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Alibaba Stock Will Be Impacted by Setback in India Alibaba(NYSE:BABA) has invested heavily in South Asia and Southeast Asia to diversify its revenue base. It has made big bets on the Indian market’s e-commerce segment and on other services in the country, hoping that these businesses will eventually boost Alibaba stock. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of BABA’s biggest bets in India is on Paytm and its e-commerce subsidiary, Paytm Mall.A recent reportbyForrester Inc.mentioned that Alibaba has refused to engage in any further funding rounds for Paytm Mall. Instead, Alibaba plansto invest more in its cloud segmentandits delivery platformwhich should boost Alibaba stock more than Paytm in the short-term. • 10 Stocks That Should Be Every Young Investor's First Choice Alibaba owns a 46% stake in Paytm Mall. In the last two years, Paytm Mall has raised $645 million from Alibaba andSoftbank. Paytm Mall has relied on heavy discounts to attract customers without investing in a logistics network. Paytm Mall’s strategy has backfired and has caused massive losses without decent sales growth. The big losses reported by Paytm are positive for the Indian businesses ofAmazon(NASDAQ:AMZN) andWalmart(NYSE:WMT). Alibaba has not built its own platform in India. Instead, it has relied on smaller startups in which it has invested to increase the size of their operations. Alibaba has invested a great of money in these companies, but it has largely allowed the start-ups to manage themselves. This strategy has worked with several of the start-ups, including Zomato, Big Basket and Paytm digital wallet. In September 2018,Warren Buffett invested$400 million in Paytm at a valuation of $10 billion. Paytm is the market share leader among the digital wallets in India. Two years ago, Paytm wanted to diversify into e-commerce by leveraging the strength of its digital wallet platform. It started a new subsidiary called Paytm Mall in which Alibaba and Softbank were the largest investors. This company relied on massive discounts to encourage customers to shift their purchases to Paytm Mall. However, the venture generated high losses. Alibaba has refused to provide more funding to Paytm Mall because the venture did not meet its gross merchandise value and profitability goals. That shows how difficult it is to build a new e-commerce platform from scratch in India. Despite massive funds, Paytm Mall was not able to retain many of its customers when it cut back on its discounts. This is the second big setback for Alibaba and Softbank in India. Earlier, they invested in Snapdeal. Fig: Investment rounds in Snapdeal. Over $1 billion was invested by both Alibaba and Softbank. Source:Crunchbase Snapdeal also followed a capital-light strategy. as it invested very little money in logistics. Due to the website’s poor logistics options, many customers did not remain loyal to it , causing its market share to fall. On the other hand, both Amazon and Flipkart (owned by Walmart) have invested massively to build strong in-house logistics operations. Consequently, their customers’ satisfaction levels have risen meaningfully and they are less dependence on discounts to retain their customers. The valuation of Paytm is expected to reach $18 billion soon. Source:Economictimes Alibaba also has a significant stake in Zomato which is a food delivery platform.HSBC Global Researchhas estimatedZomato’s valuation at $3.6 billion. This platform is losing money but it has been able to rapidly grow its sales.Another successful startuphas been Big Basket, an online grocer. That startup is valued at over $1 billion. Alibaba is looking to rapidly expand its cloud segment and make it a major profit center for the company. That will require large investments in the next few quarters. In China, Alibaba is also investing in food-delivery service Ele.me, digital media and other local services. Its multiple, large investments is one of the reasons why it has stopped pouring more money into Paytm Mall. That’s a good strategy for BABA andAlibaba stock because the probability of Paytm Mall succeeding is quite low. It is competing against giants like Amazon and Walmart that have invested much more money in India. By shifting more resources to cloud computing, Alibaba can improve the growth rate and margins of this segment. That should boost Alibaba stock in the short-term. According toBloomberg, Alibaba now plans to invest in smaller Indian startups, instead of writing bigger checks. After its two major setbacks in India, Alibaba is trying to diversify its investments there to areas other than e-commerce Alibaba’s potential overseas growth is a big reason for the bullish sentiment towards Alibaba stock. Paytm Mall has not shown signs of growth or profitability, resulting in a major setback for BABA. Alibaba will now be focusing on smaller startups in this region. It can also shift its resources to more important segments like cloud, digital media, and Ele.me. These segments’ margins look poised to rise meaningfully in the short-term. Due to headwinds created by the trade war, Alibaba’s new strategy of investing more prudently seems logical. Investors should closely watch the impact of this strategy on its margins going forward. The growth of BABA’s margins and EPS may accelerate in the near-term, helping to improve sentiment towards Alibaba stock. As of this writing, Rohit Chhatwal did not hold a position in any of the aforementioned securities. • 2 Toxic Pot Stocks You Should Avoid • 10 Stocks That Should Be Every Young Investor's First Choice • 5 IPO Stocks to Buy -- According to Wall Street Analysts • The Top 10 Best Sectors in the Market for 2019 The postAlibaba Stock Will Be Impacted by Setback in Indiaappeared first onInvestorPlace.
The best self tanners you can buy under $40 Yahoo Lifestyle’s shopping team is committed to finding you the best products at the best prices. We may receive a share from purchases made via links on this page. Want sun-kissed skin without the sun damage? Here are the best self tanners. (Art: Yahoo Lifestyle) Summertime is officially here, and while most of us are aiming to look golden and sun-kissed, UV rays are super, super damaging, as we probably all know by now. It may have been a while since you’ve attempted using a self tanner , but on today’s market, they’re leaps and bounds better than what you’re probably used to. Think: Easy application, no streaks and not at all orange-y or unnatural looking. So where do you start? Here, some of the best self tanners you can buy. Just make sure to exfoliate before and moisturize daily, to ensure the product goes on evenly and to extend the length of the product. St. Tropez Self Tan Luxe Dry Oil Tanner (Photo: Courtesy of St. Tropez) Shop it : St. Tropez Self Tan Luxe Dry Oil Tanner, $50 This fan favorite is a quick-drying oil that leaves no streaks and no greasy residue. It lasts up to 10 days, contains a 100 percent natural tanning agent suitable for all skin tones and features a 100 percent natural fragrance (so you don’t have that weird self tanner scent). While the company says to use a mitt, reviewers note you may just want to use your hand for a more even finish. Shake well before use! L'Oréal Paris Sublime Bronze Self-Tanning Serum, Medium Natural Tan (Photo: Courtesy of L'Oréal Paris) Shop it : L'Oréal Paris Sublime Bronze Self-Tanning Serum, Medium Natural Tan, $10 A tan that lasts up to two weeks and is basically application foolproof? We found it. Pump the serum into your hands and use all over your body (and face!) for three consecutive days (or until your desired level of color) for a glow that lasts. Jergens Natural Glow Instant Sun Deep Bronze Sunless Tanning Mousse (Photo: Courtesy of Jergens) Shop it : Jergens Natural Glow Instant Sun Deep Bronze Sunless Tanning Mousse, $12 This cult classic goes on quickly, dries fast and gives instant color that isn’t too dark — but is totally buildable to your desired look. The mousse dries in 60 seconds (yes, truly), and is formulated with an advanced color complex that works with your skin tone to create the best bronze for you. Easy-peasy. Story continues Tarte Brazilliance PLUS+ Self Tanner (Photo: Courtesy of Tarte) Shop it : Tarte Brazilliance PLUS+ Self Tanner, $39 This updated version of their best-seller features ingredients to not only provide color, but to exfoliate and moisturize skin while doing so, a must for even application. Plus, the proprietary PUREshield scent control technology means you’ll only see your tan — not smell it. One hundred percent of women saw a natural-looking tan in four hours. Coola Organic Sunless Tan Anti-Aging Face Serum (Photo: Courtesy of Coola) Shop it : Coola Organic Sunless Tan Anti-Aging Face Serum, $40 If you’re looking to tan your face and aren’t having success with your body product, this top-selling tanner is for you and well worth the price. The sheer serum has a gradual self-tanner with anti-aging ingredients that allows you to build a tan and maintain it, while making sure not to aggravate sensitive skin. James Read Tan Fool Proof Bronzing Mousse (Photo: Courtesy of James Read) Shop it : James Read Tan Fool Proof Bronzing Mousse, $23 James Read is known for the perfect self tan, and this foolproof mousse is your new best friend. Great for first timers, it’s a streak-free formula that adds just a hint of color and lasts seven days. It’s also made with aloe vera and cucumber to moisturize and hydrate skin. Supergoop! Healthy Glow Sunless Tan (Photo: Courtesy of Supergoop) Shop it : Supergoop! Healthy Glow Sunless Tan, $38 Scent-free, streak-free, transfer-free — this product is a gem. Not only does it deliver great, glowy results, but it also protects you against the sun with SPF 40. Did we mention it’s a spray? Quick and easy. Josie Maran Argan Liquid Gold Self-Tanning Body Oil (Photo: Courtesy of Josie Maran) Shop it : Josie Maran Argan Liquid Gold Self-Tanning Body Oil, $39 Get ready to glow. This self-tanning product is made with argan oil to nourish your skin, while natural DHA (dihydroxyacetone) helps give skin a great, healthy bronze. Use the mitt for simple and streak-free application. Read more from Yahoo Lifestyle: 10 beauty products under $10 that will make your beach visit so much better Walmart is selling a $30 curling wand that's basically salon-quality The $18 leave-in conditioner Hailey Baldwin swears by Follow us on Instagram , Facebook , Twitter , and Pinterest for nonstop inspiration delivered fresh to your feed, every day. Want daily pop culture news delivered to your inbox? Sign up here for Yahoo’s newsletter.
Is iShares MSCI USA Equal Weighted ETF (EUSA) a Strong ETF Right Now? A smart beta exchange traded fund, the iShares MSCI USA Equal Weighted ETF (EUSA) debuted on 05/05/2010, and offers broad exposure to the Style Box - All Cap Blend category of the market. What Are Smart Beta ETFs? For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment. Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results. Fund Sponsor & Index Managed by Blackrock, EUSA has amassed assets over $283.62 M, making it one of the average sized ETFs in the Style Box - All Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the MSCI USA Equal Weighted Index. The MSCI USA Equal Weighted Index represents the MSCI USA Index, measures the performance of equity securities in the top 85% by market capitalization of equity securities listed on stock exchanges in the United States. Cost & Other Expenses When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal. Operating expenses on an annual basis are 0.15% for EUSA, making it one of the cheaper products in the space. EUSA's 12-month trailing dividend yield is 1.69%. Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis. EUSA's heaviest allocation is in the Information Technology sector, which is about 16.20% of the portfolio. Its Financials and Industrials round out the top three. When you look at individual holdings, Tableau Software Inc Class A (DATA) accounts for about 0.21% of the fund's total assets, followed by Snap Inc Class A (SNAP) and Total System Services Inc (TSS). The top 10 holdings account for about 1.91% of total assets under management. Performance and Risk The ETF has added about 20.81% so far this year and was up about 7.94% in the last one year (as of 07/03/2019). In the past 52-week period, it has traded between $47.02 and $59.92. The fund has a beta of 1.06 and standard deviation of 11.87% for the trailing three-year period, which makes EUSA a medium risk choice in this particular space. With about 645 holdings, it effectively diversifies company-specific risk. Alternatives IShares MSCI USA Equal Weighted ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider. IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $21.48 B in assets, Vanguard Total Stock Market ETF has $117.33 B. ITOT has an expense ratio of 0.03% and VTI charges 0.03%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportiShares MSCI USA Equal Weighted ETF (EUSA): ETF Research ReportsSnap Inc. (SNAP) : Free Stock Analysis ReportTableau Software, Inc. (DATA) : Free Stock Analysis ReportVanguard Total Stock Market ETF (VTI): ETF Research ReportsiShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research ReportsTotal System Services, Inc. (TSS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
The 4 Must-Know Cannabis Vape Stocks The marijuana industry is evolving before our eyes. What had once been a taboo industry that was dominated by the black market and dried cannabis flower will soon be no more. Following the recreational legalization of cannabis in Canada last October, and the ongoing push to give the green light to medical and recreational weed at the state level, acceptance of marijuana into legal channels is growing. More importantly, at least from an investment perspective, we're alsoseeing consumer buying habits shift. Dried flower is now viewed as yesteryears' preferred consumption source. A younger generation of pot users prefers derivative options, such as oils, edibles, infused beverages, topicals, vapes, concentrates, and much more. These alternative consumption options usually have a much higher price point than dried flower, and they generate considerably juicier margins. Image source: Getty Images. According to investment firm GMP Securities, extracts stand to make up at least half of the Canadian market over time. Roughly 10% of this market could be in the form of nonalcoholic cannabis-infused beverages, with another 15% derived from edibles. But the creme-de-la-creme of derivative products is expected to be vape pens, with 20% of the total market. If Arcview and BDS Analytics are correct with their estimate of close to $5 billion in total Canadian pot sales by 2024, and GMP is right about vapes being the dominant derivative, we're talking about at least a $1 billion vape market in Canada, and presumably a multibillion-dollar vape market in the United States. The good thing for investors is that there are two primary ways to play the cannabis vape market. They can either choose to buy the vaporizer manufacturers and suppliers, or go after the recurring revenue provided by the extract suppliers. No matter investors' preference, there are a handful of must-know cannabis vape stocks. Image source: Getty Images. Potentially the most high-profile of all the vape extract companies will beCronos Group(NASDAQ: CRON), whichclosed a major equity investmentfrom tobacco giantAltria(NYSE: MO)in mid-March. Cronos Group plans to focus most of its production on derivative products, and it would only be logical if Altria, the company that sunk $1.8 billion into Cronos for a 45% stake, aided with that development process. As a reminder, Altria made a substantial $12.8 billion investment in vaping device maker Juul in December, which is good enough for a 35% stake. This investment came just weeks after announcing its stake in Cronos Group. With access to the most popular vaping device (at least in the U.S.) through its equity partner, Cronos Groupmay have an outlet for success in Canada, as well as in the United States, if the federal government ever changes its tune on marijuana. The other must-know extract provider in the vape space isThe Supreme Cannabis Company(NASDAQOTH: SPRWF). That's right, notAurora Cannabisor some other much larger producer, but modestly sized Supreme Cannabis Company. With perhaps 50,000 kilos of production a year from its flagship 7Acres campus, this is an easy company to overlook. However, the company's cannabis quality cannot be underestimated. There are only a small percentage of growers focused on the ultra-premium and premium-quality dried cannabis and extract market, and Supreme Cannabis is one of those companies. Having recentlypartnered with PAX Labsto supply extracts for the PAX Era pen-and-pod vape system, Supreme is in the perfect position to reach a more affluent vaping clientele. Image source: Getty Images. In terms of vaping device manufacturers and parts providers, one of the more intriguing names to monitor isKushCo Holdings(NASDAQOTH: KSHB). KushCo makes a living in multiple areas of the ancillary market, including providing compliant packaging and branding solutions to over 5,000 growers worldwide. Butthe majority of its businesshas been derived from vaporizers, which is a business segment that should see tremendous growth to the north once Health Canada legalizes new derivative products (including vapes) later this year. KushCo's prized vaporizer segment has been a bit of a sour note in recent quarters due to the U.S.-China trade war. Tariffs on imported vape components have been eaten by KushCo, rather than passed along to consumers, thereby hurting margins. But the company recently made the decision topass along any higher import expenses to consumers, which really shouldn't be a problem given the tremendous demand for vaping devices in the U.S., and soon Canada. Then there'sGreenlane Holdings(NASDAQ: GNLN), which is onlyone of the largest providers of vaporization productsin North America. Greenlane provides an assortment of product categories to more than 11,000 retail outlets throughout North America, including customized packaging, papers and wraps, and even hemp cannabidiol products. But the company's vaporizer products are likely to be the driving force behind Greenlane's growth for the foreseeable future. What may set Greenlane apart from its peers, and why it's a must-know cannabis vape stock, is the company's efforts to internally develop and acquire well-known vaporization brands, and then use those brands to build distribution networks. It's been successful with this model in the early stages throughout the U.S., and it will look to build on its 103% net revenue growth in 2018 (for all products, not just vapes) when Canada launches new derivative options in the months that lie ahead. More From The Motley Fool • Beginner's Guide to Investing in Marijuana Stocks • Marijuana Stocks Are Overhyped: 10 Better Buys for You Now • Your 2019 Guide to Investing in Marijuana Stocks Sean Williamsowns shares of KushCo Holdings. The Motley Fool recommends KushCo Holdings. The Motley Fool has adisclosure policy.
Amazon keeps Alexa transcripts unless you manually delete them Back in May, Amazonintroduceda new Alexa feature that makes it easy to delete your voice history -- apparently, that could be pretty handy if you don't want Amazon to keep copies of your Alexa conversations. In a letter sent to Sen. Chris Coons from Delaware and obtained byCNET, the tech giant has revealed that it keeps your voice recordings and transcripts until you manually delete them. Even if you choose to expunge your voice recordings., though, Amazon will still keep records of Alexa interactions containing certain details. Senator Coons sent Amazon chief Jeff Bezos a letter in May, asking for answers on how long the company keeps records of people's Alexa interactions. In its response, Amazon said it erases transcripts "from all of Alexa's primary storage systems" when users manually delete voice recordings. The company also has "an ongoing effort to ensure those transcripts do not remain in any of Alexa's other storage systems." However, it will continue to retain certain records, such as when users ask Alexa to subscribe to Amazon Music Unlimited, to place an Amazon Fresh order, to request cars from Uber and Lyft or to make in-skill purchases of digital content. The company also retains Alexa requests for recurring alarm and for schedules like anniversaries and meetings. "[C]ustomers would not want or expect deletion of the voice recording to delete the underlying data or prevent Alexa from performing the requested task," the letter reads. Amazon has also explained in the missive that it trains Alexa with actual voice recordings and transcripts to help ensure that it works well for everyone. ABloombergreportfrom April revealed that the company employs thousands of full-timers and contractors from around the world to review audio clips from Echo devices. Amazon didn't deny that, but it said that it only stores audio if it detects wake words and that it only annotates a small portion of Alexa interactions. Senator Coons posted his statement regarding Amazon's response, promising to continue working "with both consumers and companies to identify how to best protect Americans' personal information."
Should First Trust Small Cap Growth AlphaDEX Fund (FYC) Be on Your Investing Radar? If you're interested in broad exposure to the Small Cap Growth segment of the US equity market, look no further than the First Trust Small Cap Growth AlphaDEX Fund (FYC), a passively managed exchange traded fund launched on 04/19/2011. The fund is sponsored by First Trust Advisors. It has amassed assets over $288.73 M, making it one of the average sized ETFs attempting to match the Small Cap Growth segment of the US equity market. Why Small Cap Growth Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk. While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets. Costs Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same. Annual operating expenses for this ETF are 0.70%, making it one of the most expensive products in the space. It has a 12-month trailing dividend yield of 0.03%. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation to the Healthcare sector--about 20.60% of the portfolio. Information Technology and Industrials round out the top three. Looking at individual holdings, Appfolio, Inc. (class A) (APPF) accounts for about 0.85% of total assets, followed by Avon Products, Inc. (AVP) and Sunrun Inc. (RUN). The top 10 holdings account for about 7.99% of total assets under management. Performance and Risk FYC seeks to match the performance of the Nasdaq AlphaDEX Small Cap Growth Index before fees and expenses. The NASDAQ AlphaDEX Small Cap Growth Index is an enhanced which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Growth Index. The ETF has gained about 16.08% so far this year and is down about -4.91% in the last one year (as of 07/03/2019). In the past 52-week period, it has traded between $37.33 and $53.13. The ETF has a beta of 1.16 and standard deviation of 17.47% for the trailing three-year period, making it a high risk choice in the space. With about 262 holdings, it effectively diversifies company-specific risk. Alternatives First Trust Small Cap Growth AlphaDEX Fund holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FYC is an outstanding option for investors seeking exposure to the Style Box - Small Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well. The iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth ETF (VBK) track a similar index. While iShares Russell 2000 Growth ETF has $8.96 B in assets, Vanguard Small-Cap Growth ETF has $9.16 B. IWO has an expense ratio of 0.24% and VBK charges 0.07%. Bottom-Line Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFirst Trust Small Cap Growth AlphaDEX Fund (FYC): ETF Research ReportsAppFolio, Inc. (APPF) : Free Stock Analysis ReportAvon Products, Inc. (AVP) : Free Stock Analysis ReportVanguard Small-Cap Growth ETF (VBK): ETF Research ReportsiShares Russell 2000 Growth ETF (IWO): ETF Research ReportsSunrun Inc. (RUN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Carol Vorderman reveals the secret behind her award-winning bottom Carol Vorderman loves hiking in the Brecon Beacons (Credit ITV) Carol Vorderman has revealed she does 20,000 squats a year to keep her famous bottom in peak condition. The 58-year-old former Countdown presenter - the only person to have ever won Rear of the Year twice - discusses the secrets to her curves as part of the Body Confidential series on ITV’s Lorraine on Thursday. Vorderman revealed she goes hiking twice a week, sometimes walking up to 26 miles in the Brecon Beacons She said: “In terms of squats, or the equivalent of squats, I probably do over 20,000 a year... that's a lot.” Read more: Carol Vorderman brings the glamour at Pride of Britain Awards Vorderman admitted: “I haven’t weighed myself since 1999. I don’t actually know how much I weigh and I don’t care because I go on my dress size, thank god for lycra! "I’m probably about a size 8 to 9 at the moment. I’ve always had a small waist, I think I’m about 25 inches around my waist. If I put on a bit of weight, I know I have, and I go up to a size 11. A larger size 10, that’s kind of my boundary for where I’m happy.” The TV presenter is the only person to have ever won the Rear of the Year award more than once - first in 2011 and then again in 2014. View this post on Instagram A post shared by Official Carol Vorderman (@carolvorders) on Jun 7, 2019 at 12:54pm PDT Vorderman admitted that getting older she had noticed changes in her body. She said: “As you go through the menopause things change. I had what’s called a mirena coil. I put on a stone in two weeks. It gives off hormones as well, so I had it removed and it took me a year to lose the weight. I went through this terrible hormonal depression, and I don’t use that word lightly, it really was awful.” But she explained she now uses bio-identical gels, adding: “Wow has that changed everything! I’ve noticed my skin has improved, my shape has changed, things have grown significantly, and that I know is linked to that. Your shape changes.” Lorraine airs on weekdays on ITV from 8.30am to 9.25am. Watch the latest videos from Yahoo UK
Job cuts during the first half of the year were the highest since 2009: Challenger U.S. job cuts in the first half of this year are at their highest total in a decade, according to anew report from Challenger Gray & Christmas. The global outplacement and business and executive coaching firm’s report released Wednesday found that U.S. employers announced that they will be cutting 140,577 jobs in the second quarter. Though that figure is down 26% from the first quarter, it is a 34% jump from last year. Those additional job cuts in the second quarter brings the first-half total this year to 330,987, which is a 35% increase from the same period last year. “The second quarter is historically the slowest period for job cut plans,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas. “Companies typically have not determined staffing decisions by this point, either because they are in the middle of or are only approaching their fiscal year’s end by June.” Looking specifically to June, employers cut 41,977 jobs, a 13% jump from a year ago. Challenger Gray noted that marks the eleventh consecutive month in which job cuts were higher than the corresponding month the year earlier. The retail sector continued to see the largest amount of job cuts this year followed by the industrial goods and automotive sectors. “Job cuts are trending higher overall,” according to Challenger. “Manufacturers are grappling with not only technological changes, but also increased competition, tariffs, changes in consumer behavior, and skills shortages.” Challenger’s report comes on the heels of asofter-than-expected ADP/Moody’s private sector employment reportthat was released Wednesday morning. The report revealed that the U.S. private sector employment grew at disappointingly slow pace, with only 102,000 positions added in June. Consensus estimates were for 140,000 private payroll additions during the month. — Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter:@heidi_chung. Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. • Read the latest financial and business news from Yahoo Finance More from Heidi: U.S. private sector employment grows at disappointingly slow pace McDonald’s Japan is one of the most popular places on Facebook Tyson on alt-meat: We're going in big Taco Bell is testing plant-based proteins Chewy prices its IPO at $22 per share, raises just over $1 billion
Looking At AVX Corporation (NYSE:AVX) From All Angles Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on AVX Corporation (NYSE:AVX) due to its excellent fundamentals in more than one area. AVX is a financially-sound , dividend-paying company with a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on AVX here. In the past couple of years, AVX has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did AVX outperformed its past performance, its growth also surpassed the Electronic industry expansion, which generated a 55% earnings growth. This is an optimistic signal for the future. AVX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AVX has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Investors should not worry about AVX’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$2.8b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. For those seeking income streams from their portfolio, AVX is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.8%. For AVX, there are three key factors you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for AVX’s future growth? Take a look at ourfree research report of analyst consensusfor AVX’s outlook. 2. Valuation: What is AVX 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 AVX is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of AVX? 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.
Constellation Brands, Inc. (NYSE:STZ) Insiders Have Been Selling Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inConstellation Brands, Inc.(NYSE:STZ). 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, most countries require that the company discloses such transactions to the market. We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. View our latest analysis for Constellation Brands The , Thomas Kane, made the biggest insider sale in the last 12 months. That single transaction was for US$989k worth of shares at a price of US$224 each. So we know that an insider sold shares at around the present share price of US$199. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Over the last year, we note insiders sold 14115 shares worth US$2.8m. Constellation Brands insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Over the last three months, we've seen significant insider selling at Constellation Brands. In total, insiders sold US$1.4m 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. Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Constellation Brands insiders own 9.8% of the company, worth about US$3.7b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. Insiders sold Constellation Brands shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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 Constellation Brands. But note:Constellation Brands may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Apples unannounced new MacBook Pro just leaked Click here to read the full article. Earlier this year, Apple updated some of its MacBook Pro models , but not all of them. Specifically, the cheaper non-Touch Bar models, which are referred to by many as MacBook Escape models, did not receive the same boost in performance that the pricier Pro laptops received. But these entry-level MacBook Pro models may soon get a refresh of their own, according to a new leak. Related Stories: Reuters: Apple paid Samsung $684 million for unrealized iPhone OLED screen sales Pretty much all of Apple's iCloud services are down... happy Independence Day! How to install the iOS 13 developer beta for free and always get new releases before anyone else Some people appreciate these MacBook Pro models exactly because they feature a full-fledged keyboard, complete with a physical Escape key as well as a full row of Function buttons and media controls. But the 13-inch MacBook Pro still comes with a dual-core 7th-gen Intel Core processor and Intel Iris Plus Graphics 640 GPU, rather than the upgraded internal components that arrived in the Touch Bar models earlier this year. Those laptops pack speedier 8th-gen Intel chips and newer GPUs. Also, they ship with an improved keyboard design meant to prevent functionality issues caused by debris. Its unclear when Apple will refresh the MacBook Escape model, but the FCC (via The Verge ) has mistakenly published documentation that proves a new 13-inch MacBook is going through the certification process. The device in question has the same model number, A2159, that was spotted earlier in filings that Apple made with the Eurasian Economic Commission last month. The ECC is also a regulatory body, and it serves a similar function to the FCC in the United States. The documentation that Apple filed with the FCC is now gone from the FCC site. But it was available to the public long enough to prove the device is a 13-inch laptop that has the same dimensions as the current MacBook Escape model. That said, its unclear exactly when Apple will release the updated 2019 model. Recent reports said Apple would unveil a 16-inch MacBook Pro later this year and refresh other MacBook lines. The list may include the MacBook, MacBook Air, and this new 13-inch MacBook Pro model. Story continues BGR Top Deals: This $16 clip-on lens kit fits the iPhone or any Android phone, and its awesome Amazon deal offers a 7-inch Android tablet for under $43 See the original version of this article on BGR.com
Why Stitch Fix Stock Gained 38% in June Shares ofStitch Fix(NASDAQ: SFIX)outperformed the market last month, with the stock jumping 38% compared to a 7% increase in theS&P 500, according to data provided byS&P Global Market Intelligence. The e-commerce apparel specialist has gained over 80% so far in 2019. Image source: Getty Images. Stitch Fix reported solid earnings results in early June that suggested continued market share gains for its disruptive approach to selling clothing online. Sales rose 17% thanks to healthy growth inkey engagement metricsincluding the active customer base, average spending per order, and client satisfaction. CEO Katrina Lake and her team have outlined an ambitious year ahead as Stitch Fix moves deeper into product categories like men's clothing and kids' wear. It has also begun its biggest international expansion yet with a push into the U.K. Sure, the stock appears expensive given its paltry earnings profile. But Stitch Fix is paving the way toward robust profitability in future years by rapidly building scale and working to educate consumers about the benefits of its push-based selling model. If it keeps winning on these points, expect more market-thumping returns ahead. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Demitrios Kalogeropouloshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Stitch Fix. The Motley Fool has adisclosure policy.
These Cities Have the Highest Car Theft Rates Car thefts peaked in the U.S. in 1991, when nearly 1.7 million vehicles were stolen. Today, the number is lower by more than half -- butwhen you own a caryou should never let your guard down, especially in certain cities. That means not doing anything ridiculously stupid like leaving your keys in the car with the engine running when you make a quick dash into a store. (No excuses,even if everything is 75% off.) The National Insurance Crime Bureau is out with the 2019 edition of its "Hot Spots" report showing the U.S. metro areas with the nation's highest vehicle theft rates. Don't let your keys out of your sight and follow our countdown, to the city where car theft is worst. In the Billings metro area, cars are stolen at an annual rate of521 thefts for every 100,000 residents. In 2018, 894 car thefts were reported locally in Montana's largest city. To help curb car theft nationwide, vehicle owners need to be smarter. From 2013 through 2015, nearly 150,000 cars were reported stolen because the keys had been left inside, says the National Insurance Crime Bureau, or NICB. In the Riverside-San Bernardino-Ontario metro area, cars are stolen at an annual rate of522 thefts for every 100,000 residents. In 2018, 24,113 car thefts were reported in this populous suburban area east of Los Angeles. The NICB recommends four layers of protection to stop car thieves. Theinsuranceindustry group says the first and most cost-effective approach is to just use common sense: take the keys out of the ignition; lock doors and close windows; and park in well-lit areas. In the St. Joseph metro area, which straddles Kansas and Missouri north of Kansas City, cars are stolen at an annual rate of532 thefts for every 100,000 residents. In 2018, 674 car thefts were reported locally. But in the previous list, St. Joseph made a worse showing: It ranked fifth. The area has a relatively small number of thefts but also a small population, so the result is a high theft rate. The same math puts Los Angeles down at No. 38, even though nearly 54,000 vehicles were reported stolen in LA during 2018. In the Vallejo-Fairfield metro area northeast of San Francisco, cars are stolen at an annual rate of538 thefts for every 100,000 residents. In 2018, 2,404 car thefts were reported locally. The area has jumped to ninth on the list from the No. 26 spot last time. Give your vehicle a second layer of protection, the NICB says, by using a device that shows ortellsa thief to leave your car alone. These might include a lock on the brake pedal, a collar secured around the steering column, or a very loud alarm. In Wichita, the largest city in Kansas, cars are stolen at an annual rate of550 thefts for every 100,000 residents. In 2018, 3,547 car thefts were reported locally. Wichita has zoomed up from its No. 27 ranking in last year's report. You'll triple up on your protection with a gadget that can immobilize your car and make it impossible for a thief to hot-wire it. Examples include a "smart" ignition key with a computer chip inside, or afueldisabler. In the Stockton-Lodi metro area, due east of San Francisco, cars are stolen at an annual rate of569 thefts for every 100,000 residents. In 2018, 4,287 car thefts were reported locally. Stockton-Lodi has climbed one position on this list, from No. 8 last year. The NICB says give your car a fourth and final coat of protection by installing a tracking device, which will send a signal to police or a monitoring station to help authorities recover your vehicle faster. In the Redding metro area of northern California, cars are stolen at an annual rate of575 thefts for every 100,000 residents. In 2018, 1,037 car thefts were reported locally. Redding ranked fourth last time but has fallen a couple of spots. Half of the top 12 cities for auto theft are in California, but the state Highway Patrol says things are continuing to improve. The number of vehicles stolen in the state last year was down 6% from the 2017 total. In the Modesto metro area, located in California's Central Valley, cars are stolen at an annual rate of623 thefts for every 100,000 residents. In 2018, 3,428 car thefts were reported locally. Modesta has moved up the list from No. 7 last year. The California Highway Patrol says one vehicle was stolen every three minutes in the Golden State last year. Authorities have recovered 90.4% of the vehicles that California car thieves took in 2018. In the Pueblo metro area, about 115 miles south of Denver, cars are stolen at an annual rate of701 thefts for every 100,000 residents. In 2018, 1,175 car thefts were reported locally. Pueblo has slipped one position from its third-place ranking in the previous study. Time to buy a new car — with built-in alarm system? Find out what you can afford bycalculating your monthly car loan payment.Want more MoneyWise?Sign up for our weekly email newsletter. Around Bakersfield, another metro area in California's Central Valley, cars are stolen at an annual rate of752 thefts for every 100,000 residents. In 2018, 6,748 car thefts were reported locally. Bakersfield has moved up to third from No. 6 last year. The California Highway Patrol says the cars stolen most often in the nation's most populous state are the 2000 Honda Civic, the 1998 Civic and the 1997 Honda Accord.Thieves often target older car modelsfor their parts. In the Anchorage metro area, cars are stolen at an annual rate of773 thefts for every 100,000 residents. In 2018, 3,087 car thefts were reported locally. Alaska's largest city has quickly moved near the top of this list. In 2016, it ranked 47th for car theft. Now, it's No. 2 — for the second straight year. Police say a recent uptick in thefts was fueled by drug abuse problems. In the Albuquerque metro area, cars are stolen at the highest per capita rate in the U.S.:780 thefts for every 100,000 residents. In 2018, 7,146 car thefts were reported locally. The city that was portrayed as a drug capital onBreaking Badis a real-life hot spot for stolen cars. Albuquerque is at No. 1 for the third year in a row, though thefts last year were down 28% from the number in 2016, theNational Insurance Crime Bureau says. Subscribe now to our free weekly newsletter.Don’t miss out!
Is Caterpillar (CAT) Stock Outpacing Its Industrial Products Peers This Year? Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Is Caterpillar (CAT) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question. Caterpillar is one of 216 companies in the Industrial Products group. The Industrial Products group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CAT is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past three months, the Zacks Consensus Estimate for CAT's full-year earnings has moved 0.38% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the latest available data, CAT has gained about 6.91% so far this year. At the same time, Industrial Products stocks have gained an average of 20.46%. This means that Caterpillar is outperforming the sector as a whole this year. Breaking things down more, CAT is a member of the Manufacturing - Construction and Mining industry, which includes 8 individual companies and currently sits at #42 in the Zacks Industry Rank. On average, this group has gained an average of 8.78% so far this year, meaning that CAT is slightly underperforming its industry in terms of year-to-date returns. Investors with an interest in Industrial Products stocks should continue to track CAT. The stock will be looking to continue its solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCaterpillar Inc. (CAT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
4 Leisure Stocks to Serve Up Treats in 2019 Despite Risks With stronger-than-expected U.S. economic growth in the first quarter of 2019, the leisure stocks might interest investors. Steady rise in wages, lower unemployment and upbeat consumer confidence indicate that leisure stocks stand to rake in handsome gains. Per the "third" estimate released by the Bureau of Economic Analysis, gross domestic product (GDP) increased at an annualized rate of 3.1% in the first quarter, compared with growth of 2.2% in the fourth quarter of 2018. The rise in real GDP was supported by increased personal consumption expenditures (PCE), non-residential fixed investment, exports and higher government spending. Encouraging Leisure Demand The industry is likely to gain from higher consumer spending, despite trade-war concerns. The University of Michigan's monthly survey shows that consumer sentiment came in at 98.2 in the month of June, higher than 97.9 recorded previously. Apart from higher personal expenditure, increased demand for leisure products and services is also aiding the leisure industry of late. According to a report by Statista, revenues at the sports and outdoor space are expected to witness a CAGR of 9% from 2018 to 2023. User penetration stood at 12.2% in 2018 and is expected to reach 16.7% by 2023. Per Deloitte, retailers of leisure goods have been witnessing robust growth since 2010. Furthermore, a report by Global Market Insights suggests that the boating market share in the United States will surpass $28.5 billion by 2024. Demand for powerboats, including small sterndrive, wakeboard boats and smaller fiberglass boats with jet technology, is rapidly increasing. Further, Global Market Insights recently stated that the golf cart market is likely to increase from $1.5 billion in 2018 to around $2 billion by 2025. Shifting preference of tourists toward recreational sports and leisure activities will drive the golf cart market revenues. Growing number of resorts, comprising more than 18-hole golf courses, are fueling potential opportunities for increased participation. Further, 2018 has been a record-breaking year for the lodging industry given an optimal demand supply balance. Per CBRE researchers, the hotel industry is likely to continue on a growth trajectory in 2019. Additionally, CBRE anticipates overall returns on hotels to be the highest for any commercial real-estate sector over the next three years. Concerns at Play While consumer demand is supported by a healthy economic growth, the consumer expectations sub-index stood at 89.3 in June, lower than 93.5 in May. The University of Michigan’s survey found out that consumers in the top third of the income distribution have shown apprehension over the ongoing tariff war. Moreover, Trump administration's policy change related to traveling to Cuba remains a concern. Travel ban to Cuba will have a huge impact on cruise industry at the beginning of summer vacation season as demand in the region is very high. It will impact major cruise operators like Carnival CCL, Royal Caribbean RCL and Norwegian Cruise NCLH. Leisure Stocks Most Likely to Strive — 4 Key Picks Although 2019 may witness slightly subdued economic growth as compared with 2018, recession and restrained demand is unlikely. Both the Fed's monetary policy and the Congress' fiscal policy aim to create enough demand to keep the economy whirring at a healthy pace. Given this backdrop, we have used the Zacks Stock Screener to zero in on four promising stocks from the leisure industry. These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have solid expected earnings growth rate for the current year. You can seethe complete list of today’s Zacks #1 Rank stocks here. Johnson Outdoors Inc.JOUT, a developer, manufacturer and distributor of outdoor equipment carries a Zacks Rank #1. For 2019, the Zacks Consensus Estimate for the company’s earnings is pegged at $4.76, suggesting year-over-year growth of 1.5%. Another Zacks Rank #1 stock,SeaWorld Entertainment, Inc.SEAS, has been witnessing positive earnings estimate revisions for the current year. Over the past two months, analysts have raised earnings estimates by 19.4% to $1.48, suggesting that the company is expected to provide better returns in the future. Earnings in the current year are likely to increase 184.6% year over year. Upbeat consumer confidence is likely to benefit SeaWorld’s top line as it provides consumers with typical leisure-oriented theme parks. Renowned boat maker,Malibu Boats, Inc.MBUU, sports a Zacks Rank #1. For 2019, the Zacks Consensus Estimate for earnings has moved from $3.49 to $3.64 over the past two months. For 2019, earnings are predicted to surge 40% year over year. Planet Fitness, Inc.PLNT is one of the leading franchisors and operators of fitness centers in the United States. The company carries a Zacks Rank #2. For 2019, the Zacks Consensus Estimate for the company’s earnings is pegged at $1.55, suggesting year-over-year improvement of 27.1%. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportJohnson Outdoors Inc. (JOUT) : Free Stock Analysis ReportMalibu Boats, Inc. (MBUU) : Free Stock Analysis ReportNorwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis ReportRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis ReportSeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis ReportPlanet Fitness, Inc. (PLNT) : Free Stock Analysis ReportCarnival Corporation (CCL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Does First Bancorp's (NASDAQ:FBNC) CEO Salary Reflect Performance? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In 2012 Richard Moore was appointed CEO of First Bancorp (NASDAQ:FBNC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid. View our latest analysis for First Bancorp Our data indicates that First Bancorp is worth US$1.1b, and total annual CEO compensation is US$1.2m. (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$400k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m. A first glance this seems like a real positive for shareholders, since Richard Moore is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at First Bancorp has changed from year to year. On average over the last three years, First Bancorp has grown earnings per share (EPS) by 33% each year (using a line of best fit). Its revenue is up 13% over last year. This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. I think that the total shareholder return of 111%, over three years, would leave most First Bancorp shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size. First Bancorp is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Richard Moore deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders arealsobuying shares with their own money. So you may want tocheck if insiders are buying First Bancorp shares with their own money (free access). Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why iQiyi Stock Gained 13% in June China-based streaming video giantiQiyi(NASDAQ: IQ)outperformed a strong market last month as the stock rose 13% compared to a 7% increase in the S&P 500, according to data provided byS&P Global Market Intelligence. The rally reversed much of thepast month's declineto keep shares well ahead of the market, up 40% so far in 2019. Image source: Getty Images. iQiyi didn't post any operating updates last month, and so investors mostly took the time to digest its late-May earnings announcement that pairedstrong subscriber growthwith lackluster advertising revenue. The stock's surge last month also appeared to be fueled by shifting expectations around Chinese stocks in general. iQiyi shareholders can expect further volatility in concert with changes in investor sentimenttoward Chinese stocks. But long-term returns will depend on whether the company can keep its prime position in the competitive Chinese streaming video market and eventuallyextend that reach into new geographies. Its early membership and content leads support that bullish reading, but investors will likely have to stomach significant stock price swings -- in both directions -- even if iQiyi continues outperforming expectations. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Demitrios Kalogeropouloshas no position in any of the stocks mentioned. The Motley Fool recommends iQiyi. The Motley Fool has adisclosure policy.
Wednesday’s Vital Data: Disney, Roku and Cisco U.S. stock futures are trading higher in early morning trading. Futures on theDow Jones Industrial Averageare up 0.16%, andS&P 500futures are higher by 0.18%.Nasdaq-100futures have added 0.16%. In the options pits, the distance between call and put volume narrowed while overall trading levels hovered near average readings. By day’s end, 16.7 million calls and 14.7 million puts changed hands. The action at the CBOE was similar, with the single-session equity put/call volume ratio inching higher to 0.66. Meanwhile, the 10-day moving average finally arrested its slide and rallied to 0.60. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Options activity was a mixed bag on Wednesday (options traders zeroed in on analyst actions yesterday).Disney(NYSE:DIS) saw heavy call trading on an attempted breakout to all-time highs.Roku(NASDAQ:ROKU) shrugged off a downgrade by RBC Capital Markets and rallied off of a key support zone. Finally,Cisco(NASDAQ:CSCO) call volume soared ahead of Wednesday’s ex-dividend date. Let’s take a closer look: Disney shares notched a new record high close of $142.53 and are on the verge of blasting through critical resistance. Although the volume was tepid, that didn’t stop traders from taking to the derivatives market to speculate on further upside. Calls dominated the session accounting for 81% of the total. Activity climbed to 117% of the average daily volume with 129,366 total contracts traded. • 10 Stocks That Should Be Every Young Investor's First Choice The price action over the past two months has created a classic cup-and-handle pattern that is a whisker away from completion. Chart watchers everywhere have DIS stock on their radars heading into today’s session. The rising 20-day, 50-day and 200-day moving averages confirm buyers hold control of the trend across all time frames. Implied volatility slipped on the day to 23% or the 31st percentile of its one-year range. August bull call spreads offer a low risk, high reward way to capitalize on additional strength from DIS. The bottom fell out from under Roku shares in early morning trading after RBC analyst Mark Mahaney lowered the company’s rating from outperform to sector perform citing valuation concerns. With ROKU stock’s meteoric 300% rise this year, a downshift in expectations is more than justified. And yet, from a charting perspective, the timing of the rating drop was ill-timed. ROKU was already 15.6% off its highs and down seven of the last eight trading sessions. And with the rising 50-day moving average fast approaching, it was time for a rebound. Buyers didn’t disappoint, gobbling up the early morning weakness and pushing ROKU up 1.8% on the session. On the options trading front, the downgrade did light a fire under put demand. Total activity climbed to 115% of the average daily volume, with 87,760 contracts traded. Puts claimed 55% of the session’s sum. The increased buying pushed implied volatility up to 40% or the 69th percentile of its one-year range. Premiums are now baking in daily moves of $4.05 or 4.4%. Bull puts are my strategy of choice here. • 7 Stocks on Sale the Insiders Are Buying Cisco shares entered a holding pattern in April and haven’t departed since. The respite is well deserved given its 33% gain over the first four months of the year. The range has been sloppy, but yesterday’s rally held a short-term support level suggesting buyers maintain the upper hand. The real reason for CSCO stock pushing so far into the options leaderboard is its July 3 dividend date. Cash flow seekers snatched up calls for short-term control of the stock to score the quarterly 35 cent payout. Thedividendyield of 2.51% outpaces the S&P 500’s 1.93% dividend yield, showing us that CSCO is a market-beating income generator at current prices. Options trading saw call volumes account for 84% of the 146,016 contracts that changed hands on the day. Implied volatility dipped on the day to 23%, pushing it to the 32nd percentile of its one-year range. Premiums are pricing in daily moves of 82 cents or 1.5%. As long as CSCO stock holds $54, bull trades are the way to go. As of this writing, Tyler Craig held bullish options trades in ROKU and DIS. Check out his recently releasedBear Market Survival Guideto learn how to defend your portfolio against market volatility. • 2 Toxic Pot Stocks You Should Avoid • 10 Stocks That Should Be Every Young Investor's First Choice • 5 IPO Stocks to Buy -- According to Wall Street Analysts • The Top 10 Best Sectors in the Market for 2019 The postWednesday’s Vital Data: Disney, Roku and Ciscoappeared first onInvestorPlace.
U.S. trade, services industry data underscore slowing economy By Lucia Mutikani WASHINGTON (Reuters) - The U.S. trade deficit jumped in May and trade tensions between the United States and China helped drive activity in the services sector to a two-year low in June, further signs that economic growth slowed sharply in the second quarter. The economy's dimming outlook was also underscored by other data on Wednesday showing private employers adding far fewer-than-expected jobs to their payrolls last month. New orders for manufactured goods dropped in May for a second straight month. The reports followed recent weak housing and business investment data, as well as moderate consumer spending. Business and consumer confidence have dipped. The slowdown in activity as last year's massive stimulus from tax cuts and more government spending fades could prompt the Federal Reserve to cut interest rates this month. The U.S. central bank last month signaled it could ease monetary policy as early as its July 30-31 meeting, citing rising risks to the economy from the trade war between Washington and Beijing, and low inflation. The International Monetary Fund has lowered global growth estimates because of reduced trade flows as a result of the trade fights. "One wonders how long Washington will continue to claim they are helping the U.S. economy," said Chris Rupkey, chief economist at MUFG in New York. "One of the factors behind the economy's fall in the Great Depression was protectionism and trade wars, and it will be a miracle if the world economy can avoid another downturn this time." The trade deficit rose 8.4% to $55.5 billion as a surge in imports overshadowed a broad increase in exports, the Commerce Department said. Economists polled by Reuters had forecast the trade gap widening to $54.0 billion in May. The goods trade deficit with China, a focus of President Donald Trump's "America First" agenda, increased 12.2% to $30.2 billion. Trump imposed additional import tariffs on Chinese goods, after a breakdown in negotiations, prompting Beijing to retaliate. Economists say the expectation of additional duties likely boosted imports from China, which jumped 12.8% in May. Trump and Chinese President Xi Jinping last week agreed to a trade truce and a return to talks. White House trade adviser Peter Navarro said on Tuesday talks were heading in the right direction, but it would take time to get the right deal made. The U.S.-China trade tensions have caused wild swings in the trade deficit, with exporters and importers trying to stay ahead of the tariff fight between the two economic giants. Trump on Wednesday accused China and Europe of "playing big currency manipulation game and pumping money into their system in order to compete with USA." "We still think it is slightly more likely than not that the trade dispute with China will ultimately escalate further," said Andrew Hunter, a senior U.S. economist at Capital Economics in London. "Trade is likely to remain a modest drag on growth over the second half of this year, which we expect to compound a sharp slowdown in domestic demand growth." The dollar was little changed against a basket of currencies in thin U.S. trade ahead of Thursday's Independence Day holiday. Stocks on Wall Street rose, with the S&P 500 <.SPX> index hitting a record high on expectations of a rate cut. U.S. Treasury prices also were higher. IMPORTS SURGE In May, goods imports increased 4.0% to $217.0 billion. Apart from drawing more imports from China, the United States imported record amounts from the European Union, Mexico and Canada in May. The increase in imports was broad-based, with those of motor vehicle and parts soaring to an all-time high. Petroleum imports rose and crude oil was more expensive, helping to inflate the import bill in May. Goods exports increased 2.8% to $140.8 billion. Exports advanced across all sectors, including passenger aircraft despite Boeing <BA.N> in March suspending deliveries of its fastest-selling MAX 737 jetliner. The aircraft was grounded indefinitely following two deadly crashes in five months. When adjusted for inflation, the goods trade deficit increased $4.8 billion to $87.0 billion in May, suggesting trade could be a drag on second-quarter gross domestic product. Trade contributed 0.94 percentage point to the economy's 3.1% annualized growth pace in the first quarter. The Atlanta Fed is forecasting gross domestic product rising at a 1.3% rate in the April-June quarter. Anxiety over trade is spilling over from manufacturing to the services industries. In a third report on Wednesday, the Institute for Supply Management said its non-manufacturing activity index fell to 55.1 in June, the lowest reading since July 2017, from 56.9 in May. A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of U.S. economic activity. The ISM said "a degree of uncertainty exists due to trade and tariffs." The decrease in services industry activity reflected a decline in the new orders measure, which dropped to the lowest level since December 2017. A gauge of services employment also fell. "The slowing trend evident across categories raises concern that a slowing trend most evident in manufacturing is also becoming more apparent in the broader economy," said Andrew Hollenhorst, an economist at Citigroup in New York. "This should leave the Fed right on the precipice of providing some 'insurance' by cutting rates at the July meeting." The slowdown in employment was mirrored by the ADP National Employment Report showing private payrolls increased by 102,000 jobs in June from 41,000 in May, but below market expectations for a gain of 140,000. That suggests a moderate rebound in the private payrolls component of the government's closely followed employment report. The June employment report will be released on Friday. Economists polled by Reuters are looking for nonfarm employment to have increased by 160,000 jobs after rising by only 75,000 in May. The unemployment rate is expected to have held near a 50-year low of 3.6% in June. Still, layoffs remain low. A fifth report from the Labor Department showed initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 221,000 for the week ended June 29. (Reporting by Lucia Mutikani; Editing by Andrea Ricci)
Is Now The Time To Look At Buying Zions Bancorporation, National Association (NASDAQ:ZION)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Zions Bancorporation, National Association (NASDAQ:ZION), operating in the financial services industry based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $50.05 and falling to the lows of $43.07. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Zions Bancorporation National Association's current trading price of $44.85 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Zions Bancorporation National Association’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Zions Bancorporation National Association Good news, investors! Zions Bancorporation National Association is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $68.14, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Zions Bancorporation National Association’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Zions Bancorporation National Association, it is expected to deliver a relatively unexciting earnings growth of 2.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term. Are you a shareholder?Even though growth is relatively muted, since ZION is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor?If you’ve been keeping an eye on ZION for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ZION. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Zions Bancorporation National Association. You can find everything you need to know about Zions Bancorporation National Association inthe latest infographic research report. If you are no longer interested in Zions Bancorporation National Association, 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.
Augmented Reality Space Peps Up With Tech Giants' Initiatives Augmented Reality (AR) is witnessing rapid adoption due to the shift in consumer preferences and business needs. Almost every major sector including consumer, healthcare, retail, gaming, entertainment, construction and tourism are using the technology to interact between the real world and 3D virtual objects in real time.Given the upbeat scenario, we believe the AR market has immense prospects which are attracting tech giants like Alphabet GOOGL, Facebook FB, Microsoft MSFT, and Apple AAPL.These companies are making every effort to rapidly penetrate into the booming AR market, which is as per a report from Mordor Intelligence, is expected to witness a CAGR of 151.9% between 2019 and 2024.Further, a Zion Market Research report shows that the global market for AR/VR is anticipated to reach $814.7 billion by 2025 at a CAGR of 63.01% over a period of 2019-2025.Investment on AR Applications on the RiseGrowing proliferation of AR-based applications globally is inducing tech giants to invest in the space. Per the Mordor Intelligence report AR technology user base is anticipated to surpass 1 billion by 2020.Additionally, Google, Microsoft and Snapchat-parent Snap are benefiting from rising demand for AR-based hardware devices such as AR glasses. We note that shipment of AR glasses is expected to reach 22.8 million by 2020.Data from CitiBank displays that AR based hardware, commerce, communications and commercial/enterprise applications are anticipated to witness growth of 68%, 78%, 66% and 43%, respectively, over a period of 2020-2025.Let’s delve deep on what the tech giants are up to in this booming space.Alphabet’s launch of an advanced version of Google Glass called Google Glass Enterprise Edition 2 is noteworthy.Notably, the glass, which is especially designed for businesses, runs on Android and is equipped with improved camera performance for first-person video streaming and collaboration. The new Google Glass is capable of aiding businesses in improving work efficiency by allowing them to provide employees with hands-free access to visual information.Apart from the AR glass, the search giant is reportedly testing five AR effects within the camera of its messaging app. Further, Google is striving to enhance search results with new AR features which enable users to view and interact with 3D objects right from Search and place them directly into their own space.Currently, Google parent Alphabet carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Alphabet Inc. Revenue (TTM) Alphabet Inc. revenue-ttm \| Alphabet Inc. Quote Microsoftis also gaining steam in the market with the expanding portfolio of AR glasses which comprises HoloLens and HoloLens 2. Notably, HoloLens 2, which is based on mixed-reality (MR), was launched in the beginning of this year with special focus on enterprise use. The company is winning clientele on the back of both the AR glasses. Recently, Airbus deployed the HoloLens devices and is working with Microsoft to create HoloLens 2 applications.Further, Microsoft, which carries a Zacks Rank #2 (Buy), has secured contract from the U.S. Army and the U.S. Department of Defense for its AR capabilities. Microsoft Corporation Revenue (TTM) Microsoft Corporation revenue-ttm \| Microsoft Corporation Quote Facebookis benefiting from its AR initiatives on Messenger and Instagram applications. AR camera effects on Messenger helps brands to gain traction across customers by enabling them to “try on” merchandise and check on new products. Further, its AR Studio on Instagram enables users to create new face masks and AR world effects. Additionally, AR-based ads on Facebook’s platform are driving the ad revenues. The stock has a Zacks Rank #3. Facebook, Inc. Revenue (TTM) Facebook, Inc. revenue-ttm \| Facebook, Inc. Quote Appleis also leaving no stone unturned to reap benefits from the potential AR market. This Zacks Rank #3 stock recently introduced a collection of AR tools comprised of ARKit 3, RealityKit, and Reality Composer. Notably, ARKit 3 features automatic real-time occlusion of people viewed by the host device’s camera and real-time motion capture with camera. The other two tools aid in blending and building virtual objects and interactive scenes with the real world environment.Apart from this, the iPhone maker is also gearing up to launch its own AR glasses. Apple Inc. Revenue (TTM) Apple Inc. revenue-ttm \| Apple Inc. Quote The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >> 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 reportFacebook, Inc. (FB) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Stock Market News for Jul 3, 2019 Wall Street registered decent gains on Tuesday. The indexes ended in the green after President Donald Trump told reporters that discussions with China on trade had “already begun”. However, gains were capped after the US threatened new tariffs on European Union products. These tariffs were proposed in the wake of a prolonged dispute over aircraft subsidies, which arrived just when U.S.-China trade tensions appeared to have taken a backseat. Separately, losses among bank shares also dented investors’ sentiment. The Dow Jones Industrial Average (DJI) increased 0.26%, to close at 26,786.75. The S&P 500 gained 0.29% to close at 2,973.02. The Nasdaq Composite Index climbed 0.22%, finishing at 8,109.09. The CBOE Volatility Index (VIX) decreased 8.04% to close at 12.93. Advancers outnumbered decliners on the NYSE by a 1.24-to-1 ratio. A 1.30-to-1 ratio favored decliners on Nasdaq. How Did the Benchmarks Perform? The Dow’s gain of 69 points on Tuesday was broad-based. The index rose for a third straight session on Jul 2, with shares of Verizon Communications Inc. VZ and Cisco Systems, Inc. CSCO leading the gains with 2.59% and 1.95% respectively. Both the stocks carry a Zacks Rank #2 (Buy).You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The S&P 500 gained 8.7 points and closed at a new record high for the second session on Tuesday, while the tech-heavy Nasdaq climbed 18 points on Jul 2. Trump’s $4 billion Potential EU Tariffs United States threatened European Union with $4 billion in probable additional tariffs on Jul 1, in a bid to pressurize Europe in a lengthy dispute over aircraft subsidies. The 89 items’ additional list comprise of Scotch Whiskey, Italian cheese, pasta, ham and coffee among other items. This additional list is second to an earlier list that includes about $21 billion in EU products. Both countries have threatened levies on each other’s products in a trade spat after aircraft subsidies were provided to European aircraft maker Airbus and its American rival Boeing BA. Bank Shares Suffer Loss after US Yield Hits Lowest Since 2016 The benchmark 10-year yield fell to the lowest since November 2016, trading around 1.98% while the 2-year rate fell to 1.77% on Jul 2. This led to the SPDR S&P Bank ETF (KBE) close 1.27% lower on Jul 2 and led the losses in bank shares. Shares of Citigroup Inc. C fell 0.42% while Bank of America Corporation BAC and Wells Fargo & Company WFC shed more than 0.9% each. Stocks That Made Headlines Varian to Acquire Boston Scientific's Embolic Bead Products Varian Medical Systems, Inc. VAR recently announced an asset purchase agreement to acquire Boston Scientific’s BSX portfolio of drug-loadable microsphere and bland embolic bead products for $90 million. (Read more) The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportCisco Systems, Inc. (CSCO) : Free Stock Analysis ReportCitigroup Inc. (C) : Free Stock Analysis ReportWells Fargo & Company (WFC) : Free Stock Analysis ReportBank of America Corporation (BAC) : Free Stock Analysis ReportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportThe Boeing Company (BA) : Free Stock Analysis ReportVarian Medical Systems, Inc. (VAR) : Free Stock Analysis ReportBoston Scientific Corporation (BSX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Volatility 101: Should Jefferies Financial Group (NYSE:JEF) Shares Have Dropped 23%? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Jefferies Financial Group Inc. ( NYSE:JEF ) shareholders should be happy to see the share price up 10% in the last month. But that doesn't change the fact that the returns over the last five years have been less than pleasing. After all, the share price is down 23% in that time, significantly under-performing the market. See our latest analysis for Jefferies Financial Group To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Jefferies Financial Group became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics might give us a better handle on how its value is changing over time. Arguably, the revenue drop of 20% a year for half a decade suggests that the company can't grow in the long term. That could explain the weak share price. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). NYSE:JEF Income Statement, July 3rd 2019 We know that Jefferies Financial Group has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Jefferies Financial Group stock, you should check out this free report showing analyst profit forecasts . What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Jefferies Financial Group, it has a TSR of -17% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. Story continues A Different Perspective Jefferies Financial Group shareholders are down 12% for the year (even including dividends), but the market itself is up 8.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 3.7% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Before forming an opinion on Jefferies Financial Group you might want to consider these 3 valuation metrics. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Blockchain Gains Momentum as Tech Giants Advance Efforts Facebook’s FB recent announcement to launch its own cryptocurrency, Libra, has put spotlight back on blockchain technology.Tech companies are now exploring various uses of blockchain to revolutionize the functioning of industries including payments, banking, retail, healthcare, logistics, utility and transportation.Per Orbisresearch.com data as quoted by Reuters, blockchain is projected to be utilized by 65% of enterprises by 2020. Moreover, according to IDC data, spending on blockchain solutions, is expected to witness CAGR of 76% between 2018 and 2022 to hit $12.4 billion.Apart from Facebook, International Business Machines IBM, Google, and Oracle ORCL, are expected to gain impetus from breakthrough developments in the blockchain domain. Meanwhile, initiatives undertaken by Amazon AMZN, Microsoft MSFT, SAP SE SAP, and Accenture ACN remain noteworthy.Benefits of Blockchain Inducing AdoptionBlockchain is much faster than legacy technologies in completing a transaction due to the absence of manual processing or authentication by intermediaries as it utilizes a distributed consensus.Moreover, the system is anticipated to be incorruptible and meant to provide unaltered information. Consequently, the possibility of monetary losses is low with minimum chances of double counting and hacking.Overall, the integrated use of the technology can enable countries to achieve higher economic output with smarter cities and simplified day-to-day systems in a cost-efficient manner. In fact, per a Cisco study, 10% of global GDP is estimated to be stored on blockchain by 2027.Year to Date Price Performance IBM Leads the PackIBM leverages Hyperledger technology and is an early bird when it comes to providing enterprise blockchain applications. Notably, IBM-Maersk co-owned TradeLens blockchain platform has gained significant adoption among logistics providers. The solution currently serves 15 carriers including leading ocean carriers Ocean Network Express (ONE) and Hapag-Lloyd.Moreover, IBM recently rolled out next-gen of IBM Blockchain Platform which is anticipated to aid it in sustaining leading position in the enterprise blockchain market.Moreover, the company is involved in numerous pilot projects to explore the use of blockchain tech. For instance, IBM Blockchain Platform for Multicloud and AI capabilities recently enabled IPwe to track approximately five thousand patents.Facebook’s Libra Ups the AnteFacebook’s Libra is a game changer with regards to the adoption of blockchain technology. Moreover, the company acquired Chainspace to add blockchain capabilities and is reportedly looking forward to instill blockchain-based authentication for logging in to its website.Oracle, Google Partners ChainlinkOracle recently inked deal with smart contract startup, Chainlink, which will enable 50 startups to plug in their data into Oracle Blockchain Platform for free. This is anticipated to strengthen Oracle’s Data Cloud and Blockchain platform by enabling the API developers roll out robust blockchain applications.Meanwhile, Google has also partnered Chainlink to facilitate Ethereum app developers to embed additional enterprise data. This allows smart contracts processes to be deployed on the blockchain platforms. The collaboration enables the use of Google Cloud Platform’s BigQuery database into the blockchain environment.Google cited that developers could explore three essential use cases involving prediction marketplaces by utilizing mobile and web analytics, hedging of futures contracts, and transaction privacy.Microsoft & Amazon Make Their Presence FeltMicrosoft has rolled out a fully-managed Azure Blockchain Service to accelerate development of robust blockchain-enabled smart contract applications. The flexibility in usage and Azure’s secure broad-based availability are anticipated to bolster adoption of the service. The tech giant recently joined Hyperledger community and entered into a partnership with Truffle to help blockchain developers create innovative applications.Amazon Managed Blockchain service utilizes Hyperledger fabric and is based on Amazon Web Services (AWS) infrastructure. Legal & General, Singapore Exchange and Nestlé are a few companies which have selected Amazon’s blockchain offerings in the recent past. Moreover, per Cointelegraph Brazil, Amazon-owned Twitch re-enabled bitcoin and bitcoin cash payments.Accenture & SAP Buzzing AroundAccenture’s initiatives in this space are backed by its motto of “Blockchain needs to adapt to an imperfect world.” The company is working on a pilot project with Thales on supply chain management. Reportedly, Accenture is likely to ink deal with the Netherlands, Canada, among others, to deploy blockchain tech in identifying travelers.Meanwhile, SAP Cloud Platform Blockchain offering supports Hyperledger fabric, multiple-chain nodes and Quorum nodes. This enables enterprises in innovating and developing robust blockchain tools. The company is developing a blockchain-based solution along with Tata Consultancy Services to track medical devices throughout the supply chain.Zacks RankCurrently, Oracle, Microsoft and Accenture carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Meanwhile, IBM, Facebook, Amazon and SAP carry a Zacks Rank #3 (Hold).Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >> 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 reportInternational Business Machines Corporation (IBM) : Free Stock Analysis ReportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportFacebook, Inc. (FB) : Free Stock Analysis ReportSAP SE (SAP) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportOracle Corporation (ORCL) : Free Stock Analysis ReportAccenture PLC (ACN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Don't get too positive on silver just because gold's racing higher By Peter Hobson LONDON (Reuters) - Weakening global economic growth, lacklustre demand and huge stockpiles mean silver prices are unlikely to join gold in rocketing to new highs, analysts say. Silver and gold prices have traditionally moved together, with silver tending to outperform gold when the two are rising and fall faster when both are in decline. But while gold prices surged 8% in June to a seven-year peak above $1,400 an ounce, silver managed only a 5% gain and remains well below recent highs. Now around $15.25 an ounce, silver is the worst performing major precious metal this year and worth 93 times less than gold -- its lowest relative value since 1992. Concerns over trade conflicts and a sputtering global economy are pushing investors towards precious metals, traditionally seen as safe assets to hold in uncertain times. But unlike gold, more than half of silver consumption comes from industrial applications such as electronics and solar panels, and weakening economic growth is undermining the outlook for demand and dragging on prices, said INTL FCStone analyst Rhona O'Connell. "I can't see why the ratio shouldn't touch 100," she said. The gap between gold and silver has widened almost without interruption since 2011. This has coincided with a switch by central banks to net buyers of gold from net sellers, analysts at Citi Bank said. And with central banks currently on their biggest gold buying spree in decades, Citi forecasts gold's lead over silver will widen further. Demand has also lagged, with purchases of silver bars and coins for investment slumping to 166 million ounces in 2018 from 300 million ounces in 2013, according to consultancy Metals Focus – a huge decrease in a market with total demand around 1 billion ounces. Investment demand in the United States dived to 44 million ounces in 2018 from 122 million in 2013 – with Metals Focus saying many small-scale investors hoarding silver as insurance against future risks curtailed purchases after the election of Donald Trump in 2016 reassured them the country was in safe hands. Metals Focus expects a fourth consecutive surplus for the silver market in 2019, of 33 million ounces, and an average price this year of $15.60 an ounce, 1% lower than in 2018. It said repeated surpluses have pushed identifiable above ground stocks of silver to nearly 48,000 tonnes (1.5 billion ounces) at the end of last year from around 40,000 in 2016, dragging on prices. An influx of speculative investment into silver has failed to close the gap with gold. Hedge funds and money managers turned positive in COMEX silver in June and holdings of the metal in exchange-traded funds (ETFs) have risen almost 20 million ounces since June 5. Both ETF holdings and net positioning on COMEX remain below recent highs, however. "The ratio being high is not on its own a reason why silver should rally. It needs a reason of its own," said Philip Newman at Metals Focus. One such trigger would be if state authorities switched from monetary stimulus – which has increased the attraction of gold by keeping interest rates and bond yields low -- to spending on infrastructure to revive growth, said Ole Hansen at Saxo Bank, Silver could end the year between $16.50 and -- if the gold/silver ratio does begin to fall -- as high as $17.50 an ounce, according to Hansen. A collapse in global stock markets from record highs could also trigger a surge in demand for safe assets large enough to lift silver as well as gold, Newman said. (Reporting by Peter Hobson; additional reporting by Arpan Varghese; editing by David Evans)
Oil Market at a Crossroad: Buy These Broker-Favorite Stocks Oil prices came crashing down Tuesday to trade just above $56 per barrel after the OPEC producers' cartel decided to prolong output cuts at its meeting in Vienna, Austria. WTI crude trading in the United States fell by $2.84 (or roughly 4.8%) to $56.25 - the largest post-OPEC slide since 2014. In Europe, Brent crude prices also fell by about 4.1% to trade at $62.40. While OPEC was widely expected to roll over their production curtailments, oil futures sank to two-week lows on expectations of moderating global demand. OPEC, Allies Keep Withholding Supply True to assumptions, OPEC, Russia and other non-member oil countries planned to stick to existing output cuts up to March 2020 instead of letting the pact expire in June. The so-called OPEC+ deal, in place since the start of 2017, is aimed to rein in a global supply overhang and bolster prices. It has been extended a number of times and, as per the latest deal, participants are cutting crude output by 1.2 million barrels per day until the end of the first quarter next year. Oil Demand Forecasts on the Bearish Side Despite OPEC's continued production cut pledge, the bearish price action indicates speculators are betting on weak demand. Indeed, the closely watched monthly reports from three key agencies (EIA, OPEC and the IEA) raised concerns about demand, primarily citing a slowing economic backdrop amid the U.S.-China trade spat. The EIA downgraded its forecast for oil demand growth by 200,000 barrels per day for 2019, while the Paris-based IEA predicts that global consumption will rise by 1.2 million barrels per day this year, 100,000 barrels per day less than previously expected. Meanwhile, OPEC trimmed its expectations for global demand growth to 1.14 million barrels per day for 2019, 70,000 barrels per day less than previously expected. Energy Investing is Tricky Considering the opposing forces involved, energy investing is not easy by any means. One thing the oil market downturn has taught investors: nobody has much visibility into the future. So, when you think of something as a clear line of sight one quarter, it can soon be overshadowed by an unforeseen event. To sum up, even as crude prices continue to remain relatively steady, it is unlikely that the commodity will be heading much higher than $60 per barrel anytime soon. In fact, ever stronger U.S. production and the ongoing trade war could make any oil price strength short-lived. On the contrary though, the commodity’s rebound since falling to 18-month lows of sub- $43 in December, predictably, has had a positive effect on stocks in the sector. Undoubtedly, still a long way to go, but improving crude prices may have already primed certain oil producers and linked entities for upward momentum. Follow Expert Opinion The volatility and uncertainty of oil prices make investment decisions difficult for individuals. With the future direction of the commodity’s movement being anybody's guess, it might be a wise decision to go ahead with stocks preferred by analysts, who have a deep fundamental knowledge and understanding of the industry and its companies. Stocks with brokerage upgrades are often in for a good day and probably more. Consequently, a downgrade may indicate rough days ahead. Whatever the movement, the market tends to react to it. Also, research shows that stocks with broker rating upgrades outperform those that aren't upgraded and they almost certainly record better results than those stocks that get downgraded. Here Are the Stocks With the help of our Zacks Stock Screener, we have selected 5 stocks that have been given Strong Buy/Buy rating by 75% or more brokers. A favorable Zacks Rank #1 (Strong Buy) or 2 (Buy), which justifies a company’s strong fundamentals, further adds value to these stocks. You can seethe complete list of today’s Zacks #1 Rank stocks here. Helix Energy Solutions Group, Inc.HLX is a specialty services provider to offshore energy companies. The stock currently has a Zacks Rank #1. Enerplus CorporationERF is a North American energy producer with operations in Western Canada and the U.S. The stock currently has a Zacks Rank #2. Ring Energy, Inc.REI is a Permian-focused oil and natural gas exploration and production company. The stock currently has a Zacks Rank #2. Talos Energy Inc.TALO is an upstream energy company with operations in the Gulf of Mexico and in shallow water offshore Mexico. The stock currently has a Zacks Rank #2. Vermilion Energy Inc.VET is an oil and gas explorer with producing properties in Europe, North America and Australia. The stock currently has a Zacks Rank #2. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportVermilion Energy Inc. (VET) : Free Stock Analysis ReportEnerplus Corporation (ERF) : Free Stock Analysis ReportHelix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis ReportRing Energy, Inc. (REI) : Free Stock Analysis ReportStone Energy Corporation (TALO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Here's What We Think About Graco Inc.'s (NYSE:GGG) CEO Pay Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In 2007 Pat McHale was appointed CEO of Graco Inc. (NYSE:GGG). 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. 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 Graco Our data indicates that Graco Inc. is worth US$8.6b, and total annual CEO compensation is US$6.4m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$816k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m. So Pat McHale receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Graco has changed from year to year. On average over the last three years, Graco Inc. has grown earnings per share (EPS) by 27% each year (using a line of best fit). In the last year, its revenue is up 7.3%. This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. Most shareholders would probably be pleased with Graco Inc. for providing a total return of 105% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size. Remuneration for Pat McHale is close enough to the median pay for a CEO of a similar sized company . Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want tocheck for free if Graco insiders are buying or selling shares. If you want to buy a stock that is better than Graco, 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.
5 Top-Ranked Media Stocks to Enrich Your Portfolio in 2H19 Media companies enjoyed a smooth ride in first-half 2019. This is reflected in the solid performance of the Invesco Dynamic Media ETF (PBS), which has returned 19.3% on a year-to-date basis compared with the S&P 500’s growth of 16.9%.Expanding original and fresh content, rapid adoption of alternative distribution channels for broadcast and cable programming, strong demand for high-quality video, and the binge-viewing trend are driving growth.Media companies are offering skinny bundles, which are helping them keep pace with new consumption patterns and attract customers. Moreover, the momentum in advertising revenues is expected to continue, owing to major sporting events like European Games and Women’s World Soccer despite stiff competition from Google and Facebook.Further, political ad spending is expected to increase in the second half of 2019 — due to the 2020 U.S. Presidential election — which bodes well for media companies.Our PicksHere, we pick five media stocks that offer good investment opportunities in the second half of 2019. These stocks either sport a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Los Gatos, CA-basedRokuROKU benefits from rapid adoption of its players and expanding footprint in the fast-growing Smart TV space. The company’s advertising sales is also growing.Further, the company is expanding internationally, which provides significant growth opportunities. Moreover, impressive Roku channel content — including HBO, SHOWTIME, EPIX and STARZ — is a key catalyst.This Zacks Rank #1 stock has returned a whopping 203.7% on a year-to-date basis. Moreover, the company delivered average positive earnings surprise of 85.82% in the trailing four quarters. The Zacks Consensus Estimate of a loss has narrowed from 73 cents to 58 cents per share for 2019 over the past 60 days. Roku, Inc. Price and Consensus Roku, Inc. price-consensus-chart \| Roku, Inc. Quote Beijing-basediQIYIIQ has returned 42.5% year to date. The Chinese online media company now has more than 100 million subscribers.iQiYI’s content portfolio strength is expected to expand subscriber base. Reportedly, the company is planning to spread its international presence for further growth opportunities.This Zacks Rank #1 stock delivered average positive earnings surprise of 19.82% in the trailing four quarters. The Zacks Consensus Estimate of a loss has narrowed from $1.64 to $1.38 per share for 2019 over the past 60 days. iQIYI, Inc. Sponsored ADR Price and Consensus iQIYI, Inc. Sponsored ADR price-consensus-chart \| iQIYI, Inc. Sponsored ADR Quote Camarillo, CA-basedSalem Media GroupSALM has returned 14.4% on a year-to-date basis.Salem Media is a radio broadcaster, Internet content provider, and magazine and book publisher specializing in Christian and Conservative content. The company is also foraying into television through a deal with Trinity Broadcasting Network, announced in May.The company is investing in its agency digital initiative, Salem Surround, which is expected to drive local digital revenues.This Zacks Rank #1 stock delivered average positive earnings surprise of 40.18% in the trailing four quarters. The Zacks Consensus Estimate for 2019 earnings has surged 55.6% to 14 cents over the past 60 days. Salem Media Group, Inc. Price and Consensus Salem Media Group, Inc. price-consensus-chart \| Salem Media Group, Inc. Quote Santa Monica, CA-basedEntravision CommunicationsEVC has a Zacks Rank #2. The company is a popular name among Hispanics, and provides Latino data and digital services to advertisers. Notably, expansion into Mexico, Argentina and Colombia are expected to further boost advertiser base.Entravision’s increasing digital advertising solutions portfolio is a major growth driver. The company is also expected to benefit from continued higher spending by advertisers on digital audio.The company delivered average positive earnings surprise of 138.89% in the trailing four quarters. The Zacks Consensus Estimate for 2019 earnings has rallied 25% to 25 cents over the past 60 days. Entravision Communications Corporation Price and Consensus Entravision Communications Corporation price-consensus-chart \| Entravision Communications Corporation Quote Shaw Communications’ SJR wireless business, which covers almost half of the Canadian population, is benefiting from an increasing subscriber base and improving average revenue per unit (ARPU). Moreover, the company’s initiative to deploy 700 MHz and 2500 MHz spectrums further improves the network quality.Shaw Communications recently acquired 11 paired blocks of 20-year 600 MHz spectrum across its wireless operating footprint. The acquisition is expected to not only improve the company’s current LTE service, but also help it affordably offer 5G service in the long haul.This Zacks Rank #2 stock delivered average positive earnings surprise of 19.92% in the trailing four quarters. The Zacks Consensus Estimate for fiscal 2019 earnings has increased 12.2% to $1.10 over the past 30 days. The stock has returned 13.3% year to date.Shaw Communications Inc. Price and Consensus Shaw Communications Inc. price-consensus-chart \| Shaw Communications Inc. Quote The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportEntravision Communications Corporation (EVC) : Free Stock Analysis ReportSalem Media Group, Inc. (SALM) : Free Stock Analysis ReportShaw Communications Inc. (SJR) : Free Stock Analysis ReportRoku, Inc. (ROKU) : Free Stock Analysis ReportiQIYI, Inc. Sponsored ADR (IQ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Is Eversource Energy's (NYSE:ES) Capital Allocation Ability Worth Your Time? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Eversource Energy ( NYSE:ES ) to determine whether it could have potential as an investment idea. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First, we'll go over how we calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE. Return On Capital Employed (ROCE): What is it? ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. How Do You Calculate Return On Capital Employed? Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Eversource Energy: 0.052 = US$1.8b ÷ (US$39b - US$4.6b) (Based on the trailing twelve months to March 2019.) So, Eversource Energy has an ROCE of 5.2%. View our latest analysis for Eversource Energy Is Eversource Energy's ROCE Good? ROCE can be useful when making comparisons, such as between similar companies. It appears that Eversource Energy's ROCE is fairly close to the Electric Utilities industry average of 4.7%. Regardless of how Eversource Energy stacks up against its industry, its ROCE in absolute terms is quite low (especially compared to a bank account). There are potentially more appealing investments elsewhere. The image below shows how Eversource Energy's ROCE compares to its industry, and you can click it to see more detail on its past growth. Story continues NYSE:ES Past Revenue and Net Income, July 3rd 2019 Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. What happens in the future is pretty important for investors, so we have prepared a free report on analyst forecasts for Eversource Energy . Eversource Energy's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Eversource Energy has total liabilities of US$4.6b and total assets of US$39b. As a result, its current liabilities are equal to approximately 12% of its total assets. With a very reasonable level of current liabilities, so the impact on ROCE is fairly minimal. What We Can Learn From Eversource Energy's ROCE That's not a bad thing, however Eversource Energy has a weak ROCE and may not be an attractive investment. Of course, you might also be able to find a better stock than Eversource Energy . So you may wish to see this free collection of other companies that have grown earnings strongly. I will like Eversource Energy better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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.
Firms Launch IPOs to Cut Debt: Anheuser-Busch Joins Bandwagon An unprecedented trend of following the initial public offering (IPO) route to reduce huge debt burden is currently in vogue in diverse firms across the spectrum. The latest to join this bandwagon isAnheuser-Busch InBev SA/NVBUD. This brewing company aims to raise capital to the tune of $9.8 billion by listing its Asia business division – Budweiser Brewing Company APAC – in Hong Kong this year.If Anheuser-Busch is successful in reaching its target, it is likely to be the biggest IPO of this year, surpassing Uber Technologies, Inc. UBER, which raised $8.1 billion in May. The company is expected to utilize the capital infusion to lower its huge debt that swelled to $105.6 billion as of Dec 31, 2018. Much of this debt was accumulated by the acquisition spree of the company, the most recent of which included the blockbuster purchase of rival SABMiller. Although management has hinted that the Asia listing is intended to strengthen its regional presence and provide Anheuser-Busch with more firepower to acquire local firms, the dry powder will surely boost its balance sheet position and improve liquidity.More to Chew Upon!Anheuser-Busch is apparently following the footsteps of PetSmart Inc. – a specialty pet retailer. In 2017, PetSmart acquired the fast-growing pet food e-commerce site Chewy.com for $3.35 billion to supplement its brick-and-mortar retail stores. The transaction was the biggest e-commerce acquisition of its time, significantly escalating the debt burden of the company. To add to the woes, it faced stiff competition from various startup and established firms like Walmart Inc. WMT and Amazon.com, Inc. AMZN, leading to intense price wars.In order to tide over the storm, the company filed for an IPO of its online pet business in April 2019 and subsequently began trading as Chewy, Inc. CHWY from June this year. PetSmart reportedly utilized about $1 billion IPO proceeds to reduce its debt. This, in turn, enabled S&P Global to upgrade its credit rating to "B-" from "CCC," portraying renewed optimism on its performance, resulting in positive free operating cash flow and modest deleveraging.Banking on HealthcareAnother example where IPO has been the preferred tool to pay off existing debts is Change Healthcare Inc. CHNG. This Tennessee-based healthcare analytics company filed for an IPO in March 2019 to pay down more than $5 billion debt load. Since its inception in 2017, Change Healthcare has achieved significant growth with a customer base of 900,000 physicians, 118,000 dentists, 600 laboratories, 33,000 pharmacies and 5,500 hospitals, making it one of the largest healthcare IT companies in the country providing network analytics.The company accumulated large debt piles owing to its acquisition binge and high payroll costs with about 14,000 employees. Change Healthcare supposedly raised $609 million from the stock sale and an additional $279 million from the sale of tangible equity units. Leveraging industry-leading data and analytics-driven solutions along with innovations in AI, ML and robotic process automation to improve clinical, financial and patient engagement outcomes, the company remains poised to broaden its scale of operations. A healthy balance sheet position with optimum debt levels is surely going to help the company reach its objective in the future.Raise a toast to the capital increase!Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >> 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 reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAnheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis ReportWalmart Inc. (WMT) : Free Stock Analysis ReportUber Technologies, Inc. (UBER) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Why Shares of Wynn Resorts Popped 15.5% in June Shares ofWynn Resorts(NASDAQ: WYNN)jumped 15.5% last month, according to data provided byS&P Global Market Intelligence, as investors bet on success for the company's new Encore Boston Harbor resort. The gains didn't stop in June, either, with shares up 7.2% in the first two days of July. The big news for the month was the June 23 opening of Encore Boston Harbor, the $2.6 billion resort in Everett, Massachusetts. The property is Wynn's first U.S. expansion outside of Las Vegas and could open a new East Coast market for the company. Investors won't know how operations are going for a few months, but for now they're excited about the property's addition to the portfolio. Image source: Wynn Resorts. It also didn't hurt that May's gambling figures from Macao showed $3.21 billion in casino revenue, which was the best month so far this year. Fears that the region could go into a protracted slowdown in 2019 have subsided, and it's back to business as usual for the world's largest gambling market. I would put more focus on Macao's numbers because that's still where Wynn Resorts generates most of its revenue. But as the year goes on, we will see if the bet on the Boston market is going to pay off for the company. Wynn has made a huge investment there, and it's a gamble that high-rollers will want to play while in New England, which isn't yet guaranteed for any casino operator. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Travis Hoiumowns shares of Wynn Resorts. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
BlackBerry's Cybersecurity Unit Comes Under Investor Fire During the First Quarter One thing's for sure:BlackBerry(NYSE: BB)isn't the tech company of the last decade. Now that its connectivity and cybersecurity software makeover is complete, the tech outfit is actually on a path to operating in the black. However, after a solid fiscal2020 first-quarter report(albeit below expectations), the stock took a more than 10% tumble. The company's software services -- led by its recent takeover ofcybersecurity firm Cylance-- continue to advance, but new competition could be partly to blame for the underwhelming response to earnings. Cylance and its endpoint security has a lot to offer BlackBerry in the years ahead, but there's enough uncertainty here to keep investors dissatisfied at the moment. Underscoring how much BlackBerry has transformed in the last decade, software and services revenue was $240 million during the first quarter -- the vast majority of the company's total. Gross profit margin took a step back during the period but still sits north of the 70% that's typical of a software company. [{"Metric": "Revenue", "Three Months Ended May 31, 2019": "$247 million", "Three Months Ended May 31, 2018": "$213 million", "Increase/ Decrease": "16%"}, {"Metric": "Gross profit margin", "Three Months Ended May 31, 2019": "71.7%", "Three Months Ended May 31, 2018": "75.6%", "Increase/ Decrease": "(3.9 pp)"}, {"Metric": "Operating expenses", "Three Months Ended May 31, 2019": "$192 million", "Three Months Ended May 31, 2018": "$161 million", "Increase/ Decrease": "19%"}, {"Metric": "Earnings (loss) per share", "Three Months Ended May 31, 2019": "($0.09)", "Three Months Ended May 31, 2018": "($0.11)", "Increase/ Decrease": "N/A"}] Data source: BlackBerry. Pp = percentage point. Operating expenses remained high and were the primary reason BlackBerry is still in the red. Some of that is likely due to the Cylance purchase that was completed earlier in the year. Nevertheless, out of total operating expenses, research and development was up 16%, to $71 million, and marketing and selling expenses were up 21%, to $121 million. What's BlackBerry getting for its investment? According to CEO John Chen, organic software revenue excluding Cylance was up 8% year over year, led by enterprise software and automotive solutions. Cylance was up 31%, to $51 million, so far topping full-year guidance for 25% to 30% growth. Due to the continued advance in software, BlackBerry reasserted that it sees running a profit for full fiscal-year 2020. Image source: Getty Images. The numbers were pretty good, but BlackBerry admitted it isn't the best growth play out there when it comes to endpoint cybersecurity -- protection of the billions of devices around the globe containing a network connection. Rather, BlackBerry resides somewhere in the middle of its particular niche of the data-security industry. A newer upstart,CrowdStrike(NASDAQ: CRWD), has already surpassed BlackBerry Cylance in the endpoint security realm. CrowdStrike went public in June 2019 and has a market cap of $12.8 billion as of this writing (to BlackBerry's $4.1 billion). In its last fiscal year, the company did $250 million and grew a whopping 110% over the year prior -- with no signs of slowing down anytime soon. That makes BlackBerry Cylance's more-than-respectable growth look pedestrian. On the other end of the spectrum,Carbon Black(NASDAQ: CBLK)-- the other player in the endpoint security sandbox -- hasn't been doing as well. Carbon Black has a market cap of just $1.2 billion. The company did $58.6 million in revenue in the first quarter, a 21% annual increase, which equated to a net loss of $19.7 million. Chen mentioned both peers during the first-quarter call, noting that his firm is easily outpacing Carbon Black but trailing the surging CrowdStrike. As to the latter, Chen asked rhetorically how long CrowdStrike could keep up its torrid pace. It's a fair question, especially considering that CrowdStrike trades at 50 times trailing-12-month sales and ran up a staggering $140 million net loss last year. But even a big 50% cool-off at the new endpoint security upstart would still have it outpacing BlackBerry Cylance's top line by a healthy margin. Granted, the two companies are very different, as BlackBerry has a substantial presence in enterprise software. But the company nonetheless pinned a great deal of its future growth on Cylance, so the runaway success of CrowdStrike no doubt has some investors concerned. The good news is that cybersecurity is a constantly changing and fast-growing industry, so there's plenty of room for everyone to thrive. The bad news is that Chen has said BlackBerry wants to be the world's largest and most trusted artificial intelligence (AI)-powered cybersecurity outfit. The Cylance purchase that was completed in early 2019 is helping with growth but has a long way to go toward being the world's largest in its niche, with CrowdStrike off to the races. Plus, with profitability still a question mark at this point, the new and improvedBlackBerry has a lot to prove. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Nicholas Rossolilloand his clients have no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry. The Motley Fool has adisclosure policy.
What Does Kulicke and Soffa Industries, Inc.'s (NASDAQ:KLIC) Share Price Indicate? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC), which is in the semiconductor business, and is based in Singapore, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Kulicke and Soffa Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Kulicke and Soffa Industries Great news for investors – Kulicke and Soffa Industries is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $41.22, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Kulicke and Soffa Industries’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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. Kulicke and Soffa Industries’s earnings over the next few years are expected to increase by 52%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder?Since KLIC is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor?If you’ve been keeping an eye on KLIC for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KLIC. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Kulicke and Soffa Industries. You can find everything you need to know about Kulicke and Soffa Industries inthe latest infographic research report. If you are no longer interested in Kulicke and Soffa Industries, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
BOK Financial's Ratings Affirmed by Moody's, Outlook Stable BOK Financial Corporation BOKF and its bank subsidiary BOKF, NAs ratings have been affirmed by Moodys Investors Service. The outlook for the company has remained stable. The subsidiary is rated a2 standalone baseline credit assessment (BCA) and Aa3/Prime-1 for deposits. Also, the holding companys issuer rating of A3 was affirmed. Reasons for Affirmation Per Moody's, the companys unchanged BCA rating is reflective of its sustainable regional banking franchise that supports both strong core deposit base and recurring revenue base. Also, its strong liquidity, adequate capitalization and conservative risk culture offset concerns over high energy concentration and moderate commercial real estate (CRE) concentration. Also, the ratings agency was impressed by the companys historical good asset quality performance, which is reflective of its conservative risk culture. Though high exposure to energy loans poses a concern, the firm's good underwriting, as seen by its strong track record in low energy cycle net charge-offs compared to peers, is a tailwind. The companys recent fall in capital on account of acquisition and share repurchases is a negative. Moody's said that the ratings affirmation incorporates its expectations of improvement in BOK Financials capitalization owing to retained earnings combined with modest loan growth and shareholder returns. Also, stabilization in the energy sector in 2017 has supported BOK Financial's profitability, which is now in line with the similarly rated peer median. Furthermore, profitability benefits from healthy fee-based revenues, which provides some level of resilience in its earnings profile in a low interest rate environment. BOK Financials funding profile benefits from a stable core deposit base that is supported by its leading deposit market share in its home state Oklahoma. In addition, the bank has sizeable holdings of liquid assets, which support its strong liquidity profile and the conservative composition of its securities portfolio. This offsets its modest reliance on market funds, which largely consists of FHLB borrowings. Story continues What Could Drive Ratings Up or Down? Upward movement in ratings would depend on substantial and sustained improvement in capitalization, reduced asset concentrations in energy and CRE and a greater proportion of deposit funding. On the other hand, downward ratings movement could occur if Moody's expected improvement in BOK Financial's capitalization does not materialize. Additionally, evidence of increased appetite for credit risk could add downward rating pressure. Shares of the company have gained 7.7% year to date against the industrys decline of 3.8%. BOK Financial currently carries a Zacks Rank #4 (Sell). Stocks to Consider First Bancorp FBNC has been witnessing upward estimate revisions for the past 60 days. Also, the companys shares have gained nearly 13.2% in the past six months. It carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of todays Zacks #1 Rank (Strong Buy) stocks here . Veritex Holdings, Inc. VBTX has been witnessing upward estimate revisions for the past 60 days. Also, the companys shares have gained nearly 17% in the past six months. It carries a Zacks Rank of 2, at present First Financial Bankshares, Inc.s FFIN estimate revisions have remained stable in the past 30 days. Moreover, this Zacks #2 Ranked stock has rallied more than 5% in six months time. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Bancorp (FBNC) : Free Stock Analysis Report BOK Financial Corporation (BOKF) : Free Stock Analysis Report First Financial Bankshares, Inc. (FFIN) : Free Stock Analysis Report Veritex Holdings, Inc. (VBTX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Is G-III Apparel Group, Ltd.'s (NASDAQ:GIII) P/E Ratio Really That Good? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll show how you can use G-III Apparel Group, Ltd.'s (NASDAQ:GIII) P/E ratio to inform your assessment of the investment opportunity.G-III Apparel Group has a price to earnings ratio of 10.14, based on the last twelve months. In other words, at today's prices, investors are paying $10.14 for every $1 in prior year profit. View our latest analysis for G-III Apparel Group Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for G-III Apparel Group: P/E of 10.14 = $28.99 ÷ $2.86 (Based on the year to April 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means even if the current P/E is high, it will reduce over time if the share price stays flat. And as that P/E ratio drops, the company will look cheap, unless its share price increases. G-III Apparel Group's 70% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive. Having said that, the average EPS growth over the last three years wasn't so good, coming in at 5.6%. The P/E ratio indicates whether the market has higher or lower expectations of a company. We can see in the image below that the average P/E (17.1) for companies in the luxury industry is higher than G-III Apparel Group's P/E. G-III Apparel Group's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Since the market seems unimpressed with G-III Apparel Group, it's quite possible it could surprise on the upside. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling. The 'Price' in P/E reflects the market capitalization of the company. So it won't reflect the advantage of cash, or disadvantage of debt. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash). Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof). G-III Apparel Group has net debt worth 25% of its market capitalization. This could bring some additional risk, and reduce the number of investment options for management; worth remembering if you compare its P/E to businesses without debt. G-III Apparel Group's P/E is 10.1 which is below average (18.2) in the US market. The company hasn't stretched its balance sheet, and earnings growth was good last year. If it continues to grow, then the current low P/E may prove to be unjustified. Since analysts are predicting growth will continue, one might expect to see a higher P/E soit may be worth looking closer. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The Ousting of the Canopy Growth Co-CEO Is a Buying Opportunity Last year, cannabis stocks stole the show in a difficult stock market setting where regular stocks struggled. Marijuana stocks traded wildly for a while, but now they have settled inside more predictable and narrower trading ranges. That is the point of today’s write up. Pot stocks present a viable long-term trading thesis. Source: Shutterstock Coming into this morning,Canopy Growth(NYSE:CGC) stock is up almost 50% year-to-date and 200% since the beginning, This is in better thanETFMG Alternative Harvest ETF(NYSEARCA:MJ), and in line with stars likeCronos(NASDAQ:CRON) andAurora Cannabis(NYSE:ACB). So other thanTilray(NASDAQ:TLRY), these stocks are beating theS&P 500by a double. But… InvestorPlace - Stock Market News, Stock Advice & Trading Tips This morning CGC stock is falling on news that the board terminated co-CEO Bruce Linton. Reactions to headlines are usually overblown, so this is definitely an opportunity for those who want to go long the stock and waiting for an opportunity. Although we don’t know all the details yet, we know enough about it to know that there is a lot of money on the line. Canopy must find a suitable replacement for him to keep the train on track. Canopy Growth has a lot going for it. This is the original marijuana stock that legitimized the bunch. That’s mostly because it attracted a $4.5 billion dollar investment fromConstellation Brands(NYSE:STZ). That was a serious sum of money that caught the attention of Wall Street. • 10 Stocks That Should Be Every Young Investor's First Choice The overall bullish thesis on pot stocks is that the use of cannabis has far more to it than just its recreational use. Yes, the demand there is solid and is sure to grow as more states legalize the stuff. But there are bigger markets just waiting for the opportunity to become more mainstream. For example theediblesmarket already exists and is growing in legal states. But the more exciting one is thepotables.This is likely what attracted STZ to the sector. The consensus is that cannabis drinks will disrupt the soda, beer and spirits industries. Other mega-cap beverage companies are actively seeking similar opportunities in pot ventures. But there is a giant kink in this effort. Marijuana is still federally illegal in the United States, so not many will commit the cash until that changes. After all, dealing with the stuff across state lines would be breaking the law. Still,Altria(NYSE:MO) invested almost $1.8 billion dollars into Cronos so it’s only a matter of time before more mainstream companies own cannabis businesses. Meanwhile, I consider CGC to be the king of all marijuana stocks, much likeApple(NASDAQ:AAPL) is to most tech stocks. They have a good model, proven management and a strong balance sheet, so they can execute on plans. The fundamentals behind running a successful cannabis company rely heavily on deliveries. In other words, they can sell as much of the stuff as they can produce, so it becomes a race to capacity. It doesn’t take a marketing genius to promote a popular substance. This is a long way of saying that the future for Canopy Growth is almost a sure thing. But as simple as this sounds, the hurdles are still gigantic, which is probably why investing in these stocks is still so risky. It is a bet on the concept of cannabis adoption into mainstream use. This very uncertainty makes it almost impossible to short Canopy Growth stock with conviction. Because in addition to the general-use applications, there is a giant world of health aspects for cannabis and derivatives like CBD. Drug companies have been experimenting with it for years, so the applications there are likely to grow exponentially. Moreover, there are the rampant and often unsubstantiated claims of cure-all healing powers that are driving hundreds if not thousands of new products. In California, I can’t escape the marketing push for cannabis in its many forms. I get inundated from the supermarket to the gym. It will take regulators years to sift through the fake stuff from the real so this is mania will linger. Nevertheless over all the bullish thesis on cannabis stocks like CGC is legitimate. These are innovators trying to establish a legitimate business from scratch and they have to fight the law to do it. So there are two ways dealing with CGC stock. The first is to plug ones nose and buy it for the long term. I did this withUber(NYSE:UBER) and I don’t plan on looking at it for years. The second way is to be more tactical and snipe shorter-term entries and exits points based on the chart patterns. But this morning’s drop makes this effort futile. It is big enough to make it worth a fundamental and a tactical entry at the same time. There is support through the $32 per share area. In summary, as frothy as valuations are for companies like Canopy, the upside opportunity is undeniable. The math doesn’t make sense at this point in time, but the concept does. 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. • 2 Toxic Pot Stocks You Should Avoid • 10 Stocks That Should Be Every Young Investor's First Choice • 5 IPO Stocks to Buy -- According to Wall Street Analysts • The Top 10 Best Sectors in the Market for 2019 The postThe Ousting of the Canopy Growth Co-CEO Is a Buying Opportunityappeared first onInvestorPlace.
Investor frustrations build as RBS grapples with excess capital conundrum By Sinead Cruise and Iain Withers LONDON (Reuters) - Just over a decade after fending off insolvency, taxpayer-backed Royal Bank of Scotland is struggling with an unfamiliar dilemma: how to effectively deploy billions of pounds of excess capital on its balance sheet. Years of cost cuts and asset sales have left the lender with jam-packed coffers, which management had hoped could help buy back the government's 62% stake in the quickest time possible. A few months ago, analysts and bank insiders believed the government was poised to begin selling RBS's stock back to the bank, a key step in a sales process aimed at reducing concerns about potential political interference in its lending activities. RBS rushed through a shareholder motion in February to use its excess capital in this way but five months on, its haste has proven futile. The government now appears to be dragging its feet on disposals, frustrating some private shareholders and knocking the bank's privatisation ambitions off-course. Some investors and analysts are now speculating that a new Chancellor, expected to be appointed by the new leader of the ruling Conservative Party later this month, could review the government's stance on fresh RBS sales. This could include waiting to see the bank's share price rise much higher to avoid any public backlash on perceived loss of value for the taxpayer. That raises the bigger question of whether the government - whose two rounds of RBS share sales so far crystallised around 3 billion pounds ($3.8 billion) of cumulative losses - can meet its target to exit RBS by 2024. "The business is in better shape but our share price is much lower. But that is because our shares are in the Brexit bucket and the political bucket. I can't control that," one senior RBS executive told Reuters. "We are continually growing capital so by the end of the year will be in an even better or even worse position, depending on how you look at it. So figuring out how we get that capital back to taxpayers is for us, a really big focus." While the bank sits on cash it would ideally like to give back to the government, investors face accepting lower returns on their equity. RBS shares have shed 14% since Chancellor Philip Hammond last sold shares in the bank in June 2018 and despite a 5% rally this year, Britain's Brexit impasse has weighed on their price. Trading at 225 pence each, they are less than half the 501 pence-a-share bailout price, making further losses on future sales all but inevitable. RBS, however, has long argued that the bailout price is the wrong yardstick to use for taxpayer profit or loss, given the bank has been so dramatically restructured. "We haven't built the bank back to that bank. So we're not going to be that valuation again," the RBS executive said. "We sold Worldpay, we sold Direct Line and exited lots of other things. So we're now this bank, which is a really good, well capitalised bank, but it's not going to be that value." EXCESS CAPITAL RBS's accumulation of surplus capital is the result of many years of belt-tightening, restructuring and effort to put a litany of financial crisis misdeeds behind it. The largest fine – an eye-watering $4.9 billion U.S. penalty in May 2018 for mis-selling toxic mortgage-backed securities in the run-up to the subprime mortgage crunch – came in well below analyst estimates. This left RBS with a comfortable cushion of around 4 billion pounds over its capital requirements. The recent sale of a 40% stake in Saudi bank Alawwal boosted RBS's core capital ratio by 60 basis points to 16.8%, compared with a target of 14%. But unlike most blue chip companies, returning excess capital through hiked dividends or share buybacks is not a straightforward matter for RBS while it remains majority government owned. The bank's overriding priority is to return itself to full private ownership so it can attract fresh institutional investment and neutralise worries of meddling in its operations if Britain's opposition socialist Labour party came to power. Labour previously outlined plans to break up the bank into regional lenders, and while the party has played down such radical moves in recent months, it has said it would halt any further privatisation if this meant a loss to taxpayers. The RBS executive told Reuters the bank was exploring options for special dividends but it also wanted to reserve capital to buy government stock when it eventually returned to market. Bumper dividends might benefit the taxpayer but will not reduce the government stake. A traditional buyback will also have the adverse effect of increasing the government's relative ownership - assuming RBS can find willing buyers among investors who have waited years to see it in rude financial health. "Irrespective of what they may or may not have said to RBS, they didn't opt to sell at 263 pence two months ago so to me it doesn't feel likely that they would choose to sell today," Ian Gordon, bank analyst at Investec, told Reuters. "RBS is reluctant to conduct buybacks in the open market ... I argue that they should. Such buybacks would be strongly value-accretive at this level but I'm not sure I'm winning the argument." A source familiar with thinking at UK Government Investments, which manages the state's RBS holding, said it would only act when a sale represented value for money, noting the current low share price. The source added that the 501 pence bail-out price was not a relevant factor in assessing taxpayer value. Private investors nonetheless expect some reward for their patience soon. "They are very mindful that the more they keep piling up equity, the harder it is to deliver the 12% ROE (return on equity) they have promised, so I suspect they will have to crack on at interims and either do a normal buyback or pay a big special dividend," one of the bank's top 10 investors said. ($1 = 0.7958 pounds) (Editing by Susan Fenton)
Imagine Owning Enerplus (TSE:ERF) While The Price Tanked 63% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Generally speaking long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. Zooming in on an example, theEnerplus Corporation(TSE:ERF) share price dropped 63% in the last half decade. That's not a lot of fun for true believers. And some of the more recent buyers are probably worried, too, with the stock falling 42% in the last year. Shareholders have had an even rougher run lately, with the share price down 13% in the last 90 days. Check out our latest analysis for Enerplus There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Enerplus became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics might give us a better handle on how its value is changing over time. The modest 1.3% dividend yield is unlikely to be guiding the market view of the stock. Arguably, the revenue drop of 6.6% a year for half a decade suggests that the company can't grow in the long term. This has probably encouraged some shareholders to sell down the stock. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. You can see what analysts are predicting for Enerplus in thisinteractivegraph of future profit estimates. 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. We note that for Enerplus the TSR over the last 5 years was -57%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! While the broader market gained around 1.3% in the last year, Enerplus shareholders lost 41% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 16% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid. There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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.
Economist explains why Americans shouldn't claim Social Security at age 62 A new study finds 96% of retirees choose the wrong year to claim Social Security. And money management firm United Incomeestimatesthey could miss out on a collective $3.4 trillion in benefits because of it. “Most people continue to get into Social Security at the early retirement age of 62. And there are clear benefits to waiting. You get a higher benefit each month you defer and for most people the combination of that higher benefit and the additional earnings they get as they continue to work really pushes them into a much more secure position in retirement,” Douglas Holtz-Eakin, American Action Forum President, tells Yahoo Finance’s “YFi PM.” The study also highlights how patience can pay off. For example, a person eligible for a $725 monthly check at 62 years old could receive nearly $1,300 if they postponed benefits until 70 years old. But only 4% of retirees are waiting for the financially optimal age. Retirement planning pitfalls are also a concern for Gen Xers. Astudyby the Employee Benefit Research Institute refers to this demographic as the “sandwich generation,” because many are paying for their kids’ expenses while caring for their parents at the same time. But Holtz-Eakin explains that’s the new normal. “The baby boom is not the proverbial pig in the python. It’s a shift in the structure of our population. We will permanently have more older people relative to young, working-age individuals. If we don’t change the way these systems work — those younger workers will have simultaneously the care of their parents and their own retirement to pay for,” Holtz-Eakin said. McKenzie Stratigopoulos is a producer at Yahoo Finance. Follow her on Twitter:@McKenzieBeehler Read more: • Why the price of coffee is rising, despite falling bean prices • How to use ETFs to hedge against market volatility Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Lockheed Martin Wins $348M Navy Deal to Aid F-35 Program Lockheed Martin Corp.’s LMT Aeronautics business division recently won a modification contract to support low-rate initial production of F-35 Lightning II aircraft’s 12th Lot. Majority of work related to the deal will be executed in Fort Worth, TX, and El Segundo, CA. Details of the Deal Valued at $348.2 million, the contract was awarded by the Naval Air Systems Command, Patuxent River, Maryland. Under the agreement, Lockheed will produce non-recurring, special tooling and special test equipment for the F-35 jets. The deal, with expected completion date of August 2022, will cater to the U.S. Air Force, Navy, Marine Corps, non-U.S. Department of Defense (DoD) partners and foreign military sales (FMS) customers. A Brief Note on F-35 Program The F-35 Lightning is a supersonic, multi-role fighter jet that represents a quantum leap in air-dominance capability, offering enhanced lethality and survivability in hostile, anti-access airspace environments. It is being used by the defense forces of the United States and 11 other nations, chiefly owing to its advanced stealth, integrated avionics, sensor fusion, superior logistics support and powerful integrated sensors capabilities. What Favors Lockheed Martin? The F-35 is Lockheed Martin’s largest program that generates more than 25% of its total sales. The program fueled annual revenue growth by 19.6% at the company’s Aeronautics division. Keeping up with this trend, we may expect the latest contract win to help the Aeronautics unit deliver similar or even better performance in the upcoming quarters. The production of F-35 is expected to improve in the years ahead, given the U.S. government’s current inventory objective of 2,456 aircraft for the Air Force, Marine Corps and Navy along with commitments from the company’s eight international partners, overseas customers and rising demand for military jets globally. Taking into account the F-35 program’s solid estimated production rate, the latest contract win should further provide a boost to this program in the coming days. Such developments reflect solid prospects for Lockheed Martin’s F-35 program, which are likely to boost the company’s profit margin. Price Movement In a year’s time, shares of Lockheed Martin have gained 22.8% compared with the industry’s 7.8% rise. Zacks Rank & Key Picks Lockheed Martin currently carries Zacks Rank #3 (Hold). A few better-ranked stocks in the same space are General Dynamics Corp. GD, Northrop Grumman Corp. NOC and Textron Inc. TXT, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. General Dynamics’ long-term earnings growth estimate currently stands at 8.9%. The Zacks Consensus Estimate for 2019 earnings has moved 0.3% up to $11.76 over the past 90 days. Northrop Grumman’s long-term earnings growth estimate currently stands at 12.8%. The Zacks Consensus Estimate for 2019 earnings has climbed 2.5% to $19.41 over the past 90 days. Textron’s long-term earnings growth estimate is pegged at 12.6%. The Zacks Consensus Estimate for 2019 earnings has moved 0.8% north to $3.70 over the past 90 days. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportLockheed Martin Corporation (LMT) : Free Stock Analysis ReportGeneral Dynamics Corporation (GD) : Free Stock Analysis ReportNorthrop Grumman Corporation (NOC) : Free Stock Analysis ReportTextron Inc. (TXT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
What Is Synchrony Financial's (NYSE:SYF) Share Price Doing? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we're going to take a look at the well-established Synchrony Financial (NYSE:SYF). The company's stock saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Synchrony Financial’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Synchrony Financial Good news, investors! Synchrony Financial is still a bargain right now. According to my valuation, the intrinsic value for the stock is $64.35, but it is currently trading at US$35.19 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Synchrony Financial’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Synchrony Financial, it is expected to deliver a negative earnings growth of -15%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term. Are you a shareholder?Although SYF is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to SYF, or whether diversifying into another stock may be a better move for your total risk and return. Are you a potential investor?If you’ve been keeping an eye on SYF for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Synchrony Financial. You can find everything you need to know about Synchrony Financial inthe latest infographic research report. If you are no longer interested in Synchrony Financial, 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.
Mother appears in court after hitting daughter with wooden spoon A woman was charged with assault after hitting her child with a wooden spoon (Picture: Getty) A mother in Australia appeared in court charged with assault after smacking her daughter with a wooden spoon. The 35-year-old was handed a suspended fine and a spent conviction after she was found to have used an unnecessary amount of force when she hit her nine-year-old with the spoon, leaving her bruised. She has told reporters that she panicked after seeing her daughter eating meat for their dogs that had worming tablets in it. According to WA Today, the woman appeared at Perth Magistrate’s on Wednesday, where she pleaded guilty and was handed a suspended $750 fine and a spent conviction. The presiding magistrates reportedly told her that by her plea she accepted that the force she used was more than necessary but he was satisfied it wouldn’t happen again. The woman appeared at Perth Magistrate's Court (Picture: Google Maps) The woman told Nine News Perth she panicked when she caught her daughter eating hamburger meat at their home in October last year. "I panicked and out of frustration, having a lot of difficulties with her behaviour I just had a moment of frustration," she said. "It was the extreme panic thinking, 'did I put that medication in those burgers?' The fact that she could have been on the floor frothing at the mouth, that was my main thought." READ MORE Thousands stuck on cruise ship after 'mechanical issue' forces it to skip stops and cancel next trip She said she cried most days over the aftermath of the incident, adding: "There are so many other people out there who deserve to go through what I've gone through and they're sort of putting all their time and effort onto me." She also said she still believed in disciplining children and showing that they “can't get away with doing naughty stuff”, asking: "How do we do that now these days?" Watch the latest videos from Yahoo UK View comments
New Strong Buy Stocks for July 3rd Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today: Blueknight Energy Partners, L.P. (BKEP): This company that provides integrated terminalling, gathering, and transportation services has seen the Zacks Consensus Estimate for its current year earnings increasing 10% over the last 60 days. Blueknight Energy Partners L.P., L.L.C. Price and Consensus Blueknight Energy Partners L.P., L.L.C. Price and Consensus Blueknight Energy Partners L.P., L.L.C. price-consensus-chart \| Blueknight Energy Partners L.P., L.L.C. Quote China Life Insurance Company Limited (LFC): This company that operates as a life insurance company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.3% over the last 60 days. China Life Insurance Company Limited Price and Consensus China Life Insurance Company Limited Price and Consensus China Life Insurance Company Limited price-consensus-chart \| China Life Insurance Company Limited Quote Koninklijke Philips N.V. (PHG): This health technology company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days. Koninklijke Philips N.V. Price and Consensus Koninklijke Philips N.V. Price and Consensus Koninklijke Philips N.V. price-consensus-chart \| Koninklijke Philips N.V. Quote AMN Healthcare Services, Inc . (AMN): This company that provides healthcare workforce solutions and staffing services has seen the Zacks Consensus Estimate for its current year earnings increasing 1.7% over the last 60 days. AMN Healthcare Services Inc Price and Consensus AMN Healthcare Services Inc Price and Consensus AMN Healthcare Services Inc price-consensus-chart \| AMN Healthcare Services Inc Quote Caterpillar Inc. (CAT): This company that manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines has seen the Zacks Consensus Estimate for its current year earnings increasing 0.1% over the last 60 days. Caterpillar Inc. Price and Consensus Caterpillar Inc. Price and Consensus Caterpillar Inc. price-consensus-chart \| Caterpillar Inc. Quote You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Story continues The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report China Life Insurance Company Limited (LFC) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Blueknight Energy Partners L.P., L.L.C. (BKEP) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
EUR/USD Mid-Session Technical Analysis for July 3, 2019 The Euro is edging higher against the U.S. Dollar after clawing back earlier losses. Yields are under pressure again on Wednesday due to concerns over a weakening global economy, however, the drop in U.S. Treasury and German bund yields seem to be having little, or even an offsetting impact on the relationship between the Euro and the U.S. Dollar. At 13:38 GMT, the EUR/USD is trading 1.1293, up 0.0007 or +0.06%. The catalyst behind the price action are worries over slower global growth and increasing expectations of easing monetary policy by the major central banks. In the United States, the yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on expectations of more stimulus from the major central banks, particularly the European Central Bank and the U.S. Federal Reserve. The German bund yield also hit an historical low. In other news, the European Council nominated Christine Lagarde to head the ECB. Many investors read the choice of Legarde as a signal that Euro Zone rates will remain low for the foreseeable future as the central bank tries to generate inflation and GDP growth in the area. In the U.S., President Trump announced on Tuesday the names of two nominees to fill vacant posts on the Federal Reserve Board. Trump’s nominees, if appointed and approved, will support his view for lower interest rates. Daily EUR/USD Daily Swing Chart Technical Analysis The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at 1.1413 on June 25. A trade through 1.1413 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 1.1181 will change the main trend to down. The major retracement zone at 1.1318 to 1.1278 is currently being tested. This zone is controlling the longer-term direction of the EUR/USD. The short-term retracement zone at 1.1260 to 1.1224 is the primary downside target. This zone represents value so a pullback into this zone will likely attract buyers since the main trend is up. Today’s earlier low stopped at 1.1269. Story continues Daily Swing Chart Technical Forecast Based on the earlier price action and the current price at 1.1293, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the main 50% level at 1.1278. Bullish Scenario A sustained move over 1.1278 will indicate the presence of buyers. This could drive the EUR/USD into 1.1318 and 1.1341. Bearish Scenario A sustained move under 1.1278 will signal the presence of sellers. This could lead to a retest of today’s intraday low and the next support zone at 1.1260 to 1.1224. Overview Trading volume could dry up throughout the session ahead of Thursday’s U.S. bank holiday and Friday’s release of the U.S. Non-Farm Payrolls report. This article was originally posted on FX Empire More From FXEMPIRE: GBP/USD Daily Forecast – British Pound Range Bound in Holiday Thinned Trading Bitcoin Tech Analysis – Recap and Mid-Day Review – 04/07/19 Forex Daily Recap – Cable Extended a 2-Day Halt at 78.6% Fib Level EUR/USD Price Forecast – Euro continues to sit still Gold Price Forecast – Gold markets drift lower during holiday Crude Oil Price Forecast – Crude oil markets quiet during holiday trading
Do Directors Own Mastercard Incorporated (NYSE:MA) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Mastercard Incorporated (NYSE:MA) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership. Mastercard has a market capitalization of US$272b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about MA. See our latest analysis for Mastercard 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. Mastercard already has institutions on the share registry. Indeed, they own 87% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Mastercard's historic earnings and revenue, below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Mastercard. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that Mastercard Incorporated insiders own under 1% of the company. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amount to less than 1%, we can see that board members collectively own US$277m worth of shares (at current prices). In this sort of situation, it can be more interesting tosee if those insiders have been buying or selling. The general public holds a 12% stake in MA. 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 Mastercard 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. 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.
Dozens taken ill after birthday party for Filipino dictator's widow Imelda Marcos Almost 250 people were taken to hospital with suspected food poisoning after an event held to celebrate the 90th birthday of former first lady Imelda Marcos, officials in the Philippines have said. As some of the guests vomited and others fell dizzy, dozens of ambulances attended the scene, disaster-response officer Bryant Wong said. They had eaten a breakfast of chicken stew with egg and rice and drinking water, he added. At least 244 people were hospitalised after the event at a sports centre in Pasig city, part of the wider Manila metropolitan area. The incident curtailed what was intended to be a full day of festivities by more than 2,000 followers of the late dictatorial power couple. Ms Marcos’ husband, the dictator Ferdinand Marcos, was deposed in 1986 in a “people power” revolution, amid accusations of huge corruption and violations of human rights violations. He died in Hawaii in three years later. After he was removed from power, Ms Marcos now-infamous stash of shoes was discovered in Manila’s Malacanang Palace where they lived. Between 1,200 to 3,000 pairs were discovered. Ms Marcos, who some believed had become the power behind the throne towards the end of her ailing husband's reign, was allowed to return to the Philippines in 1991 with her three children. She relaunched her political career, running for president in 1992 and 1998, and winning a congressional seat in 1995. Additional reporting by agencies
Duke Energy's Solar Capacity Exceeds 1 GW, Prospects Bright Duke Energy Corp.’s DUK solar portfolio capacity recently exceeded 1 gigawatt (GW), courtesy of its solar expansion in North Carolina and California. Currently, the utility provider boasts a solar portfolio that includes almost 70 sites in 10 states, with a total capacity of 1.1 GW. At peak output, Duke Energy’s solar facilities can now lighten up 2 million homes. Notably, the company’s 150-megawatt (MW) California-based North Rosamond solar project, which came online last month, helped it to surpass the 1 GW benchmark. Alongside expanding its existing solar footprint in North Carolina, California and South Carolina, Duke Energy’s primary focus is to strengthen its solar portfolio in the Sunshine State. Florida’s Solar Prospects For solar power generation, Florida’s physical and geographic condition is the third best in the United States, making it an ideal state for further development of solar power. Thanks to some recent developments, the state ranks second for projected solar capacity to be installed over the next five years, with nearly 5.5 gigawatts (GW) expected to come online (per Solar Energy Industries Association). Moreover, the Sunshine State has occupied the top position in solar installations during the first quarter, surpassing California that has been leading the space for the past couple of years. Also, recent policy developments in Florida are expected to contribute to the state’s solar growth. Recently, the Florida Public Service Commission made solar leasing available to companies like Tesla TSLA, which has emerged as a heavyweight solar installer in the nation after its Solar City buyout. Duke Energy’s Initiatives in Florida Given the solar market’s solid growth prospects in Florida, it is obvious that utility providers like Duke Energy that are shifting toward renewables will focus on expanding their footprint in this state. Currently, the company has more than 100 MW of solar generation in operation and four more solar plants targeted for operation by the end of March 2020, representing an additional 270 MW of clean energy for customers. These are part of Duke Energy’s aim to build up to 700 MW of solar projects in Florida. To further strengthen its footprint in the Sunshine State, Duke Energy announced in June that its subsidiary in Florida will construct three battery storage projects. On completion by 2020, these will be considered the largest battery storage projects with a total storage capacity of 22 MW. During power outages, these battery storage projects are expected to enhance grid operations, increase efficiencies and improve the overall reliability of surrounding communities. Others Following Suit As the economics of solar in the Sunshine State look increasingly favorable against gas-fired generation (per a Wood Mackenzie report), other utilities are keen toward enhancing their solar footprint in Florida. In May 2019, NextEra Energy’s NEE Florida Power & Light Company (FPL) started the construction of its 10 newest solar power plants, which are expected to start distributing electricity by early 2020. Price Movement In a year’s time, shares of Duke Energy have gained 10.5% compared with the industry’s 11.5% growth. Zacks Rank & Stocks to Consider Duke Energy currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Atlantic Power Corporation AT, which sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here. Atlantic Power surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, the average being 127.41%. For 2019, the consensus mark has moved 118.2% north to 24 cents over the past 90 days. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportAtlantic Power Corporation (AT) : Free Stock Analysis ReportNextEra Energy, Inc. (NEE) : Free Stock Analysis ReportDuke Energy Corporation (DUK) : Free Stock Analysis ReportTesla, Inc. (TSLA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Is EPR Properties's (NYSE:EPR) 6.0% Dividend Worth Your Time? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we'll take a closer look at EPR Properties ( NYSE:EPR ) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. With EPR Properties yielding 6.0% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis NYSE:EPR Historical Dividend Yield, July 3rd 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. EPR Properties paid out 78% of its profit as dividends, over the trailing twelve month period. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. EPR Properties paid out 70% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. It's positive to see that EPR Properties's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Story continues Is EPR Properties's Balance Sheet Risky? As EPR Properties 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. EPR Properties has net debt of 4.89 times its EBITDA, which is getting towards the limit of most investors' comfort zones. Judicious use of debt can enhance shareholder returns, but also adds to the risk if something goes awry. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 3.51 times its interest expense, EPR Properties's interest cover is starting to look a bit thin. Consider getting our latest analysis on EPR Properties's financial position here. Dividend Volatility One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of EPR Properties's dividend payments. During the past ten-year period, the first annual payment was US$3.36 in 2009, compared to US$4.50 last year. Dividends per share have grown at approximately 3.0% per year over this time. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent. Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. EPR Properties has grown its earnings per share at 3.4% per annum over the past five years. Earnings are not growing quickly at all, and the company is paying out most of its profit as dividends. That's fine as far as it goes, but we're less enthusiastic as this often signals that the dividend is likely to grow slower in the future. We'd also point out that EPR Properties issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Conclusion To summarise, shareholders should always check that EPR Properties's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think EPR Properties is paying out an acceptable percentage of its cashflow and profit. Second, earnings growth has been ordinary, and its history of dividend payments is chequered - having cut its dividend at least once in the past. In sum, we find it hard to get excited about EPR Properties from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria. Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 EPR Properties analysts we track are forecasting continued growth with our free report on analyst estimates for the company . Looking for more high-yielding dividend ideas? Try our curated 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 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.
Have Insiders Been Selling TowneBank (NASDAQ:TOWN) Shares This Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sellTowneBank(NASDAQ:TOWN), you may well want to know whether insiders have been buying or selling. Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required. We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But 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.' Check out our latest analysis for TowneBank In the last twelve months, the biggest single sale by an insider was when the , Robert Hatley, sold US$1.8m worth of shares at a price of US$32.45 per share. So what is clear is that an insider saw fit to sell at around the current price of US$27.15. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Over the last year, we can see that insiders have bought 99658 shares worth US$2.6m. On the other hand they divested 102k shares, for US$3.1m. All up, insiders sold more shares in TowneBank than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Over the last three months, we've seen significantly more insider buying, than insider selling, at TowneBank. In fact, seven insiders bought US$232k worth of shares. But insiders only sold shares worth US$85k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares. 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. TowneBank insiders own about US$221m worth of shares (which is 11% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders. The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The recent buying by some insiders, along with high insider ownership, suggest that TowneBank insiders are fairly aligned, and optimistic. Of course,the future is what matters most. So if you are interested in TowneBank, you should check out thisfreereport on analyst forecasts for the company. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Here's Why I Think Inogen (NASDAQ:INGN) Is An Interesting Stock Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy. So if you're like me, you might be more interested in profitable, growing companies, likeInogen(NASDAQ:INGN). 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. View our latest analysis for Inogen If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no surprise, then, that I like to invest in companies with EPS growth. Who among us would not applaud Inogen's stratospheric annual EPS growth of 50%, compound, over the last three years? Growth that fast may well be fleeting, but like a lotus blooming from a murky pond, it sparks joy for the wary stock pickers. 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. On the one hand, Inogen's EBIT margins fell over the last year, but on the other hand, revenue grew. So it seems the future my hold further growth, especially if EBIT margins can stabilize. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. In investing, as in life, the future matters more than the past. So why not check out thisfreeinteractive visualization of Inogen'sforecastprofits? I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that Inogen insiders have a significant amount of capital invested in the stock. Indeed, they hold US$14m worth of its stock. That's a lot of money, and no small incentive to work hard. Even though that's only about 1.0% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders. It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I'd say they are indeed. I discovered that the median total compensation for the CEOs of companies like Inogen with market caps between US$1.0b and US$3.2b is about US$4.0m. The Inogen CEO received US$2.7m in compensation for the year ending December 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally. Inogen's earnings per share growth has been so hot recently that thinking about it is making me blush. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The strong EPS improvement suggests the businesses is humming along. Big growth can make big winners, so I do think Inogen is worth considering carefully. Of course, just because Inogen is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry. Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Sony's 230-Walkman exhibit celebrates 40 years of a music icon To celebrate the 40th anniversary of the first Walkman sold (the TPS-L2, naturally), Sony is showing off the history of the portable music player in central Tokyo. It will run across the summer, through until September 1st, with writers and experts offering up interviews and talks on the iconic cassette (and CD) player series. Sony has assembled 230 different Walkmans laid out on a "Walkman Wall", and the whole thing shouldn't be hard to find -- a giant neon-yellow WM-F5 will lead the way. While Sony wasn't the first to introduce magnetic cassette technology, the Walkman was the device that made it popular, packaging it in tiny, desirable hardware. Tapes, once bound to lounges and car stereos, could now be listened to on-the-go. The company went on to sell more than 50,000 in the first two months. Eventually, the Walkman was unseated by the digital music revolution and Apple's iPod. By 2010, Sony had sold 200 million Walkmans. If you were one of those 200 million owners, the custom Walkman section of the exhibition, with (as yet unnamed) artists who have designed their own Walkman. Sony says these items will be swapped out throughout the exhibition's run. If you want a more permanent reminder, a pop-up store inside is selling Walkman tees and other memorabilia. The rest of the exhibit features a timeline of the most iconic devices, with several out for attendees to listen to in person. (You remember how to play a cassette, right?)
The world ‘needs another Bretton Woods conference’ The financial world “needs another Bretton Woods moment”, says the boss of global crypto firm Luno. This week marks the 75 th anniversary of the world-changing Bretton Woods conference which was staged at the Mount Washington Hotel in New Hampshire. The conference, consisting of 730 delegates from 44 allied nations, created the current financial system used across the globe. Sign marking the Bretton Woods Monetary Conference. However, following an extensive survey performed in seven key markets to analyse modern understanding and attitudes, Marcus Swanepoel – Luno’s Chief Executive Officer – says it is time the conference was repeated. The findings from the ‘Future of Money’ survey indicate that respondents from emerging markets are seeking an alternative to the way global money exchange and banking operates today. The Bretton Woods conference, also known as the United Nations Monetary and Financial Conference, created a new way of managing and exchanging value between individuals and organisations primarily based on the needs of developed countries and markets. Seeking change “The survey results show that emerging markets are seeking a change to the financial system which was created 75 years ago,” said Mr Swanepoel. “The increase in population and changes to the distribution and inequality of wealth at a time of tremendous steps forward in technology means that the current financial systems need to undergo another Bretton Woods moment. “Individuals in these markets cannot afford to, and should no longer need to, pay extortionate exchange rates, accept national devaluation, or lose out when they simply transfer money between individuals or entities. “Access to a more inclusive financial system will enable people everywhere to think of new and better ways of exchanging value, and technology can play a key part here.” The survey showed that respondents had three main areas of concern with the existing financial system – economic benefit, security, and transparency. It also highlighted that where they don’t have immediate access to wealth in the way that those in developed markets do, the respondents demonstrated a greater understanding of how it should work for them and were open to being more creative with how to maximise the value of what they do have. In more affluent societies, knowledge, protection, and understanding of money are less well developed. Secure For example, when asked how secure they feel about their current financial situation, South Africa (36%), Nigeria (35%), and the UK (24%) showed the highest percentage of individuals saying they did not feel very secure. Story continues More than 91% of respondents in South Africa said they pay for a personal bank account and 75% said they use mobile banking. When respondents were asked about monthly budgeting and expenditure, only 54% of people in the UK said they set a monthly budget for personal spending – a huge contrast to South Africa at 73% and 80% in Malaysia. Across all markets, the percentage of individuals that felt their economy in the areas they live was currently performing very well was low. The strongest answers came from South Africa (27%) and Nigeria (23%), where they felt their economy was performing fairly poorly. Individuals from rural areas showed a higher percentage of negativity towards their economy than those in urban areas. This is largely down to the lack of access to the financial system in those areas (23% of respondents in Nigeria and 22% of respondents in South Africa said it was very difficult for them to send money overseas). Marcus Swanepoel, CEO of Luno. Marcus Swanepoel, CEO of Luno. “We have seen little change to the global monetary system over the last 75 years, particularly amongst developed economies where financial institutions have built a system around the transfer of currencies, assets, and commodities which benefit a stable and strong economy,” Mr Swanepoel added. “As technology advances, it is important that institutions globally find a way of adopting these advancements, enabling emerging markets to have the same access to money and transfer of assets.” Positive attitude South Africa (22%) and Nigeria (23%) showed the highest percentage of positive attitude towards a single global currency making the current financial system better, whereas only 7% of respondents in the UK agreed. When asked what the advantages to a single global currency would be, the majority across all markets said ‘better for the global economy’ – UK (20%), France (21%), Indonesia (39%), Italy (25%), Malaysia (25%), Nigeria (39%), and South Africa (35%). The most popular answer across all markets to what the disadvantage to a global currency would be was that countries would become less independent. “As some of the world’s largest tech giants announce they are launching cryptocurrency coins, we believe developing markets will be the lead adopters,” explained the Luno CEO. “Our research shows that in these markets, people are more financially savvy because they have to be, which means that they need and understand the benefits the new coins can offer.” The survey presents an overview of a study conducted by Dalia Research for Luno between May 17 2019 and June 7 2019 about the future of money. The sample of more than 7,000 individuals with internet access was drawn in France, Indonesia, Italy, Malaysia, Nigeria, South Africa, and the United Kingdom. Calculated for a sample of this size and considering the design-effect, the average margin of error would be +/-3.1% at a confidence level of 95%. The post The world ‘needs another Bretton Woods conference’ appeared first on Coin Rivet . View comments
Navy SEAL sentenced for posing with dead Iraq war casualty SAN DIEGO A Navy SEAL who was acquitted of killing a wounded Islamic State captive but convicted of posing with the corpse was sentenced by a military jury Wednesday to a reduction in rank and four months of confinement. A judge, however, credited Special Operations Chief Edward Gallagher with enough time already spent in custody to ensure he won't be locked up. Gallagher turned to his wife, shook his head and pretended to unpin his "anchors" the insignia of a chief and fling them across the courtroom. He then smiled and hugged her. The sentencing came after Gallagher addressed the jury that had acquitted him Tuesday of murder, attempted murder and other counts stemming from an incident during a 2017 deployment to Iraq. "I put a black eye on the two communities that I love the U.S. Marine Corps and the U.S. Navy specifically the SEAL community," he said. He said he tried to lead by example but didn't always succeed. "I've made mistakes throughout my 20-year career tactical, ethical, moral I'm not perfect but I've always bounced back from my mistakes. I'm ready to bounce back from this," he said. The jury reduced Gallagher's rank by one grade to petty officer 1st class and ordered his monthly pay cut by $2,697 for four months. The judge then modified the sentence, capping the pay cut at two months and giving Gallagher 60 days' credit for being held in overly harsh conditions before being tried and being deprived of treatment for a traumatic brain injury. Gallagher also got credit for 201 days of pretrial confinement. A Navy prosecutor had asked only for a reduction in rank, not confinement. The defense recommended no punishment. Gallagher told the jury he was fully responsible for his actions on the day he took photos with the body of the 17-year-old militant. One image shows him clutching the hair of the corpse with one hand and holding a knife in another. Story continues The photos were taken after Gallagher and other SEALs provided medical treatment for the captive who was wounded in an air strike in 2017 and handed over by Iraqi forces. The prosecutor, Lt. Brian John, said Gallagher was the platoon chief and should not have been the centerpiece of the photos in which nearly all the members posed with the body. John said Gallagher should have stopped the photos from being taken. "For that reason, he no longer deserves to wear anchors," the prosecutor said. John said the photos had the potential to be used as propaganda by Islamic State and be harmful to U.S. forces overseas. The verdict clearing Gallagher of the most serious charges was met with an outpouring of emotion. President Donald Trump, who intervened earlier this year to have Gallagher moved from the brig to less restrictive confinement, tweeted congratulations to the SEAL and his family. "You have been through much together. Glad I could help!" the president wrote. The outcome dealt a major blow to one of the Navy's most high-profile war crimes cases and exposed a generational conflict within the ranks of the elite special operations forces. Asked in an interview Wednesday on Fox & Friends what his message might be to future Navy SEALs, Gallagher said he would tell them that "loyalty is a trait that seems to be lost. ... You're there to watch your brother's back, and he's there to watch your back." Speaking of his accusers, Gallagher said, "this small group of SEALs that decided to concoct this story in no way, shape or form represent the community that I love." Gallagher also thanked Fox News "for being behind us from day one," and also thanked Trump along with Republican Reps. Duncan Hunter of California and Ralph Norman of South Carolina. Defense lawyers said Gallagher was framed by junior disgruntled platoon members who fabricated the allegations to oust their chief. They said the lead investigator built the probe around their stories instead of seeking the truth. They said there was no physical evidence to support the allegations because no corpse was ever recovered and examined by a pathologist. The prosecution said Gallagher was incriminated by his own text messages and photos, including one of him holding the dead militant up by the hair and clutching a knife in his other hand. "Got him with my hunting knife," Gallagher wrote in a text with the photo. The defense said it was just gallows humor and pointed out that almost all platoon members who testified against him also posed with the corpse. The jury of five Marines and two sailors, including a SEAL, was comprised mostly of seasoned combat veterans who served in Iraq. Several lost friends in war.
Why Shares of Textron Soared in June What happened Shares of Textron (NYSE: TXT) have been the subject of a tug-of-war between bulls drawn to the growth potential in various parts of the industrial conglomerate's portfolio and bears worried about the health of the broader economy and issues in specific Textron businesses. Bulls got the better of it in June, with shares of Textron climbing 17.1%, according to data provided by S&P Global Market Intelligence . There's reason to believe the gains are sustainable this time around. So what Textron shares gained ground in June despite little company-specific news, and the June gains simply reversed a slump in May, leaving the shares basically unchanged over a two-month period. That's par for the course for Textron, a maker of business jets, helicopters, recreational vehicles, and golf carts, among other items. The shares are up nearly 15% year to date, but down 20%, and underperforming the S&P 500 by nearly 30 percentage points, over the past year. A Citation Longitude business jet parked in front of a sunset. Textron's Citation Longitude business jet. Image source: Textron. The company has struggled in part because of sluggish growth in its aviation business, home of Cessna and other small plane brands, with the business jet market having never fully recovered from the 2008-2009 recession. More recently Textron ran into trouble with its industrial segment, maker of golf carts, snowmobiles, and off-road vehicles. Textron has had trouble with the Arctic Cat brand it acquired in 2017 , causing pressure on earnings late last year. There are signs of improvement across the board. Aviation sales and margins were up in the first quarter of the year, as a combination of changes in tax law and an aging corporate fleet fueled belief that at long last a recovery in the sector is at hand. Textron's Cessna unit has a slate of new products to sell into that recovery. Meanwhile the industrial segment has stabilized, in part because Textron has been able to expand sales channels for newly acquired vehicles, and the helicopter division has a growing backlog and the potential to win some important military orders . Story continues Now what In recent years it hasn't paid to be an optimist when it comes to Textron. But momentum appears to finally be on the company's side. Textron due to its stumbles is relatively affordable, trading at 10 times earnings compared to business jet rival General Dynamics ' 16-times multiple and the 20-times multiples of fellow industrial conglomerates United Technologies and Honeywell International . I expect aviation to ramp up in the second half of the year and into 2020, and the company's Bell helicopter has the potential to outperform expectations if it can secure some military wins to help offset programs that are sunsetting. There's also the potential for the company to raise full-year guidance in July if the second quarter ends up as strong as the first. Textron investors in recent years have grown accustomed to the unforeseen setback, and there is the risk something new could come up to reverse the upward momentum. But there is at least reason to hope Textron's strong run in June can continue into the second half of the year. More From The Motley Fool 10 Best Stocks to Buy Today Lou Whiteman owns shares of General Dynamics. The Motley Fool recommends Textron. The Motley Fool has a disclosure policy .
Top Ranked Income Stocks to Buy for July 3rd Here are four stocks with buy rank and strong income characteristics for investors to consider today, July 3rd: Arbor Realty Trust, Inc.(ABR): This real estate investment trust (REIT) has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days. Arbor Realty Trust Price and Consensus Arbor Realty Trust price-consensus-chart \| Arbor Realty Trust Quote This Zacks Rank #1 (Strong Buy) company has a dividend yield of 9.25%, compared with the industry average of 4.31%. Its five-year average dividend yield is 8.61%. Arbor Realty Trust Dividend Yield (TTM) Arbor Realty Trust dividend-yield-ttm \| Arbor Realty Trust Quote Ares Capital Corporation(ARCC): This business development company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.6% over the last 60 days. Ares Capital Corporation Price and Consensus Ares Capital Corporation price-consensus-chart \| Ares Capital Corporation Quote This Zacks Rank #2 (Buy) company has a dividend yield of 8.85%, compared with the industry average of 8.81%. Its five-year average dividend yield is 9.45%. Ares Capital Corporation Dividend Yield (TTM) Ares Capital Corporation dividend-yield-ttm \| Ares Capital Corporation Quote Atlantica Yield plc(AY): This owner and manager of renewable energy, natural gas power, electric transmission lines and water assets has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.1% over the last 60 days. Atlantica Yield PLC Price and Consensus Atlantica Yield PLC price-consensus-chart \| Atlantica Yield PLC Quote This Zacks Rank #2 (Buy) company has a dividend yield of 6.81%, compared with the industry average of 2.89%. Its five-year average dividend yield is 5.36%. Atlantica Yield PLC Dividend Yield (TTM) Atlantica Yield PLC dividend-yield-ttm \| Atlantica Yield PLC Quote Best Buy Co., Inc.(BBY): This retailer of technology products, services, and solutions has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.4% over the last 60 days. Best Buy Co., Inc. Price and Consensus Best Buy Co., Inc. price-consensus-chart \| Best Buy Co., Inc. Quote This Zacks Rank #2 (Buy) company has a dividend yield of 2.79%, compared with the industry average of 0.00%. Its five-year average dividend yield is 5.36%. Best Buy Co., Inc. Dividend Yield (TTM) Best Buy Co., Inc. dividend-yield-ttm \| Best Buy Co., Inc. Quote See thefull list of top ranked stocks here. Find more top income stocks withsome of our great premium screens. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportBest Buy Co., Inc. (BBY) : Free Stock Analysis ReportAtlantica Yield PLC (AY) : Free Stock Analysis ReportAres Capital Corporation (ARCC) : Free Stock Analysis ReportArbor Realty Trust (ABR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Trump touts July 4 military 'salute'; critics see politics WASHINGTON (AP) President Donald Trump is marshalling tanks, bombers and other machinery of war for a Fourth of July celebration that traditionally is light on military might, while critics accused him of using America's military as a political prop. Under White House direction, the Pentagon was scrambling to arrange for an Air Force B-2 stealth bomber and other warplanes to conduct flyovers of the celebration on the National Mall. There will be Navy F-35 and F-18 fighter jets, the Navy Blue Angels aerial acrobatics team, Army and Coast Guard helicopters and Marine V-22 Ospreys. Two Bradley fighting vehicles were in place Wednesday near the Lincoln Memorial, where Trump will deliver a speech on for the Independence Day celebration. A small number of 60-ton Army Abrams battle tanks were sent to Washington by rail to be positioned on or near the National Mall, though the District of Columbia government fired back with its own verbal salvo. "Tanks, but no tanks," it tweeted, adding that the Pentagon itself said last year that a tank's steel tracks could damage city roadways. Also scheduled to make appearances over the Mall are the presidential Air Force One and Marine One aircraft. Trump, casting the extravaganza as a "Salute to America," tweeted on Tuesday that military leaders are "thrilled" to participate. If so, they were hiding it well. Pentagon officials referred questions to the White House. Military officials would not even say on the record whether Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, plans to attend. "Military Leaders are thrilled to be doing this & showing to the American people, among other things, the strongest and most advanced Military anywhere in the World," Trump tweeted. "Incredible Flyovers & biggest ever Fireworks!" "This is raw politicization," countered Loren Dejonge Schulman, a senior fellow at the Center for a New American Security and a Pentagon and White House official during the Obama administration. She said in an email exchange that Trump's use of the military appears to be less about honoring the men and women serving in uniform than about trying to "brag to and humor" his political cronies. Rep. Betty McCollum complained, "Mr. Trump is hijacking the celebration and twisting it into a taxpayer-funded, partisan political rally that's more about promoting a Trumpian cult of personality than the spirit of American independence and freedom. The Minnesota Democrat, who chairs the Interior Appropriations subcommittee, said the Interior Department and the Pentagon have not answered multiple requests for details on how much the event will cost. Story continues White House officials sought to counter the criticism by stressing that the president would deliver a patriotic speech at the Lincoln Memorial during an event that he has billed as honoring the U.S. armed forces. The administration undercut its own assertion of it being a nonpolitical event, however, when senior presidential adviser Kellyanne Conway said the speech will highlight "the success of this administration in opening up so many jobs for individuals, what we've done for veterans," in addition to celebrating democracy, patriotism and the military. A fundamental feature of the military's role in American democracy is its insulation from politics, which is meant to ensure the armed forces' loyalty to the Constitution rather than to an individual elected leader. That is why, for example, members of the military are not allowed to participate in political campaigns, and why Trump's first defense secretary, Jim Mattis, slow-rolled a White House plan for a Veterans Day military parade last year. Muscular military displays of the kind that are common in authoritarian countries like China and North Korea are not quintessentially American, although military bands and honor guards customarily participate in holiday parades and warplanes sometimes are used in flyovers at big sporting events. The U.S. traditionally has not embraced showy exhibitions of raw military power as a claim of international prestige and influence. Trump had wanted a military parade of tanks and other equipment in Washington after he watched a military parade on Bastille Day in Paris in 2017. His plan eventually was scuttled, partly because of cost, though he apparently held on to the idea. Local officials objected at that time, too. A ticket-only area in front of the Lincoln Memorial is being set aside for VIPs, including members of Trump's family, friends and members of the military, the White House said. The Republican National Committee is distributing a "small number" of tickets to the event, which it says is standard practice and follows what the Democratic National Committee did under Democratic presidents. However, those were smaller events at the White House, for example, and not major productions taking over the National Mall. David Lapan, a retired Marine colonel and former senior spokesman at the Pentagon and the Department of Homeland Security, said enlisting troops for a Fourth of July event in the nation's capital only adds to their stress. "After 18-plus years of war, we have asked a lot of our military and their families, and they have sacrificed," Lapan said. "Let's give them a day off rather than a day on for this holiday." Some Democrats in Congress objected to what they saw as Trump's political motives. "Most shameful of all is the fact that our military is being co-opted for a gratuitous display of strength by a commander in chief who relishes the attention of dictators and despots," she said. The Pentagon said it had made no overall estimate of the cost of the military's participation. The Air Force said it costs $122,311 an hour to fly the B-2 bomber, which is making the trip from its home at Whiteman Air Force Base in Missouri and back. Officials said this will be considered a training event, with the cost already budgeted. They said the per-hour flying cost of the F-22 fighter is $65,128. ___ Associated Press writers Matthew Daly, Deb Riechmann and Ellen Knickmeyer contributed to this report. View comments
Will Snacks Category Boost PepsiCo's (PEP) Earnings in Q2? PepsiCo, Inc.PEP is set to report second-quarter 2019 results on Jul 9, before the market opens. In the last reported quarter, the company delivered a positive earnings surprise of 5.4%.Notably, PepsiCo has reported positive earnings surprise in 12 of the last 13 quarters and sales beat in seven of the last nine quarters. It has an average trailing four-quarter beat of 3.5%. Pepsico, Inc. Price and EPS Surprise Pepsico, Inc. price-eps-surprise \| Pepsico, Inc. Quote However, the Zacks Consensus Estimate for second-quarter earnings is pegged at $1.49 per share, implying a 7.5% decline from the year-earlier quarter's reported figure. Notably, the consensus mark has moved down by a penny over the past seven days. For quarterly revenues, the Zacks Consensus Estimate stands at $16.4 billion, suggesting 1.9% growth from the prior-year quarter reported number.Let’s see how things are shaping prior to the earnings announcement.Factors at PlayPepsiCo’s robust surprise trend is mainly attributable to strong performances in international divisions, propelled by higher revenue growth in developing and emerging markets. Further, strong net revenues and operating profit growth at Frito-Lay North America along with sequential revenue gains in the North America Beverages segment have boosted results in the last few quarters. Backed by these trends, the company is likely to continue with its impressive top- and bottom-line performances in the to-be-reported quarter.Moreover, the company’s fundamental strength is evident from its solid brand portfolio, product innovation and strong snacks business. PepsiCo is also focusing on driving greater efficiency and effectiveness by lowering costs and plowing back these savings to develop scale and core capabilities. This, in turn, is likely to boost margins and the bottom line.PepsiCo has the competitive advantage of selling both snacks and beverages, which are complementary food categories. The complementary portfolio results in cost leverage, capability sharing, cross-category promotions and other commercial benefits.With popular brands like Doritos, Cheetos and Lay’s, the company holds the number one position in the global snacks market. Just over half of PepsiCo's sales come from snacks, while the remainder is contributed by beverages. The Frito-Lay North American snacks business has delivered consistent solid performance over the last four years, offsetting the sluggishness in the beverages business. This segment is expected to continue delivering strong sales and profits as clear from the rising demand for savory snacks.Furthermore, PepsiCo generates a significant part of its revenues outside the United States (38% of 2018 net revenues). The company is expanding in developing markets like Russia, Mexico, China, India, Brazil and Africa through tailored distribution models as well as by offering locally relevant innovation and value-added products. In Mexico and India, PepsiCo has a massive expansion plan in place over the next five years. Continued growth in these markets should contribute meaningfully to top-line growth in the second quarter.Expectations for 2019For 2019, the company estimates organic revenue growth of 4% compared with 3.7% growth in 2018. For the longer term, it projects organic revenue growth of 4-6%.However, unfavorable impacts of ongoing investments to strengthen business, higher tax rate, and the absence of asset sale and refranchising gains that occurred in 2018 are likely to weigh on PepsiCo’s earnings in 2019. Further, adverse currency rates are likely to hurt the company’s sales and earnings this year.Nevertheless, we expect all aforementioned growth drivers to offset these minor hurdles and help the company to sustain its robust top- and bottom-line beat trend in the second quarter.Earnings WhisperHere is what our quantitative model predicts:PepsiCo has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.Earnings ESP:PepsiCo has an Earnings ESP of +0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank:PepsiCo currently carries a Zacks Rank #3, which combined with a positive ESP increases the chances of an earnings beat.Stocks to ConsiderHere are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:Kimberly-Clark Corporation KMB has an Earnings ESP of +0.10% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.The Procter & Gamble Company PG has an Earnings ESP of +0.84% and a Zacks Rank #2.Philip Morris International Inc. PM has an Earnings ESP of +0.54% and a Zacks Rank #3.The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >> 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 reportKimberly-Clark Corporation (KMB) : Free Stock Analysis ReportPepsico, Inc. (PEP) : Free Stock Analysis ReportProcter & Gamble Company (The) (PG) : Free Stock Analysis ReportPhilip Morris International Inc. (PM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
GLOBAL MARKETS-Global stock markets, bonds rally in expectation of rate cuts (Adds updated yield figures) By David Randall NEW YORK, July 3 (Reuters) - Record low bond yields in Europe and the expectation of further interest rate cuts by central banks worldwide helped push global stock market indices higher Wednesday as the benchmark U.S. S&P 500 hit another record high. European Union leaders' nomination of Christine Lagarde, the head of the International Monetary Fund, to replace Mario Draghi as president of the European Central Bank reinforced expectations of more monetary policy easing if it is needed. Traders greeted the decision by sinking German 10-year Bund yields to record lows of minus 39 basis points, lowering Italian two-year yields back into negative territory for first time in over a year and lifting stocks worldwide. The yield on 10-year UK gilts fell 4 basis points to 0.687% , which left it below the Bank of England's main policy rate for the first time in a decade. U.S. Treasury yields slumped to their lowest since late 2016. "We have already seen some weak data in recent weeks, so that is the backdrop," said Elwin de Groot, head of macro strategy at Rabobank. "And now have Christine Lagarde as the likely successor of Mr Draghi at the ECB, which for the market says that the dovish policies will continue." On Wall Street, the Dow Jones Industrial Average rose 61.4 points, or 0.23%, to 26,848.08, the S&P 500 gained 8.39 points, or 0.28%, to 2,981.4 and the Nasdaq Composite added 23.09 points, or 0.28%, to 8,132.18. MSCI's gauge of stocks across the globe gained 0.26%, following broad equity gains in Europe. Investors continued to seek out the safe haven of bonds due to concerns of slowing global growth after data showed Britain's economy apparently shrank in the second quarter. Benchmark 10-year notes last rose 5/32 in price to yield 1.9601%, from 1.977% late on Tuesday. "The latest downturn has followed a gradual deterioration in demand over the past year as Brexit-related uncertainty has increasingly exacerbated the impact of a broader global economic slowdown," Chris Williamson, chief business economist at IHS Markit, said of the Britain reading. In the currency markets, the pound flirted with two-week lows and stood at $1.2568, on course for its fifth drop in the past six sessions. Oil prices also rose after data showed U.S. crude stockpiles fell more than expected last week. They remained wobbly, however, after falling more than 4% on Tuesday, even after OPEC and allies including Russia agreed to extend supply cuts. Brent crude futures rose 0.7% to $62.85 per barrel. U.S. West Texas Intermediate crude futures gained 0.6% to $56.56 a barrel after dropping 4.8% the day before. (Reporting by David Randall; Editing by Will Dunham)
Broadcom Is in Advanced Talks to Acquire Symantec (Bloomberg) -- Broadcom Inc. is in advanced talks to buy cybersecurity firm Symantec Corp., according to people familiar with the matter, seeking a further expansion into the more profitable software business. Broadcom could reach an agreement to buy the Mountain View, California-based company within weeks, said the people, who asked to not be identified because the matter isn’t public. No deal has been finalized and the talks could fall through, the people said. A representative for Symantec declined to comment. A representative for Broadcom didn’t immediately respond to a request for comment. Symantec’s shares rose as much as 16% Wednesday in New York, their biggest intraday gain in almost eight months. They closed Tuesday at $22.10, giving the company a market value of about $13.7 billion. Broadcom shares slipped about 3.5%. They closed at $295.33 Tuesday, giving the semiconductor maker a market value of about $118 billion. What Bloomberg Intelligence says: Broadcom’s potential purchase of another asset with $4+ billion in software sales is likely its most ambitious deal yet - leaderless Symantec has been losing share, even in its core segments. Broadcom CEO Hock Tan will likely need to aggressively cut Symantec costs while keeping sales stable. - Anand Srinivasan, technology analyst The deal would mark Broadcom’s second big bet in software, following its $18 billion takeover last year of CA Technologies. That transaction spurred some investors to express concern that Broadcom Chief Executive Officer Hock Tan’s acquisition strategy was being stretched too far after playing a key role in consolidating in the $470 billion chip industry. That deal also came after San Jose, California-based Broadcom abandoned a hostile pursuit of rival chipmaker Qualcomm Inc., when U.S. President Donald Trump blocked the transaction citing national security risks. Some analysts saw the potential purchase of Symantec as a positive for Broadcom. “Symantec would make a perfect fit for the Broadcom portfolio,” Harsh Kumar, an analyst at Piper Jaffray wrote in a note to investors. He said the situation is similar to Broadcom’s CA acquisition, “which ultimately turned out to be extremely successful under the Broadcom umbrella.” Symantec Challenges Symantec is the world’s biggest maker of cybersecurity software, providing products and services to more than 350,000 organizations and 50 million people, according to its annual report. The company has faced a list of challenges in the past year, grappling with heightened competition, the abrupt departure of its chief executive officer, waning consumer interest in antivirus programs and a financial investigation that ended with restated earnings. The shares have gained about 17% this year, recovering from a 33% slump in 2018. Activist investor Starboard Value LP won three board seats on the company in September. Broadcom wouldn’t be the first chipmaker to try a foray into security software. In 2011, Intel Corp. acquired McAfee Inc. for $7.7 billion. Intel’s plan was to hard-wire some of the software’s capabilities into its market-leading personal-computer processors. The semiconductor maker was never able to pull that off, and ended up spinning off the unit in 2016 in a sale to TPG that valued the business at $4.2 billion. Under Tan, Broadcom has pursued a different strategy for software. Tan said he acquires ‘‘franchises,’’ groups or businesses within companies that have sustainable market positions through technology leadership. He then invests in them to maintain that leadership, running them as distinct parts of Broadcom, rather than integrating the acquired products. “Broadcom’s approach to M&A is to deliver high cash on cash returns, which it has been quite successful in achieving,” Morgan Stanley analyst Craig Hettenbach wrote in a report earlier this week. “In semiconductors, the company was early and led the wave of consolidation seen across the industry. However, with many assets already off the board and remaining companies trading at high valuation multiples, the opportunity set in semis is much lower today.” (Updates with share trading in fourth paragraph.) --With assistance from Dinesh Nair. To contact the reporters on this story: Liana Baker in New York at lbaker75@bloomberg.net;Ed Hammond in New York at ehammond12@bloomberg.net;Kiel Porter in Chicago at kporter17@bloomberg.net;Ian King in San Francisco at ianking@bloomberg.net To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Matthew Monks, Dan Wilchins For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
US and Chinese consumers are still very optimistic, despite trade tensions Consumers in the U.S. and China stand to be the biggest losers in the trade war between the two largest economies in the world. But they are not too worried about it, at least for now. The U.S. and China are still home to the most optimistic consumers in the world, according to the Q2 Global Consumer Confidence Index released by the Conference Board on Wednesday. The U.S. has a consumer confidence index of 121 in the second quarter, while China’s number is 115, both of which are higher than the global average of 107. This shows the growing tension between Washington and Beijing hasn’t dampened the economic outlook of the countries’ consumers. The Conference Board works with Nelsen to survey consumers about their job prospects, personal finances, and spending intentions. Part of the optimism comes from the sheer size of the two economies, according to economists. Consumers in large economies consume more domestically and are less dependent on international sources. Trade accounts for about 27% of the GDP in the U.S. and 38% in China, while the world’s average is 58%. “Most of the tariff increases between the U.S. and China were actually not directly on consumer goods, but they were more on industry goods, intermediate things like that. Now, they didn't automatically translate into large increases in consumer prices because companies quite often were there to meet the cost of that rather than pass it to the consumer, ” said Bart van Ark, chief economist at the Conference Board, explaining why consumers in both nations have not been majorly impacted by the trade war. Strong consumer confidence is good news to Beijing, which is tasked with shifting its $13.4 trillion economy to a consumption-driven one. Consumer confidence has been holding up well compared to investor confidence. Despite the crash in the domestic stock market, Chinese consumers are relatively optimistic and the optimism has been stable in recent months. It hasn’t come below 110 like it did during the last stock market crash in 2015. “We'll see that the administration is likely to find various mechanisms to ensure that consumers do not get too nervous about the situation,” Ark said. “China has the opportunity to provide stimulus programs to ask provincial governments to create better conditions for housing and things like that. Just in order to make sure this transition to a more consumer-driven economy doesn't stop.” This year, the government rolled out a stimulus program including tax cuts and lifted some restrictions on car and real estate purchases. Beijing has set a GDP growth goal of 6%-6.5% this year. To U.S. consumers, the biggest question is how long the economic expansion could last and if trade issues will trigger the next recession. That concern has been revealed in June’s reading of the U.S. Consumer Confidence Index, which slipped tothe lowest level in nearly two years, as the trade talks with China collapsed and tariffs on $300 billion Chinese goods were on the table. “You can also see people becoming a little bit more cautious,” said Denise Dahlhoff, senior researcher at the Conference Board. In China, a downward trend has persisted for a few quarters when it comes to spending on entertainment and new tech products. Meanwhile, both U.S. and Chinese consumers are cutting back on holiday and vacation spending. Concerns about future spending and potential price hikes affect whether robust consumer confidence could directly translate into more spending. “I may be willing to spend but if I do have some concerns about the education of my kids..., or prices that may potentially go up. I may still be cautious and hold off for the time being,” Ark said. Krystal Hu covers technology and China for Yahoo Finance. Follow her onTwitter. Read more: • New bipartisan bills threaten Chinese IPOs and Chinese companies listed in the U.S. • Amazon just got FAA approval to fly drones for deliveries • Huawei is still winning 5G contracts around the world despite the U.S. ban
JPMorgan's Jamie Dimon, Jeff Bezos share this opinion about making mistakes Some of the best educational experiences are the lessons that come from making mistakes. That’s an opinion JPMorgan Chase (JPM) CEOJamie Dimon— Wall Street’s longest serving banking chief — said recently that he shares with Amazon (AMZN) CEOJeff Bezos. Dimon recently told Yahoo Finance in an interview that Jeff Bezos, founder and CEO of Amazon, and himself view mistakes as opportunities to learn and improve. “Jeff Bezos always talks about that mistakes are how you learn. And, you know, for the whole business world and the regulatory world to act like a mistake is always a bad thing... It's not,” Dimon said. Bezos has opened up on failure in the past. In his annual letter to shareholders back in April, he put an emphasis on the need for failure in order forAmazonto keep expanding. “As a company grows,everythingneeds to scale, including the size of your failed experiments,” Bezoswrote. “If the size of your failures isn’t growing, you’re not going to be inventing at a size that can actually move the needle,” he lateradded. Donovan Russo is a writer for Yahoo Finance. Follow him@Donovanxrusso. Read more: • UBS: World economy ‘one step away from global recession' • Why Trump-Xi meeting won't produce a trade war 'breakthrough' at G20: Goldman Sachs • Trump blasts Federal Reserve as 'stubborn child' on rate policy • GrubHub stock soars as Citi cites delivery tests as a reason to buy Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit.
Why the Earnings Surprise Streak Could Continue for Alaska Air (ALK) If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Alaska Air Group (ALK). This company, which is in the Zacks Transportation - Airline industry, shows potential for another earnings beat. This airline has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 16.75%. For the most recent quarter, Alaska Air was expected to post earnings of $0.13 per share, but it reported $0.17 per share instead, representing a surprise of 30.77%. For the previous quarter, the consensus estimate was $0.73 per share, while it actually produced $0.75 per share, a surprise of 2.74%. Price and EPS Surprise For Alaska Air, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Alaska Air currently has an Earnings ESP of +1.50%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 25, 2019. Story continues Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
SWN or RRC: Which Natural Gas-Heavy Stock is Better Placed? On Jun 20, natural gas prices hit a more than three-year low of $2.185 per one million British thermal units (MMBtu), after U.S. government data revealed a weekly injection in domestic stockpiles that was much more than expected. The fuel, which is currently trading near $2.26 per MMBtu, is far off the 2019-high of $3.722 that was attained in January. Despite a slight recovery from the 37-month low, which was recorded on Jun 20, natural gas prices remain in the bearish territory amid growing fears that soaring production is outpacing demand growth. While the fundamentals of natural gas consumption continue to be favorable on growing demand for cleaner fuel, record high production in the United States and expectation of explosive growth through 2020 signify that supply will keep pace with demand. Therefore, prices are likely to trade sideways but for weather-driven movements.Although natural gas prices might experience a short-lived surge owing to positive weather forecasts, any powerful turnaround looks unlikely at the moment. In this context, we put the spotlight on two small-cap gas-weighted firms, namely Southwestern Energy Company SWN and Range Resources Corporation RRC. Markedly, both the stocks hit 52-week low in yesterday’s trading session. While Range Resources closed at $6.18, Southwestern hit a one-year low of $2.85 before closing a tad higher at $2.88. Since both the stocks currently carry a Zacks Rank #3 (Hold), it will be interesting to see which stock is better positioned in terms of fundamentals. Battle on the Bourses While both Southwestern Energy and Range Resources are struggling on the bourses, the latter has witnessed a steeper decline in stock price on a year-to-date basis. Both the companies have underperformed the broader industry’s growth of 4.8% so far this year. On a year-to-date basis, shares of Range Resources fell 35.4% while Southwestern stock declined 15.5%. Performance and Projections While both Southwestern Energy and Range Resources beat earnings and sales estimates in the last reported quarter, Southwestern Energy’s bottom line declined y/y, unlike Range Resources. Considering a more comprehensive earnings history, Southwestern Energy managed to surpass estimates in three out of the four trailing quarters, whereas Range Resources pulled off a positive earnings surprise in each of the last four quarters. Notably, in the last reported quarter, Range Resources’ production was 2,256 million cubic feet per day (MMcfe/d), whereas Southwestern Energy recorded an output of 1,994 MMcfe/d. Hence, Range Resources fares better in the output department. It expects full-year production in the band of 2,325-2,345 MMcfe/d, whereas Southwestern Energy anticipates output within 2,055-2,151 MMcfe/d. Even in terms of long-term growth expectations, Range Resources has an edge over Southwestern Energy. Per the Zacks model, the expected growth rate for Range Resources for the next three-five years is 11.20% compared with 9% for Southwestern Energy. Leverage and Liquidity While Range Resources carries a debt-to-capital ratio of 48.3%, Southwestern Energy has a leverage ratio of 43.6%. Resultantly, Southwestern Energy has an edge over Range Resources in this department. Southwestern Energy also displays better liquidity with a current ratio of 0.94, higher than Range Resources’ 0.58. FCFs and ROE In 2018, Southwestern Energy posted negative free cash flows (FCFs) of $25 million, while Range Resources recorded positive FCF of $80 million. However, in the last reported quarter, Southwestern Energy fared better in the FCF parameter, generating FCFs of $184 million versus $50 million by Range Resources. ROE — a measure of a company’s efficiency in utilizing shareholders’ funds — in the trailing 12 months for Southwestern Energy and Range Resources is 23.46% and 5.23%, respectively. Southwestern Energy clearly has an edge here, per our model. Valuation Range Resources and Southwestern Energy have respective EV/EBITDA ratio of 1.72 and 3.9. While both the companies are underpriced compared with the industry’s EV/EBITDA ratio of 7.09, clearly, Range Resources is the cheaper proposition in comparison. Bottom Line Our comparative analysis shows that Southwestern Energy is better placed than Range Resources when considering share price performance, financials and ROE. Range Resources, however, scores on long-term projections, earnings surprise history and valuation metrics. We prefer to remain on the sidelines for both the stocks and advise investors to hold the stocks for now, given their current Zacks Rank, overall natural gas fundamentals and seasonal nature. However, investors interested in the energy space can consider some better-ranked players like Approach Resources Inc. AREX and Plains Group Holdings, L.P. PAGP, each sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportSouthwestern Energy Company (SWN) : Free Stock Analysis ReportPlains Group Holdings, L.P. (PAGP) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportRange Resources Corporation (RRC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
A four-day week could save UK businesses £104bn per year The four-day week trend shows no sign of slowing down. Photo: Getty Adopting a four-day working week could save UK businesses more than £100bn per year, according to a new report from Henley Business School. A four-day working week — on full pay — could add to businesses’ bottom lines to the tune of £104bn annually, through increased staff productivity and improved health, Henley found in a report released Wednesday. Researchers estimate the four-day model has already saved implementing businesses about £92bn anually. READ MORE: Pros and cons of a four-day week The research also found this working style increased overall quality of life for employees, with over three quarters (78%) of implementing businesses saying staff were happier. Seven in 10 businesses said employees became less stressed (70%) and 62% said workers took fewer days off ill. Nearly two thirds (64%) of businesses that have already adopted a four-day working week reported improvements in staff productivity, according to the report. Almost two thirds (63%) of employers said providing a four-day working week has helped them attract and retain talent. READ MORE: Third of Brits would take pay cut to work four-day week Employees are not just more productive at the office. With an additional day off, two in five employees would use the time to up-skill or develop professional skills. A quarter said they would use their fifth day to volunteer. The four-day week trend shows no sign of slowing down, according to Henley. A third of business leaders (34%) — and nearly half (46%) of larger businesses — said a four-day working could be key to future business success, so we’re likely to see more trials and implementations in the coming years. The study shows UK workers are keen for this workplace shakeup, with nearly three quarters (72%) agreeing it’s an attractive proposition and would be a firm driver when picking an employer. READ MORE: Burnout, stress lead more companies to try a four-day work week This is particularly important for Generation Z — two thirds (67%) said it would help them make a decision on who to work for. Story continues The four-day week also demonstrates a positive impact on the environment, as employees estimate they would drive 557.8 million fewer miles per week on average, leading to fewer transport emissions. But despite the financial, environmental, and well-being advantages, nearly three quarters (73%) of employers revealed they are concerned about making the change to a four-day week. READ MORE: Would working fewer hours help tackle the climate crisis? Customer servicing — and the need to be available every day — were cited as the main barrier for a whopping 82% of firms. While the majority of workers would opt for a four-day working week, nearly half (45%) would worry about being perceived as lazy by co-workers. Over a third (35%) would be concerned if they had to hand over work to colleagues.
Is Qutoutiao Inc. (NASDAQ:QTT) Potentially Underrated? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 Qutoutiao Inc. (NASDAQ:QTT), it is a company with robust financial health as well as an optimistic future outlook. 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 Qutoutiao here. One reason why investors are attracted to QTT is its notable earnings growth potential in the near future of 73%. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. QTT's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that QTT manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at QTT's capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise. For Qutoutiao, there are three key aspects you should further research: 1. Historical Performance: What has QTT'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. 2. Valuation: What is QTT 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 QTT is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of QTT? 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.
Do Institutions Own Servotronics, Inc. (NYSEMKT:SVT) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to know who really controls Servotronics, Inc. (NYSEMKT:SVT), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of US$24m, Servotronics 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. Let's delve deeper into each type of owner, to discover more about SVT. See our latest analysis for Servotronics 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. Servotronics already has institutions on the share registry. Indeed, they own 11% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Servotronics's earnings history, below. Of course, the future is what really matters. Hedge funds don't have many shares in Servotronics. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar. 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. It seems insiders own a significant proportion of Servotronics, Inc.. It has a market capitalization of just US$24m, and insiders have US$5.5m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling. With a 28% ownership, the general public have some degree of sway over SVT. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. It seems that Private Companies own 17%, of the SVT stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. 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. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data. 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.
UPDATE 4-Trump 'very fond' of Palestine's Abbas, willing to engage on peace plan -Kushner (Adds Abbas comments) By Steve Holland and Ali Sawafta WASHINGTON/RAMALLAH, July 3 (Reuters) - White House senior adviser Jared Kushner said on Wednesday that U.S. President Donald Trump is fond of Palestinian President Mahmoud Abbas and willing to engage with him, but Abbas was cool to the gesture. In a conference call with reporters, Kushner said, "Our door is always open" to the Palestinians. The Palestinians have refused to talk to Kushner and other architects of a U.S. peace initiative unveiled at a Bahrain workshop last week. Kushner at the Manama conference outlined a $50 billion economic revival plan for the Palestinian territories, Jordan, Egypt and Lebanon that is dependent on Israel and the Palestinians reaching a political settlement to their decades-old conflict. Trump's proposals to settling the thorny political issues remain secret and are to be released later this year. There are doubts among Palestinians as to whether his plan will include the long-standing goal of a "two-state solution" - Israel and Palestine existing side by side in peace. "President Trump is very fond of President Abbas," Kushner, who is Trump's son-in-law, said. "He likes him very much personally. And at the right time if they’re willing to engage I believe that they’ll find that they’ll have an opportunity. Whether they will be willing to take that opportunity will be up to them." Abbas, asked about Kushner's remarks in Ramallah, said he would resume dialogue with the United States should the latter assert its recognition of the two-state solution and the right of Palestinian refugees to return. "You want a dialogue? If yes, then you need to recognize the two-state solution and that east Jerusalem is occupied and that the international legitimacy is the ground for any dialogue," Abbas said during an event at his Ramallah office in the Israeli-occupied West Bank. "Send me those words on a piece of paper and the next day I will show up at the White House. Otherwise, no," he said. "Therefore, we are not closing doors with the United States, we are keeping the door narrowly open. If they like it, they are welcome," he added. In comments likely to raise concerns among Palestinians, Kushner hinted that his peace plan might call on Palestinian refugees to settle where they are and not return to lands now in Israel. Whether the hundreds of thousands of refugees from the 1948 war of Israel's founding, who with their descendants now number around 5 million, would exercise a right of return has been among the thorniest issues in decades of difficult diplomacy. Israel has long ruled out any such influx as destabilizing, arguing that refugees should stay where they are or in a future Palestinian state. But prospects of such a state arising in the occupied West Bank and the Gaza Strip are themselves in doubt. Asked by a Lebanese reporter whether the United States hoped Arab countries hosting Palestinian refugees would accept them permanently in exchange for funding, Kushner declined to answer directly, saying the matter would be addressed later. But he suggested a comparison with Jews displaced from Middle Eastern countries in 1948, many of whom Israel took in. "Look, you have a situation when this whole thing started where you had 800,000 Jewish refugees that came out of all the different Middle Eastern countries and you had 800,000, roughly, Palestinian refugees," Kushner said. "And what's happened to the Israeli - to the Jewish - refugees, is they have been absorbed by different places whereas the Arab world has not absorbed a lot of these refugees over time. "I think that the people of Lebanon would love to see a resolution to this issue, one that is fair," he said. (Reporting by Steve Holland in Washington and Ali Sawafta in Ramallah; Additional reporting by Dan Williams in Jerusalem; editing by Bill Trott, Jonathan Oatis and Leslie Adler)
The Bank of Mom and Pop: The Benefits Afforded by Intrafamily Lending She's done all the right things: She's worked hard in school, earned an advanced degree and has laid the groundwork toward finding a job in a well-paying career. Impressive as this recent graduate's successes are, banks aren't in the habit of giving mortgages to the unemployed. So why not remove the bank from the equation? SEE ALSO: Smart Ways to Loan Money to Family Member A popular workaround when someone without enough cash on hand is looking to make a major purchase is an intrafamily loan, where a parent or other family member lends money in a formally structured agreement. These types of loans come without the hurdles of those offered by a bank, and there can be other tangible benefits as well, including lower interest rates, versatile payment options and estate planning opportunities related to how the loan is structured. These benefits come with the common drawbacks inherent to lending money -- no matter how closely related the parties are, there is always an element of risk -- but a well-rounded understanding of intrafamily lending can potentially provide significant upside for both parties. And oftentimes, intrafamily loans can make sense even when the recipient has a job that pays well or another source of income. Just helping out The types of loans implemented in intrafamily lending don't necessarily have to be in the family. In fact, anyone can lend to anyone, any amount, for any number of reasons, from an aunt helping a niece secure a new vehicle, to a friend helping another with capital to help start a business, to a grandparent establishing a trust to provide for a grandchild while moving assets outside their taxable estate. Smaller loans don't necessarily have to be structured the way a regular bank loan is. If the amount is small enough -- say, $10,000 from a parent to help pay off a child's vehicle -- the lender can simply transfer the funds and allow them to be qualified as a gift. Because the amount is below the $15,000 gift tax exclusion threshold for individuals ($30,000 for married couples) there would be no associated gift tax due, assuming that total gifts for the year do not exceed the annual exclusion. Story continues Carrying the full load A common, and more complicated, form of intrafamily lending is a mortgage. Let's say our overachieving-yet-cash-strapped grad wants to buy a $300,000 home. Unless she has already landed a good job and squirreled away enough savings for the down payment, the bank isn't likely to be interested in lending to her. But if her parents have the means, they can loan the child a portion of the mortgage, or the entire mortgage amount. With the guidance of their financial adviser and an attorney, the parents can construct a home loan with advantageous terms for their family -- one with no money down, no pre-approval, no credit check and no background check. The child is just getting a loan from the "Bank of Mom and Pop." Perhaps the best part of this arrangement is that the interest payments stay in the family and will likely come back to the borrower one day as part of their inheritance. But in the short-term, the interest rate they will be paying will not only be lower than those on mortgages from commercial banks -- it will be the lowest rate allowed by the IRS. As of July 2019, the compound annual applicable federal rate (AFR) is 2.13% for a short-term period (three years or less), 2.08% for mid-term loans (more than three years on up to nine years), or 2.50% for a longer term (more than nine years). See Also: Buying a Home Could be a Bad Career Move Crafting loans When drawing up a loan with your attorney, there are several key considerations and procedural steps to take. If the loan is a mortgage, the lender needs to create a promissory note and file the mortgage within their county to make it official. In this, intrafamily mortgages are different than other types of loans. Two of the most important factors when designing the loan is making sure it stays distinct from a gift. Lenders can do this by establishing it with an interest rate based on the current AFR and setting up an appropriate payment structure. Failure to do so may bring scrutiny from the IRS, leading to a potential penalty or a gift tax being imposed. And, just to be clear, the gift tax would be owed by the person who gave the gift, not the one who received it. Tips on structuring the loan: I typically recommend to my clients that they make their mortgages interest-only, with a balloon payment scheduled for the end of the loan's term. If at the end of the loan the lender wishes to refinance, they of course have the option to do so. Likewise, if the recipient is unable to keep the payment schedule, the lender may decide to forgive the interest at the end of each year. Again, the lender could use their annual gift tax exclusion to forgive the required payment without money being exchanged and the IRS would consider the payment "made." It's worth noting that for a loan recipient to pay down the principal, they are really just shifting cash back to the lender's estate, and they probably don't need the money if they've just lent the child hundreds of thousands of dollars. Another way to look at is it that the recipient of the loan is also likely going to inherit a portion of the lender's estate. So, they might they ask themselves, who will benefit more from the incremental cash they would apply to principal, the younger version of themselves just starting out, or the future version, who is more established in their career and is a beneficiary of the lender's estate? Intrafamily loans can provide families a simplified way to make complex purchases, with more flexibility and favorable terms compared with what they would get from a traditional bank. The key to making such a solution work is to align the structure of the loan with the financial means and goals of both parties, and to manage the note and all related payments and documentation in accordance with regulatory requirements. See Also: All in the Family Reverse Mortgages Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA . EDITOR'S PICKS 4 Ways to Teach Your Children Financial Responsibility Are You a Helicopter Parent, a Lawn Mower or Worse: A Payoff Parent? How to Live Frugally Without Skipping Starbucks Copyright 2019 The Kiplinger Washington Editors
Does D-BOX Technologies Inc.'s (TSE:DBO) CEO Salary Compare Well With Others? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Claude Mc Master became the CEO of D-BOX Technologies Inc. (TSE:DBO) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO. View our latest analysis for D-BOX Technologies At the time of writing our data says that D-BOX Technologies Inc. has a market cap of CA$26m, and is paying total annual CEO compensation of CA$767k. (This is based on the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$343k. We looked at a group of companies with market capitalizations under CA$262m, and the median CEO total compensation was CA$117k. As you can see, Claude Mc Master is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean D-BOX Technologies Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at D-BOX Technologies has changed from year to year. On average over the last three years, D-BOX Technologies Inc. has grown earnings per share (EPS) by 4.0% each year (using a line of best fit). It saw its revenue drop -3.7% over the last year. I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested inthisfreevisualization of analyst forecasts. With a three year total loss of 78%, D-BOX Technologies Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation. We compared the total CEO remuneration paid by D-BOX Technologies Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group. Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. So you may want tocheck if insiders are buying D-BOX Technologies shares with their own money (free access). Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Developers ask players to pirate games rather than buy from G2A, painting a thorny legal picture James Brightman,Wed, 03 Jul 2019 14:20:00 G2A, a controversial online key reseller, has beenin the news for years, primarily because small developers and indie publishers have alleged that the reseller is directlyenabling a grey marketfor game keys, costing game makers -- many of whom already struggle to stay afloat -- hundreds of thousands of dollars in lost revenues. The on again, off again battle with G2A has once more become heated as Mike Rose, founder of indie publisher No More Robots, directly requested that players actually pirate games rather than spend anything on game keys with G2A. Rose, in a series of tweets,pointed outthat G2A purchased some sponsored ads on Google and lamented that the G2A links will be the first thing anyone sees when searching for his label’s games. Not only that, but users cannot actually turn off the ads. He then made the bold statement: “Please, if you’re going to buy a game from G2A, just pirate it instead! Genuinely! Devs don’t see a penny either way, so we’d much rather G2A didn’t see money either.” Rage Squid, the developer behind the No More Robots-published Descenders, quickly backed up Rose’s comments on pirating,advising players to torrentthe title rather than pay for it on G2A. Vlambeer’s Rami Ismail showed his support as well,tweeting, "If you can't afford or don't want to buy our games full-price, please pirate them rather than buying them from a key reseller. These sites cost us so much potential dev time in customer service, investigating fake key requests, figuring out credit card chargebacks, and more." Raw Fury scout Callum Underwood emphasized to GameDaily over email that the indie publisher will absolutely not do business with G2A and he’s not opposed to players pirating games either if the alternative is giving G2A any money. G2A’s very existence is harming the entire indie development community, Underwood believes. “Honestly, I have a strong dislike for G2A's business practices. AsJim Sterlingsaid, ‘You, G2A, are shit.’ I understand why gamers and consumers want to pay less than the market rate for games, I genuinely do, but it doesn't mean I condone it,” Underwood said. “A lot of effort goes into pricing games, and a lot of assumptions are made - mostly that a certain number of people will like your game enough to want to buy it. Having G2A so prominently in the industry (they still sponsor some major streamers) means that those assumptions become more difficult to make. I can't speak for other indies, but for sure at Raw Fury we are not fans of G2A, and will not work with them. There is a very fine line between a game developer making profit off their game, and not. G2A makes that more difficult. “With that said, G2A exists, and so does piracy. Mike's initial comment that he would rather people pirate the game than buy G2A was a somewhat interesting view on the matter, but I have to say, I probably agree. I'd rather those people bought the game from a store, of course, but if they have no intention of ever giving Raw Fury or the developers we work with their money, then yes, I'd rather the money did not go towards a website that is outright hostile to the industry it resides within and claims to serve.” Tweets from Rose, Ismail and others shouldn’t be misconstrued as some wholehearted endorsement of piracy either, but as Underwood explained to us, G2A is capitalizing on the “easiest route” for gamers looking to get a bargain. “It is a lot easier to buy a key from G2A that was bought using a stolen card, than it is to download a cracked copy,” he noted. G2A and scammers profiting off of G2A's business model makes life challenging for PR agencies, as well. We spoke with Aidan Minter at Plan of Attack and he stressed that he sees "attempted key scams almost every week." It's become such a problem that Plan of Attack now keeps an active list of scammers. Minter has to make sure that clients are always up-to-date on who's doing what in order to "reduce that risk." "Normally, these are individuals posing as press in an attempt to get a review key in order for them to resell the key, which according to thelast article I read on Kotakuwas big business for some scammers," Minter told us. From a legal perspective, developers publicly saying it’s okay to commit a crime isn’t exactly a great move, but attorney Richard Hoeg of Hoeg Law told us that it’s unlikely to provoke legal action, either. “I think the risk of lawsuits for telling folks to pirate is ‘non zero,’ but remote,” Hoeg remarked to GameDaily. “Particularly if the individual or entity holds the entire copyright (they are a developer/publisher or publisher with full distribution rights) while they are technically encouraging a federal crime, it’s a crime which only hurts themselves, and, in any event, they always have the option to reduce the price to ‘free.’ I suppose an overzealous ‘rule of law’ type [attorney general] could try to make an example of them (‘we should not be encouraging the flouting of law’), but I think it very unlikely.” If G2A really wanted to further enrage the development community, the company could choose to sue some of the indies telling players not to buy from them. That, however, is not very likely either. “It’s possible [G2A] could come up with some type of ‘tortious interference’ (the developers are deliberately trying to destroy G2A’s ability to enter into contracts) or libel/slander claim if what they are doing is actually technically legal, but that too seems remote, primarily because it certainly seems that G2A likely wouldn’t want to go through any discovery process if they have any skeletons in their closet at all,” Hoeg added. But what about legal action in the reverse direction? If G2A is as bad as developers claim, would a group be able to get together to serve them with a class action? Ethan Jacobs, an IP rights lawyer with Holland Law, explained that there doesn’t seem to be enough evidence pointing towards G2A deliberately supporting illegal game key acquisitions. The fact is we just don’t know what portion of the keys being resold were gained originally through stolen credits cards or other nefarious means. “If G2A were intentionally acquiring keys they knew were stolen, that's different from just being a reseller,” Jacobs stressed. “It may be that indie developers and publishers are frustrated by their inability to use sales and geographical pricing to maximize profits that they would get from people otherwise buying at full price or in their home market. Grey market sales are a source of frustration for lots of different industries, and depending on who and where they are, different kinds of remedies to combat grey market sellers are available. “If an entity knew or was encouraging people to do things like use stolen credit cards to sell keys at far below what they could have bought them for, developers might have some kind of claim against them. Or the reseller could then be violating statutes that could be prosecuted and enforced by a government agency. The other problem is that keys acquired using stolen credit cards probably will be some part but not the bulk of a reseller’s inventory of keys, and so it will not be easy to establish how much the reseller is to blame for the fact that some of its inventory comes from these sources.” Hoeg largely agreed with this legal assessment. He cautioned that “there are likely to be a lot of contracts and contractual obligations flying around between developer/publisher/key purchaser/G2A, so every case would likely be different” and that could hinder any class formation. “The various companies are likely to be experiencing different damages for different reasons. If G2A is really working with folks to steal keys, there might be a criminal claim they could bring working with authorities, but you’d probably need the beginnings of a real case first. A bit of a catch 22 there,” he continued. It could be that Ismail is on to something with the cost to developers’ precious time. Hoeg added, “To my eye, that looks like the best vector for a damage claim, particularly if a developer/publisher spent a few months itemizing what it was spending to fix issues originating from G2A rather than others. Their recklessness, in other words, is costing the developers. I think you need to find a good forum to bring that claim though. Either way, it does look like a difficult case to make.” Consumers have not been very happy with G2A either, given the ‘F’ rating that the reseller has earned with theBetter Business Bureau. As one complaint on the BBB site states, “They sell grey market codes for games and gift cards. There's a chance your code is worthless, and you won't get a refund. Tried to file dispute, they take days to answer and give you the same answer that the code was provided and that's all.” G2A has been selling a kind of transaction insurance called G2A Shield for this very reason, although it should be noted that this Shield program is actually no longer available for purchase. Devolver Digital co-founder Nigel Lowrie didn’t hold back any punches, telling GameDaily that the very fact that G2A has been selling insurance should be cause for alarm. “The sheer idea that a store sells insurance to their own users because said store can’t guarantee the transaction is legit is extremely fucking shady,” Lowrie observed. At the end of the day, despite developers’ protestations, G2A is likely to continue its business, potentially to the detriment of some indies. “A discount key reseller’s business model is in effect in competition with the developers for capturing the profits from sales of the games, and so even if they're trying to comply with the law, developers aren't going to be happy... Nobody is excited to have a person reselling their product in a channel that they didn't intend, especially when it's at a discount from the price they intended to sell it at,” Jacobs commented. “The reseller and developer or publisher are in conflict whether there's legal claim or not. And I would expect that no matter how low the level of fraud goes, the developers are not going to be happy with their existence and they might look for technological or contractual or other ways to make the discount key reseller business model unattractive or impractical.” • 3 Research-Backed In-App Game Monetization Trends [Sponsored] • Netflix eyes Cuphead as latest video game web-series adaptation • Report: Mobile gaming makes up nearly 75 percent of global mobile revenue during first half of 2019 • Ongoing tariff battle may cause HP, Dell, and other hardware makers to leave China
7 tips for taking great July 4th fireworks photos on your smartphone LOS ANGELES Looking to nab some great smartphone shots of the July 4th fireworks Thursday night? Look no further than Burst Mode, the top pick in our annual rundown of tips and tricks to offer readers. Ready everyone? Let's run through them: Be all charged up and ready to go Most smartphones are nearly dead at nighttime, after a full day's use. So try and pick up get a second charge during dinner, or bring along an external battery pack, like a Mophie or Anker portable charger to the fireworks. They range from $50 to $100. Pick your spot and stick with it Any fireworks scene is likely to be quite crowded. Try to arrive early, and grab the best spot you can, ideally one with a wide view of the sky, sans distractions. Take some tests before deciding where to be. The many faces of a Trump accuser: Journalist. Beauty queen. Pioneer. This is E. Jean Carroll. What's in a name? Financial angst: My married name is driving me crazy. Here's why. The U.S. Capitol will be hosting its annual Fourth of July celebration. That Burst Mode we mentioned Recent iPhones and Samsung Galaxy phones have a cool, overlooked feature called Burst Mode, which allows you to hold your finger down on the shutter and shoot dozens (even hundreds) of photos in zippy succession. This frees you from worrying about having to snap the shutter at the perfect moment. This way you catch everything. Your phone will capture many images for you to choose from, and select what it deems is the one best. If you'd like to override the robot, you have that option as well. On the iPhone or Galaxy, click SELECT under the image, to see all the images and add the keepers by clicking the ones you want. And remember that you can't go burst mode all night long. Eventually, the camera will have to take a breath and have the memory catch up with you. So be prepared to take a pause if you use this approach. Video mode If impressing your friends on social media is the goal, nothing screams awesome photography like a short video of the display. Don't bore your audience with a 5- or 10-minute clip. Instead, wait for one burst to complete, then start recording, and end it after the burst. The beauty of this approach is you can upload it directly from the fireworks display on your phone, and if you love any of the shots, you can also take a screenshot to share. Story continues Panorama One of the coolest smartphone photography tricks is making use of Panorama mode, which lets you turn a wide angle shot into a super-wide masterpiece. What better time to go panorama than on the 4th of July, when the skies are alive with color? Remember that to make a great panorama, you don't need to go all 360 degrees. I like to shoot mini-panoramas, just enough to make the original wide shot a little wider, without asking my social media fans to have to put their fingers on the screen and flick the image from left to right. To make a great panorama, keep your feet firmly planted on the ground and don't move them, extending your body from left to right instead. Pick your first spot, put the camera into a vertical position, click record, move your body to get as much of the action in as you can, and then depress the shutter button. Check out your work by enlarging the preview from below. Look good? If not, try again, until you get it right. Add-on Lens Most iPhones and the Google Pixel have a single lens that's good for medium, wide and portraits. If you want to go wider without reaching for the Pano trick, many companies will happily sell you a wide angle lens that screws over the smartphone camera. Or, if you have the new Samsung Galaxy S10 phones, they come with three main lenses, a super wide, wide and portrait lens. Opt for ultra wide before shooting. A lens and a case (which you'll need to screw the lens over the phone) sells for $150. The popular Olloclip lenses are considerably cheaper, at $39.99, but not as high quality as the Moment lenses. Long Exposure My all-time favorite iPhone camera trick is a hidden feature called Long Exposure, and it can only be accessed if you shoot with Apple's Live Photos enabled. That's the tool that throws in a few seconds of video footage on top of your photo. These are fun to look at on the phone, but hard to share as regular .JPG photos on social media. To try this: After you snap the shot, swipe up on the image, and four Apple tricks become available to you, Live, Loop, Bounce and Long Exposure. Loop runs the video without stopping, while Bounce runs it forward and backward. Long Exposure brings a slow shutter, dreamy look to your image. I usually use it for shots of water, and the effect makes it appear like the water is flowing. Give it a try on the fireworks and see if you don't get long flowing streaks of colors on the edges of the fire display. The best thing about Long Exposure is that you're not stuck with it. Apply the tool, and if you like it, share it to Instagram or Facebook. If you don't like it, bring the photo back to normal and share it that way. Have questions about fireworks and photography? We're here to help. Ask away on Twitter, where I'm @jeffersongraham This article originally appeared on USA TODAY: 7 tips for taking great July 4th fireworks photos on your smartphone
Tesla shines amid US auto sales slump Auto salesslumped for mosttop carmakersin the second quarter of 2019, a sign that an international boom in purchasing is ending as the industry grapples with changing customer demand and increasingly stringent regulatory environments in countries around the globe. In the U.S., Fiat Chrysler,General MotorsandFordare locked in an intensifying battle over pickup sales, one of the biggest profit drivers for the so-called “Big Three.” Ford remains the leader with its powerhouse F-Series line, but GM ceded ground in June to Fiat Chrysler, whose Ram pickup truck outsold the Chevrolet Silverado by more than 40,000 units. Outside of the legacy firms, Tesla set new production and delivery records in the second quarter, a major achievement for the electric carmaker that has struggled to scale manufacturing operations. Overall, the firm delivered 95,200 cars, a 51 percent increase over the prior three months. The news sent Tesla shares surging in trading on Wall Street on Wednesday. Sales at Ford dropped 4.1 percent in the first quarter, despite pickup truck transactions growing 7.5 percent to over 324,000 units -- the best quarterly performance since 2004. Sales of sports utility vehicles at the Dearborn, Michigan-based company fell 8.6 percent, while passenger car sales fell 21.4 percent. At GM, sales dropped 1.5 percent in the three months through June amid a sharp decline in demand for sedans like the Chevrolet Malibu and Cruze, which the Detroit-based firm ended production of earlier this year. And while sales of the Silverado dropped nearly 16 percent, those declines were offset by higher sales of sports utility vehicles like the Acadia. Sales at Chrysler rose 2 percent last month to roughly 206,000 units, largely due to a 56 percent jump in sales of the Ram pickup. Still, Jeep brand sales slowed by 8 percent and minivan sales fell 27 percent. "This is now the third month Ram pickup sales have surpassed 60,000 since December. Our dealers had a steady stream of customers all month long,” head of U.S. sales Reid Bigland said in a statement. CLICK HERE TO GET THE FOX BUSINESS APP Outside of the Detroit companies, sales at Toyota Motor fell 3.5 percent in June, Nissan Motor’s sales fell 15 percent and Hyundai Motor sales rose 1.5 percent. Related Articles • Best Buy Celebrates 50 Yrs With Saleathon; Will It Turn 60? • Canadian Solar Is Facing More Challenges Than It Appears • Target Adds Private Bathrooms to Quell Transgender Debate
New FaceTime feature forces you to make eye contact FaceTime and other forms of video calling are already inherently weird, but Apple seems committed to making it as uncomfortable as possible. Apple is running an iOS 13 beta ahead of the big update's launch later this year and one new feature made waves on Twitter on Tuesday. "FaceTime Attention Correction" promises to make your eye contact "more accurate" during video calls, according to the menu settingspotted byapp designer Mike Rundle. What exactly does that mean? Well, if you turn that feature on, FaceTime will make it look like you're making eye contact with the other person on the call even when you're not. If you like terrifying things that arguably shouldn't exist, here's a visual example of the feature in action.Read more... More aboutApple,Iphone,Ios,Facetime, andIos 13
What Does IntriCon Corporation's (NASDAQ:IIN) Share Price Indicate? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! IntriCon Corporation (NASDAQ:IIN), which is in the medical equipment business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGM over the last few months, increasing to $27.86 at one point, and dropping to the lows of $21.9. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether IntriCon's current trading price of $23.64 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at IntriCon’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for IntriCon Good news, investors! IntriCon is still a bargain right now. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 34.24x is currently well-below the industry average of 42x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, IntriCon’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for IntriCon. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder?Since IIN is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor?If you’ve been keeping an eye on IIN for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IIN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on IntriCon. You can find everything you need to know about IntriCon inthe latest infographic research report. If you are no longer interested in IntriCon, 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.
Is It Time to Buy Nvidia Stock? [Editor’s Note:Dividend information in this article was corrected on July 5, 2019.] The stock chart ofNvidia(NASDAQ:NVDA) over the last year has been nothing if not scary. Source: Shutterstock As recently as last September,Nvidia stock price was over $280. After the tech wreck, a long, grinding slog brought NVDA back to $190. After another fall in May (thanks to President Trump), Nvidia stock price has declined to $162. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With a market cap of $99 billion, Nvidia is back to trading at 30 times its earnings and about nine times its revenue, and analysts are starting to once more pound the table for it. Wedbushanalyst Matthew Bryson is among the bulls on NVDA. He recently putan “outperform” ratingon Nvidia stock, praising its pending$6.9 billionacquisition ofMellanox(NASDAQ:MLNX). So, is it time to buy NVDA? Any long-term analysis of technology trends indicates that Nvidia’s best days are ahead of it. • 10 Stocks That Should Be Every Young Investor's First Choice Gaming keeps growing, and Nvidiaremains the leader of the gaming-chip sector.NVDA is stillat the heart of autonomous drivingandadvanced robotics. Nvidia was able to build an artificial-intelligence supercomputerin just three weeks, mainly using its own resources. Nvidia does face new competition in AI, but those competitors are operating in niches. Its growing software ecosystem gives it a complete machine-learning offering that competitorscan’t match.Its future in the cloud seems secure. That lead should expand as NVDA begins supportingSoftbank’s(OTCMKTS:SFTBY) ARM architecture, which competes directly withIntel(NASDAQ:INTC),in high-performance computing.Right now 22 of 39 analysts following Nvidia stocksay thatinvestors should buy it. As a result of these trends, many people have started calling NVDAa “no-brainer”investment again. Thetechnical indicatorsof Nvidia stock going into earnings, due to be reported on Aug. 15, are positive. NVDA has beaten analysts’ average earnings estimates for the last two quarters. If the chip slump really is ending, Nvidia looks very well-positioned. Analysts are bullish on NVDA because they expect the growth of the chip sector to resume. There are still those who are bearish on NVDA because they fear that the chip slump could return or that Nvidia’s competitors could reduce its dominance. That is good. It creates a “wall of worry” that acts as friction to a rising stock price. It’s better, in a way, than having analysts compete to see who can praise the stock more. Some analysts believe that a cyclical recoveryis already pricedinto Nvidia stock. Others worry that its continuing dependence on China, from which it derives 44% of its revenues, leave itone tweet away from disaster. Finally, guidance from Nvidia’s management has beencautious. The bears’ beliefs appear to be based on short-term thinking. For young investors with money to put to work, whether the slump ends this quarter or next isn’t nearly as important as how long a recovery might last and where its peak might be. Trading may be based on tweets, but investing should be based on fundamentals. As I have written before, not every stock is right for every investor. NVDA is the kind of stock you should buy if you look good in a leather jacket. Its dividend yield is around 0.4%. The revolution it’s enabling lies ahead. The chip industry remains subject to booms and busts. If you might need your money tomorrow, or you need income from your investments, NVDA is not the stock for you. Younger investors seeking long-term capital gains, however, should buy NVDA stock now. Dana Blankenhornis a financial and technology journalist. He is the author of the mystery thriller,The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him atdanablankenhorn@gmail.comor follow him on Twitter at@danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. • 2 Toxic Pot Stocks You Should Avoid • 10 Stocks That Should Be Every Young Investor's First Choice • 5 IPO Stocks to Buy -- According to Wall Street Analysts • The Top 10 Best Sectors in the Market for 2019 The postIs It Time to Buy Nvidia Stock?appeared first onInvestorPlace.
Noel Gallagher accuses brother Liam Gallagher of intimidating women Liam Gallagher pokes out his tongue as he performs on the Pyramid Stage at Glastonbury 2019 (Photo by Grant Pollard/Invision/AP) Noel Gallagher has called out brother Liam for sending threatening messages to his teenage daughter. The former Oasis rocker shared a text message purportedly sent by his young brother to his 19-year-old daughter Anais Gallagher saying: Tell you step Mam to be very careful. The message refers to an Instagram post by Noels wife Sara McDonald saying she did not plan to watch Liam perform at Glastonbury and calling him a fat tt tribute act who appeared pretty dated. (Credit: Noel Gallagher/Twitter) Noel, 52, wrote on Twitter: So youre sending threatening messages via my teenage daughter now are you? You always were good at threatening women though eh? What you planning on doing anyway? Read more: Noel Gallagher: Voting to leave the EU was nonsensical Noel Gallagher with his daughter Anais Gallagher in 2015 (Photo by Anthony Harvey/Getty Images) Grabbing my wife by the throat to show her whos boss... or maybe trying to waddle through our double gates and performing Swave in the communal garden or daubing your w*k lyrics on the toilet walls? He then goes on to joke about Liam attacking one of the family pets and hiring TV hardman Ross Kemp to protect them. (Credit: Noel Gallagher/Twitter) Noel is seemingly referring to a video that emerged last year of Liam grabbing his girlfriend Debbie Gwyther by the throat during a row in a nightclub that was caught in CCTV. Read more: Liam Gallagher suffering from arthritis Noel and Liam, 46, fell out during a backstage fight at a festival in Paris in August 2009. Noel quit Oasis and the brothers are not thought to have spoken since. Their public war of words has raged on ever since. View comments
NVIDIA (NVDA) Pushes the Limits in Gaming With RTX SUPER GPUs NVIDIANVDA recently launched Turing-based gaming cards — GeForce RTX 2060 SUPER, GeForce RTX 2070 SUPER and GeForce RTX 2080 SUPER — to make real-time ray tracing more accessible. The GPUs are expected to deliver up to 25% faster performance than the current versions. The company stated that RTX 2060 Super and RTX 2070 Super cards will be launched on Jul 9 while RTX 2080 Super card on Jul 23. The launch of the latest gaming GPUs is expected to help NVIDIA expand its customer base and drive additional revenues. Moreover, the company’s well-timed move is likely to strengthen its competitive edge against the likes of Advanced Micro Devices AMD, which is launching Radeon 5700 XT gaming card in July. Real-Time Ray Tracing: A Game Changer NVIDIA’s Turing GPU and its real-time ray tracing technology are witnessing a massive adoption. The company had earlier announced that more than 20 partners including Adobe, Autodesk, Dassault Systèmes, Pixar, Siemens, Unity, Unreal and Weta Digital et al support its RTX platform. The rising momentum in the games backing the ray-tracing feature is a positive. Further, to propel a wider uptake, NVIDIA enabled ray tracing backup to several GeForce GTX GPUs, which is likely to lend developers a large installed base of gamers. The company is also benefiting from the adoption of real-time ray tracing in the professional visualization markets. Reportedly, RTX has been welcomed by more than 80% of film studios and 3D application providers. NVIDIA Banks on Gaming Business NVIDIA has always generated substantial revenues from its cards because of the significantly higher functionality. However, it has been hit by a deteriorating trend in its gaming business over the last few quarters. Reduction of GPU channel inventory following tepid demand from crypto miners is a persistent overhang. However, the company is gaining traction from the growing sales of Turing-powered GPUs. To this end, the launch of mid-range GeForce products is a tailwind. In fact, strong demand for the gaming laptop is an upside for the company. Per a Newzoo report, the gaming market is projected to reach $174 billion by 2021 from $134.9 billion estimated in 2018. Additionally, per IDC data as confirmed by DisplayDaily, worldwide market for gaming desktops, monitors and notebooks is projected to grow 8.2% on a year-over-year basis and touch the figure of 42.1 million devices to be shipped in 2019. Notably, growth in the gaming hardware market is bumping up demand for graphics processors as well. Per Allied Market Research, the GPU market is anticipated to scale $157.1 billion by 2022 at a CAGR of 35.6% from 2016 to 2022. We therefore believe that the product ramp-up will stimulate NVIDIA’s growth prospects and leverage its competitive position in the graphics market. NVIDIA Corporation Revenue (TTM) NVIDIA Corporation revenue-ttm \| NVIDIA Corporation Quote Zacks Rank & Stocks to Consider NVIDIA currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Rosetta Stone RST and j2 Global JCOM, each flaunting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here. Long-term earnings growth rate for Rosetta Stone and j2 Global is currently projected at 12.5% and 8%, respectively. The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >> 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 reportj2 Global, Inc. (JCOM) : Free Stock Analysis ReportRosetta Stone (RST) : Free Stock Analysis ReportAdvanced Micro Devices, Inc. (AMD) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Here's Why I Think Sensient Technologies (NYSE:SXT) Might Deserve Your Attention Today Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy. So if you're like me, you might be more interested in profitable, growing companies, likeSensient Technologies(NYSE:SXT). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath. View our latest analysis for Sensient Technologies As one of my mentors once told me, share price follows earnings per share (EPS). That makes EPS growth an attractive quality for any company. Sensient Technologies managed to grow EPS by 15% per year, over three years. That's a pretty good rate, if the company can sustain it. 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. Sensient Technologies reported flat revenue and EBIT margins over the last year. That's not a major concern but nor does it point to the long term growth we like to see. The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart. Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Sensient Technologies. Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don't always get it right. Over the last 12 months Sensient Technologies insiders spent US$167k more buying shares than they received from selling them. Although I don't particularly like to see selling, the fact that they put more capital in, than they extracted, is a positive in my mind. It is also worth noting that it was Director Deborah McKeithan-Gebhardt who made the biggest single purchase, worth US$128k, paying US$64.02 per share. On top of the insider buying, it's good to see that Sensient Technologies insiders have a valuable investment in the business. To be specific, they have US$32m worth of shares. That's a lot of money, and no small incentive to work hard. Even though that's only about 1.0% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders. While insiders are apparently happy to hold and accumulate shares, that is just part of the pretty picture. The cherry on top is that the CEO, Paul Manning is paid comparatively modestly to CEOs at similar sized companies. I discovered that the median total compensation for the CEOs of companies like Sensient Technologies with market caps between US$2.0b and US$6.4b is about US$5.2m. Sensient Technologies offered total compensation worth US$4.6m to its CEO in the year to December 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense. One important encouraging feature of Sensient Technologies is that it is growing profits. On top of that, we've seen insiders buying shareseven though they already own plenty. That makes the company a prime candidate for my watchlist - and arguably a research priority. Once you've identified a business you like, the next step is to consider what you think it's worth. And right now is your chance to view our exclusivediscounted cashflow valuationof Sensient Technologies. You might benefit from giving it a glance today. As a growth investor I do like to see insider buying. But Sensient Technologies isn't the only one. You can see aa free list of them here. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
U.S. factory orders fall for second straight month WASHINGTON, July - New orders for U.S.-made goods fell for a second straight month May while shipments barely rose, pointing to continued weakness in manufacturing. Factory goods orders decreased 0.7%, weighed down by weak demand for transportation equipment, the Commerce Department said on Wednesday. Data for April was revised sharply down to show factory orders falling 1.2% instead of slipping 0.8% as previously reported. Economists polled by Reuters had forecast factory orders falling 0.5% in May. Factory orders rose 0.9% compared to May 2018. Manufacturing, which accounts for about 12% of the economy, is struggling amid an inventory bloat, trade tensions between the United States and China, and a reduction in the production of Boeing's 737 MAX aircraft. The weak factory orders data was flagged by a report last month showing the second straight monthly drop in demand for long-lasting manufactured goods in April, as well as a drop in manufacturing production. A survey on Monday showed a measure of national factory activity dropped to a near three-year low in June, with manufacturers expressing concern over the U.S.-China trade tensions. Transportation equipment orders dropped 4.6% in May after tumbling 7.6% in April. Orders for civilian aircraft and parts declined 28.2%. There were increases in order for computers and electronic products and machinery. The Commerce Department also said May orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, rose 0.5% instead of the 0.4% gain reported last month. Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, increased 0.6% in May instead of 0.7% as previously reported. Overall shipments of manufactured goods edged up 0.1% in May after dropping 0.6% in April. (Reporting by Lucia Mutikani; Editing by Andrea Ricci)
You Have To Love Skyworks Solutions, Inc.'s (NASDAQ:SWKS) Dividend Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Skyworks Solutions, Inc. (NASDAQ:SWKS) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. Investors might not know much about Skyworks Solutions's dividend prospects, even though it has been paying dividends for the last five years and offers a 1.9% yield. A 1.9% yield is not inspiring, but the longer payment history has some appeal. The company also bought back stock equivalent to around 6.3% of market capitalisation this year. Some simple analysis can reduce the risk of holding Skyworks Solutions for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on Skyworks Solutions! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Skyworks Solutions paid out 24% of its profit as dividends. Given the low payout ratio, it is hard to envision the dividend coming under threat, barring a catastrophe. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Of the free cash flow it generated last year, Skyworks Solutions paid out 39% as dividends, suggesting the dividend is affordable. 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. Remember, you can always get a snapshot of Skyworks Solutions's latest financial position,by checking our visualisation of its financial health. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Looking at the data, we can see that Skyworks Solutions has been paying a dividend for the past five years. During the past five-year period, the first annual payment was US$0.44 in 2014, compared to US$1.52 last year. Dividends per share have grown at approximately 28% per year over this time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Skyworks Solutions has grown its earnings per share at 32% per annum over the past five years. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, we like that Skyworks Solutions has low and conservative payout ratios. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. Skyworks Solutions performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect. Earnings growth generally bodes well for the future value of company dividend payments. See if the 24 Skyworks Solutions analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
A Fire Engulfs Top Secret Russian Submarine, Killing 14 Sailors Photo credit: Yuri Smityuk - Getty Images From Popular Mechanics On July 1, a fire onboard a secretive Russian nuclear submarine killed 14 sailors before it was extinguished. The sailors were assigned to the Losharik , a small nuclear-powered submarine that is alleged to conduct underwater espionage activities. The cause of the fire is not known at this time. The incident took place in Russian territorial waters north of the Arctic Circle. According to Russian state media the Losharik was engaged in “biometric research activities” when the fire broke out. TASS quoted the Russian Ministry of Defense, stating, “On July 1, in the Russian territorial waters on a research deep-water apparatus designed to study the bottom space and the bottom of the World Ocean in the interests of the Russian Navy, a fire occurred during bathymetric measurements.” Photo credit: H.I. Sutton/Covert Shores The incident reportedly killed 14 Russian Navy sailors and injured more, with reports suggesting that the sailors sacrificed themselves to put the fire out. On Russian television, President Vladimir Putin revealed that seven of the deceased were captains first rank, and two were awarded the distinction “Heroes of Russia” in the past. That’s an unusually high concentration of decorated officers. A conflicting report on Twitter claims that the fire took place not on Losharik itself but the mother submarine that carries, it Podmoskovye . Podmoskovye is a modified ballistic missile submarine designed to carry smaller special mission-engineering (read: spy submarines) like Losharik to operational areas. Losharik (AS-12) is a deep diving special mission/engineering submarine (aka a spy submarine). According to submarine authority H.I. Sutton, Losharik entered service in 1997, displaces less than 1,000 tons (the U.S. Navy’s newest Virginia -class attack submarines 7,800 tons), and is about 230 feet long, 23 feet wide, and typically has a crew of 25. She is powered by a single 5-megawatt nuclear reactor. The sub is named after a Russian cartoon horse made up of juggling balls, and the name is a play on the fact that the submarine is internally made up of up to seven interlinked high pressure orbs. Each orb is designed to provide protection from the extreme pressures of deep sea diving. Sutton believes this gives Losharik the ability to dive to depths up to 1,000 meters (3,280 feet). Story continues Photo credit: H.I. Sutton/Covert Shores Losharik is designed to operate on the ocean floor, front-mounted flood lights, remotely operated arms for manipulated equipment, and retractable ski feet for sitting on the seabed. Although described as a scientific research submarine, she is assigned to the Main Directorate for Deep Sea Research, known by its Russian acronym GUGI. The submarine is considered highly classified and the only known photo appeared in the Russian magazine version of Top Gear , when it accidentally sailed into a camera shot . According to The Barents Observer GUGI reports directly to the General Staff of the Armed Forces and GUGI’s fleet of nine submarines frequently depart on “special missions”. “Little is known about the nature of those voyages,” The Barents Observer writes, “except reports of significantly increased activity along subsea cables which carry global electronic communication.” In addition to eavesdropping, The Barents Observer claims submarines like Losharik can “bring - or remove - other small installations and devices for military purposes to be placed on the sea floor. In the Arctic, or at other locations important for the Russian navy. Such devices can be noice-makers to distract foreign submarines when Russian submarines sail out from the Kola Peninsula to the North Atlantic. Other listening devices can detect sounds made by the propellers of enemy ships. The submarine can launch and recover unmanned subsea vehicles.” Photo credit: H.I. Sutton/Covert Shores The fire was the deadliest submarine accident since the loss of the Argentine submarine ARA San Juan in 2017, which killed 44 sailors. It’s the worst Russian submarine accident since 2008, when the submarine K-152 Nerpa was damaged and 20 killed after an “unsanctioned activation of the boat’s fire extinguishing system. According to official reports Lo sharik is now in Severomorsk, the headquarters of the Russian Fleet. Unofficially on Twitter, it is reported to be at Gadzhiyevo . ('You Might Also Like',) This Device Can Send Messages Without Cell Service The Best Portable BBQ Grills for Cooking Anywhere The Best Video Game the Year You Were Born
Why Tesla Stock Jumped Wednesday Shares ofTesla(NASDAQ: TSLA)jumped on Wednesday morning, rising as much as 7.6%. As of 9:40 a.m., the stock was up about 5%. The gain in the electric-car maker's shares follows Tesla's quarterly update on vehicle deliveries and production Tuesday afternoon. Prompting the Street's upbeat response to the news, deliveries for the quarter were better than expected. Image source: Tesla. The automakerdelivered a record 95,200 vehiclesduring its second quarter, up from about 63,000 units in the prior quarter and 40,800 in the year-ago quarter. Tesla also said it "made significant progress streamlining our global logistics and delivery operations at higher volumes, enabling cost efficiencies and improvements to our working capital position." Higher deliveries during the quarter were primarily due to a huge jump in Model 3 production. Tesla produced 72,531 Model 3 vehicles, up from 28,578 units in the year-ago quarter. Tesla also provided promising news on the demand for its vehicles. "Orders generated during the quarter exceeded our deliveries," the company said. For the full year, Tesla is aiming to grow total vehicle deliveries 45% to 65% year over year. A 134% year-over-year increase in second-quarter deliveries makes achieving this full-year outlook seem more likely. More From The Motley Fool • 10 Best Stocks to Buy Today Daniel Sparksowns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has adisclosure policy.
Read This Before Judging inTEST Corporation's (NYSEMKT:INTT) ROE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine inTEST Corporation (NYSEMKT:INTT), by way of a worked example. Our data showsinTEST has a return on equity of 8.6%for the last year. That means that for every $1 worth of shareholders' equity, it generated $0.086 in profit. View our latest analysis for inTEST Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for inTEST: 8.6% = US$3.8m ÷ US$44m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. That means it can be interesting to compare the ROE of different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, inTEST has a lower ROE than the average (14%) in the Semiconductor industry. That certainly isn't ideal. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Nonetheless, it could be useful todouble-check if insiders have sold shares recently. Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Shareholders will be pleased to learn that inTEST has not one iota of net debt! So although its ROE isn't that impressive, we shouldn't judge it harshly on that metric, because it didn't use debt. After all, with cash on the balance sheet, a company has a lot more optionality in good times and bad. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreereport on analyst forecasts for the company. Of courseinTEST 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.
Why Jack Reynor Gets Fully Naked in Ari Aster’s ‘Midsommar’ Click here to read the full article. “ Midsommar ” isn’t your typical summer thriller. “It’s a horror movie, among other things” says Jack Reynor , who stars in “Hereditary” director Ari Aster ’s sophomore feature. “ Midsommar ” follows a group of friends who travel from New York City to the Swedish countryside for a once-in-every-90-years celebration that involves drugs, sex and ritual killings. Related stories 'Midsommar' Director Ari Aster on How a Bad Breakup Inspired His Horror Movie Can 'Spider-Man: Far From Home' Rescue Lagging Summer Box Office? 'Broad City' Stars Ilana Glazer and Abbi Jacobson Are Still Going to Work Together: 'Don't You Worry' Reynor plays Christian, a PhD student who is on the verge of breaking up with his girlfriend (played by Florence Pugh). After she experiences a horrifying loss, he reluctantly invites her on the excursion to Sweden. “It’s a breakup movie. It’s a folk horror movie,” Reynor says. “There’s a lot going on it.” There certainly is. The 27-year-old actor sat down in New York City for this week’s episode of “ The Big Ticket ,” Variety and iHeart’s movie podcast. [ WARNING : This conversation includes a few spoilers because “Midsommar” is not the kind of film you can discuss without revealing key details.] “Midsommar” is very bright — literally,” Reynor describes of the folk horror film. “Sun-filled fields of grass are punctuated by villagers dressed in all-white flowing hippie attire with flower details. All the terror in the film happens in broad daylight. That’s a testament to the skill of the filmmaker to be able to find that depth of darkness in blistering sunlight.” He hadn’t seen “Hereditary” when he signed on for the movie, but after reading Aster’s “Midsommar” script, Reynor said, “This is something that isn’t really getting made.” He continued, “This is an opportunity to do something that’s unique. None of the camera direction or any of that was written into the script so when [Ari] spoke to me about it in person, I understood what his vision was for, how he was going to execute it visually, there was no way that I could’ve said no to doing it.” Story continues And then there’s Reynor’s full frontal sex scene. “I was advocating for as much full frontal as possible,” he said. “I felt like it was really important. When I read the script, I saw an opportunity to take a character who exhibits a lot of archetypal male characteristics — like male toxicity — who has all of the stuff stripped away from him through the course of the film and then ultimately finds himself in this situation which is kind of the ultimate humiliation…It was always intentional to have the full frontal. That was what Ari wanted to do. But I was really saying, ‘We got to do as much of this as possible.’” Said scene isn’t a sexy bedroom romp. Instead it’s a twisted mating ritual between Reynor and one of the villagers that includes a chorus of naked women of all shapes, sizes and ages cheering them on, including an elder who helps Reynor along by grabbing and pushing on his bare buttocks. Reynor’s bewildered looks when he realizes what is happening while continuing to partake makes the scenario even weirder. “It’s interesting to see it with an audience because particularly when that kind of facial expression emerges, half of the audience will burst into laughter. Like a nervous laughter, but laughter nonetheless,” Reynor said. “And half of them turn around and they’re looking at people like, ‘What the f— are these people laughing about?’” Next up for Reynor, who was born in the U.S. but raised in Ireland, is the premiere of his writing and directorial debut, “Bainne” a ghost story short that takes places in the 19th century during Ireland’s Great Famine. “I’m really proud of it,” Reynor said. “It was my first opportunity to really get behind the camera and to design my own shot list, to think about the composition of a frame and everything that I could use within it to say something.” Reynor definitely has things to say about filmmaking. So much so that he started an Instagram page, @jrcinemania, in April dedicated to the art. “As a bit of an experiment I’m going to be putting up posts here once or twice a week and writing a little about films as I see them and also about some of my personal favourites,” he wrote in his first post. “The idea is to get a conversation going with fans of cinema and hopefully in the not too distant future I’ll begin to do some podcasts featuring interviews with people in the industry. All questions and comments relative to cinema are welcome!” Let the “Midsommar” questions and comments begin. Listen to the full interview “Big Ticket” interview with Reynor below. “ The Big Ticket ” can be found at iHeartRadio or wherever you listen to your favorite podcasts. Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Here’s Where You Buy Qualcomm Stock While one truce has been declared andQualcomm(NASDAQ:QCOM) stands to be a major beneficiary, on the QCOM stock price chart, it’s time for bulls to stand their ground and wait for better prices. Let me explain. Source: Shutterstock The week literally and figuratively started off on a high note for QCOM stock. Shares of Qualcomm opened up 6% out of the gate Monday following this weekend’s negotiated tariff truce between the U.S. and China. Importantly, sanctions against China’sHuaweiwill also be eased. Yet, by the close of trade, QCOM’s intraday gains were limited to just 1.92%. So, what went wrong with the rally in QCOM stock and semiconductor peers likeIntel(NASDAQ:INTC) andBroadcom(NASDAQ:AVGO) which also have substantial exposure to China and Huawei? On closer inspection, investors are approaching the truce and what it means for these stocks, more skeptically. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Bottom line, trade talks have been known to collapse. As well, even if an actual and full-blown trade deal is reached, most experts are in agreement that a resolution will be a long time coming. Wall Street is alsoquestioning how the eased banwith Huawei might actually play out given the U.S. government’s efforts to protect its homegrown technologies. The good news is with so much uncertainty still in the mix, there’s always the QCOM stock chart to look at for clues. This past spring, QCOM stock forged ahead with a decidedly bullish change of character. Prior, shares had been channeling lethargically higher for a couple years when a legal win againstApple(NASDAQ:AAPL) sent Qualcomm stock rocketing above multiple layers of resistance. As quickly, a move by the Justice Department looking into Qualcomm’s business practices and May’s ubiquitous market correction sent QCOM stock plummeting. But shares managed to find a meaningful low without reverting back to its former ways. May’s hammer pattern bottom found support from the 62% retracement level and prior congestion highs from October 2016 to February 2018. In our view that’s bullish for QCOM. However, I wouldn’t be a buyer of shares today. Since establishing its technical low, shares of QCOM stock have rallied smartly, but they’ve also moved very quickly. And following Monday’s exhaustion-style bid which tested the 62% retracement level from the Apple-induced high to May’s low, Qualcomm looks ripe for a pullback. My recommendation is to put Qualcomm on the watch list for purchasing below $75. My best guesstimate is for a low to form in an area from roughly $71-$75. This zone is backed by QCOM stock’s January 2000 all-time-highs and last September’s brief penetration of that price level. And closer to the action, a welcome pullback of this magnitude would roughly retrace 38% to 62% of Qualcomm’s latest rally and test prior channel resistance for support. Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual.For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter@Options_CATandStockTwits. • 2 Toxic Pot Stocks You Should Avoid • 10 Stocks That Should Be Every Young Investor's First Choice • 5 IPO Stocks to Buy -- According to Wall Street Analysts • The Top 10 Best Sectors in the Market for 2019 The postHereâ€™s Where You Buy Qualcomm Stockappeared first onInvestorPlace.
3 Top Mid-Cap Stocks to Buy Right Now Like the awkward age between youth and adult, mid-cap stocks are caught between the excitement of their small-cap brethren and the potential they represent, and large caps with their time-tested support and security. Yet there are still lots of mid-cap stocks that can give investors plenty growth along with the relative safety of market acceptance.iRobot(NASDAQ: IRBT),Upwork(NASDAQ: UPWK), andBoyd Gaming(NYSE: BYD)are three such stocks that can give investors the best of both worlds. Image source: Getty Images. John Bromels(iRobot):The stock market recently battered shares of robotic vacuum maker iRobot to the point that it almost fell out of mid-cap range and into small-cap territory. The reason for the stock's 30% haircut was aworse-than-expectedQ1 2019. However, much of the news from the companywasn't all that bad. In Q1, revenue grew by 9% year over year to $237.7 million, but the company's operating expenses grew by almost as much: 7%. However, there's a very good reason for iRobot's increased expenses. The company is developing a robotic lawn mower called the Terra t7 and another new as-yet-unnamed device for release later this year. These will join the company's new high-end vacuum, the Roomba s9+, and its new robotic mop, the Braava jet m6, both of which were released in May. With smart-home systems becoming more and more widespread, the demand for smart-home-compatible devices like iRobot's latest models should increase exponentially. While iRobot has a dominant share of the robotic vacuum market, it -- and robotic vacuums in general -- controls less than 25% of the high-end vacuum market. Put together, this adds up to a lot of opportunity for iRobot, regardless of whether a single quarter measures up to Wall Street's expectations. With the stock now trading at a 30% discount to its recent 2019 highs, now is a fantastic time to consider picking up some shares. Jamal Carnette, CFA(Upwork):After exploding 40% on its IPO day, shares of the freelancer-employment platform now trade near their $15 IPO price, giving investors another bite at the apple. Upwork's sell-off was primarily on account of the company'sfirst-quarter earnings: Despite beating on both the top and bottom lines, the company's forward guidancefell slightly shortof Wall Street's expectations. Despite the temporary setback, Upwork's long-term drivers remain in place. While concerns that America is becoming a gig-only economy (contractors, temps, etc.) appear to be overstated as only 10% depend on gigs as their primary income, a study from Cornell University and Aspen Institute found that approximately 30% of our workforce participates in a gig-employment arrangement. The remainder do so in addition to their primary jobs, or to use millennial parlance, as a "side hustle." Whether it's supporting workers who depend on gigs as their primary job or those side hustling for extra income, Upwork is well-situated to take advantage of this growing trend. As the largest freelancing website, Upwork'snetwork effectswill keep both employers and job-hunters on its platform. Long-term investors should embrace the opportunity to profit from this big trend in employment. Rich Duprey(Boyd Gaming):Premier regional gaming operator Boyd Gaming has seen its stock wobble as concerns about the strength of the gambling market have risen. Although its own earningsmet expectationsin April, the results of peerPenn National Gamingthe following month got investors unsettled, but Boyd seems ready to prosper. Although it operates nine casinos in Las Vegas, its off-strip locations catering to locals (it also has three facilities in downtown Las Vegas) are benefiting from much stronger support. It also has casinos in nine other states, giving it broad geographic diversity that's been bolstered by its growth-by-acquisition strategy; only one of its properties didn't see growth in the quarter. Boyd has also had one of the biggest sportsbook operations in Nevada, and through its partnership with FanDuel, one of the biggest sportsbooks in New Jersey, which just surpassed Nevada in May as the biggest sports betting arena in the country, it is seeking to replicate that success as nearby Pennsylvania builds out its sports gambling business. Shares of Boyd are down 21% over the past 12 months (but they're up 30% in 2019), which means its enterprise value is trading at just 10 times its earnings before interest, taxes, depreciation, and amortization, more than Penn, which goes for around 8.8 times EBITDA, but with arguably better growth prospects. With more opportunities open to it, facilities spread out geographically that should protect its downside, and access to the better-situated locals market in Las Vegas, Boyd Gaming is a mid-cap casino stock you may just want to bet on. More From The Motley Fool • 10 Best Stocks to Buy Today Jamal Carnette, CFA, has no position in any of the stocks mentioned.John Bromelsowns shares of iRobot.Rich Dupreyhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends iRobot. The Motley Fool recommends Upwork. The Motley Fool has adisclosure policy.
Trump's trade war with China is damaging the US economy: top economist The stock market is on fire, but that doesn’t mean President Donald Trump’s ongoing trade war with China isn’t starting to do real damage to the U.S. economy. Investors could ignore the economic warning signs for now, though eventually they will probably pay for tossing a blind eye to it. “The fingerprints of the trade war were on this employment report, they are weighing on the economy,” Moody’s Analytics Chief Economist Mark Zandi said on Yahoo Finance’sThe First Trade. “Growth is slowing because of the trade war and the uncertainty created by that. I think it will become more evident going forward.” The report Zandi referenced is the June ADP employment figures released Wednesday. The U.S. private sector added a disappointing 102,000 positions in June, lower than the 140,000 positions Wall Street was predicting.Last month’s reading represented the smallest increasein private positions since the start of the economic expansion. While larger businesses were adding, small businesses with fewer than 50 employees saw a drop of 23,000 positions. Meanwhile, businesses with 19 or less employees reduced payrolls by 37,000 positions. The sector that continues to see weakness was the goods-producing sector, with construction falling by 18,000 positions. Within the services-producing sectors, leisure and hospitality added a meager 3,000 positions in June. The ADP report joins a long list of reads on the U.S. economy — from a lackluster quarter for transport giant FedEx (FDX) to coolingISM manufacturing results— that paint the economy in a less than stellar light. “I don’t think the nominal truce President Trump and Xi agreed to this past weekend is going to reduce the uncertainty that many large companies face,” Zandi cautioned. “As long as they are uncertain what products are going to have tariffs, they are not going to be out there hiring people. So I think the trade war will continue to do damage to the labor market.” Nevertheless, the S&P 500 powered to a record high Wednesday morning. Don’t get used to it bulls, the non-farm payrolls report out on Friday could be a doozy. Yahoo Finance’s Heidi Chung contributed to this story. Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi Read the latest financial and business news from Yahoo Finance • Why Shake Shack CEO is testing a 4-day workweek • Trump's trade war with China may shock investors this summer • 2 black swans could come out of nowhere and kill stocks this summer • Why scrapping Trump's corporate tax cuts could crush businesses Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
The number of worldwide crypto ATMs breaks 5,000 In yet another positive sign forbitcoin, the number ofcryptocurrencyATMs available across the planet has just hit a significant milestone. There are now more than5,000crypto ATMs across 76 countries, according to the latest figures fromCoinATMRadar. In the last two months, more than 6 new crypto ATMs have been installed each day around the world. The U.S., of course, makes up a significant share with 3,170 bitcoin ATMs, with the vast majority located in the New York and Los Angeles areas. Elsewhere, Canada has 680, Austria has 263, and the U.K. ranks fourth with 244. And while some nations might only have a single crypto ATM within its borders, such as Albania, Aruba, Kenya, the Philippines, and Zimbabwe to name a few, the fact that they have one at all demonstrates the demand and growth of the market. Ian Freeman, co-founder of the Bitcoin Embassy New Hampshire and host of the radio show Free Talk Live, sees these machines as one of the easiest and most convenient ways for people toget into cryptofor the first time. “Sure, people can sign up for an exchange and send a wire transfer and get a better price, but the know-your-customer requirements are a burden and the process to get started is long and frustrating,” said Freeman. “Crypto vending machines [a term used in Keene rather than ATMs] make it simple.” Keene, New Hampshire, where Freeman resides, currently hosts a trio of crypto ATMs, the same number as currently installed in Tokyo—a city with a population of 9.3 million, compared to Keene’s 23,000. The recent increase in crypto ATMs also reflects the larger trend inpayments increasingly turning to digital, and the focus in this industry turning away from cash towards mobile, said Kurt Looyens, CEO of the Gibraltar Blockchain Exchange. Looyens believes, however, that more needs to be done in order for these machines to remain attractive to consumers. “The current economy in some countries may facilitate the need for cash-backed facilities like bitcoin ATMs, but in the digital future, these devices will have to drastically reduce fees and offer equitable conversion rates in order to compete,” he said. In the meantime, though, the pace at which these machines are being installed worldwide doesn’t appear to be slowing down. And with new crypto enthusiasts looking for ways to enter the market, the timing couldn’t be better.
These companies were named leading US employers for women, report says A new report found which companies were named the best employers for women in the U.S. Forbes and Statista, a market research company, surveyed 60,000 Americans, including 40,000 women, to come up with its findings. Those surveyed worked in a company with more than 1,000 staffers. Forbes noted 56 percent of women made up all the college students but 23 percent make up the C-suite or those who are top staffers. In May, Fortune noted the number of female CEOs leading Fortune 500 companies was higher this year than ever before but it was only 6.6 percent of the group. The company that made the list’s top spot on “America’s Best Employers for Women 2019” was the Estée Lauder Companies. Beauty wholesaler Ulta Beauty came in second followed by the University of Utah, Hallmark Cards, Principal Financial Group, Unilever, Best Buy, Keller Williams Realty, Cincinnati Children’s and Harvard University, respectively to make up the top ten. CLICK HERE TO GET THE FOX BUSINESS APP The report consisted of 300 companies with Tesla coming in at the bottom of the list. Cummins, Arconic (both engineering and manufacturing companies), auto supplies company Daimler, Alaska Airlines, professional firm KPMG, oil and gas company Kiewit Corporation, oil and gas company Ashland, First Energy and Air Transport Services Group made up the bottom 10 respectively. Related Articles • Ryan Lochte's Brand Value Sinks Amid Rio Scandal • Here's How You Get a Body Like An Olympian • Fmr. Notre Dame Coach Lou Holtz Predictions for Trump vs. Media
A Note On TriMas Corporation's (NASDAQ:TRS) ROE and Debt To Equity Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine TriMas Corporation (NASDAQ:TRS), by way of a worked example. Our data showsTriMas has a return on equity of 12%for the last year. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.12. View our latest analysis for TriMas Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for TriMas: 12% = US$78m ÷ US$641m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see TriMas has a similar ROE to the average in the Machinery industry classification (14%). That's neither particularly good, nor bad. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. 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 first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. While TriMas does have some debt, with debt to equity of just 0.46, we wouldn't say debt is excessive. The fact that it achieved a fairly good ROE with only modest debt suggests the business might be worth putting on your watchlist. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is 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 I think it may be worth checking thisfreereport on analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The quiet campaign to reinstate the gold standard is getting louder the Gold standard is making a comeback. The once-fringe fantasy of a return to the gold standard is creeping back into the mainstream. It has long been dismissed as a fool’s errand, on par with abandoning the Federal Reserve and other trappings of the modern economy. Mainstream economists deride it almost without exception. Reintroducing the gold standard would “be a disaster for any large advanced economy,” says the University of Chicago’s Anil Kashyap , who connects enthusiasm for it with “macroeconomic illiteracy.” His colleague, Nobel laureate Richard Thaler, struggles with its very underlying principle : “Why tie to gold? Why not 1982 Bordeaux?” Jeffrey Epstein’s fortune is built on fraud, a former mentor says Yet the idea that every US dollar should be backed by a small amount of actual gold is more popular than economists’ opinions might suggest. Advocates include members of Congress and president Donald Trump. Enthusiasm for a return to the gold standard has become more prominent since Trump’s most recent nominees to fill the vacant Federal Reserve governorship have endorsed a return. The first two—H erman Cain and Stephen Moore—both dropped out of consideration, but the third, economist Judy Shelton, announced today in a Trump tweet , may be the most ardent in her support . Last year, Shelton called for a “new Bretton Woods conference,” akin to the 1944 meeting that established the post-war economic order, perhaps to be held at Mar-a-Lago, where a return to the gold standard could be considered. “We make America great again by making America’s money great again,” she wrote in the journal of the Cato Institute , a libertarian think tank. Judy Shelton is a fan of gold Judy Shelton, vice chair of the National Endowment for Democracy, presents an award to the Dalai Lama in 2010. The simplest way to improve your credit score is by using your email Since 2011, at least six states have passed laws recognizing gold and silver as currency; another three are presently contemplating bills of their own. The surprising success of Ron Paul, a Texas Republican Congressman and ardent gold bug, in the 2008 and 2012 elections showed the potency of these ideas among the electorate. In its 2012 and 2016 campaign platforms, the Republican Party called for a commission to investigate the viability of a return to a gold standard system. The Republican-controlled House of Representatives passed a bill including such a commission in both 2015 and 2017, but both times the proposals died in the Senate. Last year, Alexander Mooney, a Republican representative from West Virginia, took that a step further when he introduced a bill proposing a full-on return to the gold standard . (The bill has no cosponsors and, unsurprisingly, has gone nowhere.) Story continues Today, with inflation unusually low and stable, the gold standard is a tougher sell than it once was. But as trust in American institutions wanes , there is renewed support for money backed by something tangible, not the say-so of the government. If inflation picks up once again, a solid base of gold standard evangelists is ready to take it mainstream. That a supporter of the gold standard may yet wind up on the Fed’s board of governors is yet more evidence that the idea’s prospects are shining brighter than they have in many years . How the gold standard works Money depends on trust—the faith that it will hold its value so that, when the time comes to spend it, it will be accepted without question in exchange for what the holder expects it to be worth. Inflation eats away at that value. In modern times, governments are often a culprit behind inflation. Since they enjoy a monopoly on printing money, they can issue new currency at virtually no cost. But governments are run by vote-seeking politicians, who might print more money to juice short-term growth needed to win re-election, inadvertently causing inflation to flare up later. This quandary isn’t theoretical, and has happened with surprising frequency throughout history. To cite a recent, prominent example, US president Richard Nixon bent to this temptation (pdf) during his 1972 re-election campaign—contributing to the breakout of inflation that ravaged the American economy throughout the 1970s and early 1980s. There’s a seemingly easy fix: Take the power of money creation out of the hands of politicians. According to the monetarist theory popularized by economist Milton Friedman in the 1970s, preventing inflation requires fixing the supply of money. The gold standard, by limiting the dollars the government can print to the weight of gold it holds in reserves, is one way of doing so. The US adopted the gold standard in 1879, when Congress finally followed Britain, Germany, France, and other advanced nations. By holding national currencies stable against gold, the international embrace of the gold standard encouraged foreign investment and facilitated trade, giving rise to the first era of intense globalization. Here’s a very cartoonish version of how it worked: The US Treasury agreed to redeem a set weight of gold in exchange for a fixed number of dollars, and vice versa. During the classical gold standard era—from 1879 to 1914 in the US—one troy ounce of gold fetched $21. The gold standard’s discipline came from the fact that the government had to be sure it held the necessary volume of gold in reserve, in case anyone wanted to exchange dollars for a set amount of the shiny metal. If it printed more money than it held in gold reserves, the state risked hyperinflation or causing a financial crisis by shattering faith in the solidity of its currency. In theory, the gold standard, therefore, limits government spending to only what it can raise in taxes or borrow against its gold reserve, and prevents it from simply printing money to pay its debts. It also takes power over the money supply away from central bankers. Indeed, it might render central banks mostly unnecessary. Bear in mind that for most of the classical gold standard era, the US didn’t have a central bank, which was introduced in 1913. But why gold? Had history worked out differently, the dollar might have been pegged to cowrie shells , peppercorns, or giant stone disks , all of which, like gold, have served as money at one time or another. But for reasons both aesthetic and practical, the glimmering metal became the asset of choice. “The simple answer to that is that for the last 5,000 years, so far as we are aware, man has used gold and silver as money, and particularly gold,” says Alasdair Macleod, the head of research at Goldmoney, a Toronto-based investment manager for precious metals. “It’s durable, people respect that it’s got value—it’s actually as simple as that. It is something which markets should be free to choose, and they have chosen gold.” “Markets should be free to choose, and they have chosen gold.” Gold is integral to the story of US growth and prosperity. In the 19th century, discoveries of subterranean veins in at least 24 states were “rungs in a ladder that culminated in America’s economic domination of the globe,” prompting westward migration and economic expansion, writes James Ledbetter in One Nation Under Gold: How One Precious Metal Has Dominated the American Imagination for Four Centuries . It is a national emblem of wealth, and “streets paved with gold” served as a myth that helped lure many migrants to the US. “From the very beginnings of our national life, it has seemed impossible for Americans to look at gold dispassionately,” Ledbetter explains. “The metal, and its seductive hint of boundless wealth, tap into a psychological wellspring that reaches beyond any purely physical qualities.” Legislation in the past century which codified and restricted how Americans could attain or trade gold seems to have intensified the longing for it. In 1933, Americans were temporarily barred from buying and selling gold within the country; by the 1950s, the law was still in place, and a black market for gold flourished. John F. Kennedy was anxious that the dollar should be “as good as gold”; Operation Goldfinger , which launched a few years later, was a top-secret government campaign to dig up gold within US territories as quickly as possible, with the hope of propping up a post-war economy expanding at a pace that threatened to outstrip the world’s supply of the metal. The gold standard is inextricably tied to mining. The supply of the metal depends on how much is extracted from the earth, after all. But since mining only adds a tiny fraction to the overall stock of gold each year, prices don’t fluctuate as wildly as they used to. In the height of mining activity, in the mid-1800s, big gold discoveries in California and Australia spurred a pickup in inflation. Then, as economic growth outpaced the rate of new gold discoveries, a 20-year period of deflation set in; it ended with new discoveries in South Africa and the Yukon, as well as technological advances in gold processing. That’s how things are supposed to work: When a gold shortage causes purchasing power to rise steadily, mining companies are encouraged to find more gold. The Klondike gold rush, 1897 And indeed, overall, prices and real economic activity during the classical gold standard era was remarkably stable (pdf). “If you look at the US during its classical gold standard period, the average rate of inflation is pretty close to zero—and likewise in Great Britain over its experience with the gold standard,” says Lawrence White, an economics professor at George Mason University and one of the few respected economists who’s pro-gold standard. Gold-standard adherents often extol the strength of currencies such as the pound and the dollar in the early 20th century. Modern central banking, they say, has knocked the stuffing out of these once mighty currencies. (The fact that average hourly wages have mostly been adjusted to match the rise in inflation doesn’t seem to factor into the equation.) Where mainstream economists see constraint, goldbugs see discipline—a government that cannot spend beyond its means—and a hedge against corruption. For those who believe in small, limited government, there is obvious appeal. Believers credit it with a kind of Midas touch: the gold standard necessarily begets “balanced budgets, low taxes, small government and a healthy economy,” to borrow the words of economist Barry Eichengreen , a prominent historian of currencies at the University of California, Berkeley. “It didn’t quite deliver the kind of nirvana that people now talk about.” The thing is, economic success during the classical gold standard era depends somewhat on the eye of the beholder. David Laidler , a monetary historian at Western University in Ontario and Friedman’s research assistant in the 1960s, says the gold standard wasn’t as effortlessly successful as the data might suggest. “I’m not going to tell you that the gold standard didn’t function in the 19th century—it did. But it didn’t quite deliver the kind of nirvana that people now talk about,” he says. For some Americans, its effects were downright devastating. After the US adopted the gold standard in the 1870s, price levels of agricultural commodities fell continuously for nearly 20 years, crushing American farmers under the weight of their debts and punishing interest rates. The resulting political upheaval culminated in William Jennings Bryan’s famous “cross of gold” speech: his tirade against how deflation caused by the gold standard was ravaging rural America. Questions of money are always political, and often a zero-sum choice between which economic class will prosper and which will suffer. Inflation erodes the value of financial assets, hurting savers but helping borrowers. Deflation benefits those with wealth and punishes debtors. Eventually, the latter group—the masses whose standard of living relies on mortgages and other forms of debt—tends to win out. Why aren’t we on the gold standard now? The classical gold standard era ended with World War I, because to fund wars governments have to print a lot of money. In these conditions, maintaining gold convertibility goes out the window. After the war ended, the US and most other advanced economies scrambled to re-peg their currencies to gold. But for a host of reasons—for example, the overvaluation of the pound and several other key currencies, and the decline of Britain as an imperial power—the gold standard failed to deliver the stability of the earlier era. Many economists argue it amplified the shocks of the Great Depression, particularly in the US and France, which waited longer than their trading partners to abandon convertibility. It was for this reason that John Maynard Keynes, the great British economist, called the gold standard a “barbarous relic.” Unsurprisingly, the post-World War II monetary system—of which Keynes was a key architect—made the US dollar the basis of world reserves. The dollar itself was still convertible into gold. However, other global currencies fixed their exchange rates not to gold, but to the dollar. When Richard Nixon took office in the late 1960s, the US government was again spending heavily, due to the Vietnam War and the social welfare programs launched by his predecessor, Lyndon Johnson. That effectively pushed down the value of the dollar. In 1971, to stave off a run on US gold reserves, Nixon halted convertibility (meaning that other countries could no longer redeem dollars for gold). Under intensifying pressure, in 1973 the president scrapped the gold standard altogether. Nixon-gold standard Nixon took the US of the gold standard Prices started climbing, exacerbated by Nixon’s strong-arming of the Fed to keep rates low. As the 1970s wore on and inflation surged, gold found support among the likes of Ronald Reagan, who talked it up on the campaign trail during the 1980 presidential election. By June 1980, prices for consumer goods were rising 14% annually, galvanizing public support for “sound money.” After trouncing Jimmy Carter, Reagan set up a commission to determine whether to revive the gold standard. Nixon had promised, and perhaps believed, that the US would eventually return to the gold standard. Reagan’s victory made that look possible—likely, even. But many of the president’s appointees to the commission were longtime opponents of the system (among the exceptions was a certain young Texas congressman named Ron Paul). Then came the “Volcker shock,” when Fed chairman Paul Volcker hiked rates to their highest levels in history to curb runaway inflation, which thrust the economy into a deep recession. Crucially, though, inflation dropped sharply and the commission put the official kibosh (pdf) on a return to a fixed metallic standard. With inflation finally tamed, gold’s moment was over. Fiat currency managed by central bankers had officially won out. Gone but not forgotten This abandonment represents a betrayal to a few distinct, but often overlapping, groups: people who believe in limited government; people who interpret the American constitution literally; and people who fear the power of central banks, Wall Street, and other financial institutions. Advocates of the gold standard point to the fact that because there is no way to redeem paper dollars for gold or silver, “there is no way to finally pay a debt.” One common fear is that investors will stop buying US Treasury bonds, ultimately resulting in financial ruin for the country. “It is impossible to overstate the calamity that will occur when the Treasury bond collapses.” Their concerns can run to the hyperbolic. “It is impossible to overstate the calamity that will occur when the Treasury bond collapses,” stresses the homepage of the Arizona-based Gold Standard Institute , a peripheral non-profit “dedicated to spreading awareness and knowledge of gold.” On our current course, “we will wake up one morning and find that our bank accounts are wiped out,” it warns. “Even if we have dollar bills in our pockets, food will not last in stores for very long, because food production and distribution depends on the banking system.” Some argue returning to the gold standard is a legal imperative. There is a basis in the US Constitution for this, at once specific and quite vague: Sections 8 and 10 of Article I state that Congress has the “Power…to coin Money, regulate the Value thereof, and of foreign Coin,” while “no state…shall make any Thing but gold and silver Coin a Tender in Payment of Debts.” It’s entirely possible that this was supposed to guarantee convertibility between state currencies, rather than asserting anything intrinsic to gold. But these two mentions in the country’s founding document have served as ammunition for constitutionalists, including groups such as the far-right John Birch Society , established in 1958. The society, whose views align closely with Trump’s , supports the disestablishment of the Fed and a return to the gold standard, on the grounds that the constitution does not give Congress the right to delegate its money-related powers elsewhere, nor to use any currency that is not gold- or silver-backed. The Midas touch But if there are various arguments for a return to the gold standard, there are many more reasons to reject it. Nearly 50 years into using fiat currency at a floating exchange rate, a total overhaul of America’s entrenched monetary policy framework is much less feasible. For one thing, says Laidler of Western University, the rise over the past four decades of politically independent central banks has made it unnecessary. That’s because, as long-time Fed chair Alan Greenspan told Congress, “a central bank properly functioning will endeavor to, in many cases, replicate what a gold standard would itself generate.” Plus, constraining a central bank limits how easily it can adjust monetary policy to respond to economic conditions. Between 1879 and 1914, when the US adhered to the gold standard but had no central bank, private clearinghouse associations played the “lender of last resort” role for member banks, says White, the George Mason economist. The world’s financial system is now vastly bigger, more complex, more deeply integrated, and more global than it was during the gold standard’s heyday. It’s hard to imagine how anything less than a strong, central authority could stave off, for example, the scale of market collapse that threatened the world in 2008. The US would derive minimal benefit from re-adopting the gold standard unless other major economies did too. However, even then, the system of fixed-exchange rates created by gold convertibility has some big downsides. While encouraging cross-border investment and trade, it also makes it extremely hard for governments to adjust to localized economic disruptions (the struggles of the euro zone currency union offers a present-day example of this drawback). The gold standard could also push financial contagion to viral levels, with the flow of gold and the fixed exchange rate forcing the suffering of one nation on everyone in the system. Gold makes a comeback Despite the myriad reasons that a return to the gold standard seems impossible, the dream remains alive, in part because of the efforts of Ron Paul. Paul was first moved to run for office in 1976, in reaction to Nixon scrapping gold standard a few years prior. “I remember the day very clearly,” he told Texas Monthly in 2001 . “Nixon closed the gold window, which meant admitting that we could no longer meet our commitments and that there would be no more backing of the dollar. After that day, all money would be political money rather than money of real value. I was astounded.” Paul’s views were shaped in part by economist Friedrich Hayek’s accounts of how the Nazis’ effective abandonment of the gold standard allowed them to beef up fiscal spending in preparation for their war of conquest, Eichengreen wrote in National Interest in 2011. Paul subsequently spent most of his career as a vocal but lonely goldbug in Congress. He retired in 2013. These days, Mooney, the West Virginia Congressman, has taken up the mantle as one of gold’s biggest cheerleaders (Ron Paul’s son Rand, a senator from Kentucky, is also a part of this club). For Mooney, American Eagle coins are the key to reviving the gold standard. These collectibles are issued by the US mint and sold to numismatists for about $1,600 apiece, despite having a face value of just $50—roughly the cost of an ounce of gold in the early 1970s. Some goldbugs see them as a symbol of what American money should be; the disparity between the face value of these coins and the value of the gold used to make them captures how far the dollar has fallen in their minds. Though they are not US legal tender, state law in Utah allows them to be used as currency—though it’s an expensive way to get $50 of gas or groceries. Other state laws have mostly moved to lift taxes on them, broadly recognizing them as money rather than collectibles, on the order of baseball cards and Beanie Babies. (This taxation of money is a big beef for Mooney and his allies.) Alex Mooney supports a return to the gold standard West Virginia’s Alex Mooney If American Eagle coins are a symbol of how degraded US currency has become, for gold adherents, a return to the gold standard seems like the best way to protect the dollar’s value and and ensure it remains a bulwark against inflation. It’s probably no coincidence that the most recent resurgence of gold interest has come at a time of acute public anxiety about the stability of money. The global financial system nearly blew up 10 years ago, and was saved by unprecedented monetary activism by the Federal Reserve. Nobody knew what to expect from the Fed’s epic asset purchase program. Fears of Weimar-style hyperinflation in some corners proved fertile ground for the pro-gold messages of Paul and others who see salvation in gold. Paul’s surprisingly successful grassroots presidential campaigns were further evidence that his message was gaining traction. Hyperinflation never happened. But nor did other monetary fears recede—notably government over-reliance on debt. While on occasion president Trump has said that deficits don’t matter, the commander-in-chief credits the “very, very solid country” of yesteryear with it being based on the gold standard. In 2016, before his election, Trump suggested it might be time to stage a return: “Bringing back the gold standard would be very hard to do—but boy, would it be wonderful. We’d have a standard on which to base our money.” This might be dismissed as a throwaway comment, if not for Trump’s desire to put the likes of Cain, Moore, and now Shelton on the Fed board, giving a goldbug a seat at the table to steer the most powerful country’s monetary policy. Sign up for the Quartz Daily Brief , our free daily newsletter with the world’s most important and interesting news. 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Why the market is still worried about demand for oil despite OPEC's production cuts OPECand its allies reached an agreementto extend supply cuts by nine months on Monday. Despite the news, oil futures fell on Tuesday as investor concerns over demand remain steady due to a slowing global economy and trade uncertainty between the U.S. and China. “Investors interpreted the OPEC decision as very much, they are playing defense against U.S. shale,” Tamar Essner, energy and utilities director at NASDAQ, told Yahoo Finance’s “The Ticker” on Tuesday. The decision for OPEC and its allies to extend oil supply cuts until March 2020 came as an effort to increase crude prices amid a weakening global economy and soaring U.S. production. Yet, the reaction from the oil markets to the supply deal did not change sentiment, as concern over slowing global growth still weighs heavily on investors. “This ongoing tug of war between OPEC and U.S. shale for market share is still very much part of the equation,” Essner said. Essner is watching a number of indicators, including vehicle sales and manufacturing data. Major U.S. automakers posted mixed U.S. sales results for June, and the U.S. and China both reported weak manufacturing data for that month.China’smanufacturing activity dropped unexpectedly in June, with data indicating it was the worst month since January. Despite positive talks with U.S. and Chinese leaders at last weekend’s G-20 summit, Trump’s comment that any deal agreed upon with Chinawould need to be “somewhat tilted” in favor of Washingtonmay have reignited trade concerns and fears over global energy consumption. “Market psychology right now is very concerned about demand, and that’s having the overarching impact,” Essner said. "Chinese economy is the most important driver of global demand growth, so people understandably get skittish.” Essner predicts there will be an upswing for oil, although its longevity is questionable. “Third quarter is generally a stronger period of time of the year. It’s a summer month so it is peak demand for oil. We would expect that demand for oil in this period would rise by about 2 to 3 million barrels a day,” Essner said. “I think we would probably exit the third quarter a little higher than where we are now but then petter out by the end of the year,” she added. Oil giant Saudi Aramco recently held talks with a select group of investment banks to restart the preparations for its IPO, Bloombergreportedon Tuesday. “The interpretation of the market is that, in the short-term, it’s bullish for oil because Saudi [Aramco] will really do whatever they can do to try to stabilize the price and get as high a price as possible so they can have a successful consummation of their IPO. Longer term it’s bearish because once they are a public company they will do whatever they have to do to maximize their cash flow through pumping more oil,” Essner said. Sarah Smith is a Segment Producer/Booker at Yahoo Finance. Follow her on Twitter:@sarahasmith Read more: Why a real estate investor says 'the housing market is done in America' Away, Instagram's favorite suitcase brand, is now worth $1.4 billion Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn,YouTube, andreddit.
A Spotlight On Sportsman's Warehouse Holdings, Inc.'s (NASDAQ:SPWH) Fundamentals Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH), there's is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Sportsman's Warehouse Holdings here. SPWH delivered a bottom-line expansion of 47% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did SPWH outperformed its past performance, its growth also exceeded the Specialty Retail industry expansion, which generated a 11% earnings growth. This is what investors like to see! SPWH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SPWH has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SPWH seems to have put its debt to good use, generating operating cash levels of 0.23x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. For Sportsman's Warehouse Holdings, I've compiled three relevant factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for SPWH’s future growth? Take a look at ourfree research report of analyst consensusfor SPWH’s outlook. 2. Valuation: What is SPWH 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 SPWH is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of SPWH? 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.
7 Warning Signs an Online Degree is a Scam For prospective online students, searching for a degree program can sometimes feel like being lost in the wilderness. The ubiquity of online education programs comes with promises of quick, effortless degrees that seem too good to be true. Sometimes that's exactly the case, and students who are duped by the schemes are left with a sizable hole in their wallet and no legitimate credential. The growth of online education in recent years has led to more opportunities for legitimacy and transparency, says Judith Eaton, president of the Council for Higher Education Accreditation, which works to provide quality assurance in higher education. Despite the growth of online education, scams and diploma mills still persist on the web. Below are seven signs that an online program may not be legitimate: -- Accreditation status is murky. -- The name seems prestigious and vaguely familiar. -- Earning a degree seems fast and easy. -- There's no evidence of student services. -- The address seems fishy. -- There is pressure or incentives to enroll. -- The program requires a lot of money upfront. Accreditation Status Is Murky "For any kind of degree or certificate or diploma, you want to make sure that the accreditation status is recognized through the Council for Higher Education or the U.S. Department of Education," says Leah Matthews, executive director of the Distance Education Accrediting Commission, which works to ensure quality in affiliated online education programs. If prospective students suspect a college is falsely claiming accreditation, they can always contact the accrediting agency and ask, says Matthews, adding that her group receives such calls regularly. CHEA also provides searchable databases for students to find accredited programs. "If a school is not accredited, find out why," Eaton says. With the growth of alternative credentials -- such as badges and certificates -- some training programs may not be accredited. Such options may include online coding boot camps or other skills-based training offered by a business. Eaton says that company training programs and sponsored boot camps have "added more complexity" to online education. To gauge the legitimacy of such alternative credentials, consider the benefits offered through the program sponsors. Story continues "Businesses and companies offering training courses probably have a pathway to either employment at that company or advancement," Matthews says, noting that entry into a job at the sponsor organization may be what a student is after. [ See: 10 Types of Credentials You Can Earn Online. ] The Name Seems Prestigious and Vaguely Familiar Sometimes programs will "steal a renowned name and modify it just a little bit," Matthews says. Some even fabricate faculty names and credentials. If a student comes across, for example, a professor Joe Smith at a school with a name like Harvard Technological University, he or she might want to do more research to ensure the program is legitimate. Earning a Degree Seems Fast and Easy Prospective students should hear warning bells as soon as they are told they can get a degree without much time or effort, experts say. One example is schools promising college credit for experience in the military or workforce. While prior learning assessments are used at many accredited colleges and universities, credit doesn't come without work. "Many accredited, public and private universities use these options. But the key is they still require effort, there's going to be some type of exam or portfolio or credit-hour enrollment required as part of gaining credit," says Lynette O'Keefe, director of research at the Online Learning Consortium, which promotes digital education options. Experts note that a college's prior learning assessment options should be recognized by the Council for Adult & Experiential Learning, a nonprofit organization that aims to help colleges serve the nontraditional student population. There's No Evidence of Student Services Legitimate online programs should have a host of resources available to students, including technology support, academic advising and library services, experts say. If prospective students don't see evidence of those resources, or if they can't speak to other staff members, then they should be suspicious. "That's a huge red flag," O'Keefe says. [ See: Ask 10 Questions About Student Services in Online Programs. ] The Address Seems Fishy Students should check both the physical and web address of an online institution to gauge its legitimacy. Most colleges and universities will have a URL ending in .edu, experts say, so pages with other domain extensions should raise flags. "A .edu web address is not always for certain a legitimate thing, but it's a good place to start," O'Keefe says. If a supposed college's physical address is difficult to find or a P.O. box is listed, that may be another warning sign, she adds. There Is Pressure or Incentives to Enroll Prospective students should watch out for high-pressure sales pitches from recruiters. "If the advisers or counselors sound more like salespeople who are more interested in pressure for enrollment than discussing academic programs and outcomes, that's a red flag," O'Keefe says. She adds that students should be wary of recruiting tactics that ask for only a resume or a credit card and offer a quick admissions process with those materials. [ Read: U.S. News Ranks 2019 Best Online Programs. ] The Program Requires a Lot of Money Upfront Experts say that one sign of a shady online operation is demanding money upfront. "Do the research before you make a financial commitment," Matthews cautions. That financial commitment may be offset with the promise of a lucrative salary , but students should be skeptical. "I think it's really important for consumers to gather as much evidence as they can if they are looking at the claim that some kind of online credential is going to lead to a lucrative position," Matthews says. Trying to fund your online education? Get tips and more in the U.S. News Paying for Online Education center. More From US News & World Report Think Twice Before Cheating in Online Courses How to Map Out Courses in an Online Degree Program 7 Ways to Reduce the Cost of an Online Degree
Why Microsoft Stock Owners Shouldn’t Worry About Linux Normally, a competitor’s increased presence, especially in one’s own turf, represents serious trouble. And under this context, consumer technology giantMicrosoft(NASDAQ:MSFT) should be worried. Recently, a developer for the open-source platform Linux accidentally revealed that Linux-based operating systems had greater presence in Microsoft’s Azure cloud network than Microsoft-based OS’. Does this signal a dumping opportunity for Microsoft stock? Source: Shutterstock At first glance, the suddenlydominant presenceof Linux may startle stakeholders of Microsoft stock. After all, Linux is a free and open-source collaboration, meaning that it’s impossible to profit from its mere existence. Of course, that philosophy runs counter to Microsoft’s legacy revenue channels, where it sold programs and updates to those programs. By all accounts, it was an extremely profitable venture. But this latest bit of Microsoft news demonstrates that we’re no longer in the 20thcentury. And despite the optics, the Linux development is a long-term positive for MSFT stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips • 7 F-Rated Stocks to Sell for Summer How so? Because MSFT is, when it comes to software-related ventures, moving firmly toward the Software as a Solution (SaaS) model. Not only that, but the rise of Linux helps shift the narrative to the concept that Microsoft stock will now trade on the fundamentals of service offerings, not standalone products. For management, it doesn’t really matter that Linux is the go-to choice for Azure users. For one thing, there’s the fact that Azure is cheaper to run on Linux than on any other platform. Even Microsoft benefited from Linux’s streamlined and efficient architecture to power its Internet of Things (IoT) devices. In other words, MSFT stock wins as long as Microsoft is somehow involved in the process. When Microsoft 2019 launched during last year’s fall season, itperplexedmany observers. By that time, the tech firm had decisively entered the SaaS arena, and for good reasons. Namely, SaaS makes perfect sense for MSFT stock on multiple levels. First, subscription-based models utilize an ongoing contractual relationship. While the subscriber has to pay constantly, they also have access to the SaaS entity’s service umbrella. Thus, when the need for updates arise — and that need perpetually exists — the platform automatically refreshes with relevant features. Second, the subscription model can quickly convert prospective buyers due to their much cheaper initial cost outlay. Once subs are on board, companies have greater chances to convert them to higher-margin services. Such strategies have rejuvenated Microsoft stock in the past. They’ve also done wonders forAdobe(NASDAQ:ADBE). So when MSFT launched Office 2019, the computing public viewed it as one of the strangest pieces of Microsoft news. Unlike Office 365, Office 2019 was not an SaaS platform. Instead, it was aone-shot offeringfor whom Microsoft termed “customers who aren’t ready for the cloud.” Not ready for the cloud? This is the kind of language that, if you didn’t understand the context, would cause panic on Microsoft stock. Thankfully, you just need to read between the lines to see what management is up to. And no, the leadership team haven’t lost their minds. Simply, Microsoft Office 2019 is a way to soak up demand from those who aren’t ready for SaaS; I’m thinking students or non-technical startups. But the real beauty of Office 2019 is its limitations. Using it makes customers wonder,what if? Microsoft readily answers that question with their suite of SaaS services. Granted, it’s a long-winded approach to lift MSFT stock, but it works. A decade ago, the old Microsoft would freak out that another competing OS is legitimately flexing its muscle. That iteration would probably fight fire with fire, leading to a series of bloated and bumbling systems. • 10 Stocks That Should Be Every Young Investor's First Choice Thankfully, we’re living in the era of the upgraded MSFT. In this version, the company has realized tech’s economies of scale, that open source can foster more utilitarian solutions. Better yet, new management has embraced this. Instead of fighting a losing battle, they’re redirecting their efforts into their core strengths. That’s a key difference between the Microsoft stock of old versus the one we see today. And what exactly are Microsoft’s strengths? They are innovation and an unbeatable brand in PC-related software solutions. With these components, Microsoft assures itself relevancy despite losing dominance in certain market subsegments. Ultimately, that’s why stakeholders can continue to trust MSFT stock. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. • 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 The postWhy Microsoft Stock Owners Shouldnâ€™t Worry About Linuxappeared first onInvestorPlace.
Eldorado Gold (EGO) Looks Good: Stock Adds 7.8% in Session Eldorado Gold CorporationEGO was a big mover last session, as the company saw its shares rise nearly 8% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up 67.7% in the past one-month time frame. The company has seen two negative estimate revisions in the past few weeks, while its Zacks Consensus Estimate for the current quarter has also moved lower over the past few weeks, suggesting there may be trouble down the road. So, make sure to keep an eye on this stock going forward, to see if this recent move higher can last. Eldorado Gold currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%. Eldorado Gold Corporation price \| Eldorado Gold Corporation Quote A better-ranked stock in the Mining – Gold industry is Agnico Eagle Mines Limited AEM, which currently carries a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here. Is EGO going up? Or down? Predict to see what others think: Up or Down Today's Best Stocks from Zacks Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year. See their latest picks free >> 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 reportAgnico Eagle Mines Limited (AEM) : Free Stock Analysis ReportEldorado Gold Corporation (EGO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
COLUMN-Global economy heading for trouble as manufacturing and construction shrink: Kemp (John Kemp is a Reuters market analyst. The views expressed are his own) * Chartbook: https://tmsnrt.rs/2FRkIhj By John Kemp LONDON, July 3 (Reuters) - Global manufacturing and construction sectors have already entered a downturn; the service sector is all that now stands between the economy and a full-blown recession. Global manufacturers reported new export orders fell for a 10th month running in June, with the most widespread decline for six years, according to the JPMorgan global purchasing managers survey. Even in the United States, which has escaped relatively mildly so far from the downturn hitting Europe and Asia, there are now clear signs growth has stalled across the manufacturing and construction industries. U.S. manufacturers reported only a small increase in activity in June, with the net positive balance the lowest for almost three years, according to the Institute for Supply Management (https://tmsnrt.rs/2FRkIhj). U.S. manufacturers’ new orders have been decelerating for more than a year and were flat for the first time since the end of 2015, which suggests activity is likely to slow further in the short term. Durable goods orders for non-defence capital equipment excluding aircraft were up by just 2.1% in the three months from March to May compared with a year earlier, less than a third of the growth rate a year ago. Private sector construction activity is falling, with the value of new buildings and structures put in place down by 4.1% in the three months from March to May compared with the same period a year earlier. Residential construction activity was down by more than 8% year-on-year in the three months from March to May, according to the U.S. Census Bureau. Private non-residential construction was still up by 1.5% year-on-year between March and May, but the growth rate has slumped from more than 5% between August and October. RATES TUMBLE Reflecting interest rate traders' recession fears and expectations of rate cuts, the U.S. Treasury yield curve for securities with maturities between three months and 10 years has been continuously inverted for more than a month. Since 1960, sustained yield-curve inversions lasting for three months or more have been one of the most reliable signals of an impending recession arriving within the next 12 months. Yields on benchmark U.S. Treasury 10-year notes have already sunk to 1.95%, down from 3.20% just eight months ago, and the lowest since November 2016, as investors seek a safe haven from a feared slowdown. Government bond yields are tumbling across the advanced economies while central banks are cutting interest rates (Australia) or signalling openness to more monetary policy stimulus (the United States and euro zone). In the oil market, prices have fallen reflecting worries about the global economy and slowing oil consumption growth, despite a decision by OPEC and its allies to extend production restraint for a further nine months. Oil consumption and especially the use of middle distillates such as diesel is geared more towards manufacturing, construction and mining than the service sector, so is being hit hard by the industrial slowdown. Oil’s exposure to the troubled manufacturing sector explains why prices have remained under pressure despite U.S. sanctions on Venezuela and Iran, the threat to tanker traffic in the Gulf, and OPEC output cuts. SERVICE SECTOR So far, the downturn has been concentrated in the manufacturing and construction sectors while the much larger service sector has exhibited continued resilience, at least in the advanced economies. Services output tends to be much less cyclical than manufacturing or construction, and the expansion of service output and employment is one reason why the economic cycle has been dampened in recent decades. High levels of employment and rising household incomes, characteristic of the late stage of the business cycle, have combined to sustain services growth over the last nine months. For the advanced economies, manufacturing and construction account for a much smaller share of output and employment than services, but they are more important in terms of productivity and higher wages. It is not clear if the services sector can continue to keep the economy out of recession if manufacturing and construction continue to contract. Interest rate and bond traders are betting central banks will not take the risk and will cut rates instead to forestall any further slowdown. Again, it is not clear whether early and aggressive rate cuts will be enough to avoid a recession. Rate cuts successfully extended the economic expansion in 1995/96 and 1998 but not in 2001 and 2007. Policymakers' concerns about the worsening manufacturing slowdown and its potential to spill over into the rest of the economy explain why the United States reached out to China last month to restart trade talks. Global growth is now too weak to absorb any more serious shocks without sliding into a much more serious downturn. Related columns: - Rising inventories weigh on U.S. manufacturers and wholesalers (Reuters, June 25) - Global economy on leading edge of recession (Reuters, June 12) - U.S. consumer confidence critical to economic outlook (Reuters, May 31) (Editing by Susan Fenton)
Triton International (NYSE:TRTN) Shareholders Have Enjoyed A 8.8% Share Price Gain Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. To wit, theTriton International Limited(NYSE:TRTN) share price is 8.8% higher than it was a year ago, much better than the market return of around 6.3% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Triton International for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. View our latest analysis for Triton International There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the last year, Triton International actually saw its earnings per share drop 10%. So we don't think that investors are paying too much attention to EPS. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors. For starters, we suspect the share price has been buoyed by the dividend, which was increased during the year. It could be that the company is reaching maturity and dividend investors are buying for the yield, pushing the price up in the process. Though we must add that the revenue growth of 14% year on year would have helped paint a pretty picture. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). It is of course excellent to see how Triton International has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Triton International, it has a TSR of 16% for the last year. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! Triton International shareholders should be happy with thetotalgain of 16% over the last twelve months, including dividends. The more recent returns haven't been as impressive as the longer term returns, coming in at just 2.8%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). Before forming an opinion on Triton International you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time. 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.
Blockstream Launches Atomic Swaps on Liquid Bitcoin Sidechain Blockstream has created an “experimental” tool that makes it easier for users to trade “trustlessly” between tokens launched on its Liquid sidechain. DubbedLiquid Swap Tool, the platform uses “atomic swaps,” a cryptographic technology that already serves as backbone for newer decentralized exchanges currently in development. The motivation for these types of transactions is that today most exchanges are middlemen trusted by users to exchange cryptocurrency on their behalf. Many have lost funds or suffered hacks over the years, leading technologists to argue they really can’t be trusted with this money. Atomic swaps offer an alternative. Related:June Sets Records for CME Bitcoin Futures as Sign-Ups Surge 30% As mentioned above, this atomic swap tool is specifically geared for tokens launched on Liquid, a sidechain that’s pegged to bitcoin. To use it, users must send their tokens to the sidechain, effectively trading their bitcoin for “L-BTC.” It’s kind of like alchemy: morphing bitcoin into an altered type of bitcoin, which is faster and has more privacy features, but requires more trust in the intermediaries that run the sidechain. Recently, Blockstream launcheda toolfor launching security tokens on top of the so-called “sidechain,” which is pegged to the bitcoin network. With the new Liquid Swap Tool, users will be able to trade one of these tokens for another without requiring an intermediary to do the exchange. Though, it’s worth noting the instructions for the tool are pretty technical for now. Users need to download Liquid, fiddle with a configuration file, download the separate swapping tool and perform the instructions inthe code repositoryto get it going. Related:Casa Launches Lightning Node Mobile App for Bitcoin Newbies Not to mention, the repository describes the tool as “early days,” arguing it “should be considered experimental,” going on to outline a way to make such a trade more private. “It is recommended to use the tool with someone that you can trust to keep such data private. Users are also encouraged to encrypt/sign messages sent with their trading partners in order to mitigate against man-in-the-middle attacks,” the description continues. Buttonsimage via Shutterstock • Bitcoin Rallies $2K in 24 Hours But Price Hurdles Remain Intact • Bitcoin Price Dips Below $10K With Deeper Losses Likely
Christine Lagarde a 'dangerous look' for ECB Christine Lagarde in Washington DC. Photo: Michael Brochstein/SOPA Images/LightRocket via Getty Images Analysts and investors reacted with surprise on Wednesday after International Monetary Fund (IMF) chief Christine Lagarde was picked as the next head of the European Central Bank (ECB). A rock star of geopolitics, Lagarde will be the first women to lead one of the worlds most important central banks. But though she comes with a far higher profile than her predecessors, she has much less of an economic pedigree. Current ECB president Mario Draghi and his two predecessors all spent time as academic economists. Lagarde is a lawyer by training and rose to prominence as a politician. Her appointment is a dangerous look when it comes to credibility, Michael Hewson of CMC Markets said. In any other role, her CV wouldnt pass muster, which makes this appointment all the more political, he said. Lagardes surprise appointment came about in part due to the unusual timing of the ECB appointment. For the first time, the role came up at the same time as the EUs other leadership positions, meaning the ECB presidency was subject to the kind of backroom horse trading it normally avoids. Lagarde has served as the managing director of the IMF since 2011, where she played a leading role in the management of the controversial Greek bailout. She previously held several senior ministerial roles in the French government, including as finance minister during the financial crisis. Years of politicking no doubt gave her the connections and goodwill to secure another top job at the European table, but it has left analysts scratching their heads. READ MORE: Christine Lagarde to head ECB and Ursula von der Leyen to become European Commission president A steep learning curve Hawk or dove? Actually, impossible to tell as Lagarde so far has not caught any attention with outspoken views on monetary policy, according to Carsten Brzeski, chief economist at ING Germany. Lagarde faces a steep learning curve when it comes to the often delicate communication between markets and central bank officials, Claus Vistesen, an economist at Pantheon Macroeconomics, said. Story continues This is something that investors will have to take into account in the opening exchanges between them and the new president. Others question whether such a political choice is right at a time when central bank independence is under threat globally. "Given her relative inexperience with the ECBs (complicated) policy toolkit, there is a credibility risk, especially if and when things get more complicated economically, Jim Reid, a strategist at Deutsche Bank, said. US Federal Reserve governor Jay Powell came from investment banking and some fear the appointment of another non-economist to lead a major central bank could deprive the world of technical expertise. READ MORE: US threatens new EU tariffs on Scotch, pasta, and Italian cheese Christine Lagarde talks with European Central Bank (ECB) president Mario Draghi. Photo: Eric Piermont/AFP/Getty Images Political skill However, some see Lagarde as a pragmatic choice for the unusual challenges facing the eurozone. "Europe needs a political ECB head to push through agreement on fiscal policies, Bill Blain, the chief strategist at Shard Capital, said. Another problem requiring political skill is Italys deputy prime minister Matteo Salvini, who wants the EU to relax its spending rules and has called for the ECB to guarantee government debt. The ECB president must also assert the banks independence in times of crisis former head Jean-Claude Trichet was known to butt heads with German chancellor Angela Merkel and former French president Nicholas Sarkozy, for instance. Lagardes experience negotiating between sparring interests at the IMF could also serve her well in dealing with the banks governing council, analysts said. Markets will like the fact that she is a skilled and well connected political operator, Deutsche Banks Reid said. The role of the ECB president is less about setting monetary policy stances, according to Andrea Iannelli of Fidelity International, and more about consensus building among members of the council, which is mainly comprised of the heads of eurozone central banks. But her leadership could also have other consequences. The question is whether Lagarde at the helm of the ECB could lead to a subtle shift in the balance of power, away from the executive board and towards national central bank governors, ING Germany economist Brzeski said.

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