 STAA? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Is Omnicell, Inc. (NASDAQ:OMCL) Overpaying Its CEO?
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Randy Lipps became the CEO of Omnicell, Inc. (NASDAQ:OMCL) in 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Omnicell
At the time of writing our data says that Omnicell, Inc. has a market cap of US$3.6b, and is paying total annual CEO compensation of US$6.3m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$690k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.2m.
So Randy Lipps receives a similar amount to the median CEO pay, amongst 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 a visual representation of the CEO compensation at Omnicell, below.
Omnicell, Inc. has increased its earnings per share (EPS) by an average of 51% a year, over the last three years (using a line of best fit). Its revenue is up 8.1% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
I think that the total shareholder return of 147%, over three years, would leave most Omnicell, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Randy Lipps is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want tocheck for free if Omnicell insiders are buying or selling shares.
If you want to buy a stock that is better than Omnicell, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Mass. Mom With 'Kind Heart' Killed in Road Rage Stabbing, as Suspect Turns Herself in 15 Minutes Later
Mass. Mom With 'Kind Heart' Killed in Road Rage Stabbing, as Suspect Turns Herself in 15 Minutes Later A 13-year-old Massachusetts boy was left motherless following a deadly road rage incident late last week involving two strangers, PEOPLE confirms. A statement from the Plymouth County District Attorney’s Office details the allegations against Jacqueline Mendes, the 32-year-old Fall River woman accused of stabbing 41-year-old Jennifer Landry of Brockton in the neck Friday afternoon. According to the statement, the fatal incident happened at 3:45 p.m. in Brockton. Fifteen minutes later, Mendes turned herself over to police. Mendes remains in custody without bail on murder and assault charges. She entered not guilty pleas to those counts Monday. It was unclear Tuesday if she had retained the services of an attorney who could comment on the allegations. Police arrived at the scene after receiving numerous 911 calls, finding Landry “bleeding profusely and suffering from a stab wound to the right side of her neck,” reads the statement. She was treated at the scene and rushed by helicopter to Boston Medical Center, where she would die Saturday. According to the statement, Mendes walked into the Brockton Police Department’s headquarters Friday “and reported to police that she was in an altercation with a motorist” and that, while “there was no accident,” she allegedly confided “there may have been a stabbing involved.” Jacqueline Mendes | Brockton Police Department A more specific motive for the violence is not mentioned in the statement. “A traffic confrontation ensued between Mendes and Landry prior to the stabbing,” the statement reads. “Mendes allegedly stabbed Landry with a knife and re-entered her vehicle and fled the scene.” Mendes is scheduled to appear in court next on August 8. The murder has devastated Landry’s loved ones. • Want to keep up with the latest crime coverage? Click here to get breaking crime news, ongoing trial coverage and details of intriguing unsolved cases in the True Crime Newsletter. “This wasn’t supposed to happen to her,” her sister, Denise Landry, posted to Facebook. “Not my baby sis. … I’m defeated but I love my sister with all my heart.” Heather Niles, a friend of Landry’s sister, told the Herald News the doting mother was kind to all . “She was a sweet girl,” Niles said. “She was funny. She had a kind heart. She cared about everybody. She didn’t have an unkind bone in her body. For something like this to happen, over something so ridiculous, just doesn’t make any sense.”
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Lagarde to rely on political skill to overcome shortcomings at ECB
By Balazs Koranyi
FRANKFURT (Reuters) - A shrewd negotiator who has run the IMF but has little monetary policy experience, Christine Lagarde will face the challenge as the European Central Bank's new chief of having to revive the euro zone economy with a largely depleted policy arsenal.
Once France's first woman finance minister, and head of the International Monetary Fund since 2011, she is a strong advocate of female empowerment who has long argued that more women in banking and regulation would improve financial stability.
Lagarde has already appointed the IMF’s first female chief economist, Harvard University’s Gita Gopinath, and she is also certain to start breaking down a gender barrier at the ECB - an institution still dominated by men, despite having long set equality as a priority.
"Christine Lagarde will, with her international background and standing as the current managing director of the IMF, be a perfect president of the ECB," Donald Tusk, the outgoing chairman of EU summits, said on Tuesday.
Lagarde, who unreservedly rejected the suggestion of taking up the ECB job till recently, called the nomination to succeed Italy's Mario Draghi from Nov. 1 an "honour" and said she would temporarily give up her role at the IMF during the nomination process.
While her confirmation could be lengthy, it is likely to be largely a formality as long as the euro zone's biggest member states - Germany, France and Italy - are in unity.
LEHMAN SISTERS
Lagarde, 63, has blamed the global financial crisis a decade ago in part on testosterone-fuelled greed, once saying: "If it had been Lehman Sisters rather than Lehman Brothers, the world might well look a lot different today."
Consistently ranked among the top 10 most powerful women by Forbes magazine, she has rebuilt the IMF's credibility following Greece's 2010 bailout, which not only bent the Fund's own rules but needed to be followed up with more aid over years.
A former synchronized swimmer, Lagarde presided over the IMF's biggest bailout, a $57 billion deal for Argentina last year that was widely credited with arresting emerging market turbulence that risked derailing global growth.
Lagarde's immediate challenge at the ECB would be to overcome her shortcomings in monetary policymaking, especially as it seeks to rearm for a potential new slump after years of using unconventional policy tools to stimulate inflation and growth.
A former antitrust lawyer with Baker McKenzie, the divorced mother of two became French finance minister in 2007, then took over at the IMF when a sex scandal forced her predecessor Dominique Strauss-Kahn to quit.
A non-economist leading a major central bank is unusual, although U.S. Federal Reserve chairman Jay Powell is also a trained lawyer and spent much of his career in private equity.
"The initial criticism is obvious: no central bank experience, not the top-notch economics education, another former politician at the head of the ECB," ING economist Carsten Brzeski said. "However, let’s not forget the old saying 'the king is dead, long live the king'".
Another complication for Lagarde, a vegetarian with a keen sense for fashion, would be her 2016 conviction on negligence charges over a state payout made in 2008 while she was finance minister. While judges said her failure to contest a 400 million euro state settlement led to a misuse of public funds, she escaped punishment and the IMF board reaffirmed her in her post.
But Lagarde also has a global perspective that many of her rivals for the ECB job lack.
She has spent much of this year warning about the global impact of the U.S.-China trade war and vowed to maintain the IMF's lending firepower -- about $1 trillion -- so it could backstop any scenario.
(Additional reporting by David Lawder in Washington; Editing by Catherine Evans and Gareth Jones)
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Return on Equity (ROE): Definition and Examples
Return on equity (ROE) measures how well a company generates profits for its owners. It is defined as the business’ net income relative to the value of its shareholders’ equity. It reveals the company’s efficiency at turning shareholder investments into profits. Since ROE takes the net income from a business’ income statement and the shareholders’ equity from itsbalance sheet, it can be seen as the amount that would be left over for shareholders if the company liquidated its assets and paid off its debts.
ROE helps investors choose investments and can be used to compare one company to another to suggest which might be a better investment. Comparing a company’s ROE to an average for similar companies shows how it stacks up against peers. Here’s how ROE is calculated, plus how you can use it toanalyze your potential investments.
How to Calculate a Company’s Return on Equity
Sometimes ROE figures are compared at different points in time. This can show whether a company’s management is making good decisions in order to generate income for shareholders. Declining ROE suggests the company is becoming less efficient at creating profits and increasing shareholder value.
To calculate the ROE, divide a company’s net income by its shareholder equity. Here’s a look at the formula:
• ROE = Net Income / Shareholder Equity
The result of this equation is then usually expressed as a percentage or ratio.
For example, let’s say a company has $1.2 million in net income, $200,000 in preferred dividends and $10 million in shareholder equity. First, we’ll subtract the preferred dividends from the net income:
• $1.2 million – $200,000 = $1 million
Then we’ll divide that net income by shareholder equity:
• $1 million / $10 million = 10%
This equals a ROE of 10%. This result shows that for every $1 of common shareholder equity the company generates $10 of net income, or that shareholders could see a 10% return on their investment.
As a general rule, the net income and equity must be positive numbers in order to demonstrate ROE. Additionally, a higher ROE is better. Lastly, the best way to calculate ROE is to use the average of the beginning and ending equity for common stockholders with preferreddividendsnot included. The result could tell investors to consider a company with a higher ROE a better investment than similar organizations.
What ROE Really Means
A company’s management can use ROE internally to determine if they’re making good decisions that efficiently generate profits. When used for this purpose, ROE may be calculated annually or quarterly, and then compared over a span of five or 10 years.
While the general rule is that a higher ROE is better, it’s worth noting that it does not necessarily mean more profits for shareholders. Holders of preferred dividend-paying shares may see higher dividend payouts if ROE is rising. However, common stockholders only benefit financially if profits are retained and the stock price rises.
Also, high ROE doesn’t always mean management is efficiently generating profits. In addition to changes in net income, ROE can also be affected by the amount that a company borrows. Increasing debt levels can cause ROE to grow even when management is not necessarily getting better at generating profit. Share buybacks and asset write-downs may also cause ROE to rise when the company’s profit is declining.
ROE Across Industries
When comparing one company’s ROE to another, it’s important to compare figures for similar firms. That’s because different industries tend to have different ROEs. And what looks like a good ROE in one sector may be a weak ROE in another.
For example, let’s say an investor is looking to invest in one of two software companies. Company A is an entertainment software company with an ROE of 13%. Company B is an internet software company with an ROE of 6%. At first glance, the investor may decide to choose company A for its higher ROE. However, it’s important that the investor look more closely at the specific sectors of the software industry. Company B’s ROE may actually be higher than average for the internet software sector, while company A’s ROE may actually be below the entertainment software sector’s average.
A 2019analysisof more than 6,000 firms across more than 100 industries found ROE averaged about 15.6%. The highest ROE in this study belonged to building supply retailers, which boasted an average ROE of nearly 96%. Other high ROEs were seen in broadcasting companies (82%) and railroad transportation companies (52%). Low ROEs in this study belonged to consumer and office electronics firms, which showed a -33% ROE. Precious metals and tobacco were also low, with both ROEs close to -3%.
An industry’s average ROE can change over time depending on external factors such as competition. On a company basis, a negative ROE may be caused by one-time factors such as restructurings that depress net income and produce net losses. A company or an industry with negative ROE can still be a good investment if business operations are producing generous free cash flow, or money that’s left over after a company pays for its operating expenses and capital expenditures.
If you’re consideringinvesting in the stock market, a look at the average ROE for some of the largest public companies could also help you understand what a good ROE looks like. For example, a report by the FDIC found that the weighted average ROE for the10 largest S&P 500 companies by market cap in 2017was 18.6%. At the time, Apple Inc. had an ROE of 36.9% while Facebook Inc. had an ROE of 19.7%.
Other Key Metrics
ROE is one of many numbers investors and managers use to measure return and support decision-making.Return on investment (ROI), for instance, is a similar figure that divides net income by investment. However, unlike ROE, ROI does not include debt.
ROI helps show a company’s return on investor money before the effects of any borrowing. If ROE is positive while ROI is negative, the company could be using borrowed money instead of internally generated profits to survive.
Return on capital (ROC) is another ratio commonly used to analyze companies. The formula for this varies, but one version divides net after-tax operating profit by invested capital. Using after-tax operating profit instead of net income removes any gains from selling assets or interest on loans.
The figure for capital in ROC is represented by book value of the owners’ equity. That includes debt but not cash. By leaving out non-operating income and cash assets, ROC reveals how much profit is being generated by the business operations.
The Bottom Line
ROE can help investors make smart decisions with their money. Understanding what ROE means and how to use it when comparing companies can help you craft a smart investment strategy. Be mindful of how companies are working to achieve their positive ROE and aim to compare companies within the same industry and sector before deciding where to invest your money. With a little research, you’ll be able to make smart money moves and invest in a company with a good ROE.
Tips For Investors
• If you’re still unsure where to invest your money, consider working with a financial advisor. Finding the right financial advisor thatfits your investment needsdoesn’t have to be hard.SmartAsset’s free toolmatches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals,get started now.
• Investing money in the stock marketcould help your money grow significantly over time. Stocks come with the power of compound interest and with the right strategy you could see a large return on your investment. If you’re ready to invest in stocks on your own, consider anonline brokerageorrobo-advisor.
Photo credit: ©iStock.com/wutwhanfoto, ©iStock.com/Andrii Yalanskyi, ©iStock.com/PeopleImages
The postReturn on Equity (ROE): Definition and Examplesappeared first onSmartAsset Blog.
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Is STAG Industrial, Inc. (NYSE:STAG) A Healthy REIT?
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STAG Industrial, Inc. is a US$3.9b mid-cap, real estate investment trust (REIT) based in Boston, United States. REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential. The structure of STAG is unique and it has to adhere to different requirements compared to other non-REIT stocks. In this commentary, I'll take you through some of the things I look at when assessing STAG.
See our latest analysis for STAG Industrial
REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. FFO is a higher quality measure of earnings because it takes out the impact of non-recurring sales and non-cash items such as depreciation. These items can distort the bottom line and not necessarily reflective of STAG’s daily operations. For STAG, its FFO of US$198m makes up 70% of its gross profit, which means the majority of its earnings are high-quality and recurring.
STAG's financial stability can be gauged by seeing how much its FFO generated each year can cover its total amount of debt. The higher the coverage, the less risky STAG is, broadly speaking, to have debt on its books. The metric I'll be using, FFO-to-debt, also estimates the time it will take for the company to repay its debt with its FFO. With a ratio of 15%, the credit rating agency Standard & Poor would consider this as significantly high risk. This would take STAG 6.72 years to pay off using operating income alone. Given that long-term debt is a multi-year commitment this is not unusual, however, the longer it takes for a company to pay back debt, the higher the risk associated with that company.
I also look at STAG's interest coverage ratio, which demonstrates how many times its earnings can cover its yearly interest expense. This is similar to the concept above, but looks at the upcoming obligations. The ratio is typically calculated using EBIT, but for a REIT stock, it's better to use FFO divided by net interest. With an interest coverage ratio of 4.05x, it’s safe to say STAG is generating an appropriate amount of cash from its borrowings.
In terms of valuing STAG, FFO can also be used as a form of relative valuation. Instead of the P/E ratio, P/FFO is used instead, which is very common for REIT stocks. In STAG’s case its P/FFO is 19.55x, compared to the long-term industry average of 16.5x, meaning that it is slightly overvalued.
STAG Industrial can bring diversification into your portfolio due to its unique REIT characteristics. Before you make a decision on the stock today, keep in mind I've only covered one metric in this article, the FFO, which is by no means comprehensive. I'd strongly recommend continuing your research on the following areas I believe are key fundamentals for STAG:
1. Future Outlook: What are well-informed industry analysts predicting for STAG’s future growth? Take a look at ourfree research report of analyst consensusfor STAG’s outlook.
2. Valuation: What is STAG 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 STAG is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Accuity Brands Earnings: AYI Stock Sinks on Disappointing Sales, Outlook
Accuity Brands earnings for the company’s fiscal fourth quarter of 2019 has AYI stock down on Tuesday.
Source: Shutterstock
Accuity Brands(NYSE:AYI) starts off its earnings report for its fiscal third quarter of the year with revenue of $947.60 million. This is better than the company’s revenue of $944.00 million reported in the same period of the year prior. However, it was a blow to AYI stock by missing Wall Street’s revenue estimate of $971.45 million for the quarter.
Accuity Brands notes that there were a couple of reasons behind its weak revenue growth for its most recent earnings report. This includes unfavorable foreign exchange rate changes, as well as adopting Accounting Standards Codification 606, Revenue from Contracts with Customers.
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Accuity Brands earnings for its fiscal third quarter of 2019 also has it reporting earnings per share of$2.53. This is an increase over the company’s earnings per share of $2.37 from the same time last year. It also comes in above analysts’ earnings per share estimate of $2.47 for the quarter, but couldn’t stop AYI stock from falling today.
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The Accuity Brands earnings report also includes a poor outlook for its upcoming fiscal fourth quarter of 2019. This includes Vernon Nagel, Chairman, President, and CEO of the company, saying that “fiscal fourth quarter net sales could be down modestly compared with prior year’s net sales.”
AYI stock was down 6% as of noon Tuesday. However, the stock is up 22% since the start of the year.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
The postAccuity Brands Earnings: AYI Stock Sinks on Disappointing Sales, Outlookappeared first onInvestorPlace.
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Universal Display Corporation (NASDAQ:OLED) Has A ROE Of 12%
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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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Universal Display Corporation (NASDAQ:OLED).
Universal Display has a ROE of 12%, based on the last twelve months. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.12.
See our latest analysis for Universal Display
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Universal Display:
12% = US$83m ÷ US$716m (Based on the trailing twelve months to March 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. 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. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. The image below shows that Universal Display has an ROE that is roughly in line with the Semiconductor industry average (14%).
That isn't amazing, but it is respectable. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. I will like Universal Display better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
One positive for shareholders is that Universal Display does not have any net debt! Its ROE already suggests it is a good business, but the fact it has achieved this -- and doesn't borrowings -- makes it worthy of further consideration, in my view. At the end of the day, when a company has zero debt, it is in a better position to take future growth opportunities.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
Of courseUniversal Display 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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Elizabeth Warren calls on ex-FDA chief to resign from Pfizer board
Massachusetts Sen.Elizabeth Warrenwent after the former commissioner of theFood and Drug Administrationon Tuesday, calling for his resignation from pharmaceutical giant Pfizer’s board of directors.
Warren, a leading 2020 Democratic presidential candidate, slammed Scott Gottlieb for joining Pfizer's board just two months after resigning from the agency that’s in charge of regulating the drugmaker.
“This kind of revolving door influence-peddling smacks of corruption, and makes the American people rightly cynical and distrustful about whether high-level Trump administration officials are working for them, or for their future corporate employers,” Warren wrote in a letter addressed to Gottlieb.
Pfizer is one of the world’s biggest drugmakers and has been a target of President Trump, who slammed the company for raising drug prices.
“Pfizer & others should be ashamed that they have raised drug prices for no reason,” the president Tweeted last year. “They are merely taking advantage of the poor & others unable to defend themselves, while at the same time giving bargain basement prices to other countries in Europe & elsewhere.”
In 2018, Warren -- a fierce consumer advocate -- said that Pfizer board members received $142,500 in cash retainers, in addition to $192,500 worth of stock. She’s previously introduced legislation to prevent senior government officials from being hired by public companies for at least four years after leaving their posts.
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But in a tweet on Tuesday, Gottlieb said he had a “productive relationship” with Warren and said that he would respond “promptly, directly and privately.”
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What Kind Of Shareholders Own CEVA, Inc. (NASDAQ:CEVA)?
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Every investor in CEVA, Inc. (NASDAQ:CEVA) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of US$542m, CEVA is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about CEVA.
View our latest analysis for CEVA
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.
CEVA already has institutions on the share registry. Indeed, they own 88% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at CEVA's earnings history, below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in CEVA. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can see that insiders own shares in CEVA, Inc.. As individuals, the insiders collectively own US$11m worth of the US$542m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checkingif those insiders have been selling.
The general public holds a 10% stake in CEVA. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Chinese officials reportedly installed a surveillance app on tourists' phones
Chinese border guards arereportedly installing surveillance appson the phones of some travelers. According to an investigation by theGuardian,The New York TimesandSüddeutsche Zeitung, the app extracts emails, texts and contacts, as well as info about the device. Without notifying phone owners, border guards have installed the app when people attempt to cross from the Kyrgyzstan region to theXinjiang region, an area where the Chinese government has long restricted the freedoms of the Muslim population.
Travelers crossing the border have been asked to turn their phones and passwords over to officials. Some Android phones have been returned with an app called Fēng cǎi. According to theGuardian, there's no English translation, but it has to do with bees collecting honey. Cybersecurity experts say the app could be used to search the phone for a list of content that the authorities consider problematic -- anything from texts associated with Islamist extremism to information about fasting during Ramadan and music by the Japanese metal band Unholy Grave. The app hasn't appeared on any iPhones, but those devices are also taken away to a separate room, where they could be plugged in and scanned.
Whilewarrantless device searcheshappen in the US, this kind of surveillance is all too common in China's Xinjiang region, where the country hastargeted Uighur Muslims. One facial recognition firm was found to betracking over 2.5 million peoplethere. And perhaps it's more alarming, given that it's being carried out by a country where even the mostminor political associationcan get you jailed.
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Heavy rainfall ends prolonged drought in Southern Plains
OKLAHOMA CITY (AP) — The rooms at Crappie King Cabins near northwestern Oklahoma's Canton Lake were mostly empty when much of the state and the rest of the Southern Plains were in the grip of a prolonged, withering drought that sent lake levels plummeting. "Our business was really down, it sure was," said Donnie Jinkens, who owns the group of cabins named for the game fish that attracts anglers to the popular recreational lake. "We were really struggling for a long time." But Jinkens is reeling in the lodgers these days after one of the wettest springs on record pushed Canton Lake, about 90 miles (145 kilometers) northwest of Oklahoma City, 10 feet (3 meters) above its normal level, with some campgrounds, beaches and ramps still closed. The rain caused severe flooding throughout the Midwest but also helped alleviate drought conditions in Oklahoma, Kansas, Arkansas and most of Texas that had persisted for more than two years. "It's helped our business. We're at least 85% full, and through the springtime we were at probably 100%," said Jinkens, adding that rooms were barely at 25% capacity during the height of the drought, even during the annual Canton Lake Walleye Rodeo, Oklahoma's oldest and largest fishing tournament, which took place before the heavy rain arrived in late May. Since Jan. 1, Oklahoma has received an average of about 27 inches (68.6 centimeters) of rain, which is almost 8 inches (20.3 centimeters) above normal and the fourth wettest six-month period in nearly a century, according to the Oklahoma Climatological Survey. During the drought, the U.S. Army Corps of Engineers said that in May 2018, the equivalent of 1.16 billion gallons (4.4 trillion liters) of water flowed into Canton Lake from its 7,601 square-mile (19,686 square-kilometer) drainage area. In May 2019, more than 25.8 billion gallons (97.7 trillion liters) flowed into the lake. "There's substantially more water there now," said Preston Chastee, deputy chief of public affairs for the Corps's Tulsa District. Story continues The U.S. Drought Monitor, an assessment of drought conditions across the nation, indicates that Oklahoma was drought-free as of June 25. A year earlier, more than 72% of the state was experiencing some degree of drought, including 28% of the state that was in severe drought and almost 12% in extreme drought. "Everybody has received ample rainfall," said Oklahoma's state climatologist, Gary McManus. Heavy rainfall caused catastrophic flooding along the Arkansas River basin in eastern Oklahoma, where up to 30 inches of rain was recorded, and downriver into Arkansas. Other rivers in the central U.S., including the Mississippi, flooded periodically throughout the spring, causing billions of dollars in damage to homes, businesses and farmland. Drought-free conditions were also reported in Kansas, which recorded its wettest month on record in May, with an average of 10.26 inches of rain, which was 240% above normal. Arkansas, too, has emerged from the drought following this spring's downpours and flooding. One year ago, almost 73% of Kansas and 69% of Arkansas were experiencing some degree of drought, according to the Drought Monitor. In Texas, almost 96% of the state is drought-free, with only a small portion of southwestern Texas still classified as abnormally dry or in moderate drought. Last year, nearly 73% of the state was experiencing drought conditions. Texas State Climatologist John Nielsen-Gammon, a professor of meteorology at Texas A&M University and director of the Texas Center for Climate Studies, said an El Nino weather pattern brought on by the natural warming of parts of the Pacific Ocean brought wetter-than-normal conditions to the Southern Plains and other drought-stricken areas of the southwestern U.S. "We still have El Nino conditions in place," Nielsen-Gammon said, increasing the likelihood of plentiful rainfall and below-average temperatures through September. Much of the central U.S. is expected to remain wetter than normal throughout the summer, according to the National Integrated Drought Information System. "It's been so wet it helps for the summertime temperatures," Nielsen-Gammon said. "Summer temperatures will tend to be a degree or so cooler than they otherwise would be." ___ Associated Press photographer Sue Ogrocki in Canton, Oklahoma, contributed to this report.
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Tanks in Washington ahead of Trump's Fourth of July pageant
By Andy Sullivan and Idrees Ali WASHINGTON (Reuters) - Battle tanks were seen on a train in Washington on Tuesday ahead of a July Fourth celebration highlighting U.S. military might that Democrats say President Donald Trump may turn into a re-election campaign rally. Amid questions about the cost and tone of the event, White House officials said the Republican president will avoid politics and stick to patriotic themes in his speech in front of the Lincoln Memorial in Washington on Thursday. Reuters photographed M1 Abrams tanks and other armored vehicles atop flat rail cars in Washington on Tuesday morning, a sign of the military firepower that will be featured, differing significantly from past annual celebrations of the 1776 Declaration of Independence. For decades, U.S. presidents have kept a low profile during the event, which typically draws hundreds of thousands of people to Washington's monument-lined National Mall for a concert and fireworks. This year, Trump plans to speak at a military "Salute to America" that will feature military bands and flyovers from the U.S. Navy's Blue Angels and Air Force One, the modified Boeing 747 that transports U.S. presidents. The event could also feature M1 Abrams battle tanks, a B-2 bomber, F-35 and F-22 fighter jets, and the Marine One helicopter that transports the president, the Pentagon said. Air traffic at nearby Ronald Reagan National Airport will be suspended during the flyovers and the fireworks, according to the Federal Aviation Administration. The antiwar group Code Pink said it had secured a permit to bring a "Baby Trump" blimp, depicting the president in diapers, to a protest in the Mall during his speech. The permit does not allow the balloon to be filled with helium so it can float. Democrats in Congress have questioned whether Trump will turn a patriotic celebration into a taxpayer-funded campaign rally. "That's absolutely ridiculous. This is all about a salute to America. The president is not going to get political," White House spokesman Hogan Gidley said on Fox Business Network. Story continues On June 18, Trump officially launched his 2020 campaign to seek a second four-year term. More than 20 Democrats are campaigning for their party's nomination to run against Trump. The administration has not said how much Trump's pumped-up July Fourth celebration will cost. The Pentagon postponed a military parade planned for last November after it estimated it could cost $90 million. The National Park Service is diverting about $2.5 million in entrance and recreation fees primarily intended to improve parks to cover costs associated with the celebration, the Washington Post reported, citing unnamed sources. The agency did not immediately respond to a Reuters request for comment on the report. "It is unacceptable that the Interior Department is failing to inform Congress about how it plans to spend taxpayer money to fund the president’s lavish July Fourth plans, which reportedly include special access to the National Mall for the politically connected," Democratic Senator Tom Udall said in a statement. A VIP section set up near the Lincoln Memorial will be open to government officials and lawmakers, according to a White House official speaking on condition of anonymity. In previous years, government officials and other VIPs have watched the fireworks from the White House lawn. (Reporting by Andy Sullivan and Idrees Ali; additional reporting by Steve Holland, Kevin Fogarty, Makini Brice and Susan Heavey; Editing by Grant McCool and Lisa Shumaker)
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Under pressure from Trump, OPEC embraces Putin
By Olesya Astakhova, Dmitry Zhdannikov and Bozorgmehr Sharafedin
VIENNA (Reuters) - When Vladimir Putin announced at the weekend that OPEC would extend oil production cuts, broadcasting a deal before the group had even met to approve it, the move angered some member nations.
They were dismayed at the leading role non-OPEC Russia, once seen as the group's rival in oil markets, was playing in shaping the group's policies.
But reality soon set in, and the acceptance that Moscow could help OPEC in its goal of propping up oil prices at a time when it is facing intensifying heat on another front: from U.S. President Donald Trump.
Trump is putting unprecedented pressure on OPEC and its de-facto leader Saudi Arabia, demanding they pump more crude to drive down fuel prices - a key domestic issue for him as he seeks re-election next year.
Iranian Oil Minister Bijan Zanganeh initially expressed outrage about Russian President Putin's pre-announcement of the extended output cuts.
"OPEC is going to die with these processes," he declared on Monday morning, before OPEC oil ministers met to effectively rubber-stamp a done deal, bemoaning the Russia-Saudi dominance of the group's affairs.
But by Monday evening, he had thrown his support behind the deal: "The meeting was good for Iran and we achieved what we wanted."
OPEC and Russia have become unlikely bedfellows, forging an "OPEC+" alliance to reduce global crude supply to counter soaring output from the United States and a weakening world economy.
It is a marriage of convenience as both want higher oil prices to shore up their finances, while the alliance could also strengthen OPEC's position in the face of Trump's demands.
"I don't think Russia is calling the shots," said Saudi Energy Minister Khalid al-Falih when asked if Putin was now OPEC's boss. "I think Russia's influence is welcome."
Iran's veteran OPEC governor Hossein Kazempour Ardebili concurred, echoing his boss Zanganeh's conciliatory tone.
"Russia is a big player. If it announced something in agreement with the rest of OPEC, this is most welcome," he said. "We are working together."
Iraq, which has overtaken Iran as OPEC's second-largest producer after Saudi Arabia and has taken its market share in Europe and Asia, also said Moscow's rising role was positive.
Such a chorus of approval is a sharp reversal for relations between OPEC and Russia that have been characterised by antipathy and distrust for decades.
Back in 2001, Russia agreed to cut production in tandem with OPEC but never delivered on its pledges and instead raised output. That severely damaged relations, and other attempts at cooperation were unsuccessful - until the recent alliance.
In his book "Out of the Desert", former Saudi Oil Minister Ali al Naimi wrote that his 2014 meeting with Russian officials lasted just minutes. Upon learning Russia would not cut output, he gathered his papers and said: "I think the meeting is over."
CHANGING DYNAMICS
Putin announced on Saturday that he had met Saudi Crown Prince Mohammed bin Salman on the sidelines of a G20 meeting in Osaka and they had agreed to extend the OPEC+ production cuts.
Gary Ross, chief executive of Black Gold Investors, said that even if it was "indelicate" for Saudi Arabia to let Putin announce the deal, it showed the changing oil market dynamics.
"Trump has one interest – low oil prices. Putin wants higher prices," said Ross, a veteran OPEC watcher. "Putin is vitally important for OPEC. And it is still in Russia's best interest to cooperate with OPEC as half its budget comes from energy revenues."
Russia needs prices of $45-50 a barrel to balance its budget and its finances are stretched by U.S. sanctions imposed following its annexation of Crimea. Saudi Arabia needs an even higher price of $80. Benchmark Brent crude is currently in the region of $65 a barrel.
But just as the collaboration could lend Saudi Arabia some support against Trump, who has demanded Riyadh increase oil supply if it wants U.S. military support in its standoff with regional rival Iran, it also gives Putin more than extra revenues.
Good relations with Riyadh, an American ally, bolsters Moscow's clout in the Middle East, helps Putin's campaign in Syria and might even help mend relations with Washington, according to two sources in Russia's delegation to Vienna, where OPEC officials have been meeting.
Highlighting those intersecting roles, Russian Energy Minister Alexander Novak also serves as head of several Russian government commissions on trade and cooperation including with Saudi Arabia, Iran, Turkey and Qatar.
Iran's change in tone, in particular, illustrates the conflicting political and economic pressures it faces.
Tehran's falling production, due to U.S. sanctions reimposed and extended by Trump, has reduced its role within OPEC while increasing those of Saudi Arabia and non-OPEC Russia.
Iran's exports plummeted to 0.3 million barrels per day in June from as much as 2.5 million bpd in April 2018. Oil output in OPEC's exempt nations: https://tmsnrt.rs/2Fx7Lcc
But Iran is itself also looking to help from Russia, one of just a few countries that has offered to aid Tehran to counter the sanctions choking its oil trade and hammering its economy.
Two Russian energy industry sources said some work was being done to boost the Iranian economy but talks were slow and difficult, without giving details of the nature of the plans.
(Additional reporting by Rania el Gamal, Alex Lawler and Ahmad Ghaddar; Writing by Dmitry Zhdannikov; Editing by Pravin Char)
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Nordstrom's Outlook Is 'Deteriorating,' UBS Says In Downgrade
High-end fashion retailerNordstrom, Inc.(NYSE:JWN) faces a "deteriorating" outlook after a survey with consumers point to potential market share losses, according to UBS.
The Analyst
UBS analystJay Soledowngraded Nordstrom from Buy to Neutral with a price target lowered from $65 to $33.
The Thesis
The firm's 2018 survey of consumers found Nordstrom ranked No. 1 (Nordstrom Rack ranking No. 4) among consumers buying business attire and special occasion clothing, Sole wrote in the note. A similar 2019 survey found consumers plan on shopping at Nordstrom's lower-priced rivals more for work and special occasion.
Sole said the loss of sentiment could be a function of consumers simply thinking they don't need to spend top dollars at Nordstrom as may have been the norm in the past. One of the trends seen in the fashion market lately is "dressing down" and this is something Nordstrom can't easily recover from.
The UBS survey found 5% of Nordstrom consumers think prices increased, but Sole noted the perception at key rivals Bloomingdale's improved. This may imply Nordstrom consumers are seeing less value for the money they spend and could translate to declining traffic in stores.
The high-end fashion market is seeing minimal growth as a whole, so any market share loss at Nordstrom at the expense of even a small rival could "significantly" impact Nordstrom, Sole said.
Price Action
Shares of Nordstrom traded lower by 2% at $30.81 Monday afternoon.
Related Links:
Goldman Turns Bearish On Fashion Retailers Nordstrom, Ross Stores
Wall Street Reacts To Nordstrom's Disappointing Q1: 'We See The Turnaround As Likely Paused For Now'
Latest Ratings for JWN
[{"Jul 2019": "Jun 2019", "": "", "Downgrades": "Downgrades", "Buy": "Neutral", "Neutral": "Sell"}, {"Jul 2019": "Jun 2019", "": "", "Downgrades": "Upgrades", "Buy": "Reduce", "Neutral": "Hold"}]
View More Analyst Ratings for JWNView the Latest Analyst Ratings
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Princess Diana was eyed for 'Bodyguard' sequel, Kevin Costner says
Princess Diana was eyed for a big-screen role, says Kevin Costner. Costner, whose character protected Whitney Houston's in "The Bodyguard" (1992), told People magazine that the studio liked Diana for a sequel, and he claims they had a conversation about it before her death. “The studio liked the idea of doing a ‘Bodyguard 2’... in the same kind of capacity as Whitney," the Academy Award winner said, "and nobody really knew that for about a year.” Costner said he had a chat with Princess Diana during which he told her he would "write this part with you in mind. Is this something that you think you would like to do?’ And she said, ‘Yes, I do.’ " Costner remembers Diana as "being incredibly sweet on the phone" and a little inquisitive. "She goes, ‘Are we gonna have, like, a kissing scene?' And she said it in a very respectful (way) — she was a little nervous, because, I think her life was very governed," he said. "And I said, ‘Yeah, there’s gonna be a little bit of that, but we can make that OK, too.' " USA TODAY has reached out Warner Bros., the studio that distributed the original, and writer Lawrence Kasdan for comment. More 'Bodyguard': Kevin Costner reveals secret about Whitney Houston and that iconic poster Related: Whitney Houston's 'Higher Love' cover remixed by Kygo released Costner previously spoke of his intentions for a "Bodyguard" follow-up that would have included Diana when he appeared on Anderson Cooper's former daytime talk show in 2012, Vanity Fair and HuffPost UK report. The former royal died on Aug. 31, 1997, following a car accident in Paris. 'Field of Dreams': 9 innings worth of reasons to enjoy Costner gem on its 30th anniversary This article originally appeared on USA TODAY: Princess Diana 'nervous' about 'Bodyguard 2,' says Kevin Costner
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Democratic Lawmakers Outraged by 'Dehumanizing' Conditions at Migrant Detention Centers
A group of House Democrats expressed outrage at the conditions inside migrant detention centers after touring federal facilities in El Paso and Clint, Texas, on Monday. New York Rep. Alexandria Ocasio-Cortez condemned the facilities as unsanitary and “dehumanizing” in a series of tweets. Ocasio-Cortez said one detainee had described her treatment by officers as “psychological warfare – waking them at odd hours for no reason, calling them whores, etc. Tell me what about that is due to a ‘lack of funding?'” In a video posted to Twitter, California Rep. Judy Chu said women held in the El Paso facility had told them they didn’t have running water and been told to drink from the toilet if they were thirsty. Chu and Rep. Joaquin Castro also said one woman suffering from epilepsy had not been given access to her medication. “The humanitarian crisis is the one our government is creating,” Chu said. "If you want water, just drink from a toilet." That's what border patrol told one thirsty woman we met on today's #DemsAtTheBorder trip. These are the same CBP personnel who threatened to throw burritos at members of Congress. Changes must be made. #DontLookAway pic.twitter.com/dW34DRduDA — Judy Chu (@RepJudyChu) July 1, 2019 Texas Rep. Joaquin Castro tweeted that lawmakers had found “women from Cuba, some grandmothers, crammed into a prison-like cell with one toilet, but no running water to drink from or wash their hands with. Concrete floors, cinder-block walls, steel toilets.” Many said they had not bathed for 15 days. Some had been separated from children, some had been held for more than 50 days. Several complained they had not received their medications, including one for epilepsy. Members of Congress comforted them when the women broke down. — Joaquin Castro (@JoaquinCastrotx) July 1, 2019 Speaking to CNN , U.S. Border Patrol Chief of Operations Brian Hastings denied the accusations that women had been forced to drink from toilets, saying there were “ample supplies” and that “a lot of our stations look like Costco.” Story continues The lawmakers also criticized the behavior of officers during their visit. Rep. Joe Kennedy said the Customs and Border Protection agency had been “very resistant to Congressional oversight”. “They tried to restrict what we saw, take our phones, block photos and video. Atmosphere was contentious and uncooperative.” Ocasio-Cortez said she had “caught officers trying to sneak photos, laughing” as the group toured the facility. “CBP’s ‘good’ behavior was toxic. Imagine how they treat the women trapped inside,” she said, adding that women had told her they had only been allowed to move inside the facility and shower after the group’s visit was announced last week. Castro was “able to get a device in,” according to Ocasio-Cortez, and captured some images of the women and rooms inside one center. All Americans must help to change this system. Thank you to the members who attended today: @RepEscobar , @RepJudyChu , @RepPeteAguilar , @NormaJTorres , @RepSylviaGarcia , @AOC , @RepLoriTrahan , @RepJoeKennedy , @RepVeasey , @RepPressley , @RepDean , @RepRashida , @gregstantonaz . pic.twitter.com/CZX0wBwWZZ — Joaquin Castro (@JoaquinCastrotx) July 1, 2019 Here’s another photo from inside taken by @JoaquinCastrotx , where we’re trying to comfort women trapped in cells. This woman was telling me about her daughters who were taken from her - she doesn’t know where they’ve taken them. We held & listened to them. They were distraught. pic.twitter.com/ca1GwKfDfU — Alexandria Ocasio-Cortez (@AOC) July 2, 2019 The showers at Clint Border Patrol Station. pic.twitter.com/z0ATi67q1i — Joaquin Castro (@JoaquinCastrotx) July 2, 2019 The tours took place hours after investigative news outlet ProPublica reported that roughly 9,500 current and former border patrol agents are members of a closed Facebook Group where posts of racist and sexist content, including attacks on migrants and Ocasio-Cortez, have been shared. Ocasio-Cortez said the report revealed a “violent culture” inside the CBP. “This isn’t about ‘a few bad eggs,'” she said. The congresswoman also responded to online news reports citing unnamed sources that she had screamed at officers “in a threatening manner” during the tour. “They confiscated my phone, and they were all armed. I’m 5’4,” she said. “They’re just upset I exposed their inhumane behavior.”
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Why Central European Media Enterprises Ltd. (NASDAQ:CETV) Is An Attractive Investment To Consider
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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 Central European Media Enterprises Ltd. (NASDAQ:CETV), it has a a great track record of performance as well as a buoyant future outlook going forward. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Central European Media Enterprises here.
CETV is an attractive stock for growth-seeking investors, with an expected earnings growth of 24% in the upcoming year underlying the notable 29% return on equity over the next few years leading up to 2022. Over the past year, CETV has grown its earnings by 59%, with its most recent figure exceeding its annual average over the past five years. Not only did CETV outperformed its past performance, its growth also exceeded the Media industry expansion, which generated a -27% earnings growth. This is an notable feat for the company.
For Central European Media Enterprises, there are three important aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is CETV 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 CETV is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of CETV? 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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Investing In Omega Healthcare Investors, Inc. (NYSE:OHI): What You Need To Know
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Omega Healthcare Investors, Inc. is a US$8.2b mid-cap, real estate investment trust (REIT) based in Hunt Valley, United States. REITs own and operate income-generating property and adhere to a different set of regulations. This impacts how OHI’s business operates and also how we should analyse its stock. In this commentary, I'll take you through some of the things I look at when assessing OHI.
View our latest analysis for Omega Healthcare Investors
A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent. FFO is a cleaner and more representative figure of how much OHI actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation. For OHI, its FFO of US$499m makes up 58% of its gross profit, which means the majority of its earnings are high-quality and recurring.
In order to understand whether OHI has a healthy balance sheet, we have to look at a metric called FFO-to-total debt. This tells us how long it will take OHI to pay off its debt using its income from its main business activities, and gives us an insight into OHI’s ability to service its borrowings. With a ratio of 11%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take OHI 9 years to pay off using just operating income, which is a long time, and risk increases with time. But realistically, companies have many levers to pull in order to pay back their debt, beyond operating income alone.
I also look at OHI's interest coverage ratio, which demonstrates how many times its earnings can cover its yearly interest expense. This is similar to the concept above, but looks at the upcoming obligations. The ratio is typically calculated using EBIT, but for a REIT stock, it's better to use FFO divided by net interest. With an interest coverage ratio of 2.48x, OHI is not generating an appropriate amount of cash from its borrowings. Typically, a ratio of greater than 3x is seen as safe.
I also use FFO to look at OHI's valuation relative to other REITs in United States by using the price-to-FFO metric. This is conceptually the same as the price-to-earnings (PE) ratio, but as previously mentioned, FFO is more suitable. OHI's price-to-FFO is 16.29x, compared to the long-term industry average of 16.5x, meaning that it is fairly valued.
In this article, I've taken a look at Funds from Operations using various metrics, but it is certainly not sufficient to derive an investment decision based on this value alone. Omega Healthcare Investors can bring about diversification for your portfolio, but before you decide to invest, take a look at the other aspects you must consider before investing:
1. Future Outlook: What are well-informed industry analysts predicting for OHI’s future growth? Take a look at ourfree research report of analyst consensusfor OHI’s outlook.
2. Valuation: What is OHI 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 OHI is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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‘The Loudest Voice’ Sees Soft Viewership In Debut; Roger Ailes Bioseries Least Watched Showtime Premiere This Year
Click here to read the full article. One of Fox News Channel founder Roger Ailes ’ obsessions was ratings, and the former Mike Douglas Show producer would have cackled at how quiet the debut of Showtime ’s Russell Crowe -starring The Loudest Voice was. With just 299,000 viewers for its 10 PM opener Sunday night on the CBS-owned premium cabler, the series starring the Gladiator actor, Naomi Watts, Seth MacFarlane and Sienna Miller looks to be one of the year’s lowest non-broadcast debuts so far. While the decades of antics and much alleged sexually harassing behavior of ex-Richard Nixon advisor Ailes was the subject of a forest full of coverage (including here on Deadline), especially once Gretchen Carlson sued her ex-boss in 2016, the initial numbers make it pretty clear there wasn’t much of a market for more outside the media itself. Related stories 'The Loudest Voice' & 'Years And Years' Review: It's Rupert Murdoch's World, Past & Semi-Fictional Future Fox News Tops Cable Ratings Again In Q2 Despite Well-Watched Dem Debates On MSNBC; Tucker Carlson Up, Rachel Maddow Down 'The Bachelorette' Tops Monday Ratings; 'The Code' Down In Return Based on Gabriel Sherman’s 2014 bestseller The Loudest Voice in the Room: How the Brilliant, Bombastic Roger Ailes Built Fox News – and Divided a Country and the more recent reporting on the FNC scandals, the first episode of the Tom McCarthy-EP’d series was down 61% from the Season 4 premiere of Billions on March 17. With a marketing campaign that even the competitive Ailes would have admired for its reach and A-list scope, Loudest Voice was also off a hard 42% from the Season 4 debut of The Affair . Perhaps most telling is that the limited-series opener delivered 43% less in total linear audience than the June 16 debut of the Aldis Hodge- and Kevin Bacon-starring City on a Hill , which had previewed online more than a week earlier. Story continues Comparing subscription cable apples, Loudest Voice also took a shellacking of sorts from the June 24 debut of HBO’s dystopian family drama Years And Years . The Emma Thompson-led Monday limited series, which has already run in the UK, bested the Sunday night Showtime show by 17%. Now, looking at other metrics, it doesn’t matter as much as on the Big 4 broadcasters because Showtime, like HBO, is ad-free. Yet, among the 18-49 demographic Loudest Voice ’s debut snagged a tiny 26,000 viewers, or down 87% from the last Billions opener, according to Nielsen numbers. In its defense, Showtime is taking a different POV and proclaiming that Loudest Voice snared a decent 651,000 viewers. They reached that number when you add up the 10 PM June 30 audience, plus replays, streaming and on-demand. As has proven to be the case with a number of its shows in the past, the premium cabler is clearly counting on Loudest Voice having an extended lifespan and gaining traction through more encores, delayed viewing and online streaming. That may turn a whisper to a scream, as that Icicle Works song says. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
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2019 Midyear Report: The 15 best movies (so far)
Shazam! , Toy Story 4 and Rocketman (Photos: Warner Bros./Disney-Pixar/Paramount) Going by the box-office returns, its been a tough year for any company not named Walt Disney. Creatively, though, 2019 has yielded a number of gems at both the studio level, as well as the indie realm. Here are the 15 movies from the first half of the year that entertained the Yahoo Entertainment staff the most. by Ethan Alter, Kevin Polowy and Gwynne Watkins 15. Spider-Man: Far From Home Once youve been to space, where can you possibly go next? Europe, of course! The Old World serves as a New World playground for Tom Hollands second solo Spider-Man movie, which wrings a lot of drama (and comedy) out of the MCUs post- Endgame status quo. Truthfully, the overseas setting does mean that Far From Home lacks the clever use of high school movie tropes that made Homecoming such a delight. On the other hand, the film does introduce a great new character in the form of Jake Gyllenhaals Tony Stark-esque Mysterio and offers some mind-blowing reveals of major things to come in Marvels next phase. Above all, its a great showcase for Holland, who continues to be the best friendly neighborhood Spider-Man he can be. 14. Amazing Grace In January 1972, Sydney Pollack brought a camera crew into L.A.s New Temple Missionary Baptist Church to film Aretha Franklin recording her fourth live album. But technical issues as well as the late singers own legal maneuverings conspired to keep the footage out of public view until its April theatrical release. While it may have taken nearly 50 years for us to see (and hear) Amazing Grace on the big screen, the wait was worth it. The finished film, which was overseen by producer Alan Elliot and editor Jeff Buchanan (Pollack died in 2008), is a remarkable recording of a remarkable performer, one that captures her creative process without intruding on it. To borrow a line from another classic concert film , its also a movie that should be played loud. 13. The Lego Movie 2: The Second Part Everything was so awesome about 2014's The Lego Movie , we hardly expected this sequel to measure up, especially in the wake of underwhelming spinoffs like Lego Batman and Lego Ninjago , which tested our patience for feature-length animated yellow brick characters. But how dare we doubt Phil Lord and Chris Miller; while the duo may have shifted from writer-directors to writer-producers on The Second Part , their madcap sensibilities remain fully intact. Its got just as much clever comedy as the first one, with more music, stronger messages (play well with others, toxic masculinity is dangerous ) and some dynamite new characters, including Tiffany Haddish's hilarious Queen Whatevra Wa'Nabi. Story continues 12. Charlie Says The legend of Charles Manson has loomed large in American culture for 50 years and counting. But in Charlie Says, director Mary Harron and screenwriter Guinevere Turner (of American Psycho fame) make the radical decision to take the focus off the wannabe messiah and turn it onto his followers specifically, the three young women who participated in the murders of Sharon Tate and six other total strangers in 1969. Moving back and forth in time, we see how Manson's abusive manipulations, and the broken utopian promises of the sixties, transformed these smart, thoughtful women into blindly obedient killers. The radical suggestion of Charlie Says is that those women could have been any of us , given the right set of circumstances. By the end of this chilling, heartbreaking movie, it's hard to shake the feeling that the monsters still live among us. 11. Shazam! The DC Extended Universe continues to shake off its Zack Snyder-imposed gloom and doom with a spirited body-switching comedy dressed up in colorful superhero clothes. Real-life good guy , Zachary Levi, brings the right amount of humor and humanity to the role of a troubled kid (Asher Angel) trapped in the body of the titular caped crusader. Shazam! is also quietly revolutionary in its depiction of a diverse super-family who dont need to be related by blood to support and love each other. We can honestly say that the DCEU is a better place with this Marvel-ous clan in it. 10. Always Be My Maybe Romantic comedies are treading water in cinemas right now, but thankfully, some of the best ones have found a safe harbor on Netflix. This heartfelt and wickedly funny comedy with an Asian-lead cast, is the brainchild of real-life friends Ali Wong and Randall Park. The two play childhood besties who take two very different life paths: She becomes a globetrotting chef, while he never leaves their old San Francisco neighborhood. When they're unexpectedly reunited, they must figure out if they were always meant to be, or if they grew apart for a reason. It's a sweet and believable story that contains the funniest movie scene of the year so far: a double-date at an outlandishly pretentious restaurant, where Wong's character brings Keanu Reeves (playing himself). What could have been a one-note gag turns into a memorable riff on fame, ego and foodie absurdity. 9. John Wick: Chapter 3 Parabellum The John Wick movies continue to get more and more ridiculous and in turn, better and better. Parabellum finds Keanu Reeves's ace assassin brutally assaulting NBA star Boban "Big Sexy" Marjanovic with a thick book of Russian Fairytales, as well as dispatching of henchmen by horsekick to the head, and engaging in what feels like a solid (and spectacular) 7-minute knife-throwing fight. It also has Halle Berry stepping into the action and some kick-ass dogs, natch. What a year Two Thousand and Keanu Reeves has been so far. 8. The Last Black Man in San Francisco Joel Talbot's poetical, surprisingly funny and visually stunning drama about a young African American nursing home aid (Jimmie Fails) who still takes painstaking care of the towering Victorian house his family was gentrified out of brings strong Spike Lee/ Do the Right Thing vibes from the opening minutes. And that's no mistake: It was one of the strongest influences for childhood friends Talbot and Fails in crafting this must-see love letter to their ever-changing (ever-worsening?) hometown that makes a profound statement with one of its most deeply resonating lines: "You can't hate something until you love it." 7. Captain Marvel Only the second female-centric film of the superhero era, Captain Marvel took a very different approach than its predecessor Wonder Woman. Both are excellent action-fantasy films, but Wonder Woman defined its heroine by her femaleness: how sexy she was and how she defied men's low expectations at every turn. Captain Marvel left all that baggage by the roadside and just let Brie Larson be a superhero. Larson's Carol Danvers becomes the female equivalent of Bruce Willis in Die Hard or Harrison Ford in Indiana Jones: confident, charismatic and strong, with a gift for one-liners and and unflappable commitment to serving justice. Also, Captain Marvel has a cute cat-like flerken with a thing for eyes . Who could ask for anything more? 6. Her Smell Elisabeth Moss goes off the deep end watch as she dives in and positively soars in writer/director Alex Ross Perrys propulsive portrait of a punk rockers harrowing trip to hell and back. Unfolding across five self-contained acts, Her Smell builds to a grand emotional crescendo that avoids the cliched narrative trajectory of the tragic artist. Perry surrounds his leading lady with a terrific supporting cast that includes Agyness Dean and Gayle Rankin as the long-suffering bandmates of Mosss self-destructive frontwoman, Becky Something, and Eric Stoltz as the bands hapless manager. But its Moss who rocks the mic and the movie in a career-best performance. If she ever wants to take a break from this acting thing for a singing career, wed follow her band around the country Grateful Dead-style. 5. Toy Story 4 Even some of Pixar's most hardcore fans worried that a fourth Toy Story movie could mean too much of a good thing after the third installment wrapped up the Andy trilogy so perfectly poignantly. But Toy Story 4 is a gift: Fresh, funny and equally as entertaining for adults as it is kids. In other words, it's your typical Pixar movie. It might even be one of their best yet. It's certainly one of the funniest, thanks to new director Josh Cooley's knack for sharp visual gags, a strong script written by committee and new voices including Key and Peele, Christina Hendricks, and of course, Keanu Reeves. 4. Us Jordan Peele's sophomore feature has the humor and allegorical potency of Get Out, but in every other way, it's a very different film: stranger, scarier and full of unanswered questions. Lupita Nyong'o and Winston Duke are brilliantly double-cast as middle-class parents whose vacation home is invaded by murderous strangers who look just like them. As her own evil twin, Nyong'o creates a horror character who is instantly iconic. Visually, Us makes a strong case for the idea that Peele is the next Stanley Kubrick. But what's even more exciting is the director's commitment to confronting his audience with important, uncomfortable realities in this case, the idea that poverty, injustice and the dehumanizing wheels of bureaucracy can make monsters of us all. 3. Booksmart Disappointed that Booksmart wasnt a box-office smash? Dont forget that Dazed and Confused and Cant Hardly Wait overcame underwhelming theatrical releases and are now end-of-the-school-year teen movie classics. And like those movies, Olivia Wildes directorial debut is a veritable Whos Who of actors well be watching for years to come, from stars Kaitlyn Dever and Beanie Feldstein to scene-stealers Billie Lourd, Noah Galvin and Skyler Gisondo. Besides being gut-bustlingly funny, Booksmart also upends the traditional depiction of high school as tribal warfare in favor of an inclusive spirit that illustrates how the kids all of them really are all right. 2. Avengers: Endgame How do you tie up a decade-long superhero epic that spans 21 films and includes dozens of recurring characters? Make a movie like Avengers: Endgame. A three-hour film that feels about twenty minutes long, Disney and Marvel's time-travel adventure generates satisfying, emotional endings for some of our favorite heroes, while setting the stage for a new generation to take over . And if the plot is sometimes a little loopy , the character interactions are perfection from Thor tossing Mjolnir to Captain America, to Ant-Man and Captain Marvel joining the team, to Black Widow and Hawkeye's tragic goodbye. The very definition of a crowd-pleaser, Endgame generated spontaneous cheers in the movie-theater audience like nothing we've ever seen. Marvel has big plans for the next ten years, but this will be a hard act to follow. 1. Rocketman Whether it was the mixed reactions to last year's Queen biopic Bohemian Rhapsody or hard-to-gauge trailers, expectations were firmly grounded before this Elton John jukebox musical took flight in Cannes. And what a ride it is, buoyed by the infectious energy of Dexter Fletcher's direction, toe-tapping jukebox musical numbers, an Oscar-worthy performance by the perfectly cast lead Taron Egerton ( Kingsmen ), surprisingly organically orchestrated fantastical elements and all those awesome/ridiculous wardrobe choices. Expect this one to be fully in the thick of the awards race come fall. Read more from Yahoo Entertainment: The best TV and streaming shows of the year (so far) 2019 box-office winners and losers (so far) Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter.
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2019 Midyear Report: The biggest box-office winners and losers (so far)
Us , Avengers: Endgame and Dark Phoenix (Photos: Universal Studios, Disney/Marvel, Disney/Fox) Despite the record-breaking heroics of Avengers: Endgame , 2019 has underwhelmed at the box office. According to tracking statistics, ticket sales are down more than 7 percent from 2018 and box-office receipts are nearly 10 percent off year over year. As we reach the midpoint of the 2019, Yahoo Entertainment takes a look back at the films that delivered and those that flamed out, the franchises that still pack theaters and those that need to be retired, and the biggest trends at the cineplex. Grab some popcorn, sit back and see the year’s box-office winners and losers so far. WINNER: Long goodbyes The solution to franchise fatigue? Just give the characters a good ending, instead of making another skippable sequel. Avengers: Endgame ($841 million) is the obvious example, but Tyler Perry’s A Madea Family Funeral brought in $73 million, making it the second-highest earner in the nine-film franchise; How to Train Your Dragon: The Hidden World brought in $160 million; and M. Night Shyamalan’s superhero-trilogy conclusion Glass came in at $111 million. LOSER: The X-Men Poor mutants. Dark Phoenix, the long-delayed, trouble-plagued follow-up to X-Men: Apocalypse, opened in June to dismal reviews. With current ticket sales totaling $61 million, it’s by far the worst-performing film in the franchise. WINNER: The Avengers, particularly Carol Danvers The conclusion to the Avengers saga cost Disney a fortune to make , but Avengers: Endgame justified every penny. The film kicked off with the biggest opening weekend ever, then ended up challenging Avatar for the title of most profitable film in box-office history, with $2.78 billion in global ticket sales. (Whether Endgame wins depends on whether or not you count Avatar ’s second theatrical run in the tally, which most do, and the success of this past weekend’s re-release, which has inched Endgame closer to the title , with $2.76 billion.) But let’s not overlook Marvel’s other 2019 triumph: Captain Marvel, the MCU’s first female-fronted superhero film, currently the No. 2 movie of the year with $426 million in domestic ticket sales, and a global box office of $1.1 billion. Story continues LOSER: Dogs A Dog’s Purpose, a comedic tearjerker about a continually reincarnated dog who tries to make all his owners happy, made a solid $64.5 million in 2017. But its two 2019 sequels played dead at the box office: January’s A Dog’s Way Home made $42 million, and May’s A Dog’s Journey made $22 million. A Secret Life of Pets 2 ($121 million) didn’t fare well either — but in happier dog-movie news, John Wick Chapter 3 — Parabellum ($157 million) was a very good boy. WINNER: The Upside It’s an inspirational story in more ways than one. This drama about a paralyzed billionaire (Bryan Cranston) who befriends his ex-convict caretaker (Kevin Hart) had a lot of strikes against it, from mixed reviews, to being an English-language remake of a foreign film (generally a gamble at the box office), to originally being produced by Harvey Weinstein. But STX Films was smart to acquire The Upside in The Weinstein Company’s fire sale. The relatively low-budget film has generated $108 million at the box office, besting Godzilla and the X-Men. WINNER: Jordan Peele Get Out was no fluke: Jordan Peele is a box-office force to be reckoned with. The writer-director’s second feature, the cerebral horror film Us, snatched the No. 1 spot from Captain Marvel on opening weekend and went on to make $175 million in the U.S. Considering its budget was around $20 million, Peele should be well on his way to funding his next cinematic nightmare. LOSER: Sluggish sequels Dark Phoenix wasn’t the only tentpole to score an all-time low for its franchise. Men in Black: International has made just $56 million, less than a third of ticket sales for the previous lowest-ranking Men in Black film, 2012’s MIB 3. Secret Life of Pets 2 opened to $58 million less than the 2012 film, and is currently at $121 million —which means it hasn’t even caught up to Secret Life of Pets ’s first-week sales. Godzilla: King of the Monsters has banked just $106 million, failing to scare up more than either 2014’s Godzilla ($200 million) or 2017’s Monsterverse entry, Kong: Skull Island ($168 million). Even the The Lego Movie 2: The Second Part , which seemed like a sure thing, has performed below expectations; with $105 million in ticket sales, it did higher numbers than The Lego Ninjago Movie ($59 million) but didn’t pass The Lego Batman Movie ($175 million) — and definitely didn’t come close to the first film’s $257 million haul. WINNER: Anime-inspired family films Two of the year’s big weekend-matinee films came to Hollywood by way of Japan. Pokémon Detective Pikachu, the first live-action film adaptation of Pikachu’s universe, pulled in $142 million domestically and $425 million worldwide. The lesser-known success story is animated film Dragon Ball Super: Broly. The oddly named, martial-arts fantasy film is the twentieth feature film in the Japanese franchise. It quietly made $30 million domestically and $114 million worldwide — not only becoming the most profitable film in the franchise, but one of the top-earning anime films of all time . LOSER: Laika This innovative stop-motion animation studio has produced some of the most visually dazzling films of the past decade. Unfortunately, after 2019’s Coraline, every one of their films has opened to diminishing returns. This year’s Missing Link followed Laika’s brilliant 2016 film Kubo and the Two Strings. Kubo underperformed with $48 million in ticket sales; in comparison, Missing Link has made just $16 million. WINNER: Body-swapping comedy Comedies about kids switching bodies with adults had a moment in the ’80s ( Big, Vice Versa ), another in the early ’00s ( 13 Going on 30, Freaky Friday ), and now they have arrived for a new generation. Universal’s comedy Little , starring Regina Hall, has made $40.6 million at the box office since the beginning of June, while Sony’s superhero comedy Shazam! made $139 million in the U.S. and $363 million worldwide. WINNER: Docs Once again, documentaries are having a very good year. The highest-grossing doc thus far is Peter Jackson’s WWI time capsule They Shall Not Grow Old ($17.9 million) , which combined colorized and restored vintage footage with first-person veteran interviews. Other hot tickets include the Aretha Franklin concert film Amazing Grace ($4.3 million); the moon-landing doc Apollo 11 ($8.8 million); Disneynature’s Penguins ($7.6 million); and the back-to-the-land story Biggest Little Farm ($3.2 million). LOSER: Remakes With a couple exceptions ( The Upside and Pet Sematary among them), remakes were a tough sell in 2019. Shaft ($16 million), Miss Bala ($15 million) and Hellboy ($21 million) all came and went so quickly, audiences may not even have known they existed. The Hustle, a remake of 1988’s Dirty Rotten Scoundrels, fared better with ticket sales of $35 million. The exceptions that proved the rule: Pet Sematary ($54 million) and The Upside ($108 million) , a remake of a 2011 French film called The Intouchables that has already seen remakes in India and Argentina. WINNER: Octavia Spencer Spencer started the year with a win: Green Book, which she co-produced, took home Best Picture at the Oscars. Then in May, she had another with Ma, Tate Taylor’s horror film about a neighborhood woman who befriends, then terrorizes, a group of teenagers and their parents. Ma was marketed entirely on the strength of Spencer playing against type as a deranged killer, and it was a good call: The movie brought in $43.8 million on a $5 million budget. LOSER: Struggling comedies Why is it so hard to get people to see a comedy in a movie theater? Hollywood would love to know. While films like the Jennifer Aniston-Adam Sandler vehicle Murder Mystery are reportedly killing it on Netflix (no pun intended), well-reviewed releases like Fighting With My Family ($22 million), Long Shot ($30 million), Late Night ($11 million), and every critic’s favorite 2019 comedy, Booksmart ($20 million), are all squeaking by in cinemas. WINNER: Supervillains on a shoestring Yes, it’s possible to make a superhero film without a huge effects budget — and sometimes, it pays off. The James Gunn-produced Brightburn told an original supervillain origin story on an estimated $6 million budget, and has made $17 million so far. Meanwhile, M. Night Shyamalan’s Glass brought an invincible Bruce Willis face-to-face with the villains from his previous films Split and Unbreakable, creating his own DIY version of Endgame and making $111 million at the box office. WINNER: Evangelical Christian films They may be largely ignored by mainstream media, but films made by and for Evangelical Christians are generating big bucks on tiny production budgets. In 2019, the anti-abortion propaganda film Unplanned, produced by the film industry’s major faith-based distributor Pure Flix, made $18 million on an estimated $6 million budget. Steph Curry’s production company Unanimous Media teamed up with Fox (well, Disney now ) to distribute another Christian-themed hit, the inspirational drama Breakthrough, which has made $40 million so far. LOSER: Serenity Even though M. Night Shyamalan had a film in theaters, the award for most audacious plot twist of 2019 goes to this cuckoo drama starring Matthew McConaughey and Anne Hathaway. It’s the kind of movie that could have gotten a big lift from word-of-mouth — but it brought in only $8.5 million, meaning its inevitable cult-classic status has yet to be achieved. WINNER: Critic-proof Disney remakes The live-action Disney hits keep on coming, and audiences are eating them up… even though the reviews for this year’s batch have been tepid at best. Dumbo, the worst-reviewed Disney live-action fairy tale since 2016’s Alice Through the Looking Glass, nevertheless opened at No. 1 in the U.S. and brought in $114 million (and $351 million worldwide). Aladdin fared better with critics, though not as well as previous musical adaptations Beauty and the Beast and The Jungle Book. The Will Smith-starring film nevertheless made $305.9 million in the U.S., topping Maleficent and Cinderella. In short, things are looking good for The Lion King, which premieres in July. WINNER: Keanu Reeves His January sci-fi film Replica may have been a dud, but Reeves bounced back with John Wick 3 — Parabellum, which quickly became the highest-grossing film in his ultra-violent action franchise. The film has made $157 million domestically so far, and $291 million worldwide. Reeves also gets bonus points for being the comedic highlight of both Toy Story 4 and the Netflix hit Always Be My Maybe, proving that the Matrix star has more versatility than audiences ever gave him credit for. LOSER: The Kid Who Would Be King Director Joe Cornish’s contemporary riff on the King Arthur legend opened to solid reviews, but original live-action family films are a tough sell these days. The Kid Who Would Be King is rumored to have lost more than $50 million , taking in just $16 million at the box office. WINNER: Rocketman It has a long way to go before it hits Bohemian Rhapsody numbers (which totaled $216 million by the time the Oscars had come and gone), but director Dexter Fletcher’s better-reviewed Elton John biopic has made its mark. The modestly budgeted film is up to $78 million in grosses. WINNER and LOSER: James Cameron The technology-obsessed auteur spent years trying to get an adaptation of the manga Alita: Battle Angel to the big screen. The film, produced by Cameron and directed by Robert Rodriguez, finally opened in February to the tune of $85 million domestically. That might have spelled disaster for Alita … except that the CG-enhanced sci-fi film crushed it worldwide, making over $319 million in foreign ticket sales. If Terminator: Dark Fate does well, Cameron will officially graduate to the “Winners” category. Read more from Yahoo Entertainment: The 15 best movies of 2019 (so far) The 15 best TV and streaming shows of 2019 (so far) Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter.
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Competitive eater and hot dog eating champ Takeru Kobayashi: 'I treat this like a sport'
Who holds the world record of eating 110 bunless hot dogs in 10 minutes? Better yet, who holds the championship title of consuming 337 buffalo wings within 30 minutes? None other than world champion competitive eater Takeru Kobayashi.
Kobayashi got a chance to sit down with Yahoo Finance’s On the Move to talk in-depth about competitive eating and participating in the Nathan’s World Famous Hotdog Eating Contest aka the Super Bowl of Competitive Eating.
ESPN’S 30 for 30 highlights Kobayahsi in a brand new documentary titled, “The Good, The Bad, The Hungry,” released July 2. The film will cover the rivalry between Kobayashi and professional eater, Joey Chestnut, as they compete in Nathan’s Famous Hot Dog Eating Contest every July 4th in Coney Island, Brooklyn in New York. Beyond the championship, the film explores professional eating as a sport and provide the story behind Kobayahsi. Viewers get a behind the scenes look at how much training goes into breaking competitive eating records.
“After a couple years of claiming that it’s not really about being small, it was all about training so I treat this like a sport. And that’s when ESPN came in and that was a big turn,” he explained.
Born in Nagano, Japan, Kaboyashi has always been a man interested in sports. He had the opportunity to participate and win many competitive eating contests in Japan. That led him to the 2001 Nathan’s Famous Hot Dog Eating Contest, where he consumed 50 hot dogs in just 12 minutes — breaking the world record. But his small stature and body size (Kaboyashi is currently 5 ft. 8 in. and 128 lbs.) leaves many people to question how he’s able to consume so much in such little time.
“The record was 25 hot dogs. To come in your rookie year from another country without speaking the language and eating 50 when it was 25 is phenomenal.“ Kaboyashi explained. “However, when I was asked how is this possible, I say it’s a sport, it’s not your size. No one has ever said that before. So it’s revolutionary,”
Heading into the holiday eat-off this Thursday, Kobayashi has no worries about his competitor Joey Chestnut. He explains that his focus was never about the competitor. Instead, he is focused on beating whatever record he had last. Kobayashi made it clear that as an athlete your focus should always be on yourself because what you can do with your body is different than what someone else can do.
“Every athlete has a different way of going about it. But my process was, I never ever looked at my rival in his score as anything that pertained to me,” he said. “I just looked at my own record and every year wanted to beat my own record.”
Ralston Ramsay is a producer for Yahoo Finance’s On the Move.
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How Good Is Extended Stay America, Inc. (NASDAQ:STAY), When It Comes To ROE?
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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 Extended Stay America, Inc. (NASDAQ:STAY).
Extended Stay America has a ROE of 16%, based on the last twelve months. That means that for every $1 worth of shareholders' equity, it generated $0.16 in profit.
See our latest analysis for Extended Stay America
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Extended Stay America:
16% = US$209m ÷ US$1.3b (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. That means ROE can be used to compare two businesses.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. You can see in the graphic below that Extended Stay America has an ROE that is fairly close to the average for the Hospitality industry (14%).
That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
It's worth noting the significant use of debt by Extended Stay America, leading to its debt to equity ratio of 1.85. There's no doubt the ROE is respectable, but it's worth keeping in mind that metric is elevated by the use of debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
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 I think it may be worth checking thisfreereport on analyst forecasts for the company.
Of courseExtended Stay America 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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Exhibit A on Netflix: What happened to true crime subject Norma Jean Clark?
Photo credit: Netflix From Digital Spy Exhibit A is Netflix 's latest original true crime series, having dropped on the streaming platform last weekend (28 June). The four-part documentary explores the US justice system, honing in on four specific areas of the investigation process and exploring each through a specific case. Photo credit: Netflix Related: Making a Murderer 's Dean Strang and Jerry Buting respond to one big question raised in the series In episode two we're introduced to the science of blood spatter – which, for anyone who's familiar with the true-crime genre, is a common piece of evidence used to piece together what might have happened to a victim. In The Staircase , for example, much time was spent debating the pattern of blood that surrounded the victim. As part of a development during the case's post-conviction process, the crucial blood-spatter evidence used in Michael Peterson's original trial was discredited after the expert's questionable practices were exposed . Photo credit: Netflix In Exhibit A the science is looked at through the lens of the circumstances that surrounded Edmund Clark's murder. On April 22, 1987, at the age of 37, the businessman was found dead in his home with gunshot wounds. Edmund's wife Norma had been in the house at the time and, according to the Netflix documentary, told police that she had been sleeping upstairs – while her husband slept in the downstairs bedroom – when she heard the shot, ran downstairs and out of the house. In archive footage from the episode, Norma told the camera that at first she believed it had been her husband shooting at "somebody or something" until she heard no more sounds. Photo credit: Netflix Related: Are we right to have an obsession with true crime? The prosecution's expert, introduced on-screen as David, was interviewed as part of Exhibit A . He told the filmmakers that he had been skeptical of Norma's story from the beginning. Norma, however, has always maintained that she's innocent of any involvement in her partner's death. Back in the '80s the prosecutors took the case to a grand jury but, following a lack of evidence, they did not formally accuse Norma or charge her with any crime. Story continues Fast-forward to 2010, around 25 years later, and investigators claimed to have found forensic evidence that implicated Norma. "You've got a gunshot wound [that's] going to shed blood at a high rate of speed," David explained, before adding that in a crime scene like this one you'd expect to see "microscopic" particles of blood as well as the larger pools. "If you were to take a spray bottle and spray it into the sunlight, [you'd] see that fine mist – that's what we're looking at." Typically, according to this expert, that fine spray would only travel a distance of three feet or less. He claimed to have found evidence of this high velocity impact spatter on the nightgown that Norma had been wearing on the night of the murder, which he argued placed her at the scene when the gun was fired. Photo credit: Netflix David said that it took him about three months to find these alleged microscopic spots of blood on the fibres of the gown, something that he himself described as an "extreme" move that isn't standard practice. Edmund Clark's murder had become a cold case, but this apparent new evidence gave investigators the opportunity to arrest Norma. According to Norma's post-conviction lawyer, when the lab results came back on these stains, it was revealed that they "did not test positive for blood" except in the instance of one of the microscopic spots. Photo credit: Netflix "They were not able to test it for DNA so we don't even know whose blood it was, it could have been her blood it could have been anybody's blood. It would not be unusual to have a microscopic spot of blood on one's clothing," she explained. The state were already taking the case forward by this point, and the prosecution based its case on this evidence. In 2013 Norma Clark was convicted and received a 25-year prison sentence. Photo credit: Netflix According to Norma's post-conviction attorney, there were plenty of other evidentiary leads that could have been investigated – including a death threat left on Clark's answer machine, which was played during the series. This, she argued, would have raised suspicion around other suspects. Norma is now 71 years old and, if she finishes her full sentence , will not be released until 2038. All four episodes of Exhibit A are available to stream on Netflix. Want up-to-the-minute entertainment news and features? Just hit 'Like' on our Digital Spy Facebook page and 'Follow' on our @digitalspy Instagram and Twitter account . ('You Might Also Like',) Animal Crossing New Horizons is finally announced on Nintendo Switch How to watch Amazon Prime on your TV, smartphone and tablet – and enjoy Good Omens online Nintendo to release two new Switch consoles this year
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Doctors Explain All the Reasons You May Be Dealing With Swollen Fingers
Photo credit: rudisill - Getty Images From Prevention This article was medically reviewed by Rekha Kumar, MD, an assistant professor of medicine and member of the Prevention Medical Review Board , on July 2, 2019. You have arthritis pain, and the inflammation in your joints causes your fingers to swell up and resemble little sausages. Or maybe you’ve chowed down on salty foods , and now your wedding ring is stuck on your finger. Should you freak out? Probably not. Fingers swell for a lot of reasons, and many of them harmless. But sometimes the puffiness, medically known as dactylitis, points to more serious health conditions. Here are some of the common causes of swollen fingers, and when you should call your doctor. 1. It’s really hot outside Heat causes blood vessels to expand, which allows more heat to escape through your skin so you can keep cool, explains Tammy Olsen Utset, MD, MPH, an associate professor in the rheumatology department at the University of Chicago. As the vessels stretch, some of their fluid can leak into your soft tissues and cause puffiness. Dr. Utset says this type of swelling tends to go away as you use your hands and continue your regular activity. But if you notice swelling only in your hands and fingers (and not your legs), accompanied by pain or a weak grip, that could be a sign it’s not just the heat and you need to consult your doctor. 2. You’re eating too much salt General Tso’s chicken , lots of chips, or anything fried could be the cause behind your swollen fingers. Your body likes to keep a consistent salt-to-water balance, so when you down extra sodium, it compensates by retaining more water, leading to swelling, Dr. Utset says. Typically, mild swelling brought on by salty foods goes away on its own within a day but it can last longer depending on how much extra salt is in your system. If you cut back on salt and the swelling persists, see your doctor, Dr. Utset advises. 3. You may have osteoarthritis or rheumatoid arthritis Photo credit: rudisill - Getty Images If it’s the bony finger joints themselves that are enlarged (say, you can’t get rings over your knuckles), osteoarthritis may be to blame, especially if your swollen fingers appear in the morning. This age-related form of arthritis is caused by the wearing down of the cushioning tissues at the end of your joints. Osteoarthritis is often, but not always, accompanied by pain and stiffness, Dr. Utset says. Rheumatoid arthritis (RA), an autoimmune disease that attacks the lining of the joints, can also cause swelling. Unlike osteoarthritis, RA isn’t age-related and can happen to anyone at any age. Swelling in people with RA often happen in the wrists and finger joints. “RA can cause the joints to swell up as well as cause inflammation in between the joints,” says Neha Vyas, MD , a physician in the department of family medicine at Cleveland Clinic. Story continues 4. An infection or injury could be to blame Infections in your fingers , known as felons, cause your fingers (particularly around the tip, pad, or nail) to fill up with pus. Infections can form in different ways, but dishwashing without gloves, manicures, ingrown nails, hangnails, and biting your nails can all transfer bacteria to your fingers and lead to swelling, redness, and throbbing pain. Minor traumas and injuries, like cuts, puncture wounds, and splinters can also have similar effects. When caught early, infections can be treated with warm water or saline soaks and antibiotic ointment, but if you’re in serious pain, have trouble using your finger, or notice any oozing pus, see your doctor ASAP, who can drain excess fluid and prescribe oral antibiotics if needed. 5. It could be a side effect of your tough workout During exercise, your fingers and hands might swell because the blood vessels in your body are responding to the increased energy demands on your muscles. “When it comes to exercise, our body produces heat. The vascular system allows more fluid to release into our fingers, hands, and toes. This is the way the body cools down,” Dr. Vyas says. 6…or your medication Certain medications can also cause swelling in the fingers and hands. Dr. Vyas says high blood pressure drugs, OTC pain meds, diabetes medications, steroids, and birth control pills can all cause puffiness as a general side effect. 7. You may be dealing with carpal tunnel syndrome When the nerve that runs from the forearm to the palm of the hand is pinched or squeezed at the wrist, that’s when carpal tunnel syndrome develops, Dr. Utset explains, a condition that women are three times as likely to develop than men. While there are typically various causes, repeated trauma or injury to the wrist, work stress, an under-active thyroid , and rheumatoid arthritis can all be triggers. Carpal tunnel syndrome can result in swollen fingers, and is usually accompanied by pain, burning, tingling, or numbness in the hands or arms —symptoms that often develop slowly over time. To help prevent and ease carpal tunnel syndrome, try these five stretches at your desk . 8. Pregnancy could be messing with your body Some swelling is typical for expectant moms. But swelling in the hands and face—especially if pressing your thumb into your skin leaves a noticeable indentation—can be a red flag for preeclampsia, a complication characterized by high blood pressure. If preeclampsia goes untreated, it can lead to organ damage, including the liver and kidneys. Dr. Vyas says that in addition to swelling, signs of preeclampsia include blurry vision, high protein in your urine, headaches , nausea, and vomiting. The risk of preeclampsia is highest in pregnant women older than 40 or those having their first child. It’s also common in women carrying twins or triplets, and those who are obese. 9. You might have Raynaud’s disease Photo credit: Barb Elkin - Getty Images Raynaud’s disease is a rare condition characterized by narrowing of your arteries, which limits blood circulation. The causes are not completely understood, but cold temperatures, stress, injuries to the hands, tissue damage, and even certain drugs (like high blood pressure or migraine meds) may all be triggers. The condition is more likely to occur in women than men, Dr. Utset says. Swelling—along with numbness, prickling, pain, or color changes in the skin—occurs most commonly in the fingers and toes when circulation returns (as you warm up or your stress dissipates). When an “attack” comes on, your fingers may first turn ghostly white, but other parts of your body can also be impacted, such as your nose, lips, or ears. 10. Kidney issues could be lurking If your kidneys fail to remove excess fluids—also known as edema—your body will retain it, which could result in swollen hands. Edema can affect any part of your body, but swelling mostly occurs in your hands, feet , legs, and ankles. “When your kidneys aren’t filtering what needs to go out, the fluids stay within you,” Dr. Vyas explains. “The kidneys also help regulate the electrolytes in our body, so any type of kidney disease or kidney issue can affect this process. Hypertension and diabetes are some conditions that can cause these kidney problems,” she adds. 11. It might be a blockage in your lymphatic system Lymphedema is a rare limb-swelling disease that comes on when lymph fluid (which carries waste, bacteria, and viruses out of the body) doesn’t adequately drain. Your fingers and toes may swell, and usually your arms and legs will swell, too. Your skin may also feel tight or thicker than usual, according to a report from the National Cancer Institute . Lymphedema has been linked with surgery or radiation breast cancer treatments . In rare cases, lymphedema can also be caused by an abnormal growth near a lymph node or vessel, which can lead to fluid blockage. Stay updated on the latest science-backed health, fitness, and nutrition news by signing up for the Prevention.com newsletter here . For added fun, follow us on Instagram . You Might Also Like The Best Yoga Mats, According to Top Yoga Instructors The Shockingly Simple Diet Change This Woman Made to Drop 54 Pounds Losing Stubborn Belly Fat Really Comes Down to These Two Lifestyle Changes View comments
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Apple Third-Quarter Earnings: Mark Your Calendar
Apple(NASDAQ: AAPL)has just put a date to its fiscal third-quarter earnings release: July 30, after the market close. That report will follow two straight quarters of declining revenue for the tech giant, due to this year's iPhone cycle failing to outpace the record-shattering sales of fiscal 2018. Especially in light of that recent slump, investors will be watching the report closely.
Here are three key metrics to keep an eye on when Apple's fiscal Q3 results arrive.
Apple CEO Tim Cook. Image source: Apple.
Apple's fiscal 2019 hasn't been looking good compared to the double-digit revenue and earnings-per-share growth it delivered in fiscal 2018. Revenue fell slightly in both Q1 and Q2. In addition, EPS actually shrank in Q2.
Of course, shareholders are hoping these retreats are only temporary, and management is encouraging those hopes. The guidance range for fiscal Q3 revenue of $52.5 billion to $54.5 billion suggests the company may be returning to growth. If it hits the midpoint of that range -- $53.5 billion -- revenue will have increased slightly from the $53.3 billion it booked in fiscal Q3 2018.
While Apple's revenue guidance represents management's expectations for all of its product lines, those figures also serve as a barometer for what it expects from the iPhone, which accounts for more than half of total revenue.
To this end, management did note in itsfiscal Q2 earnings callthat iPhone sales trends were improving, supporting the assumption that the outlook for total revenue to potentially return to growth reflects the expectation of reinvigorated sales of the device.
"For iPhone, while our worldwide revenue was down 17% from a year ago, declines were significantly smaller in the final weeks of the March quarter," said CEO Tim Cook. "Looking back at the past five months, November and December were the most challenging, so this is an encouraging trend. We like the direction we're headed with iPhone and our goal now is to pick up the pace."
While iPhone revenue will likely still be lower in fiscal Q3 than it was a year ago (other segments will likely help drive Apple's growth), expect the year-over-year decrease to be a single-digit percentage this time.
Apple's services have become increasingly important to its business. The services segment is now the tech giant's second-largest business, and its revenue is growing rapidly. Services revenue rose 16% year over year in fiscal Q2 to a new all-time record. Further, that growth is broad based; services revenue hit record highs in four of five of Apple's geographic segments during the quarter, management said on the earnings call.
Driving home how important the segment is, services revenue accounted for 20% of Apple's fiscal Q2 revenue, and a third of its gross profit dollars.
Given the segment's strong momentum and Apple'sconcerted effortsrecently to grow this business, investors should look for services revenue to maintain that growth rate.
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Daniel Sparkshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy.
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Top Ranked Value Stocks to Buy for July 2nd
Here are three stocks with buy rank and strong value characteristics for investors to consider today, July 2nd:
Xcel Brands, Inc(XELB): This media and consumer products company has a Zacks Rank #1 (Strong Buy), and seen the Zacks Consensus Estimate for its current year earnings rising 29% over the last 60 days.
Xcel Brands, Inc Price and Consensus
Xcel Brands, Inc price-consensus-chart | Xcel Brands, Inc Quote
Xcel has a price-to-earnings ratio (P/E) of 4.13, compared with 18.40 for the industry. The company possesses a Value Score of A.
Xcel Brands, Inc PE Ratio (TTM)
Xcel Brands, Inc pe-ratio-ttm | Xcel Brands, Inc Quote
Canadian Solar Inc.(CSIQ): This solar power products manufacturer has a Zacks Rank #2 (Buy), and seen the Zacks Consensus Estimate for its current year earnings rising 2.1% over the last 60 days.
Canadian Solar Inc. Price and Consensus
Canadian Solar Inc. price-consensus-chart | Canadian Solar Inc. Quote
Canadian Solar has a price-to-earnings ratio (P/E) of 9.08, compared with 31.40 for the industry. The company possesses a Value Score of A.
Canadian Solar Inc. PE Ratio (TTM)
Canadian Solar Inc. pe-ratio-ttm | Canadian Solar Inc. Quote
Atlantic Power Corporation(AT): This owner and operator of power generation assets has a Zacks Rank #1 (Strong Buy), and seen the Zacks Consensus Estimate for its current year earnings rising more than 100% over the last 60 days.
Atlantic Power Corporation Price and Consensus
Atlantic Power Corporation price-consensus-chart | Atlantic Power Corporation Quote
Atlantic Power has a price-to-earnings ratio (P/E) of 10.13 compared with 19.60 for the industry. The company possesses a Value Score of A.
Atlantic Power Corporation PE Ratio (TTM)
Atlantic Power Corporation pe-ratio-ttm | Atlantic Power Corporation Quote
See the full list of top ranked stocks here
Learn more about theValue score and how it is calculated here.
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Analyst Incrementally Bullish On EA After 'Apex' Season 2 Launch
Initial positive reaction toElectronic Arts Inc.(NASDAQ:EA)'s "Apex Legends" season 2 previews should in part give investors confidence in the video game maker's ability to beat earnings and its own guidance in fiscal 2020, according to BMO Capital Markets.
The Analyst
BMO'sGerrick Johnsonmaintains an Outperform rating on Electronic Arts with a price target lifted from $116 to $130.
The Thesis
EA's management team commented at this year's E3 event the "Apex" brand remains strong despite concerns of slowing Twitch viewership, Johnson wrote in a note. The trailer for the second season has received 3 million views in the first four days alone with a 95% like-to-dislike ratio.
BMO's note coincides with the Tuesday launch of "Apex Legends" and brings "much needed" new content, a new character, a new ranked game mode, and perhaps most important new virtual goods for sale.
Respawn was responsible for developing "Apex Legends," and the studio -- rather than DICE -- also worked on "Star Wards Jedi: Fallen Order." As such, gamers are more likely to try the new "Star Wars" game that also received a positive reception when gameplay footage was released.
Johnson said the inclusion of a street-themed gameplay in "FIFA" soccer games "lends itself well" to in-game customization and could help the game see better than expected sales.
Price Action
Shares of Electronic Arts traded higher by 1.3% at $102.25 Tuesday afternoon.
Related Links:
A Fourth Video Game ETF Arrives
E3: Morgan Stanley's 6 Takeaways
Photo courtesy of EA.
Latest Ratings for EA
[{"Jun 2019": "Jun 2019", "": "", "Initiates Coverage On": "Initiates Coverage On", "Neutral": "Buy"}, {"Jun 2019": "May 2019", "": "", "Initiates Coverage On": "Maintains", "Neutral": "Buy"}]
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New Energy Metals Announces Signing of Definitive Option to Purchase Agreement to Acquire Exploradora North Project (Chile)
Vancouver, British Columbia--(Newsfile Corp. - July 2, 2019) -New Energy Metals Corp.(TSXV: ENRG) (OTC Pink: NEMCF) ("New Energy Metals"or the"Company") announces that, further to its news release dated June 6, 2019 and subject to acceptance for filing by the TSX Venture Exchange (the "TSXV"), it has entered into definitive option to purchase agreements (the "Option Agreements") with certain arm's length vendors (the "Vendors"), whereby New Energy Metals has been granted the exclusive right and option (the "Option") to acquire an initial 70% royalty-free interest in (the "Stage 1 Interest") and to certain exploration and exploitation mineral concessions (the "Concessions") comprising the Carmen, Elvira, Gran Elbita and Nevenka projects located in the II and III Regions of Northern Chile along the prolific West Fissure fault system, having a combined area of approximately 84,750 hectares, collectively referred to as the "Exploradora North project" ("Exploradora North" or the "Project").
New Energy Metals President and CEO, César López, stated, "Exploradora North is located in one of the world's most prolific copper districts. In addition, it is within close proximity of Codelco's current deep-drilling project. With that in mind, the signing of these definitive option agreements for Exploradora North is a major milestone for the Company and an active step towards our goal of serving the green energy market.
"By structuring the option earn-in on the Project as a series of independently vesting earn-in interests, the Company is able to retain its earned ownership interest in the Project even if it elects not to exercise the Option in full."
Exploradora North Details
Exploradora North is located immediately north and east of the current Exploradora deep drilling project of CODELCO ("Exploradora (CODELCO)") within a cluster of porphyry copper deposits and prospects first discovered in the 1990's (see Figure 1). To date, the cluster of porphyry copper (plus/minus gold and molybdenum) and skarn occurrences have only been explored to shallow depths (mostly to less than 600 meters), most recently by BHP Billiton approximately 10 years ago. In its 2018 Annual Report, CODELCO reported that its exploration activities conducted at Exploradora (CODELCO) were its most significant activity of the year, with primarily deep drill holes (with unpublished results) being carried out (see CODELCO's 2018 Annual Report, page 104). Recently, CODELCO has also been drilling along the common boundary of the Exploradora (CODELCO) and Exploradora North (New Energy Metals) land positions.
Figure 1 - Location of Project and Surrounding PropertiesTo view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/5737/46026_7036a63b3462ea42_002full.jpg
Mineral deposits on adjacent or similar properties, and any production therefore or economics with respect thereto, are not in any way indicative of mineral deposits on New Energy Metals' properties or the potential production from or cost or economics of, any future mining of any of New Energy Metals' mineral properties.
Commercial Terms
In order to earn the Stage 1 Interest, being an initial 70% interest in the Project, New Energy Metals will be required to: (i) incur exploration expenditures on the Project of at least USD 15,000,000 within 48 months of the Effective Date (the "Option Period"), (ii) make cash payments to the Vendors in the aggregate amount of USD $8,500,000, and (iii) deliver to the Vendors an aggregate amount of 11,500,000 common shares of New Energy Metals, to be incurred, paid and delivered as set out below. Pursuant to the terms of the Option Agreements, the Company will earn the Stage 1 Interest in a series of stepped earn-ins on the Project, as set out below.This stepped earn-in allows the Company to retain any interests it has in the Project, even if only a portion of the Option is exercised by the Company.
[{"Date": "Within 5 days of TSXV approval after signing of the Option Agreements (the \"Effective Date\")", "Cash(USD)": "$500,000", "New EnergyMetals Common Shares (#)": "500,000 shares", "Exploration Expenditures(USD)": "--", "Earned Interest(%)": "--"}, {"Date": "6 months from Effective Date", "Cash(USD)": "--", "New EnergyMetals Common Shares (#)": "750,000 shares", "Exploration Expenditures(USD)": "--", "Earned Interest(%)": "--"}, {"Date": "12 months from Effective Date", "Cash(USD)": "$1,000,000", "New EnergyMetals Common Shares (#)": "1,000,000 shares", "Exploration Expenditures(USD)": "--", "Earned Interest(%)": "10%"}, {"Date": "18 months from Effective Date", "Cash(USD)": "$1,000,000", "New EnergyMetals Common Shares (#)": "1,250,000 shares", "Exploration Expenditures(USD)": "--", "Earned Interest(%)": "--"}, {"Date": "24 months from Effective Date", "Cash(USD)": "$1,500,000", "New EnergyMetals Common Shares (#)": "1,500,000 shares", "Exploration Expenditures(USD)": "--", "Earned Interest(%)": "Additional 15%(total of 25%)"}, {"Date": "30 months from Effective Date", "Cash(USD)": "$2,000,000", "New EnergyMetals Common Shares (#)": "2,500,000 shares", "Exploration Expenditures(USD)": "--", "Earned Interest(%)": "Additional 15%(total of 40%)"}, {"Date": "36 months from Effective Date", "Cash(USD)": "$2,500,000", "New EnergyMetals Common Shares (#)": "4,000,000 shares", "Exploration Expenditures(USD)": "--", "Earned Interest(%)": "--"}, {"Date": "48 months from Effective Date", "Cash(USD)": "--", "New EnergyMetals Common Shares (#)": "--", "Exploration Expenditures(USD)": "$15,000,000", "Earned Interest(%)": "Additional 30%(total of 70%)"}, {"Date": "Total:", "Cash(USD)": "$8,500,000", "New EnergyMetals Common Shares (#)": "11,500,000 shares", "Exploration Expenditures(USD)": "$15,000,000(1)", "Earned Interest(%)": "70%"}]
(1) The earn-in of the 10%, 25% and 40% interests in the Project have no exploration expenditure requirements, which are only applicable to the 70% interest earn-in that requires that USD $15 million have been spent on the Project within 48 months of the Effective Date.
With the exception of the initial cash payment of USD $500,000 and the initial issuance of 500,000 common shares of the New Energy Metal to the Vendors, all of the foregoing exploration expenditures, payments and share issuances are optional and New Energy Metals will not be obligated to make any such expenditures, payments or share issuances.
There are no annual or monthly requirements in respect of exploration expenditures, provided that an aggregate amount of USD $15,000,000 in exploration expenditures must be incurred by New Energy Metals within 48 months of the Effective Date to complete the earn-in of the Stage 1 Interest, and New Energy Metals will be responsible for maintaining the Concessions in good standing and paying all fees and assessments during the Option Period. All shares of New Energy Metals issued in connection with the Option will be subject to a hold period in Canada of 4 months and one day from the date of issuance. In connection with entry into the Option Agreement and in accordance with TSXV policies, the Company has agreed to issue to Asesorías y Servicios ZT Partners SpA, an arm's length party, 500,000 common shares in the capital of the Company, which shares will be issued as fully paid and non-assessable, as a finder's fee (the "Finder's Fee").
Upon the exercise of the Stage 1 Option by New Energy Metals, New Energy Metals and the Vendors would be deemed to have formed a joint venture (the "Joint Venture") for the continued exploration and development of Exploradora North and will form a joint venture company, in which the initial participating interests of the parties will be 70% for New Energy Metals and 30% for the Vendors. The Vendors will also grant to New Energy Metals the first right of refusal (the "Right of First Refusal") to acquire up to an additional 30% of the right, title and interest of the Vendors in and to the Concessions. Pursuant to the Right of First Refusal, if at any time during the 36 months following the exercise of the Stage 1 Option, the Vendors receive abona fideoffer from a third party to purchase all or part of their participating interest in the Joint Venture (the "Subject Interest") that they intend to accept, then the Vendors must notify New Energy Metals of the terms of any proposed sale. New Energy Metals will then have 30 days to decide whether it wishes to purchase such Subject Interest at the price and on the terms set forth in the notice provided by the Vendors.
Relinquishment of Properties
The Company also announces that it has relinquished its options to acquire the Victoria and Tres Salares cobalt properties. The Victoria and Tres Salares properties no longer align with the Company's strategic plan for its mineral asset portfolio. By relinquishing the options to such properties, New Energy will not be not subject to any further obligations in respect of either property, allowing the Company to focus its resources on other value generating projects.
The Company's interests in the Victoria and Tres Salares properties were acquired in 2018, subject to TSXV acceptance, pursuant to separate assignment agreements. In determining to relinquish the properties, the Company has elected not to complete its application to the TSXV for final acceptance for the acquisition of such properties.
Qualified Person
Dr. Thomas A. Henricksen, a qualified person as defined by National Instrument 43-101 has reviewed the scientific and technical information that forms the basis of this news release and has approved the disclosure herein. Dr. Henricksen is not independent of the Company as he is the Company's chief geologist and holds incentive stock options of the Company.
About the Company
New Energy Metals is focused on the exploration and development ofenergy metalsin Chile. The Company's assets include several prospective cobalt projects in Chile's past producing San Juan cobalt district.
On behalf of New Energy Metals Corp.
César López, President & CEOT: 604.484-1232E:info@newenergymetals.caW:www.newenergymetals.ca
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.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, the earn-in and exercise by the Company of the Option (including the Stage 1 Option, the formation of the Joint Venture and subsequent Right of First Refusal), the payment of the Finder's Fee, the anticipated exploration program results from exploration activities on the Company's mineral projects, the discovery and delineation of mineral deposits/resources/reserves and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "will", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that: it will successfully conclude its due diligence on the Project and the Vendors, it will obtain TSXV acceptance for the filing of the Option Agreements, market fundamentals will result in sustained precious metals, cobalt and copper demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Company's Chilean mineral projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company's projects and the Company's ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, results from the Company's due diligence on the Project and the Vendors, actual results of exploration activities, the fact that the Company's interests in its mineral properties (including the Project) are only options and there is no guarantee that the interests, if earned, will be certain, requirements for additional capital, future prices of precious metals, cobalt and copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, other risks of the mining industry, the inability to obtain any necessary governmental and regulatory approvals (including TSXV acceptance for filing of the Option Agreements and the Finder's Fees), changes in laws, regulations and policies affecting mining operations, hedging practices and currency fluctuations, as well as those factors discussed under the heading "Risks and Uncertainties" in the Company's most recent management's discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website atwww.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46026
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13 Blue-Chip Stocks With Risks You Need to Watch
Getty Images Every company faces headwinds at some point. Even the bluest of blue-chip stocks must tackle a serious threat from time to time. Dangers can come from anywhere. They can be industrial accidents such as the 2010 Deepwater Horizon oil spill that cost BP plc ( BP ) nearly $65 billion in legal fees, settlements and cleanup costs as of 2018. There are technological squabbles, such as Apple's ( AAPL ) 2017 patent infringement lawsuit settlement with Nokia, which forced the iPhone maker to pay $2 billion upfront as well as ongoing royalties from iPhone sales. Pfizer ( PFE ) was weighed down considerably in 2011 as it was about to lose market exclusivity on its blockbuster cholesterol drug Lipitor - this so-called patent cliff is a frequent headwind for pharma stocks. Some blue chips, such as Apple and Pfizer, take the hit and keep on chugging. Others, like BP, take much longer to recover - if they ever do. You can get some insight into potential headwinds by reading the "Risk Factors" section of each company's annual 10-K filing. Companies are required to list, by order of importance, the most significant risks challenging future profits or stock performance. Some risks apply to the entire economy, some to that particular industry and a few are unique to that company. Here are 13 blue-chip stocks that currently are navigating their way around a landmine or two. This isn't necessarily a list of stocks to sell, however. Great companies can often overcome major setbacks, and many of these companies are working toward that. But retirees need to be especially aware of forces that threaten substantial shorter-term losses. And even the most ardent bull should acknowledge and understand significant risks - even if they merely set a stock up for a dip-buying situation. SEE ALSO: 20 More Best Stocks to Buy That You Haven't Heard Of Facebook Getty Images Market value: $499.0 billion Dividend yield: N/A Facebook ( FB , $174.82) disclosed in its first-quarter results that it anticipates paying fines of up to $5 billion to settle lawsuits from federal regulators. The company has been negotiating with the Federal Trade Commission to settle charges that it violated a 2011 consent decree requiring that consumers be provided with "clear and prominent notice" before sharing customer data. Regulators say Facebook violated the agreement by not informing users that it was sharing their data with Cambridge Analytica during the 2016 presidential campaign. The company had set aside $3 billion to cover payment. Story continues Facebook also faces big fines from the European Union under new privacy laws. Regulators in France, Belgium, Germany and Austria may fine Facebook, and its Instagram and WhatsApp services, up to 4% of annual revenues for privacy violations, which could result in additional fines of up to $1.63 billion for each business. And just this month, Facebook was among four prominent blue-chip stocks in the tech sector - along with Apple, Amazon.com ( AMZN ) and Google parent Alphabet ( GOOGL ) - facing potential antitrust scrutiny, according to various media reports. Facebook's ability to grow going forward will be tied to just how well it can continue monetizing its 2.7 billion monthly active users - across all its apps, including Instagram, Messenger and WhatsApp - under tighter scrutiny of its privacy and data-use practices. CEO Mark Zuckerberg has some solutions, as he always does, including drawing in more than 3 million advertisers for its Stories visual product. Legal costs do add up, though. Facebook grew first-quarter revenues 26%, but corporate expenses swelled by 80% because of the funds set aside for a potential lawsuit settlement. That helped drag operating margins down from 46% to 22%, slashing profits by 51% to $2.43 billion. SEE ALSO: 10 Top-Rated Mega-Cap Stocks to Buy Now Eli Lilly Getty Images Market value: $110.6 billion Dividend yield: 2.3% Eli Lilly ( LLY , $113.93), along with rivals Sanofi ( SNY ) and Novo Nordisk ( NVO ), are defendants in class-action lawsuits challenging their insulin pricing practices. These three companies supply most of the world's insulin. The suits stem from 2017, when the plaintiffs claimed those companies colluded to boost list prices of insulin, The plaintiffs originally sued the three drugmakers in 2017, alleging they colluded to boost list prices of insulin, which the American Diabetes Association said tripled between 2002 and 2013, and which the nonprofit Health Care Cost Institute says doubled between 2012 and 2016. Some patients with no insurance or large deductibles have been stuck with out-of-pocket costs for insulin as high as $900 per month. Racketeering charges have been dismissed, but other parts of the lawsuit are moving forward. Commenting recently on insulin pricing, FDA Commissioner Scott Gottlieb said his agency would push for the development of lower-cost biosimilar versions of insulin. Lilly's insulin drug (Humalog) is its second-highest revenue generator, accounting for more than $2.9 billion of global sales. Lilly hopes to soften criticism of its pricing by launching a generic version of Humalog that will cost half as much. The new drug (Insulin Lispro) is priced at $137 versus $275 for Humalog. Goldman Sachs analyst Terence Flynn assigned a "Buy" rating on LLY in late May. He not only praised product cycles in four growing categories, but said Wall Street is sleeping on Lilly's longer-term potential in diabetes. SEE ALSO: The 15 All-Time Best-Selling Prescription Drugs Bayer AG Getty Images Market value: $55.7 billion Dividend yield: 5.2% German blue-chip Bayer AG ( BAYRY , $14.93) unwittingly acquired a potential ticking time bomb when it purchased Monsanto, the maker of Roundup weed killer, in 2018 for $63 billion. Since acquiring Monsanto, Bayer has been hit by thousands of Roundup lawsuits posing risks that have cut its share price by nearly half. A U.S. jury recently awarded a couple $55 million for pain and suffering and $2 billion in punitive damages after concluding Roundup exposure caused their cancer. This was the third Roundup lawsuit Bayer has lost. The first two resulted in jury awards of $78.5 million and $80 million, respectively. Bayer plans to challenge the verdicts, based on recent findings by the Environmental Protection Agency that glyphosate, the main ingredient in Roundup, is not a carcinogen. More than 13,400 plaintiffs have filed Roundup lawsuits in state courts, and a mediator has been appointed to oversee another 900 Roundup lawsuits at the federal level. The next federal Roundup trial has been scheduled for February 2020. Bayer remains the market leader in agricultural chemicals and a major player in pharmaceuticals, with blockbuster prescription drugs such as Xarelto and Eylea and over-the-counter drugs like Bayer aspirin, Aleve and Claritin. That's enough to keep analysts interested, despite all the legal uncertainty. The stock has 13 "Buy" or "Overweight" ratings, 11 "Holds" and just one "Sell," according to The Wall Street Journal. Zacks Research is tracking steadily rising analyst EPS estimates, too, and has upgraded its BAYRY rating to "Strong Buy." SEE ALSO: 14 Stocks With Special Dividends to Watch Johnson & Johnson Getty Images Market value: $369.1 billion Dividend yield: 2.7% Johnson & Johnson ( JNJ , $139.02) is the world's largest health care company and an industry leader in prescription drugs, medical devices and consumer health care. The company owns oncology drugs Darzalex, Imbruvica and Zytiga, as well as immunology drugs Stelara and Tremfya. J&J also is launching a nasal spray for treating depression (Spravato) this year that analysts say eventually could produce $3 billion in annual sales. Its consumer health product line is robust, too, including household names like Listerine, Band-Aid, Aveeno and Tylenol. But JNJ's problems actually stem from this division. The company's well-known Johnson's Baby Powder product has become a major drag on earnings. JNJ faces more than 14,000 lawsuits claiming that its talcum baby powder causes cancer, and so far, awards from litigation have been enormous. Last year, a Missouri jury awarded nearly $4.7 billion - nearly 6% of 2018's full-year revenues - to a group of 22 women last year, and the company suffered a $29.4 million verdict in California this March. JNJ plans to appeal these verdicts but still faces more than a dozen new trials, primarily in California, over the next few months. The company's mounting legal costs contributed to a 14% decline in first-quarter earnings per share. Despite these challenges, JNJ remains one of the best-known Dividend Aristocrats , with 57 consecutive years of dividend growth. And while analysts are mixed on JNJ, the largest number (nine) of 19 covering analysts say it's buy-worthy. Goldman Sachs started the company at "Buy" in late May, touting its diversified portfolio and low exposure to Medicare/Medicaid, which should make it less vulnerable to policy arguments heading into 2020 elections. SEE ALSO: The Best Health-Care Stocks to Buy for 2019 Wells Fargo Getty Images Market value: $208.0 billion Dividend yield: 3.9% Once considered America's most valuable bank brand, serving one in three U.S. households, Wells Fargo ( WFC , $46.27) now has a tarnished reputation after opening millions of fraudulent accounts, allowing illegal lending practices and knowingly selling sub-standard mortgages. The bank recently paid shareholders $240 million to settle a lawsuit over millions of bogus customer accounts created to boost performance metrics. Wells Fargo has already paid $160 million in government fines and a settlement of $480 million to institutional investors over the fake accounts and expects to pay out $2.7 billion more, exceeding previous estimates. In addition to a substantial fine, the Federal Reserve restricted the bank's growth by imposing a cap on assets. This cap will remain in place under Fed officials are convinced the bank's governance and internal controls have improved. Over the past two years, Wells Fargo has closed hundreds of branches and decided to cut more than 26,000 employees. This year, WFC shares are barely above breakeven while blue-chip bank stocks such as Bank of America ( BAC , +13.9%) and Citigroup ( C , +28.9%) have soared. Analysts have soured on the stock, with 15 of 31 covering Wells Fargo calling it a "Hold," and another four in the "Sell" camp. Goldman Sachs' Richard Ramsden was one of several analysts to downgrade the stock in April following Wells Fargo's first-quarter earnings report, citing lower guidance for net interest income and the sudden departure of CEO Tim Sloan. SEE ALSO: 10 High-Yield Monthly Dividend Stocks and Funds to Buy Roche Holdings Courtesy William Murphy via Flickr Market value: $233.7 billion Dividend yield: 3.1% Swiss drugmaker Roche Holdings ( RHHBY , $34.22) is taking a steep dive off the patent cliff with three of its top-selling drugs (Rituxan, Herceptin and Avastin) all on target to lose patent exclusivity during the second half of 2019. These oncology drugs accounted for $18.8 billion and 43% of the company's revenues last year. Roche has dominated the cancer drug market since 2002 largely thanks to its Genentech acquisition, but faces increased competition as some of its key drugs decline and rivals such as Bristol-Myers Squibb ( BMY ) battle for share. Market research firm EvaluatePharma projects a 12% decline in revenues from Roche's cancer franchise over the next six years, even as the overall cancer drug market is poised to double in size. The company is counting on new drugs in non-oncology areas to help close the revenue gap. One such drug is multiple sclerosis treatment Ocrevus, which analysts expect eventually will generate $5 billion in peak annual sales. Roche is also utilizing M&A to build its presence in new disease areas. Its planned purchase of Spark Therapeutics, a leader in gene therapies, will help Roche build a major presence in hemophilia treatments. Analyst appear optimistic that Roche will be able to replace revenues lost from expiring drugs with sales of new drugs. The consensus rating among the 22 analysts following RHHBY is "Buy," and their consensus estimates are for low-single-digit sales and EPS growth this year. SEE ALSO: The 45 Cheapest Index Funds in the ETF Universe Allergan Getty Images Market value: $41.5 billion Dividend yield: 2.3% Drugmaker Allergan ( AGN , $126.61) tried to extend the patent life of its blockbuster eye drug Restasis - at $1.2 billion in 2018, it's Allergan's second-biggest moneymaker behind wrinkle treatment Botox - by transferring ownership of its patent to an American Indian tribe. Despite this unusual step, a U.S. Appeals Court ruled the company's patents invalid last year, and the Supreme Court refused to hear the case in April, paving the way for new generic competitors. Allergan still enjoys strong sales of Botox, which rose 9% in the first quarter and contributed $868 million to revenues. The company also has a clear winner in Vraylar, an antipsychotic that is the fastest-growing branded drug in its category. Vraylar revenues have expanded by double digits every quarter since its launch, including 70% sales growth during Q1 2019. Allergan anticipates launching Vraylar for a new indication (bipolar depression) later this year. The company has other drugs in the pipeline poised for launch or other important trial dates over the next 18 months, including abicipar (macular degeneration), bimatoprost (glaucoma) and ubrogepant (migraine). It also expects to launch a device - CoolTone, a muscle stimulator - in the second half of 2019. Allergan recently raised 2019 sales and earnings guidance and expects cash flow to top $5 billion this year, providing ample fodder for share repurchases, dividend growth and acquisitions. AGN's expanding pipeline and cash flow generating abilities have the majority of covering analysts optimistic about the stock's prospects. Allergan is rated "Buy" or "Strong Buy" by 14 analysts and "Hold" by nine. Cantor Fitzgerald analyst Louise Chen - one of the "Holds" - recently called Allergan one of the highest-quality, most innovative companies in the pharmaceutical industry. She is remaining on the sidelines, however, while she looks for improved earnings visibility. SEE ALSO: Save the Date: 11 Biotech Stocks to Put on Your Radar AbbVie Courtesy AbbVie Market value: $113.8 billion Dividend yield: 5.6% AbbVie ( ABBV , $76.95) is another blue-chip pharma stock and the owner of Humira, the world's No. 1 selling prescription drug. Humira generated sales of more than $20 billion in 2018, which represented more than half of AbbVie's revenues. But Humira's day is coming. The drug already went off-patent in the European Union last year. The company has fended off eight would-be biosimilar competitors in the U.S., keeping them at bay through 2023. Nonetheless, this is an eventual major threat - one that AbbVie plans to address by building a rich drug pipeline. The company has big expectations for oncology drugs Imbruvica and Venclexta, which already contribute $4 billion to sales and could surpass $9 billion by 2025. Other top performers are immunology drugs upadacitinib and risankizumab, which may add $10 billion to sales in the next six years. In all, AbbVie anticipates sales of non-Humira drugs rising to $35 billion by 2025, more than offsetting declining Humira sales. AbbVie's yearly $4 billion to $5 billion investments in drug R&D are paying off. Research firm EvaluatePharma recently rated its clinical pipeline the second best in the pharma industry. AbbVie has more than 20 new products (or new indications of existing drugs) positioned for a 2020 launch. AbbVie split from Abbott Laboratories ( ABT ) in 2013, with both companies keeping the title of Dividend Aristocrat following the breakup. ABBV has kept up the annual payout hikes since then, registering its 47th consecutive year of dividend increases in April with a substantial 35% improvement to 71 cents per share. Nonetheless, ABBV shares are off more than 16% this year. Most of the losses came in January, when the company announced a $4 billion write-down of an acquisition, then followed that up with disappointing fourth-quarter earnings. General Electric Getty Images Market value: $87.6 billion Dividend yield: 0.4% Under a barrage of bad news and mounting debt, General Electric ( GE , $10.05) - arguably relegated to former blue-chip status at this point - suffered a meltdown in 2017 that sent its profits and shares plunging. The company is on its third CEO in two years, and it's working to spin off various units to generate more value. The next big challenge facing General Electric is its woefully underfunded pension plan. About 70% of GE's retired and active workers are covered by plans that require funds be set aside for future payments. The company's workers are guaranteed $92 billion in payments, but the company has set aside only $69 billion to meet its obligations. General Electric contributed $6 billion to the plan in 2018, which could cover required cash contributions through 2020, but is gambling on a rising stock market. The company's pension burden increases when the stock market falls, since the value of plan assets shrinks. A prolonged bear market could create major liquidity problems for GE. However, UBS analyst Peter Lennox-King thinks GE's pension costs will fall in coming years, boosting EPS as a result. He looks for a $1 billion to $3 billion drop in General Electric's pension costs by 2020, which could add 29 cents per share to earnings - considerable given consensus estimates for 75 cents. Lennox-King, who rates GE a "Buy," reasons that the company's non-ERISA (Employee Retirement Income Security Act of 1974) pension obligations can be funded from current cash flow and don't require pre-funding. Indeed, General Electric's ERISA-based obligation is about 80% funded. The average pension plan across the Standard & Poor's 500-stock index was 85% funded as of December 2018 - not much of a discrepancy. SEE ALSO: 10 Top-Rated Industrial Stocks to Snap Up Now Delta Air Lines Getty Images Market value: $35.8 billion Dividend yield: 2.6% Delta Air Lines ( DAL , $54.73), one of a handful of blue-chip stocks in the airline space, also faces challenges from its massively underfunded pension plan. The company had pension obligations totaling $19.8 billion as of the end of last year, but funding of only $13.5 billion. Delta's 68% funding ratio gave it one of the weakest coverage ratios in the S&P 500. The company said it would contribute $500 million in 2019, but that still puts it well shy of its obligation. Delta's pension woes are the result of many years of overly rosy estimates of what it could earn from invested pension assets. From 2008 to 2017, the company anticipated investment returns totaling $7.7 billion, but actual returns were only $5.8 billion. Its overly optimistic assumptions are a threat to future earnings since every 50-basis point decline in plan returns adds $73 million to pension expense. Using the more conservative return assumptions employed by other S&P companies would add as much as $438 million to Delta's pension expense. David Trainer, CEO of independent research firm New Constructs, LLC, estimated last year that the hit to earnings would come to 48 cents per share . Despite its pension issues, however, Delta has delivered seven consecutive quarters of better-than-expected financial results, and Wall Street is highly bullish about this blue-chip airline stock. Among the 22 analysts following Delta, 16 have "Buy" or "Strong Buy" ratings, while six say it's a "Hold." A slew of analysts reiterated their "Buy" calls a couple months ago following the company's earnings report. That includes Cowen analyst Helane Becker, who raised her price target given Delta's solid core business and the renewal of a credit card partnership with American Express ( AXP ). Lockheed Martin Getty Images Market value: $99.3 billion Dividend yield: 2.5% Lockheed Martin ( LMT , $351.60), the largest of the defense-industry blue chips, also has issues with a poorly funded pension plan. Lockheed Martin was forced to contribute $5 billion to its pension plan in 2018 - roughly equivalent to a full year of earnings - to reduce a pension funding gap that had swelled to $15.6 billion, or approximately 16% of the company's current market value. The 2018 contribution was a big change from LMT's typical contribution, which has averaged only about $50 million annually in recent years. Even with the $5 billion infusion, Lockheed Martin's plan remains noticeably underfunded. The company ended 2018 with pension obligations totaling $43.3 billion and pension assets valued at $32.0 billion, creating a funding gap of $11.3 billion. Regardless of pension challenges, Lockheed Martin is off to a roaring start in 2019. A broader bull run and better-than-expected first-quarter results (EPS of $5.99 beat consensus analysts by nearly 40%) have sent LMT shares 34% higher. produced a 30% year-to-date share price gain. A major growth driver for Lockheed Martin is its F-35 fighter jet program. Poland formally ordered 32 fighter jets in May, and other NATO allies are purchasing aircraft as well. Japan is the largest buyer, with 105 F-35s ordered, and the UK, the Netherlands, Norway and Italy have all ordered jets. The U.S. plans to purchase 2,663 F-35 fighter jets for the Air Force, Navy and Marines in coming decades. Lockheed Martin expects to sell 4,600 fighters over the life of the F-35 program, valued by analysts at over $1.3 trillion. Each of its four businesses recorded sales and profit growth in the first quarter, causing Lockheed Martin to raise its 2019 EPS guidance by 90 cents per share, to a range of $20.05 to $20.35. SEE ALSO: 25 Small Towns With Big Millionaire Populations General Motors Getty Images Market value: $51.1 billion Dividend yield: 4.2% Creditors of General Motors ( GM , $36.01) continue to seek higher awards as part of a revised settlement of the company's legacy ignition switch lawsuit. GM allegedly sold vehicles with faulty ignition switches, which could have prevented airbags from deploying during a crash. If approved, the new settlement could cost General Motors an additional $1 billion in stock and force the company to accept additional claims totaling more than $35 billion. General Motors said in its 2018 annual report that it opposes the revised settlement but was unable to estimate the losses or a range of losses that could result if courts rule in favor of its creditors. Despite these lawsuit challenges, analysts remain impressed with GM's competitive positioning in trucks and autonomous vehicles, assisted by its popular OnStar service. Bank of America/Merrill Lynch analyst John Murphy has a "Buy" rating and $63 price target on GM stock. Morgan Stanley analyst Adam Jonas believes GM will benefit from strong demand for its trucks and SUVs for several more quarters and rates the shares "Overweight" (equivalent of "Buy"). And General Motors is compensating investors generously with a 4%-plus dividend yield at current prices. PG&E Getty Images Market value: $10.5 billion Dividend yield: N/A PG&E ( PCG , $19.77), the holding company for California utility Pacific Gas & Electric, certainly had a place among blue-chip stocks until relatively recently. However, it filed for bankruptcy in 2019 due to crushing wildfire liability costs. California officials concluded that sparks from PG&E equipment caused multiple massive wildfires in 2017 and 2018 and plaintiffs are seeking damages estimated to exceed $30 billion. Although a bankruptcy filing doesn't make litigation disappear, it does consolidate claims into a single proceeding before a bankruptcy judge, potentially avoiding excessive jury awards. Costs relating to wildfire-related inspections, cleanup and legal fees trimmed 70 cents per share from the company's first-quarter 2019 earnings. PG&E won't provide full-year 2019 guidance due to uncertainty around the lawsuits, but estimates at least $1 billion-$1.4 billion of additional wildfire-related expenses this year. PG&E is America's largest electric utility, providing natural gas and electricity to more than two-thirds of California. The utility is no stranger to bankruptcy, having suffered through one 18 years ago when it was forced to sell electricity below costs. The company reemerged from bankruptcy in 2004 after paying $10.2 billion to creditors. PCG shares have lost nearly two-thirds of their value from their 2017 highs, yet have rebounded considerably from earlier in 2019, when they plunged below $7. The 13 analysts who cover the stock aren't howling to sell, either. Eleven are staying on the sidelines with cautious "Holds," but two analysts - who are banking on lighter-than-expected penalties and see opportunities in this beaten-down stock - consider it a "Buy." Citi analyst Praful Mehta is one of them, actually upgrading the stock to "Buy" in February and reiterating its call just a few days ago. "We believe legislation (to socialize wildfire costs across several other groups) will be passed by the end of session and not July 12th. As noted earlier, we think this legislation will follow the path of least resistance," he writes. SEE ALSO: 15 Reasons You'll Go Broke in Retirement EDITOR'S PICKS 50 Top Stocks That Billionaires Love The 25 Best Low-Fee Mutual Funds to Buy Now 15 Reasons You\'ll Go Broke in Retirement Copyright 2019 The Kiplinger Washington Editors View comments
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5 IPO Stocks to Buy — According to Wall Street Analysts
The IPO market is on fire right now. We are only halfway through the year and yet we have enough IPO stocks to last at least until 2020. However not all the newly public companies make for promising investing opportunities to say the least.
With its meteoric rise now in the rear view mirror,Beyond Meat(NASDAQ:BYND) looks extremely overvalued. And that’s not the only stock that’s seems destined for a pullback. I’m thinking ofRattler Midstream(NASDAQ:RTLR) andTradeweb Markets(NASDAQ:TW) as two other new stocks, that although compelling, look fully valued at current levels.
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So here I turned to the Street’s wisdom to pinpoint five new stocks that look attractive right now. All these stocks score very highly on the Street’s radar. And so, without further ado, here are the top 5 IPO stocks to buy now:
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Source: Shutterstock
One of the most highly-anticipated IPOs of 2019 was also one of the biggest failures.Uber Technologies Inc(NYSE:UBER) shares are still trading below the IPO price of $45. That’s after the IPO stock opened for trading on May 10 at just $42. But don’t let that put you off. Uber is actually a top stock to buy now, or so the Street says.
“Uber is a transformational company that should benefit from secular shifts to the sharing economy (Rides), time saving services (Eats), and a move to more efficient marketplaces (Freight)” cheers top KeyBanc analystJustin Post.
“We are constructive on fundamentals given massive TAM [total addressable market] and technology advances that likely lower driver dependency and improve margins. We think the stock should trade at a premium to direct peers given share leadership and potential network effects” he says.
As for concerns over new rival services starting in London, Morgan Stanley’sBrian Nowaktells investors not to panic. “We note that Uber’s share of downloads dropped modestly [in the UK] following Bolt’s launch, but has since recovered. This, in our view, speaks to Uber’s brand and market leadership even through new entrants.”
However, he does add a word of warning about India’s Ola. “Ola is arguably a greater threat if media reports of Ola’s entry into London at the end of the year prove accurate”. Based on media reports, Bolt has only raised $190-$280mn to date vs. Ola’s $3.8bn.
Overall, UBER has scored 21 recent buy ratings, with just 7 analysts staying sidelines. This gives Uber its ‘Strong Buy’ consensus. Plus the average analyst price target of $53 indicates 24% upside lies ahead. Interested in Uber stock?Get the free UBER Stock Research Report.
Source: Shutterstock
PrecisionBioSciences(NASDAQ:DTIL) is an exciting genome editing company. Scientists can now precisely edit the DNA of living organisms to correct genetic problems at the source. For Precision, this involves using a proprietary genome editing method called ARCUS. The company wants to use ARCUS to overcome cancers, cure genetic diseases, and enable the development of safer, more productive food sources.
Following its successful IPO in late March, four analysts initiated coverage of DTIL– all with buy ratings. That includes positive calls from all of Goldman Sachs, JP Morgan and Barclays.
Barclays’Gena Wanghas a $24 price target on the stock (81% upside potential). This top-rated analyst writes: “We believe DTIL proprietary ARCUS genome-editing platform has its unique advantages with its editing efficiency largely comparable to other gene editing technologies.”
Precision uses ARCUS to develop cell-based cancer immunotherapies (allogenic CAR-T) from healthy donors instead of the patient. This enables consistent, scalable manufacturing.
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“Strategic focus on allogenic-CAR-T against well validated targets has positioned the company as one of the leading players in the field” writes Wang, adding that the company’s unique food program offers significant long-term potential.Get the DTIL Stock Research Report.
Source: Shutterstock
The world-famous jeans giant is also looking like a compelling investing opportunity right now. That’s according to top-performing analysts. If you look at the overall analyst consensus,Levi Strauss(NYSE:LEVI) shows a cautiously optimistic Moderate Buy rating. But if you focus on only the analysts with the strongest track record, this consensus shifts to Strong Buy.
Shares of this IPO stock surged 30% when the company made its return to the market late March. Levi raised $623 million from the sale, with shares priced above the expected range at $17/ share. I say return because Levi was already a public company in the 1970s and 80s, before the Haas family regained control in 1985.
One analyst singing the stock’s praises is Guggenheim’sRobert Drbul. This top-rated analyst has a $26 price target on Levi’s (25% upside potential). “We are attracted to the company’s strong balance sheet, cash flow generation, and commitment to a healthy dividend rate and growth, supported by Levi’s global growth and market share opportunities” writes Drbul.
“While Levi’s already enjoys the highest brand awareness in Denim Bottoms, globally, we believe expansion in underdeveloped segments, including Women’s and Tops, DTC, and markets like China, provide a long runway for growth ahead” he told investors.
Oh and did you know that NYSE encouraged traders to wear blue jeans to mark Levi’s first trading day?Get the LEVI Stock Research Report.
Source: Shutterstock
Cloud-computing services providerFastly Inc(NYSE:FSLY) hit the markets in mid-May. According to Fastly, its edge cloud platform delivers faster, safer, and more scalable sites and apps to customers. That means, for example, helping BuzzFeed get 50% faster page loads. Or enabling the New York Times to manage 2 million concurrent viewers on election night.
Encouragingly, Fastly’s IPO was a great success. The company sold 11.25 million shares for $16 each, at the high-end of guidance. Shares of the IPO stock started trading at $21.50 and surged to $23.99 on the first day.
Looking ahead analysts are also optimistic. Five-star Stifel Nicolaus analystBrad Rebackhas just initiated coverage on Fastly. He rates the stock a Buy and published a $25 price target. That indicates sizable upside potential of 46%.
The analyst comments: “In the coming years, we believe Fastly can leverage its superior technological approach to drive continued strong net new customer additions and expand its wallet share among its existing installed base. Combined with a large market opportunity and the ability to further penetrate international markets, we believe Fastly can sustain at least a 30% top-line growth profile.”
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Reback adds, “Profitability should also improve going forward as the company’s market leading technology platform gains scale and management drives additional operational efficiencies.”Get the FSLY Stock Research Report.
Source: Shutterstock
TransMedics Group Inc(NASDAQ:TMDX) offers a revolutionary solution for organ transport. It has created a portable device, the TransMedics OCS, that mirrors the human body. “Warm, oxygenated blood perfusion allows us to maintain organs in a living, functional state. As a result, the lung breathes, the heart beats, and the liver produces bile” explains the company.
As a result, physicians can maximize the potential of donor hearts, lungs, and livers while monitoring and optimizing each organ throughout the entire process. And this matters because there is a large and growing clinical demand. Plus the current cold transportation method means that only 2-3 out of 10 donated thoracic organs can be used for transplant.
So it’s not surprising that TransMedics earns a ‘Strong Buy’ consensus from the Street. The company, which IPO’d in early May, reaped $105 million from the float. Shares opened on the first trading day at $20.25, a 27% gain from its IPO price, and have since soared a further 25%.
Cowen & Co’sJosh Jenningsinitiated coverage of TransMedics with a Street high price target of $40. From current levels that indicates further upside potential of 43%. The analyst explains his bullish call here:
“TMDX’s Organ Care System (OCS) is revolutionizing the organ preservation market from cold storage to warm ex-vivo perfusion. We believe TransMedics is filling a unique white space in transplant medicine and creating an $8B market. With multiple clinical and operational catalysts on the horizon, we expect OCS adoption and utilization trends to soon hit an inflection point.”Get the TMDX Stock Research Report.
See what the experts are saying about your stocks now atTipRanks.com. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.
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The post5 IPO Stocks to Buy — According to Wall Street Analystsappeared first onInvestorPlace.
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Big business to Supreme Court: Defend LGBTQ people from bias
NEW YORK (AP) More than 200 corporations, including many of America's best-known companies, are urging the U.S. Supreme Court to rule that federal civil rights law bans job discrimination on the basis of sexual orientation and gender identity. The corporations outlined their stance in a legal brief released Tuesday by a coalition of five LGBTQ rights groups. The brief is being submitted to the Supreme Court this week ahead of oral arguments before the justices on Oct. 8 on three cases that may determine whether gays, lesbians and transgender people are protected from discrimination by existing federal civil rights laws. Among the 206 corporations endorsing the brief were Amazon, American Airlines, Bank of America, Ben & Jerry's, Coca-Cola, Domino's Pizza, Goldman Sachs, IBM, Microsoft, Morgan Stanley, Nike, Starbucks, Viacom, the Walt Disney Co. and Xerox. Two major league baseball teams, the San Francisco Giants and the Tampa Bay Rays, were among the group. In their brief, the companies argued that a uniform federal rule is needed to protect LGBTQ employees equally in all 50 states. "Even where companies voluntarily implement policies to prohibit sexual orientation or gender identity discrimination, such policies are not a substitute for the force of law," the brief argued. "Nor is the patchwork of incomplete state or local laws sufficient protection for example, they cannot account for the cross-state mobility requirements of the modern workforce." Such friend-of-the-court briefs are routinely submitted by interested parties ahead of major Supreme Court hearings. The extent to which they might sway justices is difficult to assess, but in this case it's an effective way for the corporations to affirm support for LGBTQ employees. Federal appeals courts in Chicago and New York have ruled recently that gay and lesbian employees are entitled to protection from discrimination; the federal appeals court in Cincinnati has extended similar protections for transgender people. The question now is whether the Supreme Court will follow suit, given its conservative majority strengthened by President Donald Trump's appointments of Neil Gorsuch and Brett Kavanaugh. The three cases are the court's first on LGBTQ rights since the retirement last year of Justice Anthony Kennedy, who authored landmark gay rights opinions. The Obama administration had supported treating LGBTQ discrimination claims as sex discrimination, but the Trump administration has changed course. The Trump Justice Department has argued that the federal Civil Rights Act of 1964 was not intended to provide protections to gay or transgender workers. Story continues The companies signing the brief represent more than 7 million employees and $5 trillion in annual revenue, according to the Human Rights Campaign, the largest of the LGBTQ rights groups organizing the initiative. Other organizers included Lambda Legal, Out Leadership, Out and Equal, and Freedom for All Americans. "At this critical moment in the fight for LGBTQ equality, these leading businesses are sending a clear message to the Supreme Court that LGBTQ people should, like their fellow Americans, continue to be protected from discrimination," said Jay Brown, a Human Rights Campaign vice president. "These employers know firsthand that protecting the LGBTQ community is both good for business and the right thing to do." In one of the cases heading to the Supreme Court, the New York-based 2nd U.S. Circuit Court of Appeals ruled in favor of a gay skydiving instructor who claimed he was fired because of his sexual orientation. The appeals court ruled that "sexual orientation discrimination is motivated, at least in part, by sex and is thus a subset of sex discrimination." The ruling was a victory for the relatives of Donald Zarda, now deceased, who was fired in 2010 from a skydiving job that required him to strap himself tightly to clients so they could jump in tandem from an airplane. He tried to put a woman with whom he was jumping at ease by explaining that he was gay. The school fired Zarda after the woman's boyfriend called to complain. A second case comes from Michigan, where a funeral home fired a transgender woman. The appeals court in Cincinnati ruled that the firing constituted sex discrimination under federal law. The funeral home argues that Congress was not considering transgender people when it included sex discrimination in Title VII of the Civil Rights Act. The law prohibits employment discrimination on the basis of "race, color, religion, sex or national origin." The third case is from Georgia, where the federal appeals court ruled against a gay employee of Clayton County, in the Atlanta suburbs. Gerald Bostock claimed he was fired in 2013 because he is gay. The county argues that Bostock was let go because of the results of a financial audit. The 11th U.S. Circuit Court of Appeals dismissed Bostock's claim in an opinion noting the court was bound by a 1979 decision that held "discharge for homosexuality is not prohibited by Title VII." View comments
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Will STORE Capital Corporation's (NYSE:STOR) Earnings Grow In The Next 12 Months?
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Since STORE Capital Corporation (NYSE:STOR) released its earnings in March 2019, analyst forecasts seem fairly subdued, with earnings expected to grow by 5.5% in the upcoming year against the higher past 5-year average growth rate of 34%. With trailing-twelve-month net income at current levels of US$217m, we should see this rise to US$229m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here.
View our latest analysis for STORE Capital
The longer term view from the 8 analysts covering STOR is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for STOR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, STOR's earnings should reach US$289m, from current levels of US$217m, resulting in an annual growth rate of 11%. This leads to an EPS of $1.08 in the final year of projections relative to the current EPS of $1.06. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 40% to 36% by the end of 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For STORE Capital, I've compiled three essential aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is STORE Capital 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 STORE Capital is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of STORE Capital? 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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Jamie Dimon: 'Regulation, bureaucracy, and stupidity' are what's wrong with America
In a new interview, JPMorgan Chase (JPM) CEO Jamie Dimon suggested that excessive regulation and bureaucracy are hindering growth in the U.S.
“The whole American public knows. Mind-numbing paperwork, red tape, and bureaucracy — it's making it harder to build homes, to build bridges, to start businesses,” Dimon told Yahoo Finance last week.
The CEO noted that it can take years and dozens of permits to repair a broken bridge. “And that's true for our water, our electrical grids, our bridges, our tunnels, our airports. What the hell's wrong with this can-do American nation?” Dimon said. “That's regulation, bureaucracy, and stupidity. And if we don't fix it, we're relegated to more years of slow growth.”
Dimon made the comments to Editor-in-Chief Andy Serwer in a conversation that aired on Yahoo Finance in an episode of “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
The comments come in the wake of Democratic presidential candidates coming out strongly for more intervention in the economy, with many arguing for the breakup of big corporations, doing away with private health insurance, and calling out Wall Street as a bastion of inequality.
Dimon, the CEO of the biggest bank on Wall Street, has in particular clashed with Senator Bernie Sanders (I-VT).
Although Dimon hasdonated primarily to Democratic candidatesfor public office throughout his life, he has recentlystrongly critiquedthe populism of leading democrats Sanders and Alexandria Ocasio-Cortez (D-NY) andsupportedmuch of how Trump has handled the economy, including his significant tax cut package.
Calder McHugh is an Associate Editor at Yahoo Finance. Follow him on Twitter:@Calder_McHugh.
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Patrick Mahomes has changed his body ... for the better
Patrick Mahomes during OTA's on May 23, 2019 at the Chiefs Training Facility in Kansas City, MO. (Getty Images) The last five months of Kansas City Chiefs quarterback Patrick Mahomes’ life have been an absolute whirlwind. From chugging beer at the Stanley Cup Finals and striking historic endorsements , to establishing his own charity (the 15 and Mahomes Foundation) and becoming the new Madden coverman , it appears Mahomes — who became the NFL’s youngest MVP in 34 years — has been everywhere this offseason. “It’s been amazing, honestly,” Mahomes told Yahoo Sports. “Getting to meet a ton of people, getting to build myself and my brand. “With my foundation and everything that I do, it’s all about being around kids and providing them opportunities to get better and live out their dreams.” And to that end, just last week Mahomes was in Los Angeles to speak to the youth attending the After School All-Stars Leadership Academy at UCLA, a week-long camp for students who are considered to be burgeoning leaders in their communities. “I think the best advice I had for them is something I kind of live by, and it’s whatever I do, just do it to the best of my ability and give everything I have,” said Mahomes, who was there courtesy of Essentia Water (another new sponsor of his). “They should go out there and give all they have, knowing that that usually works out. And if it doesn’t, they know they did whatever they could to make it.” But for all the exciting off-the-field opportunities he’s embraced this year, Mahomes has made it clear to everyone — from the Chiefs to his new sponsors — that football will always come first. And proof of that is reflected in his improved physique, as Mahomes — who lit the NFL up to the tune of 5,097 yards, 50 touchdowns and 12 interceptions in 2018, his first year as a starter — is primed to come back as sculpted as he ever has before. View this post on Instagram A post shared by Patrick Mahomes II (@patrickmahomes) on Jun 23, 2019 at 10:15am PDT “For me, offseason-training wise, it’s all about trying to define [my body] ... trying to make sure I’m in the best shape possible, nutritionally and physically and mentally,” Mahomes told Yahoo Sports. “So the big thing for me this offseason going in was, I wanted to gain muscle but at the same time, cut weight. Kind of a mixture of both.” To that end, Mahomes — who is listed at 6-3, 230 pounds — says he’s currently the same weight he’s always been. But as the picture above shows, he’s primed to report to training camp in July in better physical condition. “I’ve gotten more muscular and [have] less baby fat, I guess you would say,” Mahomes said. “So that’s been the big thing for me — sculpting my body in the best way possible so I can go through the season and feel just as fresh at the end as I did at the beginning.” Story continues Mahomes has worked hard this offseason — often as much as two hours a day running, lifting, etc. — in hopes of adding more muscle mass, particularly in his lower body, and shedding three to five percent body fat from his frame by the time training camp rolls around. “The lowest I was last year after training camp was 12 percent, and that’s pretty good,” Mahomes told Yahoo Sports. “But now my goal is to be in the single digits, so I’m gonna try to get as low as I possibly can while still being healthy and still having the body to be able to take a full season.” But Mahomes, who turns 24 in September, says the key for any good offseason program is diet, an area he’s steadily improved since the Chiefs made him the 10th overall pick of the 2017 NFL Draft. “I mean, I’ve always been someone who trains hard, someone who works out hard, someone who goes out there every single day and doesn’t feel complete until I get a workout in on any given day,” Mahomes explained. “I think the biggest thing for me [has been] learning how to eat better, learning how to take away the snacks, the candies, the desserts, all that stuff and just focus in on how I eat and how I take care of my body that way.” Mahomes doesn’t count calories, but he does stick to three meals a day and is a big fan of fruit — especially strawberries, oranges and apples. He also credits Brittany Matthews, his girlfriend since the 10th grade, for being a positive influence in this area. “Eating-wise, I’m blessed that my girlfriend is [big on] nutrition so she helps me out with that — she’s [about] fitness,” Mahomes said. “I just try to eliminate some of the bad meals, the fast food, the foods that aren’t great for your body and don’t help you get the most out of it. I’m a picky eater, but I still try to eat healthy stuff like chicken, salmon and all the [other] stuff I like a lot.” Mahomes looks ripped in the photo above, but perhaps it should not be a surprise. Given the disappointing way last season ended — with the Chiefs barely missing out on a trip to the Super Bowl , and a clearly-annoyed Mahomes silently vowing to avoid ever feeling that way again — almost assured he would come back with a vengeance, despite the myriad assortment of off-the-field opportunities the offseason would present after his historical 2018 season. “Obviously with my brand, football comes first,” Mahomes said. “And [so does], hopefully, winning a lot of football games.” More from Yahoo Sports: Nike pulls shoe after Kaepernick raises racial concerns Angels pitcher, family man Skaggs gone too soon Yankees’ Stanton posts heartfelt message after Skaggs’ death Broncos preview: Replacing Manning has been tough View comments
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Is Stanley Black & Decker, Inc. (NYSE:SWK) A Smart Choice For Dividend Investors?
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Is Stanley Black & Decker, Inc. (NYSE:SWK) 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.
A slim 1.8% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Stanley Black & Decker could have potential. The company also bought back stock during the year, equivalent to approximately 2.2% of the company's market capitalisation at the time. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Explore this interactive chart for our latest analysis on Stanley Black & Decker!
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Stanley Black & Decker paid out 64% 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.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Stanley Black & Decker paid out 55% of its cash flow as dividends last year, which is within a reasonable range for the average corporation. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
As Stanley Black & Decker has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. Stanley Black & Decker has net debt of 2.23 times its EBITDA. Using debt can accelerate business growth, but also increases the risks.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Stanley Black & Decker has EBIT of 8.68 times its interest expense, which we think is adequate.
Consider gettingour latest analysis on Stanley Black & Decker's financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Stanley Black & Decker 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$1.28 in 2009, compared to US$2.64 last year. This works out to be a compound annual growth rate (CAGR) of approximately 7.5% a year over that time.
Companies like this, growing their dividend at a decent rate, can be very valuable over the long term, if the rate of growth can be maintained.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Earnings have grown at around 4.0% a year for the past five years, which is better than seeing them shrink! 4.0% per annum is not a particularly high rate of growth, which we find curious. When a business is not growing, it often makes more sense to pay higher dividends to shareholders rather than retain the cash with no way to utilise it.
To summarise, shareholders should always check that Stanley Black & Decker's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Stanley Black & Decker's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. Earnings per share growth has been slow, but we respect a company that maintains a relatively stable dividend. In sum, we find it hard to get excited about Stanley Black & Decker from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 18 analysts we track are forecasting for Stanley Black & Deckerfor 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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Shareholders Are Thrilled That The OFG Bancorp (NYSE:OFG) Share Price Increased 183%
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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you canmakemore than 100%. For instance theOFG Bancorp(NYSE:OFG) share price is 183% higher than it was three years ago. That sort of return is as solid as granite. It's also up 28% in about a month.
Check out our latest analysis for OFG Bancorp
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During three years of share price growth, OFG Bancorp achieved compound earnings per share growth of 356% per year. The average annual share price increase of 41% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
It is of course excellent to see how OFG Bancorp has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling OFG Bancorp stock, you should check out thisFREEdetailed report on its balance sheet.
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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of OFG Bancorp, it has a TSR of 201% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted thetotalshareholder return.
It's good to see that OFG Bancorp has rewarded shareholders with a total shareholder return of 66% in the last twelve months. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 8.2%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on OFG Bancorpit might be wise to click here to see if insiders have been buying or selling shares.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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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Fox News hosts admits they would have criticised North Korea visit by Obama
Fox News hosts were open about the conservative channel’s bias in a segment on Donald Trump’s visit to North Korea, admitting that “if it were the adversary” travelling to meet with Kim Jong-un, they’d have no praise. “Of course they’re going to attack him,” host Greg Gutfeld said on a Monday episode of The Five , referring to criticism of Mr Trump’s visit to the Demilitarized Zone separating North and South Korea . “That’s what you would do.” “And let’s be honest,” Mr Gutfeld continued, “if it were the adversary—an adversary from your party on the other side, we would do the same thing.” Fox News has long been a conservative news organisation, but its relationship to the Trump administration is unprecedented . The president is known to mimic talking points from the channel’s programmes, especially its early morning shows, on a regular basis. Acknowledgement of this has reportedly been used to deliver messages to Mr Trump regarding desired policy and opinions. Mr Trump is also known to speak to Fox host Sean Hannity on the phone on nearly “most weeknights.” In a recently released transcript from Paul Manafort’s trial, it was revealed that the conservative talking head was also exceptionally close with the president’s former campaign manager. In response to Mr Gutfeld’s comments, fellow host Jesse Watters mockingly yelled “How dare Obama meet with a dictator with no preconditions?” Juan Williams, the liberal representation on the show, later pointed out that the response to former president Barack Obama’s attempts to meet with leaders of Cuba, Iran, and even North Korea were regularly brushed off for the same reasons critics call Trump’s meeting a farce. Mr Gutfeld jumped in right away. “Couldn’t trust Obama, though,” he said. The cast laughed.
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Q&A with Rams college scouting director: how he got into NFL scouting
Yahoo Sports has spoken to various NFL scouts over the past few weeks to get a sense for not only how they got to where they are in their careers, but how they got into it and how the industry has changed over the years. This idea was inspired by Rivals’ Gabe DeArmond, who put together a fascinating series recently, asking all of the University of Missouri athletic coaches why and how they got into coaching initially. We enjoyed it so much, we’ve been doing the same with NFL scouts, trying to find out how they got into the business and what it takes to thrive in this competitive, cutthroat league. Our next installment is with Los Angeles Rams college scouting director Brad Holmes. Previous entries: Senior Bowl executive director Jim Nagy | Buffalo Bills senior national scout Dennis Hickey Brad Holmes grew up in a football-steeped family, with the game going back multiple generations in his lineage. But he got a bit of a later start playing the sport, was a bit off the radar in college football despite a strong résumé as a player at North Carolina A&T and had to take a bit of a detour in another sport before he got into NFL scouting. But over the past 15 years, Holmes has established himself as one of the brighter minds in college scouting as one of Rams GM Les Snead’s most trusted lieutenants for a team that went from 4-12 three seasons ago to making the Super Bowl this year. And Holmes has developed into a potential general-manager candidate in a career that has been spent all with one franchise — first in St. Louis and now in Los Angeles — rising up the ladder. Holmes spoke with Yahoo Sports about his road to breaking into the business; how Renaldo Wynn (remember him?) might have been his first inspiration to be a scout; how the intangibles might outweigh the physical traits in a prospect; two big-name quarterback prospects he whiffed on years ago; plus, much more. In fact, Holmes left us with a fascinating epistemological question: What if the NFL scouting combine came before the college football season? We’ve been chewing on that brain-melting idea since we spoke to Holmes, as well as a lot of other revealing elements of the scouting process he helped peel back during our chat. Story continues Brad Holmes of the Los Angeles Rams during the third round of the NFL Draft from the Rams War Room, Friday, April 27, 2018, in Thousand Oaks, CA. (Rams) Yahoo Sports: When did you first play football? Brad Holmes: I grew up in a football family. My dad [ former Pittsburgh Steelers offensive guard Mel Holmes ] played in the NFL for a few years, and my uncle — my mom’s brother — [cornerback] Luther Bradley was a first-round pick out of Notre Dame by the Detroit Lions in 1978. I’ve just been around the game all my life. The funny thing is that my dad never really forced football on me, so I didn’t start playing until, I want to say, seventh grade. Somewhere around when I was 12 years old. But I was always around it. I loved watching the game. One time I was with one of my buddies that I was going to school with, and we were playing with the Tampa Bay Youth Football League, and there are all these teams. ‘Oh yeah, I play for the Patriots … I play for the Vikings …’ or whatever, and it just hit me. I was like, ‘Man, I need to get on a team.’ That’s when I finally asked my dad and told him I wanted to play, and he was like, ‘OK, I’ll sign you up.’ That’s the first time I played organized football. As far as getting to where I am now, I really did have a long path. Yahoo Sports: Was there an early seed planted with the desire to scout while you were playing or watching football along the way? Brad Holmes: You know, it’s really funny. Honestly, the first time I really got a glimpse about scouting — I’ll never forget — was in the eighth grade. I want to say it was the 1993 NFL draft, and it was the first time I watched the draft on TV. At least the first round, anyway. They were actually showing a war room, and it was the decision-makers: the coaches, the GMs, whoever. Making trades, looking through reports, whatever they were doing. And for some reason, I just got enamored by that. I just thought, ‘Wow!’ That was the coolest thing. Again, I had just started playing organized football at that point. I grew up playing football in the streets and in the backyard, but … and I have no idea why that was the connection. But I just got enamored with the coverage of it. So that kind of came and went, and I played all through high school, and fast-forward to the 1997 draft. One my friends and I were just watching it, and I’ll never forget they were showing the highlights of Renaldo Wynn from Notre Dame. They were just talking about his traits over the highlights — you know, ‘He’s quick and he can get off the ball fast,’ and they were just showing his different pass-rush moves. And from that point on, I was just in love with how they were describing his physical traits. That was the first time when I thought in terms of the physical traits of a player. And then thinking about them in terms of how they fit on every player on the field. I remember it like it was yesterday. My buddy and I were talking at McDonald’s, and I was like, ‘Man, that Renaldo Wynn looks amazing!’ I didn’t even know who Renaldo Wynn was until I saw that draft. [laughs] Notre Dame defensive lineman Renaldo Wynn (left, foreground) might have been one of the early inspirations for Brad Holmes' scouting career. (Getty Images) Maybe that’s the same excitement people see now when they watch the draft. Obviously, I see it in a whole different light now. But yeah, it was just a weird moment for me. Something about identifying those traits for that particular player. I look back now and just laugh, but it was like a light went off right at that moment. And it’s funny now, because I am so much focused on the intangible traits way more so than the physical traits. Now I am like, ‘OK, yeah, he’s fast, but does he work hard?’ You know? I just don’t care about that stuff quite as much. Of course, I care about it. But I’ve learned so much as to why a player is or isn’t successful in this league. It falls so much on the intangibles more than the physical. Yahoo Sports: And I have a question about that I want to ask you. But can you first tell the story of how you got from graduating college to getting your foot in the door with the St. Louis Rams? Brad Holmes: I was trying to get into scouting, like an internship or something, right out of college. I thought I had a connection with the Panthers, but that fell through and it was my first time thinking something was coming and getting turned down for a job. That’s when my mom and dad said, ‘Well, that’s the real world, just so you know.’ So after that fell through I went back home and was working for Enterprise Rental Car, trying to figure out what my next move was. That’s when I got a connection to apply for a PR job with the Atlanta Hawks. It was what they called a media trainee job. So I went and took it, even though I was so much of a football guy. I was like, well, at least I am in sports. I had a PR degree and I knew how to write pretty well, I had the verbal skills and I thought I’d just do that. When I went to the PR internship, I was still working part time at the airport at Enterprise. I was just grinding through, and finally my boss with the Hawks — a guy named Arthur Triche — he was telling me about the NBA All-Star Game, which was in Atlanta in 2003. He told me that a lot of the NFL PR guys come to the All-Star Game, and he was willing to introduce me to some of them. He knew I still loved football and had just finished playing. That’s when I met Duane Lewis, who was the PR director of the Rams at the time. We did just a quick, little lunch interview, and that’s when he offered me a PR internship. I said, ‘Man, I am getting in the NFL? Inside a franchise? Heck yeah.’ So I just drove to St. Louis and started the 2003 fall season. Yahoo Sports: But you still had your eye on scouting, right? Brad Holmes: Oh yeah, the whole time — my whole focus — was getting into scouting. Fast-forward to training camp in Macomb, Illinois, and I am seeing all the young scouts, the in-house scouts, and they were just doing stuff with the players and helping out with the walkthroughs and playing their little parts, and I said, ‘Man, that is cool.’ But I didn’t have any connections. I didn’t know the GM or anybody. So I just struck up a relationship with the running backs coach, Wilbert Montgomery. We just kind of struck up a friendship or whatever; he just took a liking to me, I guess. We used to talk football all the time, whenever he had time. He was like, ‘Why are you in PR and not in scouting?’ I just told him, ‘Wilbert, I would love to be in scouting, but I don’t have an in.’ He said, ‘Let me talk to [former Rams GM] Charley [Armey] and give him what my thoughts are about you,’ and so on. A couple weeks later, [Montgomery] came back to me and was like, ‘I talked to Charley and he said he wants to meet you.’ Wilbert told me he didn’t come to Charley a lot but when he did, he would take his word [at face value]. I owe a ton to Wilbert and to Charley, and Wilbert just gave me that introduction I needed. So I interned in scouting for the 2004 draft, right after when my PR internship ended after the 2003 season. Little did I know ... I thought I was going to be doing all this looking at players. But I wasn’t doing any of that. I was making copies and picking up guys from the airport. Yahoo Sports: Every single person I’ve talked to so far has been that airport taxi guy at some point. Brad Holmes: [laughs] Yeah, we’ve all done it. But I was just so happy that I was involved. Every now and then Charley would let me do more. We would have to make so many profile tapes for draft meetings, and he would have us write down notes. Every now and then, he would let us present our notes in front of all the scouts. All these veteran scouts. They’d literally just call you into a room, read your notes, let them know what you think about the player. You’d walk out and you’d have no idea what they thought of you. [laughs] Then it was back to making profile tapes, heading out to the airport and all that. Oh man, it’s crazy to think back to those days. But I wouldn’t have wanted to come up any other way. Yahoo Sports: I was just about to ask you that. Isn’t doing that legwork a big part of learning the business, from the bottom on up? Brad Holmes: Oh, there’s no doubt. I was talking to someone in the league the other day, just learning about the importance of how to evaluate. It’s just the psychology of being the lone wolf. When I truly, truly cut my teeth in evaluation, I was an NFS scout — the combine service, National Football Scouting — and started doing that in 2006. I had been three years in the office and then went to do that. My first pro day was at the University of Missouri [in 2007]. I was so amped up to be there. The guy just gave me a sheet of paper with the list of names and numbers. I had no idea. I didn’t know who did what. I didn’t know who were the starters and who were the backups, who was good — I didn’t know anything! So he hands me the sheet of paper and was like, ‘All right, I’ll meet you in the morning, and we’ll go over all the other stuff and we’ll get the measurements and the Wonderlic test,’ and all this stuff. I just remember sitting in a dark room [watching tape on those players] until like midnight trying to figure all that stuff out. And I was like, you know what? That’s how you learn. It’s just a blank slate, and you just figure it all out. That’s what you get paid for. You get paid for your opinion. It’s like getting thrown into the deep end of the pool and you gotta get out. Yahoo Sports: And that leads me back to something you alluded to before. You can scout the traits until you’re blue in the face. But how crucial is getting to know the person as well as the athlete and the player? Brad Holmes: Yeah, I would say that getting to know the person is even more important than the other stuff. When you get to the NFL level, everybody has got ability. Everybody is talented. Everybody is big, strong, athletic, fast, agile. Everybody has that. The separation is the intangibles. So you have to find out what actually drives the player. What level of passion does he have? How much does football mean to him? How hard does he really work? Does he have a mental toughness when things go bad? Can he bounce back? Can he persevere? You have to find those things out. Those things are going to happen. Bad things happen. How do they respond? That’s the separation when you get to this level. So I actually think the intangible portion is more important than the physical part. And maybe I can say that now with experience, that it’s maybe a little bit easier to figure out the physical part. You do it, but you have to get the rest of the picture. Looking back at how I used to be so enamored with the physical traits portion of it, at this stage now it’s like, man, if this guy doesn’t have the intangibles or the character, he’s not going to make it. They’re just not. And those are some of the hardest things to figure out. You can figure out speed and ability. Heart — there’s just not an analytical measure for that. Yahoo Sports: Is there one big miss on a player you look back on and just wince? And how did that evaluation maybe change the way you approached scouting players after that? Brad Holmes: I want to say for me that early on when I was a combine scout, I was doing the Midwest and I was doing [Kentucky QB] Andre’ Woodson … he and [Louisville QB] Brian Brohm were coming out. That spring heading into their senior year, I put some huge grades on both of those guys. And I just thought, like, ‘Oh, these are what pro quarterbacks look like.’ They were big, strong arms, pedigrees and all that. Kentucky QB Andre' Woodson didn't quite pan out the way some NFL scouts thought he might. (Getty Images) They just didn’t end up panning out to what I thought at the time. It didn’t really affect my confidence. I knew I was still in a developmental stage as an evaluator. It really just made me roll up my sleeves as an evaluator and say, ‘Hey, man, I really need to get better at evaluating QBs.’ Look, I get it. When you get to the NFL, especially at that position, a lot goes into it from an intangible perspective, plus the situation they’re thrown into. There are more factors that play into a quarterback’s success than maybe other positions. Can he wait? Will he sit and learn and develop? All that stuff. But I probably would say those were two players who … I just threw these big grades out on them, and they just didn’t turn out to be equivalent to what my grade was. Yahoo Sports: What in your mind is the best part of the job? What still excites you about the process? Brad Holmes: Wow. Well, the only thing that makes that a little bit of a tough question … I have so much respect, appreciation and understanding of the level of importance for every phase of the process. That’s the only part that makes it a little tough on answering that. Probably what sticks out about what really makes this job interesting is when you recognize a player’s traits and their real strength — kind of their go-to punch. [Rams GM] Les [Snead] calls it a player’s ‘superpower.’ But when you recognize that when you’re first evaluating that player, and when he actually puts that on display for you in a winning fashion and a productive manner on the field in the NFL, you’re like, ‘OK, that’s exactly what I saw and what I envisioned that guy would be when I first saw him.’ I remember a player like [Chicago Bears 2017 fourth-round pick] Tarik Cohen. The first time I saw Tarik Cohen live in a game, I was going back to my alma mater to watch him, but that first look at him in a game live, he was just so elusive. He was just so fun to watch. I was just thinking, ‘Man, he’s like a video game!’ You hear that joystick phrase thrown out there a lot with him, but I thought he really looked like that. And then when I see him now, it’s like … yep, that’s what he was. Those are the things that you really, really love about the job. Or take [Indianapolis Colts 2018 second-rounder] Darius Leonard coming out of South Carolina State. Evaluating him and just looking at him from a football intangibles standpoint — his work ethic, his drive and his passion for the game — on top of his football ability to run, chase and tackle, you couple all that up and see his immediate success, it was a perfect example of learning who the player was and trying to pull it inside-out. You start with the heart and you put it with the physical abilities, and you see it all come together in your evaluation. Cohen is a good example for me of a player I liked on tape, but it wasn’t until I saw him in training camp against NFL people that I thought, wow, he really is that good. Yahoo Sports: That in-person eye test can be huge in splitting hairs, it seems. Brad Holmes: Oh, yes. Like with the Rams here, I remember when we drafted Cooper Kupp. The first time I saw him live — I didn’t get a chance to make it to Eastern Washington his senior year, even though I did see him the prior year. I remember seeing him the year before because I had heard so much, and I remembered he was pretty good. But at the Senior Bowl, he just looked like a different player. It looked like he was different than everybody else on the field. He just went through the process, went to the combine, and he doesn’t run really fast. But it was like, every time you saw him play football with shoulder pads and a helmet, he was great. Or when [former Rams corner] Janoris Jenkins came out, I was doing the Southeast area at the time. I remember he lined up man-to-man versus Julio Jones and A.J. Green in the SEC and did very, very well. So when he got in the NFL early in his career, you’d just see him lined up — they just slid him in, in man coverage — you saw that superpower. You’re seeing what you saw early on. Take someone like [Rams safety] John Johnson. His instincts just stood out so much. He’s just turned into a heck of a run supporter. He’s just been terrific. But I remember during his evaluation process, it wasn’t really … I mean, he’s a good-sized kid, but you know, he didn’t run the fastest. I remember watching him live and then again at his Senior Bowl, it’s not like he was picking off a bunch of balls — and he might have had six picks or something in his [college] career. But he was just cutting off so many routes. He just instinctively knew the angles to take. So I look at him now — I remember that first start he had against Seattle and his picks that ball off on the sideline and I am just like, yep, that’s what you saw. Or like, [Rams 2019 second-round pick] Taylor Rapp is a guy that, whew, we loved him. We had [a first-round grade on him]. And you’re probably going to say, OK, why didn’t you take him at 31 then? Well, we just kind of thought that with all the information we had that we’d have that opportunity to move back and pick up some more draft capital and be in a position to get him. We’re really excited about Taylor and Darrell Henderson and David Long and [Greg] Gaines has a lot of ability. Bobby Evans, he’s gonna be … in a great situation for our line. Yeah, we’re really excited about all those guys. Yahoo Sports: Is there a worst part of the job? Or perhaps the most challenging part about doing this? Brad Holmes: Yeah, I would guess I would say it’s the part that the outsider doesn’t see. I think the outsider sees the scout walk into the school or going to games in the press box and they’re wearing the shirt with the [team] logo and pulling out the notepad … people say, ‘Man, that looks like a cool job!’ But what they don’t know is that during the week they went to some school in the SEC that had 13 players that you had to write reports on. Well then when you left practice at 5 o’clock, went through rush-hour traffic and drove four or five hours to your next destination, you’re pulling into town late. And maybe you have time — you’re pulling into your hotel at like 10 or 11 o’clock — well, maybe you have time to write three or four reports, and then you’re going to the next SEC school the next morning. You’re getting up at 5 o’clock in the morning after maybe four or five hours of sleep. Now you have 10 more guys to write from that next SEC school. So you’re doing it all over again the next day, and next thing you know you get to the end of the week — and it’s not like you’ve been lazy or anything. You’re not taking time off or anything. But the logistics and the amount of volume in such a football-dense area like the SEC, now it’s the end of the week and you have like 30 reports that you have to catch up on. A lot of people don’t see that component of it. Like I don’t think people even think about the area scout being up at 1 o’clock in the morning writing reports in some small-college town, and now he’s backed up. It just happens to everyone. That’s how you learn about the self-discipline and all that stuff being crucial to a road scout. But I think that’s probably the part of the job that might be, if you want to call it, the ‘darker side’ of the business. Yahoo Sports: Is being a GM a goal for you? Something you aspire to one day? Brad Holmes: Yeah, it’s always been an ultimate dream of mine. It’s funny, I was having this conversation with my wife, and it’s like, the only reason I’ve gotten to this point in my career now is that I’ve only concentrated on being the best I can be in my role. Whatever that role is at that time. So I was a scouting assistant, and I tried to be the best scouting assistant. I want to get the coffee the fastest, I want to make the best profile tape possible, and all of that. When I was an area scout, I wanted to be the best at that. You know what I mean? So I never really looked ahead. Opportunities — all of them blessings — have landed on me, and I’ve just kind of earned my way to where I am now. But when you get to that stage, that’s when you really have to start dialing into preparing [to be a GM] if you’re ever blessed and fortunate enough to be in that chair. That’s an ultimate goal for sure. It takes time and it takes luck, too. You just try to make as much of both as you can with hard work and preparation along the way. Yahoo Sports: Has there been any big, sweeping changes to how scouting is done that is the biggest difference to when you started? Brad Holmes: I would probably say — and you’ve probably have heard this a thousand times — but I would say the analytics part of it. That’s probably been the biggest, sweeping development. Not so much that [analytics] make your decisions for you, but that it is a resource that you can utilize and it can help guide some things. It can be a very helpful resource. I remember when I was first introduced to some of this, and you can call me the old grumpy scout if you want [laughs], and I was maybe a little resistant to some of it. ‘Oh no, I am going to write this down with my pencil!’ and all of that. And I still think to this day it’s about what you’re seeing on film at the end of the day. But the introduction of the analytics as a platform has really taken storm now. It just really has. Yahoo Sports: That’s always such a fascinating debate — the new school versus the old school in terms of scouting approaches — and who takes stock in what. Brad Holmes: And I am for it — it’s not something I am against. It’s just really like, ‘Why would you turn down extra information? Why would you ignore data?’ Especially stuff that you can use to help guide you and make a better decision. As scouts, we’re looking for the best information, the best sources to talk to, the best game to watch to get to know the player and evaluate him properly. The analytics, they’re nothing but help toward that end. And I think that’s been the biggest [evolution to scouting methods] I’ve seen since starting. Yahoo Sports: So what’s the biggest development to come in scouting? Can you see the future? Brad Holmes: I am always interested to see what’s next. What’s going to be the next big, sweeping change. The one thing that I always kick around in my head is … what if the process was reversed? I get really into the psychology of the process, and so I kind of look at the process of, OK, you go through the full season and you look at the all-star games and you get to the combine and pro days and all of that. And then you get to the draft. I am just always thinking, well, what if the process was reversed? Let’s just say we had all of the workouts and the combine stuff first and the last thing you saw was the guy playing football. And then you hop into the draft. You know what I mean? Yahoo Sports: Absolutely. I’ll be honest, I never really put much thought into it because I suspect the NFL would never do that. But’s it’s certainly fascinating to think what would be different that way. Brad Holmes: Yeah, I am not sure that ever would happen, but it’s like … how would decisions on players be different? When our last view of a player was on the football field? Because you get to the combine and the guy who runs the 4.3 [40-yard dash], the height-weight-speed guy, he’s the buzz guy. You’re in that moment. But then it’s like, do you remember him playing football? [laughs] It’s going back to the Cooper Kupp thing. Do you remember him playing football? Maybe that’s why we got him when we did, I don’t know. Now, you have your rare guys. Aaron Donald is a rare guy. He had a rare combine and he’s rare on the football field. Or the center that came out of NC State, [Minnesota Vikings 2019 first-rounder] Garrett Bradbury. Great, great player who had a great combine, too. The Rams' scouting staff saw plenty of special in Aaron Donald before the 2014 NFL draft (Getty Images). So I am always the guy wondering whether they would ever make any major changes to the process. Would that influence people’s decisions. Because some bias exists — it’s the last thing you saw. A lot of people fall into that cognitive bias: I saw that guy work out last week … or, he just came in for a top-30 visit … you know what I mean? You tend to put more weight on that last thing you saw. It has to have an effect on the draft. I am convinced of it. That’s why I think you have to have great scouts around you reminding you of that. But this is also an example of how the analytics can help. I’d like to see a study done on this topic. It’s something that I don’t think they’ll ever change with the football season coming around, but it’s fun to reimagine the process sometimes and question the order of it and how we view it all and use it as a tool. Yahoo Sports: Let’s say you met a 22-year-old version of yourself, the next young Brad Holmes to come along as an aspiring scout, much like how you got to know Wilbert Montgomery. And let’s say they asked you how to get their foot in the door and work their way toward being the next great scout. What would your advice be and what would you need to know about that person to think they can make it? Brad Holmes: Well, it’s a great question, and there’s no one way to make it into the business. There are so many paths you can take. But I always tell kids — and you mentioned age-22, that’s a different stage of your life — you have to be willing to sacrifice. Are you willing to give up a lot in other parts of your life? Sacrifice should be No. 1 in terms of, say, would you work for free? This is so much of a competitive industry that there are so many guys out there who would do it for free. Just because they love the game and they have a goal in mind. So that’s why I always ask, are you willing to put in the long hours? It’s not too different from [evaluating] players; it comes down to the work ethic and the determination. You get requests like that all the time. ‘Man, I just want to be an intern,’ or ‘I want to be a scout.’ But it’s all about whether they truly know what that job entails. Sometimes when they find out what the job entails, they might be turned away from it. Or they might not be as excited about it. It’s like, well, you won’t be going to schools and looking at players. You’ll be in the office doing a bunch of grunt work. A lot of long hours, too. But I will say I often saw that the goal of kids, that they’re often more willing to put in more time and just give it what they have. The business and the profession has been so magnified, and you talk about events like the Senior Bowl and the combine, where they’ve both grown so big. That’s become the breeding ground of everyone coming there, and you get more exposure to what the job entails. So the biggest things are the willingness to sacrifice and the love for football. If you really, really love it, you’ll work — no, you’ll grind — through your stuff. But if you don’t truly love love it, then you’re just not going to make it. You’ll be out in Los Angeles picking up a player and you’re like, ‘Wow, this is taking me two hours to get from Thousand Oaks to LAX …’ But if you love it, you really won’t care. More from Yahoo Sports: Nike pulls shoe after Kaepernick raises racial concerns Angels pitcher, family man Skaggs gone too soon Yankees’ Stanton posts heartfelt message after Skaggs’ death Broncos preview: Replacing Manning has been tough
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My home buying story: How VA loans helped this service member buy a home
Name:Chris V.
Year:2004
City:Kapolei
Occupation:Army
Age:21
Salary:$20,000 + $1,300 a month housing allowance
Home Price:$160,000
Chris and his wife, Nichole, had only been married for a couple of years when they bought their first home in 2004. Like most young couples, they didn’t have enough income for a giant mortgage or pile of cash for the down payment. To make matters worse, Chris and Nichole were house hunting in Hawaii, the most expensive housing market in the nation.
The median housing price in Hawaii then was $460,000, a big number for a couple of 21-year-olds living on an Army salary. But Chris and Nichole had an edge:a Veterans Administration loan, or VA Loan. This is a type of home financing guaranteed by the federal government that helps current and former military families buy a home or pay for home improvements.
Here’s how a VA loan helped them reach their homeownership goals.
Chris and Nichole made a home-buying budget work for one reason: they didn’t have to pay a dime for a down payment. One of, if not the best thing about a VA home loan is that it allows veterans to buy without putting any money down. As anyone who has bought a home knows, you can spend half your life saving enough cash for some mortgages. Chris and Nichole would have needed $32,000 for a 20% down payment on a $160,000 mortgage—more than his entire salary for 18 months.
But with zero down, they were able to budget for a $160,000 home. Chris was stationed at Schofield Barracks outside Honolulu, so he looked at housing in nearbyKapolei, a planned community developed in the 1950s. They looked at condos because a single-family home was not in their budget. He and Nichole ended up buying a 660-square-foot condo home.
Chris and Nichole in front of their first home—a condo outside Honolulu.
Plenty of young home buyers know they can be trusted with a mortgage, but lenders don’t take people’s word for it. You know whose word they do trust? The government’s. While many first-time home buyers end up paying extra fees and interest until they can prove themselves super credit-worthy, VA loans help veterans and active service members get into homeownership without those extra costs.
Since VA loans are backed by the government, lenders consider them to be less risky and grant favorable terms to buyers with a good credit score and the ability to repay the loan. Chris and Nichole got a competitive interest rate and didn’t have to pay closing costs or get PMI (private mortgage insurance). “We got cash back at closing,” Chris says. “And not having PMI knocked quite a bit off our monthly payment compared to a traditional loan.”
Fast forward to 2009. Chris was a Bronze Star recipient back from a tour of duty in Iraq. He has left the Army and is working for a software firm in Hawaii. Nichole is pregnant with their first child, so it was time for them to look for a bigger place to live.
There was one problem. The Great Recession had hit two years earlier, and housing prices had collapsed. It wasn’t a great time to sell, so they wanted to hang on to their condo and rent it out, but they weren’t in a position to both keep it and make a down payment. Once again, a VA loan saved the day, even though Chris was now a civilian. Veterans can get VA loans after they leave the service. It’s a benefit they keep for the rest of their lives.
They bought a 1,400-square-foot house in Waipahu, an area of Honolulu, for $575,000, with no money down. And instead of selling the condo and taking a loss, they refinanced it with a traditional lender and turned it into a rental property. “We had to refinance with a regular lender to stay under the VA lending limit with the house,” he says.
Chris and Nichole celebrate their second home with their first child on the way.
Two years later, in 2011, his job took him to the East Coast, where they decided to rent. They also rentedouttheir house in Hawaii, along with their condo because it still wasn’t a good market for sellers.
“We owed $25,000 more for the house than we could sell it for, and we would have agent fees on top of that,” Chris says. “We definitely didn’t have the cash at that point to make up the difference.”
In 2013, Chris took a job as a software engineer in the San Francisco Bay Area with Trulia. Nichole was pregnant with baby number three, and she sent Chris off to California with clear instructions. “She told me ‘Buy me a fricking house,’” Chris says. “She did not want to live in a hotel.”
It took him just three weeks. “I looked at thousands of places online, but only a dozen in person,” he says. He ended up buying a 2,336-square-foot house inPleasant Hillfor $700,000—a great deal in a town with a median sale price of $813,500. Again, he bought with a VA loan.
The neighborhood,Gregory Gardens, is vibrant and full of trees. “You felt like you were in the forest, even though you were in a neighborhood,” Chris says. There’s a Bay Area Rapid Transit station nearby for easy commuting. His three kids have a big yard and plenty of neighborhood children to pal around with.
Between Chris’s career taking his family through some of the priciest housing markets in the country and the housing market crash nearly derailing their finances, VA loans truly came to the rescue for Chris and Nichole—an appropriate benefit for the veterans, active service members, and their families who come to their nation’s rescue all the time.
“(VA loans are) one of the best military benefits,” Chris says. “We couldn’t have bought our first home without it, and we wouldn’t be where we are now without them.”
Wondering what homes you might be able to buy with a VA loan? See what’s available nowon Trulia.
The postMy home buying story: How VA loans helped this service member buy a homeappeared first onTrulia's Blog.
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Starbucks Is Debuting A Strawberry Donut Frappuccino With Actual Donut Crumbles In It
Photo credit: Starbucks U.K. From Delish Last week, rumors of the Starbucks' Tie Dye Frappuccino began to swirl and the internet freaked. And while, sure, it seems great and all, does it have actual donut crumbles in it? Because one of the chain's two new frapps does. According to IG snack scout @CandyHunting, Strawberry Donut and Cookies & Cream Frappuccinos are arriving in stores. ...Like now . A quick social media investigation revealed as much with fans 'gramming the sh*t out of these limited-edition drinks. There's just one teeny tiny problem. The Frapps are a U.K. exclusive. I KNOW, I'M SORRY. But don't shoot the messenger here. Per Starbucks , the Strawberry Donut features real donut crumbles, milk, and ice, blended with a layer of strawberry puree and freeze-dried strawberries on top. It's kind of got a whole Wimbledon strawberries and cream theme going, eh? The latter (and tbh, lesser ) flavor, Cookies & Cream is pretty self explanatory. It's got cookies, milk, ice, and a cookies and cream topping. While technically, neither is available in U.S. stores, there is this beautiful thing called the secret menu , and it's got the Cookies & Cream. It's not the perfect match, but it does the trick. Here's what to order : A Double Chocolate Chip Frappuccino with white mocha sauce topped with your choice of chocolate or regular whipped cream. View this post on Instagram !!!ARRIVED TODAY !!! Check out these NEW Frappuccino’s and get your free sample’s TODAY !! #cookiesandcreamfrappuccino #strawberrydonutfrappuccino #starbucks #shropshire #whitchurch #eurogarages #frappuccino A post shared by Starbucks Whitchurch (@starbucks.whitchurch) on Jul 2, 2019 at 4:35am PDT View this post on Instagram Tuesday treat day! Me and the boys had a little walk and thought I'd chance it going to Starbucks for a little mummy time - it was pretty successful Clark wanted a cuddle and a feed and Noel slept the whole time! . . . . . . #smashedit #motherhood #twins #twinmum #twinboys #ClarkandNoel #starbucks #strawberrydonutfrappuccino #breastfeeding A post shared by Jessica Walmsley (@jess_walms91) on Jul 2, 2019 at 7:58am PDT View this post on Instagram Trying the new strawberry donut Frappuccino. Perks of being a Starbucks card holder (read Starbucks addict😂) I get to try them a week before they're officially on the menu 😁 Definitely stir before drinking, getting a mouthful of pure strawberry puree/syrup is an experience 😅. I definitely get a donut taste from this though, and with the bits of strawberry puree, it's kinda like having a donut. #Starbucks #StarbucksUK #starbucksAddict #Frappuccino #StrawberryDonut #StrawberryDonutFrappuccino #SummerMenu #SummerDrink #SummerVibes #Summer #GottaTryIt #ForTheGram #InstaWhore A post shared by Alex Liu (@evavangel) on Jun 25, 2019 at 7:09am PDT Satisfying that Strawberry Donut Frapp craving isn't quite as simple. The closest thing we've found on either menu (official and secret) is the Strawberries & Crème. If you're really determined, you could always sprinkle in your own donut crumbs? Desperate times call for desperate measures. Story continues ('You Might Also Like',) Crave Carbs? We Created This 21-Day Keto Plan Just for You Insanely Easy Weeknight Dinners To Try This Week 29 Insanely Delicious Vodka Cocktails
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Bernie Sanders' presidential campaign raises $18M in 2nd quarter
VermontSen. Bernie Sandersraised $18 million in the past three months, his campaign manager said.
Faiz Shakir, Sanders’ presidential campaign manager, told reporters in a phone call Tuesday that Sanders will report $24 million to the Federal Election Commission. Shakir said $18 million was raised while $6 million was transferred from prior amounts. More than 99 percent of the donations were less than $100 and the average donation was $18. The campaign said nearly 1 million campaign contributions were made in the second quarter of the year.
Sanders follows South Bend MayorPete Buttigieg, who was the first major candidate to disclose the amount of money he raised for the quarter. Buttigieg raised $24.8 million in the second quarter, which will most likely put him ahead of his competitors.
Over 400,000 individuals have donated to Buttigieg’s campaign, including 230,000 new donors in the most recent quarter.
Shakir appeared on CBS News Monday and admitted Buttigieg most likely raised more than Sanders in the second quarter because the Vermont senator does not take donations from corporate executives.
“I think a lot of that has to do with the fact of how he is raising his money. Bernie Sanders does not go to close-door, high-dollar fundraisers and solicit money from corporate executives at their home,” he said.
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When Sanders first announced his presidential run, his campaign announced he raised close to $6 million in 24 hours. In the first quarter of 2019, Sanders raised $18.2 million.
Fox News’ Patrick Ward and FOX Business’ Joe Williams contributed to this report.
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Should You Invest In Realty Income Corporation (NYSE:O)?
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Realty Income Corporation is a US$22b large-cap, real estate investment trust (REIT) based in San Diego, United States. REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential. The structure of O is unique and it has to adhere to different requirements compared to other non-REIT stocks. I’ll take you through some of the key metrics you should use in order to properly assess O.
View our latest analysis for Realty Income
Funds from Operations (FFO) is a higher quality measure of O's earnings compared to net income. This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation. For O, its FFO of US$941m makes up 75% of its gross profit, which means the majority of its earnings are high-quality and recurring.
In order to understand whether O has a healthy balance sheet, we have to look at a metric called FFO-to-total debt. This tells us how long it will take O to pay off its debt using its income from its main business activities, and gives us an insight into O’s ability to service its borrowings. With a ratio of 14%, the credit rating agency Standard & Poor would consider this as significantly high risk. This would take O 6.92 years to pay off using operating income alone. Given that long-term debt is a multi-year commitment this is not unusual, however, the longer it takes for a company to pay back debt, the higher the risk associated with that company.
I also look at O's interest coverage ratio, which demonstrates how many times its earnings can cover its yearly interest expense. This is similar to the concept above, but looks at the upcoming obligations. The ratio is typically calculated using EBIT, but for a REIT stock, it's better to use FFO divided by net interest. With an interest coverage ratio of 3.54x, it’s safe to say O is generating an appropriate amount of cash from its borrowings.
In terms of valuing O, FFO can also be used as a form of relative valuation. Instead of the P/E ratio, P/FFO is used instead, which is very common for REIT stocks. O's price-to-FFO is 22.8x, compared to the long-term industry average of 16.5x, meaning that it is overvalued.
As a REIT, Realty Income offers some unique characteristics which could help diversify your portfolio. However, before you decide on whether or not to invest in O, I highly recommend taking a look at other aspects of the stock to consider:
1. Future Outlook: What are well-informed industry analysts predicting for O’s future growth? Take a look at ourfree research report of analyst consensusfor O’s outlook.
2. Valuation: What is O 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 O is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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EU ministers "extremely concerned" by Iran's breach of nuclear deal
BERLIN, July 2 (Reuters) - The foreign ministers of Germany, France and Britain are "extremely concerned" by Iran's announcement that it has amassed more low-enriched uranium than permitted under its 2015 deal with major powers, they said on Tuesday.
"The International Atomic Energy Agency has confirmed this information," they said in a joint statement with the European Union's High Representative on Iran, adding: "Our commitment to the nuclear deal depends on full compliance by Iran."
"We regret this decision by Iran, which calls into question an essential instrument of nuclear non-proliferation," they said. "We urge Iran to reverse this step and to refrain from further measures that undermine the nuclear deal."
(Writing by Paul Carrel Editing by Gareth Jones)
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Charlotte’s Web Stock Is Still One of the Best Cannabis Stock Plays
Charlotte's Web Holdings (CWBHF) has been one of the few cannabis companies in the world that has been not only able to consistently grow revenue, but do so at a profit.
The company competes in the hemp-based cannabidiol (CBD) extracts and products segment of the cannabis market.
Up until about a month ago, my thesis was that the market would reward cannabis companies that generated the most revenue. While that remains true, it's becoming evident to me that cannabis companies that are able to increase revenue at a significant pace while lowering costs and generating positive earnings, are going to start to get the strongest bid from the market.
This is one of the reasons I see Aurora Cannabis starting to become more favorable to the market than Canopy Growth, which has continued to grow revenue, but at a huge loss; in its latest quarter it lost over $74 million.
Charlotte's Web has already started to produce earnings, and it's likely that will continue for the foreseeable future.
Latest quarter
In its latest earnings report the company took a tumble, primarily I think from the market in general become more risk averse, and second, its earnings per share missing slightly.
Revenue in the reporting period was $21.7 million, in-line with expectations, while EPS was $0.02, missing by $0.01.
Revenue was up 66 percent year-over-year, and gross profit jumped by 53 percent. Where I think some of the negative sentiment came from in its performance itself, was with its earnings before taxes, where it dropped 27 percent. Net income was also down by 26 percent.
The company guided for revenue to increase at a pace quicker than costs for the remainder of 2019, meaning it should be able to boost sales at a profit. That suggests the company will continue to maintain positive earnings going forward.
In 2019 earnings is expected to reach 33 cents per share, and in 2020 the company guides for earnings per share of 75 cents.
A little over 50 percent of revenue in the reporting period came from over 6,000 retail stores, with the remainder primarily coming from its fast-growing e-commerce business.
Revenue for 2019 is projected to be around $142.9 million, according to the company, and in 2020 that's expected to more than double to over $300 million.
One concern I do have concerning revenue is the guidance for 2019, which is projected to be in a range of $120 million and $170 million. The problem to me is there should be such a wide number between the revenue floor and ceiling. It makes me think the company sees something potentially on the down side that could disrupt sales flow. It's possible it could be the timing of the harvests and the amount of time it has to sell through during 2019.
Planted acreage increasing
To get an idea of how quickly Charlotte’s Web Holdings has been increasing the amount of acreage it plants, in 2017 it planted only 70 acres of hemp, which produced a harvest of 63,000 pounds. It followed that in 2018 with a total of 300 acres planted, producing a harvest of 675,000 pounds.
Earlier in the year the company stated it was going to boost its planted acreage to 700 acres, but in mid-June upwardly adjusted that to 862 acres. Assuming a similar yield per acre, that will easily more than double its output in 2019.
Investors should be able to count on well over 1 million pounds of hemp to be grown this year.
Also of interest, is of the 862 acres being planted, about 53 percent of them are certified organic. Management has said it plans on increasing the percentage of organically certified hemp in the years ahead. That would boost margins and earnings.
Conclusion
The recent sell-off of the stock as a result of the uncertainty surround the trade wars and the earnings before taxes and net income both dropping. This pushed the share price down to under $12.00 per share.
But even now the company is trading at under $15.00 per share, and with the projected acreage and revenue outlook, a couple of analysts have the company almost doubling, or more than doubling its share price from these levels. I think they're close to the mark.
Not long ago, Charlotte's Web started shipping product to three major retail brands in the U.S., and that should boost its own brand awareness and popularity among customers.
With CBD sales expected to explode over the next three years, I'm not aware of any company better positioned than Charlotte's Web to take advantage of it.
Investors need to take a quick look at this stock before it starts to take off once again. This is a very good entry point if you believe in the narrative surrounding the future performance of the company.
To read more on the nitty gritty of what’s going on in the rising cannabis industry,click here.
Read more on Charlotte's Web:While Risky, Cannabis Stock Charlotte’s Web Is Too Cheap to Ignore
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The best and worst countries to be LGBT in Europe
Which are the best and worst countries to be LGBT in Europe? (Picture: AP/Czarek Sokolowski) As the world marks the 50th anniversary of Gay Pride, many will celebrate the positive changes since over the last half century. But there is still more to be done, campaigners argue - especially in some countries. Azerbaijan, Turkey and Armenia have the most restrictive LGBT+ equality laws and policies in Europe, while Malta, Belgium and Luxembourg are at the other end of the scale and ranked top. Rainbow Europe, a measuring tool created by campaign group ILGA-Europe, looks at the laws and policies in 49 countries, ranking them according to 69 individual criteria. Those criteria are split into six categories: equality and non-discrimination; family; hate crime and hate speech; legal gender recognition and bodily integrity; civil society space; and asylum. Countries are then ranked on a percentage scale where 0% indicates gross human rights violations and 100% represents the greatest degree of equality. Rainbow Map In the latest rankings, Azerbaijan scored just 3%, while Turkey and Armenia were awarded 5% and 7% respectively, making them the three worst places to be LGBT+ in Europe. In Azerbaijan, same-sex marriage is outlawed and it is not illegal to discriminate on the basis of gender or sexual orientation. In 2017, human rights groups criticised reports of mass arrests as part of an alleged cracking on LGBT+ people and in April this year there were reports that more than a dozen LGBTI people had been arrested and ‘forced to undergo medical examination to test their HIV/STI status.’ In Turkey, homosexuality is legal but the civil rights laws do not include sexual orientation or gender identity and there is no legal recognition for same-sex couples. There are also reports that laws relating to ‘offences against public morality’ have been used against the LGBT+ community. In November 2017, authorities in Ankara banned all LGBT cultural events indefinitely, under the mantle of security concerns. That ban was later extended to include all LGBTI-focused events generally, not just those organised by LGBTI associations and all public LGBTI-related discussions are banned in Ankara province. Story continues In this photo from 2015, Turkish police use a water cannon to disperse participants of a Pride Week march in Istanbul. (Picture: AP/Emrah Gurel, File) In Armenia, homosexuality has been legal since 2003 but it is still socially unacceptable, with many LGBT Armenians reportedly keeping their sexual orientation or gender identity secret for fear of being outcast by friends and families or in the workplace. According to a 2012 study, more than half (55%) of respondents in Armenia said they would curtail a relationship with a friend or relative if they came out as gay, while 70% said they find LGBT people "strange.” At the other end of the scale, Malta came top with 90% followed by Belgium with 73% and Luxembourg with 70%. Britain was in joint-seventh place with Portugal at 66%. rankings According to Evelyne Paradis, executive director of ILGA-Europe, both Luxembourg and fourth-place Finland improved their rankings by addressing gaps in transgender and intersex rights. She told the Thomson Reuters Foundation: "Those countries that continue to do really well and go up are those that... clicked quite some time ago that the agenda was more than marriage equality". But she said the 2019 rankings suggested that countries are moving backwards when it comes to LGBT+ laws and policies. Examples cited by ILGA-Europe included: Poland no longer providing access to medically assisted reproduction for single women, and Bulgaria removing all its administrative and legal procedures for changing name or gender marker in the official documents for trans people. Bulgaria, Hungary and Turkey are countries that slid back on the ranking because of their governments’ failure to uphold fundamental civil and political rights such as freedom of assembly, freedom of association and protection of human rights, it said. “If ever there was a time to put high political priority on LGBTI equality, it is now,” said Paradis. “In the current increasingly polarised social and political climate, laws and policies are often the last lines of defence for LGBTI communities. That’s why we need national and European decision-makers to redouble efforts to secure equality in law and in practice for LGBTI people.” Watch the latest videos from Yahoo UK
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Spotify ends direct uploading program for artists
Spotify (SPOT) isending a beta programthat allowed artists to upload music directly. Instead, artists will now be required to use a third-party distributor.
The streaming service launched the beta program for independent artists last year, which offered a free alternative to publishing music through a label or distributor.
As of July 30, artists will no longer be able to submit music through the direct upload program. Users will have to transfer any content previously uploaded to a new distributor by the end of the month.
Spotify said it decided to end the program to focus investment in other areas that would provide greater benefit for artists, including Spotify for Artists and its playlist submission tool.
More than 300,000 artists use Spotify for Artists for audience insights, according to a press release, and 36,000 artists have landed a spot on one of the streaming platform’s curated playlists in the past year.
Independent artists who used the direct upload tool did not have the option to cross-publish content, meaning they would have to upload songs to Spotify, Apple Music (AAPL), Tidal, and other streaming services individually. Requiring artists to use a distributor or to upload through a label arguably eases the process for artists.
For artists that partner with its preferred distributors, Spotify is providing discount codes. On the list is DistroKid, which Spotify bought a minority stake in last year.
Katie is an associate editor at Yahoo Finance. Follow her onTwitter.
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An Intrinsic Calculation For Crown Holdings, Inc. (NYSE:CCK) Suggests It's 34% Undervalued
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How far off is Crown Holdings, Inc. (NYSE:CCK) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for Crown Holdings
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.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2020": "$826.2m", "2021": "$918.0m", "2022": "$993.2m", "2023": "$1.1b", "2024": "$1.1b", "2025": "$1.2b", "2026": "$1.2b", "2027": "$1.3b", "2028": "$1.3b", "2029": "$1.3b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x8", "2021": "Analyst x1", "2022": "Est @ 8.19%", "2023": "Est @ 6.55%", "2024": "Est @ 5.4%", "2025": "Est @ 4.6%", "2026": "Est @ 4.04%", "2027": "Est @ 3.65%", "2028": "Est @ 3.37%", "2029": "Est @ 3.18%"}, {"": "Present Value ($, Millions) Discounted @ 10.79%", "2020": "$745.8", "2021": "$747.9", "2022": "$730.3", "2023": "$702.4", "2024": "$668.2", "2025": "$630.9", "2026": "$592.5", "2027": "$554.3", "2028": "$517.2", "2029": "$481.6"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $6.4b
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.8%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$1.3b × (1 + 2.7%) ÷ (10.8% – 2.7%) = US$17b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$17b ÷ ( 1 + 10.8%)10= $6.14b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $12.51b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $93.99. Compared to the current share price of $62.07, the company appears quite undervalued at a 34% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Crown Holdings as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10.8%, which is based on a levered beta of 1.352. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Crown Holdings, There are three further aspects you should look at:
1. Financial Health: Does CCK 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 CCK'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 CCK? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Should You Investigate NextGen Healthcare, Inc. (NASDAQ:NXGN) At US$20.39?
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NextGen Healthcare, Inc. (NASDAQ:NXGN), which is in the healthcare services business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine NextGen Healthcare’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for NextGen Healthcare
According to my valuation model, NextGen Healthcare seems to be fairly priced at around 16% below my intrinsic value, which means if you buy NextGen Healthcare today, you’d be paying a fair price for it. And if you believe the company’s true value is $24.38, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that NextGen Healthcare’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. NextGen Healthcare’s earnings over the next few years are expected to increase by 41%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?It seems like the market has already priced in NXGN’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping tabs on NXGN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on NextGen Healthcare. You can find everything you need to know about NextGen Healthcare inthe latest infographic research report. If you are no longer interested in NextGen Healthcare, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Three Things You Should Check Before Buying Crown Castle International Corp. (REIT) (NYSE:CCI) For Its Dividend
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Dividend paying stocks like Crown Castle International Corp. (REIT) (NYSE:CCI) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
With a five-year payment history and a 3.5% yield, many investors probably find Crown Castle International (REIT) intriguing. We'd agree the yield does look enticing. Some simple analysis can reduce the risk of holding Crown Castle International (REIT) for its dividend, and we'll focus on the most important aspects below.
Explore this interactive chart for our latest analysis on Crown Castle International (REIT)!
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. Crown Castle International (REIT) paid out 75% of its profit as dividends, over the trailing twelve month period. It's paying out most of its earnings, which limits the amount that can be reinvested in the business. This may indicate limited need for further capital within the business, or highlight a commitment to paying a dividend.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Crown Castle International (REIT) paid out 271% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Crown Castle International (REIT) paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Cash is king, as they say, and were Crown Castle International (REIT) to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign.
As Crown Castle International (REIT) has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. With net debt of 5.63 times its EBITDA, Crown Castle International (REIT) could be described as a highly leveraged company. While some companies can handle this level of leverage, we'd be concerned about the dividend sustainability if there was any risk of an earnings downturn.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 2.36 times its interest expense, Crown Castle International (REIT)'s interest cover is starting to look a bit thin. High debt and weak interest cover are not a great combo, and we would be cautious of relying on this company's dividend while these metrics persist.
Consider gettingour latest analysis on Crown Castle International (REIT)'s financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Crown Castle International (REIT) has been paying a dividend for the past five years. During the past five-year period, the first annual payment was US$1.40 in 2014, compared to US$4.50 last year. Dividends per share have grown at approximately 26% per year over this time.
Crown Castle International (REIT) has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Crown Castle International (REIT) has grown its earnings per share at 60% per annum over the past five years. The company pays out most of its earnings as dividends, although with such rapid EPS growth, its possible the dividend is better covered than it looks. Still, we'd be cautious about extrapolating high growth too far out into the future.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, the company has a payout ratio that was within an average range for most dividend stocks, but it paid out virtually all of its generated cash flow. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Ultimately, Crown Castle International (REIT) comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 15 Crown Castle International (REIT) 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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Is National Western Life Group, Inc.'s (NASDAQ:NWLI) CEO Salary Justified?
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Ross Moody became the CEO of National Western Life Group, Inc. (NASDAQ:NWLI) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for National Western Life Group
Our data indicates that National Western Life Group, Inc. is worth US$934m, and total annual CEO compensation is US$4.3m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
It would therefore appear that National Western Life Group, Inc. pays Ross Moody more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 National Western Life Group has changed from year to year.
Over the last three years National Western Life Group, Inc. has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). It saw its revenue drop -13% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
With a total shareholder return of 32% over three years, National Western Life Group, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount National Western Life Group, 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really likethis free visualization of insider trading at National Western Life Group.
If you want to buy a stock that is better than National Western Life Group, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Norway says not detecting high radiation after Russia submarine fire
OSLO, July 2 (Reuters) - Norwegian authorities said on Tuesday they have not detected abnormally high levels of radiation after a Russian submarine caught fire in the area of the Barents Sea.
"We have made checks and we are not monitoring too high radiation levels in the area," Per Strand, a director at the Norwegian Radiation and Nuclear Safety Authority, told Reuters. He said Russian officials had told his agency that a gas explosion took place on board the submarine.
Russia's defence ministry said earlier 14 sailors were killed in the fire. A Russian media report said the submarine was nuclear-powered, but there was no official confirmation of that.
(Reporting by Gwladys Fouche; Writing by Christian Lowe Editing by Gareth Jones)
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Wall Street looks to earnings after strongest June in decades
By Caroline Valetkevitch
NEW YORK (Reuters) - On the heels of the S&P 500's best June performance in more than six decades, investors are anxious to see whether earnings can justify further gains as the largest U.S. companies open their books in the coming weeks.
The profit picture for 2019 has been weakening since the start of the year as the U.S.-China trade war has dragged on, increasing worries about its potential impact on corporate profit margins.
Analysts expect almost no profit growth for the second quarter in comparison with a year ago, versus a forecast of 6.5% growth at the start of the year. In addition, they expect a gain of just 0.7% in the third quarter, according to IBES data from Refinitiv.
The S&P 500 <.SPX> hit a record high on Monday after last week closing out June with a 6.9 percent monthly increase, its biggest June percentage gain since 1955.
The potential for a Federal Reserve interest rate cut this year largely propelled June's gains, while recent developments on the sidelines of the Group of 20 summit in Japan over the weekend offered fresh hope for investors that trade tensions may be easing.
With valuations rising, market watchers are paying close attention to the earnings forecast trend. The S&P 500 is now trading at about 17 times forward earnings, up from 16.3 at the start of the month, based on Refinitiv's data.
"We do have the Fed as a powerful force," said Kristina Hooper, chief global market strategist at Invesco in New York. "But a lot depends on external factors. We're already seeing downward revisions to the third quarter, and I don't think that's surprising.
"We know that economic policy uncertainty is created by the trade situation."
Companies also face tough earnings comparisons with last year, when tax cuts fueled a 24.9% profit gain in the second quarter.
Just as with the first quarter, both the second and third quarters could end up stronger than forecast, since the majority of companies typically beat analysts' expectations during a reporting period.
While S&P 500 companies may narrowly escape a profit recession this year - defined as two straight quarters of year-over-year declines - earnings for 2019 now are seen rising just 2.3%.
That would represent the lowest annual profit growth for S&P 500 companies since 2016, which included the tail end of a four-quarter profit decline and left earnings growth that year at just 1.4%, according to Refinitiv's data.
(For a graphic on 'Estimated Q2 S&P 500 profit growth' click https://tmsnrt.rs/2G0rf9J)
On Saturday, the United States and China agreed to restart trade talks. U.S. President Donald Trump had threatened to slap new levies on about $300 billion of additional Chinese goods, including popular consumer products, if the latest meeting proved unsuccessful. [
Tariffs on imports increase costs for U.S. companies, which then may need to raise prices on their goods.
Apple Inc <AAPL.O>, in comments posted on a government website, said last month that proposed U.S. tariffs on goods from China, including iPhones, iPads, and Macs, will reduce the company's contributions to the U.S. economy and hurt its global competitiveness.
Companies getting ready to report on the second quarter will no doubt warn about the potential impact of higher tariffs on their businesses, as they have done in recent earnings seasons.
Last week, FedEx Corp <FDX.N> said the U.S.-China trade tensions would hurt its fiscal 2020 performance, along with the non-renewal of its contract with Amazon.com Inc <AMZN.O>.
Second-quarter reporting heats up in mid-July, with JPMorgan Chase <JPM.N> due to report July 16.
To be sure, the prospect of lower interest rates is likely to soothe some of the worries, since lower rates in general reduce costs for companies.
But even with the recent trade news, strategists say uncertainty surrounding the trade discussions is likely to continue to weigh on outlooks.
"Our overarching conclusion is that the developments over the weekend on their own don't do enough to remove the uncertainty created by trade tensions, which began over a year ago and remain an overhang on corporate confidence and the macro outlook," Morgan Stanley strategists wrote in a note on Monday.
(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Dan Grebler)
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Venmo Survey Has Some Important Takeaways for Splitting Bills on Destination Bachelorette Parties
So you've been invited on a destination bachelorette party. For many, the first thought that probably arises isn't what to pack, where to dine, or how excited you are but rather, "how much is this going to cost?" While a bachelorette party spent in a different city than where the bride resides can be a veritable treat, there's no denying it can sap serious funds from the attendees' bank accounts. These days, with apps to pay people back for your portion of the bill becoming increasingly common, it's easier than ever to ensure people get paid back for footing the bill. To take a look at how money etiquette is changing, popular payment app Venmo commissioned a survey on a variety of topics. In regards to travel, it's clear that transparency up front is key: 88% of Venmo users polled in the survey agreed that discussing how to split expenses for things like bachelor and bachelorette parties and spring break before a trip takes place is very important. And what about when you should send a request to get paid back? 72% of Venmo users agreed that the appropriate time frame to send a money request is within the first 24 hours of the transaction occurring. The survey also found that 42% of users think it's appropriate to pay the person who covered the check immediately once the bill is settled (that chef-prepared dinner on that sunset cruise isn't going to get any cheaper with time, ladies). WATCH: This Is The One Travel Etiquette Tip You Should Live By The survey polled 1,006 adults in the United States who use Venmo on May 31st and June 1st, 2019. Read about more of the survey findings and Venmo's etiquette guide here . Of course, a larger sample size may have yielded different results but we'll still scream this adage from the mountains: Always establish how costs will be split prior to embarking on vacation regardless of if reimbursement will come in the form of check, cash, or a smartphone notification. View comments
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Should You Investigate Community Bank System, Inc. (NYSE:CBU) At US$65.63?
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Community Bank System, Inc. (NYSE:CBU), operating in the financial services industry based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Community Bank System’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Community Bank System
The stock is currently trading at US$65.63 on the share market, which means it is overvalued by 26.17% compared to my intrinsic value of $52.02. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Community Bank System’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Community Bank System, it is expected to deliver a relatively unexciting earnings growth of 1.3%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Community Bank System, at least in the near term.
Are you a shareholder?CBU’s future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe CBU should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on CBU for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Community Bank System. You can find everything you need to know about Community Bank System inthe latest infographic research report. If you are no longer interested in Community Bank System, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Fast Food Stocks to Consider for Second Half of 2019
While this past weekend’s G20 meeting held most analyst’s attention, certain fast food stocks have been quietly creeping up on all-time highs. Some fast food stocks have been on an absolute tear lately and show signs of prolonged success.
These fast food stocks are projected to grow substantially within the next few years and should be considered as strong additions to portfolios. Let’s take a further look into which stocks have been able to perform well in the first half of the year and have the potential to extend their growth into the second half of 2019.
McDonald’s
The burger giant quietly climbed to a new all-time high Monday, trading as high as $209.43 per share. This new all-time high arrives as the 18th time this year that the company has set a new high. McDonald’s MCD is currently up over 17% on the year and is looking to carry this growth into the second half. McDonald’s is currently sitting at a Zacks Rank #3 (Hold) and has seen positive growth every month in 2019 thus far. Consensus Estimates are currently predicting earnings of $2.06 in fiscal 2019, which would be a 19.77% jump from the previously reported earnings of $1.72. Furthermore, Zacks Consensus Estimates are forecasting positive year over year earnings growth across the board through 2020.
Chipotle Mexican Grill
Chipotle CMG is currently listed as a Zacks Rank #1 (Strong Buy) and is a stock that might appeal to investors looking for growth potential and momentum. Chipotle has made a habit of surpassing our Consensus Estimates recently, with an average EPS surprise of 11.99% over the previous four quarters. Year over year estimates are calling for double-digit growth in both earnings and revenue all the way through the end of 2020. The company has been making remarkable earnings strides as it increased its earnings by 97.67% and hiked its sales 6.79% compared to the previous quarter (Q1 ’19vsQ4 ’18). The stock is up 66.7% year-to-date and has the potential to prolong this growth for substantial returns.
Shake Shack
Shake Shack SHAK is another stock that has been tearing it up lately, up 51.8% YTD. Shake Shack is a Zacks Rank #3 (Hold) at the moment and has made moves in the right direction lately. The burger chain saw its earnings increase 116.67% to go along with a revenue jump of 6.71% Q4 2018 vs Q1 2019. Zacks Consensus Estimates are predicting earnings of $0.22 for the current quarter, which would result in a 69.23% increase from the $0.13 earnings Shake Shack reported last quarter. The company has been able to significantly surpass our Consensus Estimates three out of the past four quarters for an average EPS surprise of 45.53%. Shake Shack is another fast food stock that has seen recent success and can capitalize on new consumer preferences with its fresh, never-frozen burgers.
The Wendy’s Company
Like SHAK, Wendy’s WEN boasts that it sells fresh, never-frozen burgers and has been able to perform well so far this. The McDonald’s rival is up 23.7% on the year and estimates are looking solid at the moment. Wendy’s is currently a Zacks Rank #2 (Buy) with a solid earnings track record. The company was able to outperform our Consensus Earnings forecasts three times over the past four quarters, posting a 6.04% EPS surprise average. Year over year estimates anticipate 21.43% earnings jump on the back of a 7.29% revenue increase for the current quarter. In addition, Wendy’s has been able to improve its bottom line by 27.27%, as well as its top line by 7.36% in comparison to the previous year. And Wendy’s is set on returning its beloved spicy chicken nuggets to its menu in August, which could boost revenue and help carry on its first half momentum.
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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 reportMcDonald's Corporation (MCD) : Free Stock Analysis ReportChipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis ReportThe Wendy's Company (WEN) : Free Stock Analysis ReportShake Shack, Inc. (SHAK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Is Northview Apartment Real Estate Investment Trust (TSE:NVU.UN) A High Quality Stock To Own?
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Northview Apartment Real Estate Investment Trust (TSE:NVU.UN).
Northview Apartment Real Estate Investment Trust has a ROE of 16%, based on the last twelve months. One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.16 in profit.
See our latest analysis for Northview Apartment Real Estate Investment Trust
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Northview Apartment Real Estate Investment Trust:
16% = CA$253m ÷ CA$1.6b (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, Northview Apartment Real Estate Investment Trust has a higher ROE than the average (9.4%) in the REITs industry.
That's what I like to see. I usually take a closer look when a company has a better ROE than industry peers. For example,I often check if insiders have been buying shares.
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
Northview Apartment Real Estate Investment Trust clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.39. while its ROE is respectable, it is worth keeping in mind that there is usually a limit to how much debt a company can use. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
Of 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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Now’s the Time to Cash-In on Nvidia Stock
Shares ofNvidia(NASDAQ:NVDA) have certainly rebounded off support at the $130 level. Nvidia stock rose over 20% for the month of June as chip stocks lead the charge higher. Some of the relief rally was warranted given the easing of tariff tensions and the previously oversold conditions. NVDA has come a little too far, too fast though. The red-hot run up in Nvidia is starting to cool.
Source: Nvidia
Nvidia stock is getting pricey on a valuation basis. Its price-to-earnings is now back above 30, while price-to-sales is nearing 10 and well above the five-year average of 7.4. Thelatest earnings reportwas less than impressive with both revenue and guidance both disappointing.
Slowing growth, especially in the gaming sector, should provide a serious headwind for any additional multiple expansion.
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NVDA stock is getting overbought from a technical perspective. Nvidia shares breached the 75 level on a nine-day RSI basis. MACD is also at the highest readings in nearly five months. Bollinger Percent B blew out past 1, another sign that the rally may be reaching a climax.
Nvidia stock is at a large premium to the 20-day moving average, which has been a relaible indication of a top in the past. There is major gap resistance between $170 and $185 on the chart.
• 10 Best Stocks to Buy and Hold Forever
Click to Enlarge
Most importantly, NVDA stock traded up to nearly $174 yesterday before reversing course sharply and closing well off the highs at $166.17. This type of reversal pattern is many times emblematic of a short-term top in the stock. The buyers may finally be exhausted, especially given the magnitude of the rally.
In the previous articlefrom May 22, my viewpoint was decidedly more bullish for NVDA, with the stock trading near the $150 level. The fundamentals and technicals both looked attractive at that time. I had an initial upside target of $171, which was hit today before Nvidia stock dropped significantly. The fundamentals and technicals both are looking stretched now, so my outlook has become more bearish … because price does matter.
Stock traders should look to short NVDA stock on any strength. My initial target will once again be the 20-day moving average, this time near the $150 level.
Option traders may look to take a defined risk bearish position by selling a out-of-the money bear call spread. Earnings are due Aug. 15, so selling the Aug 9 $180/$182.50 call spread for a 55 cents credit provides plenty of upside cushion, while also avoiding any earnings-related risk.
Tim may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his option-based strategies can go tohttps://marketfy.com/item/options-and-volatility.
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The postNow’s the Time to Cash-In on Nvidia Stockappeared first onInvestorPlace.
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A Look At The Intrinsic Value Of CBS Corporation (NYSE:CBS)
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of CBS Corporation (NYSE:CBS) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for CBS
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2020": "$1.8b", "2021": "$1.9b", "2022": "$2.0b", "2023": "$1.9b", "2024": "$1.8b", "2025": "$1.8b", "2026": "$1.7b", "2027": "$1.7b", "2028": "$1.8b", "2029": "$1.8b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x12", "2021": "Analyst x7", "2022": "Analyst x5", "2023": "Analyst x5", "2024": "Est @ -4.7%", "2025": "Est @ -2.47%", "2026": "Est @ -0.91%", "2027": "Est @ 0.18%", "2028": "Est @ 0.95%", "2029": "Est @ 1.48%"}, {"": "Present Value ($, Millions) Discounted @ 9.12%", "2020": "$1.6k", "2021": "$1.6k", "2022": "$1.6k", "2023": "$1.3k", "2024": "$1.2k", "2025": "$1.0k", "2026": "$942.8", "2027": "$865.6", "2028": "$800.8", "2029": "$744.7"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= $11.7b
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$1.8b × (1 + 2.7%) ÷ (9.1% – 2.7%) = US$29b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$29b ÷ ( 1 + 9.1%)10= $11.97b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $23.64b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $63.07. Compared to the current share price of $50.55, the company appears about fair value at a 20% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at CBS 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 1.072. 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 CBS, There are three important aspects you should further examine:
1. Financial Health: Does CBS 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 CBS'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 CBS? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Kering crown jewel Gucci banks on high-end gems for growth
By Pascale Denis
PARIS (Reuters) - Gucci, the luxury brand that powers most of parent Kering's <PRTP.PA> profits, made its first steps in high-end jewelery on Tuesday with a dedicated store in Paris - part of its bid to expand its reach after a blowout fashion makeover.
Sales at the Italian label have grown at a breakneck pace since a turnaround under designer Alessandro Michele over the past three years, beating most industry rivals even as the rate of expansion slowed to 20 percent in the first quarter.
With its sights on one day overtaking peers Louis Vuitton, owned by Kering rival LVMH <LVMH.PA>, or privately-held Chanel as the biggest luxury brand by revenue, Gucci is branching into new areas, including by recently rolling out cosmetics.
Its high-end jewelery venture will see it compete with heavyweights of that sector, including Richemont's <CFR.S> Cartier and van Cleef & Arpels, with a specialized store on Paris' historic Place Vendome.
Gucci, best known for its handbags and as a clothing label, already sold gold-based jewels in the 1,500 to 2,000 euro ($2,260) range. Its new line, with pieces designed by Michele and inspired by mythical gardens and fauna, carries price tags of between 50,000 and 800,000 euros.
The push comes at a booming time for the jewelery market, with demand from Asian customers in particular riding high.
Estimated to be worth 18 billion euros globally by consultancy Bain - though branded jewelery represents a smaller chunk - it was the fastest growing segment of the personal luxury goods business last year alongside shoes, with worldwide revenues rising 7 percent.
"This is an attractive category with lots of blank space," Bernstein analyst Luca Solca said.
Gucci will have a long way to go to catch up with jewelery leaders, however - Cartier's sales are estimated at around 5 billion euros by analysts, ahead of U.S brand Tiffany <TIF.N>, at $4.4 billion or LVMH's Bulgari at around 2.5 billion euros.
By contrast, Louis Vuitton, which branched into high-end jewelery in 2012, is estimated to make no more than several hundred million euros a year from jewels, as is Kering-owned jeweler Boucheron.
Paris-based Kering also has brands like Pomellato, Dodo and Qeelin in this category, although jewelery and watches are its smallest division.
The group reports first-half sales on July 25, with all eyes on whether Gucci can maintain its momentum.
(Reporting by Pascale Denis, Writing by Sarah White; Editing by Mark Potter)
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Why the Nike Betsy Ross Flag Sneakers Were Pulled
The Nike Betsy Ross Flag sneakers are no longer available for sale after alleged complaints about the imagery. Nike Betsy Ross Flag Sneakers Selling for $2K+ on Resale Site Source: Kristian Olsen Via Unsplash Reports claim that private complaints were made to Nike (NYSE: NKE ) over the flag that appears on the shoes. This flag is the Betsy Ross flag, which features 13 starts in a circle. The flag is from early in America’s history and was made during the Revolutionary War. The complaint about the Nike Betsy Ross Flag sneakers reportedly comes from former NLF player Colin Kaepernick. He allegedly complained about the flag used on the shoes due to it being from a period in America’s history where slavery was still legal. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nike is indeed pulling the shoes from stores, but hasn’t mentioned any complaints. Instead, it simply notes that the reason has to do with the version of the flag that appears on the shoes, reports SFGate . Nike is also seeing political pushback for pulling the shoes. Arizona Gov. Doug Ducey is seeking to cancel tax breaks for the company to build a factory in the state. He sent a letter to the Arizona Commerce Authority ordering the change to take place. 7 F-Rated Stocks to Sell for Summer With the Nike Betsy Ross Flag sneakers being pulled from store shelves, they are now showing up online for absurd prices. This has some resellers of the shoes asking for more than $2,000 over on StockX. That’s much higher than the original retail price of $120. More From InvestorPlace 2 Toxic Pot Stocks You Should Avoid 10 Best Stocks to Buy and Hold Forever 10 Small-Cap Stocks That Look Like Bargains 10 Names That Are Screaming Stocks to Buy As of this writing, William White did not hold a position in any of the aforementioned securities. The post Why the Nike Betsy Ross Flag Sneakers Were Pulled appeared first on InvestorPlace .
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Taylor Swift Had No 'Bad Blood' With Scooter Braun During Party Years Ago Despite Claims of Bullying
Taylor Swift may be telling everyone Scooter Braun is a manipulative bully, but years back she celebrated one of the biggest nights of her career with the producer by her side. The Blast obtained photos from Swift's afterparty following the 2015 Billboard Music Awards, which shows the singer partying it up with Braun in a photo booth. The awards show, held at the MGM Grand Garden Arena in Las Vegas, was a huge moment for Swift as she took home 8 awards -- the most of the night -- for her 1989 album. Of course, it is kind of ironic that years later Braun now owns the masters for 1989 after a $300 million deal. Back to that night -- the "ME!" singer won awards for Top Artist, Top Female Artist and Top Billboard 200 Album. She also presented an award to Van Halen, and premiered her legendary video, "Bad Blood," which has now amassed over 1.2 billion views on YouTube. Sources close to Braun tell us Justin Bieber's manager was personally invited to Swift's afterparty at a nearby venue and spent the evening of March 17, 2015 celebrating her big night. They also hopped into a photo booth and took some pictures alongside other stars, like Tori Kelly , Camila Cabello and the Pentatonix . Our source says the photos of Braun and Swift are interesting, especially after she claims to have suffered "incessant, manipulative bullying" at his hands for years. As we reported, Braun reached out to Swift for phone conversation after the singer torched him online following his investment company's purchase of her music catalogue. The "You Need to Calm Down" star wrote a lengthy post about the situation , and claimed "Scooter has stripped me of my life’s work, that I wasn’t given an opportunity to buy." She added, "Essentially, my musical legacy is about to lie in the hands of someone who tried to dismantle it." Many celebrities have joined in on the argument and taken sides with who they believe lies in the right. Story continues Cara Delevingne emphatically voiced support for Swift , while Demi Lovato was in Braun's corner. Late Monday night, Sia sent out a message for Braun, telling him "You're a good kind man ... I hope this passes quickly ... I love you keep going." Since her Tweet, Sia has been hit with an onslaught of hate from Swifties, and was even forced to defend herself from blackface over a 2011 photo of the singer. Since her initial Tumblr post, Swift has not made any comments about the feud with Braun and her former record label, Big Machine Records. However, she did end her lengthy statement by writing, "Thankfully, I am now signed to a label that believes I should own anything I create."
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What Are Analysts Saying About The Future Of Molson Coors Brewing Company's (NYSE:TAP)?
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Looking at Molson Coors Brewing Company's (NYSE:TAP) earnings update in March 2019, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 3.5% next year against the higher past 5-year average growth rate of 27%. Presently, with latest-twelve-month earnings at US$1.1b, we should see this growing to US$1.2b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Molson Coors Brewing in the longer term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here.
View our latest analysis for Molson Coors Brewing
Over the next three years, it seems the consensus view of the 14 analysts covering TAP is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for TAP, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of US$1.1b and the final forecast of US$1.2b by 2022, the annual rate of growth for TAP’s earnings is 1.2%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of $4.9 in the final year of forecast compared to the current $5.17 EPS today. Margins are currently sitting at 10%, which is expected to expand to 11% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Molson Coors Brewing, I've compiled three essential aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is Molson Coors Brewing 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 Molson Coors Brewing is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Molson Coors Brewing? 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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Christine Lagarde to head ECB and Ursula von der Leyen to become European Commission president
Christine Lagarde, left, and Ursula von der Leyen, right, will be the first women to take their respective roles in European Union leadership. Photo: Associated Press European Union leaders have finally agreed on who should fill its top roles after a marathon three-day summit in Brussels. International Monetary Fund head Christine Lagarde has been picked to take over the leadership of the European Central Bank from Mario Draghi. Lagarde will be the first woman to hold her position. German defence minister Ursula von der Leyen will become European Commission president, and also the first woman to hold the job. Belgian prime minister Charles Michel is poised to become Council president and Spanish foreign minister Josep Borrell will be the new high representative for foreign affairs. Von der Leyen has been part of German chancellor Angela Merkel’s cabinet since 2005. She served in several posts, including labour minister and family affairs minister before becoming Germany’s first female defence chief in 2013. Jockeying her ally into the top job in the EU is a hard-won victory for Merkel. READ MORE: The big dilemma for UK firms stockpiling goods for Brexit Von der Leyen, 60, was raised in Brussels and grew up in a political family — her father was the state premier of Lower Saxony. She studied economics and medicine, and is a mother of seven. French president Emmanuel Macron pushed for her to take the presidency job, and had the support of Italy and the Visegrad countries, who rejected Dutch social democrat Frans Timmermans as an option earlier this week. The defence minister has faced significant criticism at home over the sorry state of the German armed forces and most recently over hiring outside consultants for hundreds of millions of euros to fix the army. But she is well regarded among other member states for pushing for deeper defence cooperation and a European army. Weeks of fractious haggling behind the scenes and this week’s marathon session in Brussels reflects the splintered results of the EU elections in May. It also reveals how Merkel appeared to have lost her customary dealmaking clout in the second half of her final term. Story continues READ MORE: US threatens new EU tariffs on Scotch, pasta, and Italian cheese Merkel gave up on trying to push her European People’s Party candidate Manfred Weber into the top EU post. Instead, she attempted to hash out out a compromise with Macron during the G20 in Osaka, Japan, that would have given Timmermans the commission presidency in exchange for another leadership role, such as the presidency of the EU parliament, for Weber. That deal backfired on Monday, after her conservative bloc reacted angrily to the idea of their candidate Weber not becoming Commission president. The process of appointing new heads of EU institutions got off to a rocky start after Macron rejected the “Spitzenkandidat” (lead candidate) system that automatically appoints the chosen candidate of the winning party group to the presidency of the EU commission.
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UK Regulators Approve First Cryptocurrency Hedge Fund
Prime Factor Capital was the first crypto hedge fund approved as a full-scope alternative investment fund manager by the Financial Conduct Authority, according to Bloomberg.
Though approved by the UK watchdog, the firm will abide by European regulations. Under these guidelines the firm will be allowed to hold more than 100 million euros in assets under management. It is the first agency to be approved to invest exclusively in the cryptocurrency asset class.
The founders believe that by focusing on a single asset class, even one that carries market distrust, they will surge ahead of their global competitors and become the trusted authority in crypto investing.
Related:Crypto and Forex Scam Reports Tripled in the UK Last Year, Watchdog Says
“Most vehicles for investing in cryptocurrencies are outside the scope of regulators and that’s a big problem in a market that has such a bad reputation,” Adam Grimsley, Prime Factor’s chief operating officer, told Bloomberg.
Prime Factor is required to appoint a custodian under EU regulations to ensure and validate investors’ returns and the fund’s holdings. This custodian will act independently of the firm and also provide cash flow reconciliation.
The firm manages funds for professional and institutional investors including high net worth individuals, family offices, and private wealth managers, according to a companystatement.
There is no information available publicly regarding the firm’s investment strategy. The team is comprised of former employees from Blackrock, Legal & General, Goldman Sachs, and Deutsche Bank.
Related:Startup Raises $3.9 Million in Tokenized Equity in London Stock Exchange Test Issuance
On their website, company CEO Nic Niedermowwe published a report titled “The Fallacy of Uncollateralised Stablecoins,” in which he argued that uncollateralised stablecoins are problematic. He has also considered such subjects as the scalability of bitcoin.
The company did not respond to a request for comment.
Prime Factor Capital previously announced an equity financing round with Speedinvest, a European Fintech investor, and Entrepreneur First, a talent investor.
Euro photo via Shutterstock
• 73% of UK Consumers Say They Don’t Know What Cryptocurrency Is
• UK Firm Gets Regulatory Green Light to Offer Crypto Derivatives
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Ripple Alum to Spearhead Binance US Crypto Exchange
After two years as head of XRP institutional liquidity at Ripple, Catherine Coley is moving to greener pastures. Coley was named CEO at BAM Trading Service atBinanceU.S., according to herLinkedIn profile. Her experience with both one of the largest cryptocurrencies, XRP, and institutional investors should serve her well in this high-profile role in which she will seemingly oversee the trading of more than just one cryptocurrency. There do not appear to be any hard feelings with her former boss,Brad Garlinghouse, who congratulated her on social media.
Coley’s decision to leave Ripple and join Binance is another illustration of the musical chairs that have been taking place in the crypto space.Coinbase, for instance, has suffered a wave of executive defections as new exchanges such as Bakkt come online. Don’t be surprised if there are more shufflings from one project to another as these new exchanges take shape and take talent.
AsCCN previously reported, Binance U.S. is the result of a partnership between Binance and BAM Trading Services. Binance partner BAM became registered with FinCEN, the Financial Crimes Enforcement Network, last month. It should fit in well in a market in which competitors Coinbase and Gemini have both been operating in a regulator-friendly way.
Binance CEO Changpeng Zhao doesn’t believe that it’s a zero-sum game for crypto exchanges in the U.S. and says there’s room for all of them to grow, according to an interview he did with CCN’s Joseph Young.
Binance has been a global leader, both for its billion-dollar daily trading volume and the legitimacy of its trading data, but it recently closed its doors to U.S. investors ahead of this launch. On CoinMarketCap, Binance boasts the No. 1 spot for crypto trading volume, which hovers at $2.9 billion in the last 24-hour period.
Read the full story on CCN.com.
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Here's Why I Think NVR (NYSE:NVR) Might Deserve Your Attention 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 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 the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeNVR(NYSE:NVR). 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.
View our latest analysis for NVR
As one of my mentors once told me, share price follows earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. As a tree reaches steadily for the sky, NVR's EPS has grown 30% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Not all of NVR'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. While we note NVR's EBIT margins were flat over the last year, revenue grew by a solid 12% to US$7.3b. That's a real positive.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not checkthis interactive chart depicting future EPS estimates, for NVR?
We would not expect to see insiders owning a large percentage of a US$12b company like NVR. But we are reassured by the fact they have invested in the company. Notably, they have an enormous stake in the company, worth US$408m. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions!
Given my belief that share price follows earnings per share you can easily imagine how I feel about NVR's strong EPS growth. Further, the high level of insider buying impresses me, and suggests that I'm not the only one who appreciates the EPS growth. So this is very likely the kind of business that I like to spend time researching, with a view to discerning its true value. Now, you could try to make up your mind on NVR 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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Gloria Vanderbilt's Will Reveals Son Anderson Cooper Gets Bulk of Her Fortune
Gloria Vanderbilt's will has been revealed. Following her death from stomach cancer last month at age 95, court documents obtained by ET reveal who will inherit her fortune, which she amassed through many successful business ventures and as a result of being the heir to a railroad fortune. The vast majority of Vanderbilt's fortune will go to her youngest son, Anderson Cooper . The only exception is that her eldest child, Leopold Stanislous Stokowski, was left with his mother's apartment in a co-op in Midtown Manhattan. "All the rest," Vanderbilt's last will and testament read, will go to the 52-year-old news personality. Vanderbilt's other child, Christopher Stokowski, who was estranged from his family, was not named in the will. The will comes as a bit of a surprise, as Cooper previously said that he did not expect to receive an inheritance from his mother. "My mom's made clear to me that there's no trust fund. There's none of that," Cooper told Howard Stern during his 2014 appearance on the host's Sirius XM show. " ... I'm doing fine on my own. I don't need any." "I don't believe in inheriting money," he added. "I think it’s an initiative sucker, I think it’s a curse. Who's inherited a lot of money that has gone on to do things in their life? From the time I was growing up, if I felt like there was some pot of gold waiting for me, I don't know if I would have been so motivated." In an on-air eulogy following Vanderbilt's death, Cooper praised his mom for her extraordinary life and career. "She was the strongest person I've ever met, but she wasn't tough. She never developed a thick skin to protect herself from hurt. She wanted to feel it all. She wanted to feel life's pleasures, its pains as well. She trusted too freely, too completely, and suffered tremendous losses," Cooper said in part. "But she always pressed on, always worked hard, always believed the best was yet to come. And she was always in love. In love with men, or with friends, or books and art, in love with her children, and her grandchildren, and then her great-grandchildren. Love is what she believed in more than anything." Story continues "Gloria Vanderbilt was 95 years old when she died," he added. "What an extraordinary life. What an extraordinary mom. What an incredible woman." RELATED CONTENT: Anderson Cooper Says He's Feeling ‘Lonely’ Since Death of Mom Gloria Vanderbilt Anderson Cooper Posts Touching Tribute to Mom Gloria Vanderbilt on Instagram Why Gloria Vanderbilt Did Not Leave an Inheritance for Son Anderson Cooper Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear
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How to stop cyberattacks crushing cities across the US
Cities and states across the U.S. are facing an increasing number of cyberattacks from individuals holding important government data hostage and demanding huge sums of money for its safe return.
The attacks, which involve a type of malware called ransomware, have become more frequent and destructive in recent years, with several high-profile attacks hitting cities from New Jersey to California. And the price tag to recover from these attacks can easily eclipse the million-dollar mark.
Just last monthLake City, Florida paid $460,000in ransom to get its systems back, and Baltimore, Maryland is expected to pay $18 million to repair its infected infrastructure, despite not paying a ransom.
"The bad guys will always be one step ahead," explained University of Maryland, Baltimore County cybersecurity professor Richard Forno. "And we should never expect there to be total security. What we need to do is plan."
These attacks can force entire governments offline. Citizens can’t pay bills, developers can’t get work permits, and police have seen important investigations slowed.
Ransomware is a form of malware that works its way into computer networks and locks down files and folders using data encryption. The most common way for an infection to take hold is via a simple email. Hackers use social engineering techniques to trick users into opening emails and clicking on links or downloading files that contain the malware. From there, the infection can spread across entire networks with ease, encrypting files and blocking access to them.
There's no way to unencrypt a locked file or database without the proper key. And, unfortunately, only the attacker holds it. That's where the ransom comes in. In exchange for anywhere from hundreds to thousands of dollars, usually paid in bitcoin, the attackers promise to provide the key that will unlock a victim's files.
There isn't one single form of ransomware. And locating the attackers is difficult, since they can mask their locations online. A number of ransomware variants exist in the wild, with an array of capabilities. Some even give cybercriminals a way to spy on networks to determine how large of a ransom they can demand.
One of the most dangerous versions is based on a National Security Administration tool used to hack into Windows PCs that was stolen by a hacker collective called The Shadow Brokers.That tool, called EternalBlue, has since spread across the world and has been employed in a number of attacks.
"The more sophisticated ransomware variants out there, we do see them doing reconnaissance on a network," explained FBI supervisory special agent Adam Lawson.
According to Lawson, who works in the FBI's Major Cyber Crimes Unit, some versions of ransomware will do significant research on a victim as they move around a network, and identify what they want to encrypt. If the attackers recognize they've latched onto a significant target, they'll demand a larger ransom to unlock the files.
In recent years, attackers have seen increased success in hitting municipalities across the U.S. And the attacks on municipalities are accelerating, according to Allan Liska, senior solutions architect at Recorded Future,which produced a studyon ransomware attacks on U.S. cities.
Some attackers know exactly what cities they want to attack and move on them, explained Thomas MacLellan, director of policy and government affairs at Symantec. Other attackers aren't specifically targeting city and state governments, but instead, happen upon municipal governments and squeeze them for cash.
"It appears to be an unfortunate coincidence that city and states happen to use a lot of tools that are currently being targeted by ransomware actors," Liska explained. "For example, city governments appear to rely heavily on Remote Desktop Protocol for remote access; ransomware attackers are currently heavily targeting RDP as a point of entry.
"Once inside the network, these attackers then move around learning the network, understanding the different systems, and then will deploy the ransomware simultaneously across dozens or hundreds of systems.”
According MacLellan, attackers can dwell within a network for 180 days to 190 days poking around to determine the best way to launch a successful attack.
The result: Cities knocked back decades into the past, forced to rely on traditional pen and paper recordkeeping, and a delay in overall services.
The most high-profile incident of a ransomware attack on a city is the current infection roiling Baltimore, Maryland. The city was first hit with a ransomware attack in May, andaccording to The Baltimore Sun, some services were still offline as of last week.
The attack knocked out the city's credit card services, locked employee email accounts, and put a hurting on itsreal estate marketthanks to the fact that property transfer services were down.
Then there was the attack on Lake City, Florida, which saw the city cut off from email and phone access.
"We had no telephone, no email, everything at the police department was still fine, but the entire city pretty much had no phone service," Lake City Public Information Officer, Sergeant Mike Lee explained.
The list of affected cities is long:Riviera Beach, Florida;Allentown, Pennsylvania;Plainfield, New Jersey;Cleveland, Ohio;Grant County, Oregon;Denver, Colorado;Atlanta, Georgia.
Recorded Future's Liska found reports of ransomware attacks hitting municipalities in 48 states and the District of Columbia since 2013. But since many towns and cities don't report ransomware attacks, as they're seen as more of an IT problem than a criminal act, there are no firm estimates for such incidents.
According to theFBI's Internet Crime Complaint Center, there were 1,493 official victims of ransomware in 2018. That number, though, only accounts for the number of victims who reported their attacks directly to the ICCC. The attacks cost users $3.6 billion. But again, that number is likely well below the reality of the situation.
The FBI explains that the $3.6 billion figure only accounts for direct reports to ICCC, and not to FBI field offices. It also can't take into account the cost of ransoms paid by consumers who didn't report the attacks. On top of that, the FBI states that the cost doesn't include "estimates of lost business, time, wages, files, equipment, or any third-party remediation services acquired by a victim."
Proof of that lies in the fact that Baltimore alone estimates that it will cost more than $18 million to get all of its systems back online. And that's without paying a ransom. Lake City, Florida, paid the attackers to take back control of its systems, which cost $460,000, or the equivalent of 42 bitcoins at the time of the attack.
And while experts like Forno and Lawson advise against paying ransoms, Mike Lee of the Lake City Police Department explained that it wasn't the town’s call to pay the cost of the ransom. Instead, it was the city's insurance company that paid off the attackers, after reasoning that it would be cheaper to do so than spend thousands more trying to recover backups of the locked data.
Putting a stop to these kinds of ransomware attacks comes down to municipalities following best security practices. Lee explained that following the ransomware attack on Lake City, the town has invested in additional security measures, and is training staff on what kind of emails and links people should and shouldn't click on.
The main way for governments to protect themselves is to ensure that their systems have the latest security updates, and back up their data so they can use it as a means to restore their files if they're locked up.
There are other kinds of attacks, called zero-day attacks, which are almost impossible to protect against. Those attacks use previously unknown vulnerabilities in operating systems like Windows that are able to give them the ability to launch attacks that can't be stopped by patches.
In the end, the best way to avoid being hit by a malware attack is prevention. Don't open emails from people you don't know, never click on suspicious links, and ensure you have all of your data backed up.
More from Dan:
• Jony Ive, designer of the iPhone, is leaving Apple
• Zuckerberg defends Facebook's decision to keep up Pelosi ‘deepfake’ video
• Lenovo’s and Google's Smart Alarm Clock might make you hate mornings less
• Tim Cook on tech: ‘If you built a chaos factory, you can’t dodge responsibility for the chaos.’
Email Daniel Howley at dhowley@yahoofinance.com; follow him on Twitter at@DanielHowley.
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How To Look At CyrusOne Inc. (NASDAQ:CONE)
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CyrusOne Inc. is a US$6.5b mid-cap, real estate investment trust (REIT) based in Dallas, United States. REITs own and operate income-generating property and adhere to a different set of regulations. This impacts how CONE’s business operates and also how we should analyse its stock. Below, I'll look at a few important metrics to keep in mind as part of your research on CONE.
See our latest analysis for CyrusOne
REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. FFO is a higher quality measure of earnings because it takes out the impact of non-recurring sales and non-cash items such as depreciation. These items can distort the bottom line and not necessarily reflective of CONE’s daily operations. For CONE, its FFO of US$309m makes up 58% of its gross profit, which means the majority of its earnings are high-quality and recurring.
In order to understand whether CONE has a healthy balance sheet, we have to look at a metric called FFO-to-total debt. This tells us how long it will take CONE to pay off its debt using its income from its main business activities, and gives us an insight into CONE’s ability to service its borrowings. With a ratio of 11%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take CONE 9 years to pay off using just operating income, which is a long time, and risk increases with time. But realistically, companies have many levers to pull in order to pay back their debt, beyond operating income alone.
Next, interest coverage ratio shows how many times CONE’s earnings can cover its annual interest payments. Usually the ratio is calculated using EBIT, but for REITs, it’s better to use FFO divided by net interest. This is similar to the above concept, but looks at the nearer-term obligations. With an interest coverage ratio of 3.27x, it’s safe to say CONE is generating an appropriate amount of cash from its borrowings.
I also use FFO to look at CONE's valuation relative to other REITs in United States by using the price-to-FFO metric. This is conceptually the same as the price-to-earnings (PE) ratio, but as previously mentioned, FFO is more suitable. CONE's price-to-FFO is 21x, compared to the long-term industry average of 16.5x, meaning that it is overvalued.
As a REIT, CyrusOne offers some unique characteristics which could help diversify your portfolio. However, before you decide on whether or not to invest in CONE, I highly recommend taking a look at other aspects of the stock to consider:
1. Future Outlook: What are well-informed industry analysts predicting for CONE’s future growth? Take a look at ourfree research report of analyst consensusfor CONE’s outlook.
2. Valuation: What is CONE 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 CONE is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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