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: Soros fund doubles down on Rivian bet, buys stakes in Lucid, Nio

Billionaire George Soros’s investment fund has doubled down on its bet on Rivian Automotive Inc. and taken new positions on EV makers Nio Inc. and Lucid Motors Inc., according to a filing late Friday. The fund sold off its positions on Fisker Inc. and on General Motors Co......»»

Category: topSource: marketwatchMay 13th, 2022

Michael Saylor says MicroStrategy stock is essentially serving as a spot bitcoin ETF as investors wait for the first one to be approved

'We're kind of like your nonexistent spot ETF,' Saylor told CNBC about MicroStrategy. The tech company he co-founded regularly buys bitcoin. MicroStrategy CEO Michael Saylor.Joe Raedle/Getty Images MicroStrategy's stock essentially doubles as a spot bitcoin ETF, CEO Michael Saylor told CNBC.  "We're kind of like your nonexistent spot ETF," Saylor said. The SEC has yet to approve a spot bitcoin ETF.  MicroStrategy has spent about $4 billion on bitcoin purchases.  Stock in MicroStrategy, the enterprise software company that's accumulated billions of dollars worth of bitcoin, essentially doubles as the first spot bitcoin exchange-traded fund in the US, CEO Michael Saylor told CNBC. "We're kind of like your nonexistent spot ETF," CNBC, in a report published Thursday, quoted Saylor as saying on the sidelines of the Bitcoin 2022 conference in Miami earlier this month. Investors are still waiting for the Securities and Exchange Commission to greenlight numerous applications from companies seeking to launch a spot bitcoin ETF, which would track the cryptocurrency itself.  The agency has approved bitcoin futures ETFs which gives exposure to bitcoin through futures contracts that speculate on how the price of bitcoin will move. MicroStrategy has been adding bitcoin to its balance sheet since 2020 and Saylor told CNBC it has no plans to stop doing so. "As we generate cash flows, we think that the responsible thing to do for our shareholders is we convert currency which is devaluing, into an asset which is appreciating," said Saylor. MicroStrategy said in a regulatory filing this month it is the largest publicly-traded corporate holder of bitcoin and with its subsidiaries has spent roughly $4 billion on bitcoin purchases. The company holds 129,218 bitcoins bought at an average price of $30,700.Bitcoin on Thursday traded at around $42,590. It's lost about 8% so far in 2022 but has recovered from lows that pulled the cryptocurrency below $36,000. Saylor, who personally owns more than 17,000 bitcoins in addition to MicroStrategy's holdings, told Insider this month that bitcoin has been struggling recently during a "tug of war" between macro traders, tech investors, and bitcoin maximalists. Shares of MicroStrategy have declined 16% this year, trading at around $453 during Thursday's session.A recent Nasdaq survey found heavy support for a spot crypto ETF product among financial advisors, with 72% saying they would invest in crypto if such a product were available.  Read the original article on Business Insider.....»»

Category: topSource: businessinsiderApr 21st, 2022

Boyar Value Group 3Q21 Commentary

Boyar Value Group commentary for the third quarter ended September 30, 2021. Q3 2021 hedge fund letters, conferences and more “Cryptocurrencies, regardless of where they’re trading today, Will eventually prove to be worthless. Once the exuberance Wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in Cryptocurrencies.” – […] Boyar Value Group commentary for the third quarter ended September 30, 2021. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Warren Buffett Series in PDF Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more “Cryptocurrencies, regardless of where they’re trading today, Will eventually prove to be worthless. Once the exuberance Wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in Cryptocurrencies.” – John Paulson Stock market investors have a laundry list of worries these days, from partisan bickering over the infrastructure package and a massive social and climate spending bill (amid a high-stakes game of political chicken over the debt ceiling) to supply chain disruptions and a spike in the costs of critical commodities. Geopolitical tensions are escalating between the United States and China—which is undergoing a significant regulatory crackdown—and question marks surround the future of interest rates and the consequences of a future Fed taper. And that’s to say nothing of the coronavirus! So it’s no surprise that investors are on edge—we’re getting depressed just reading through the list. Yet volatility in 2021, measured by how much the S&P 500 has decreased from its all-time high (~5%), has been tame. (According to David Lebovitz, a global market strategist with JP Morgan, the average peak-totrough decline for the S&P 500 over the past 41 years has been 14.3%.) In fact, until September, the S&P 500 was regularly charting new all-time highs, at ~54 and counting. But then the stock market got spooked, with the S&P 500 suffering its worst monthly performance (down 4.65%) since March 2020 and its worst September performance since 2011 (during the European debt crisis). Worse, all but one sector was in the red, with Energy the only advancer. Despite a 4.65% September loss, the S&P 500 eked out a 2% gain for the quarter, marking the sixth consecutive quarter of advances. But its 227 days without a 5% drop from the high ended on September 29—the seventh-longest such streak on record, Jacob Sonenshine of Barron’s tells us. The Dow and the Nasdaq were less fortunate, with their fivequarter winning streaks ending after respective falls of 4.2% and 5.31% in September. The Dow declined by 1.46% for the quarter, and the Nasdaq fell by 0.38%. Historically speaking, a September decline in the S&P 500 isn’t surprising: the past 100 years have seen 89 monthly drops of more than 5%. Felice Maranz of Bloomberg notes that September and October have accounted for 12 of the 26 times the market has dropped by more than 10% in a month. Encouragingly, these 26 drops were followed by subsequent 12-month gains on 16 occasions (for an average gain of 6.8%). Bond yields also began to increase (the 10-year Treasury went from 1.18% to 1.61% in less than 3 months), which dragged down technology shares. Higher yields on long-term risk-free investments make future profits less valuable, harming many tech company valuations, which are often based on expectations of significant profits many years down the line. Since technology companies are weighted heavily in the S&P 500 (nearly 28%, or more than 2x the weighting of the next-largest sector, Health Care, at 13.3%), the index dropped quite a bit more than the average stock did. (In September the S&P 500 index declined by 4.65%, while the S&P 500 equal-weighted index fell 3.90%.) The S&P 500 finished 3Q 2021 selling for 20.3x earnings (fwd.) versus 19.2x at its February 19, 2020, pre-COVID peak and 13.3x at its March 23, 2020, pandemic low. Since the March 23 bottom, the S&P 500 has gained well over 90%. By most traditional valuation measures (price to earnings, price to book, price to free cash flow, etc.), the S&P 500 is historically overvalued. Overvaluation against historical averages does not mean that investors should avoid equities, because extraordinarily low interest rates make prior valuation comparisons less meaningful. More important, at The Boyar Value Group, we don’t buy “the market”; rather, we purchase, and hold, businesses that sell far below our estimate of their worth. It might be especially hard uncovering bargains right now, but we’ve identified quite a few businesses selling at attractive levels even so. What’s Been Driving Share Price Returns in 2021? None of the 11 S&P 500 GICS sectors had standout performance in 3Q 2021, with 4 in negative territory and 1 flat (Consumer Discretionary). The biggest gainer, Financials, advanced a mere 2.7%. (For comparison, last quarter’s biggest gainer, Real Estate, advanced 13.1%.) By the end of 3Q, no sector was in negative territory YTD, and the best-performing sector by far was Energy (+43.2%). However, its low weighting in the S&P 500 (2.7%) gave it little effect on the index’s return, and its fantastic rise should be viewed in context, following as it did a loss of 37.3% in 2020. Other notable gainers thus far in 2021 have been Financials (+29.1%), Real Estate (+24.4%), and Communication Services (+21.6%). Interestingly, according to JP Morgan, since the market bottomed in March 2020, the S&P 500 had advanced ~97.3% as of September 30, 2021—leaving the index “only” ~30.6% above its February 2020 peak. The FAAMG stocks (Facebook, Apple, Amazon, Microsoft, and Alphabet—formerly Google), which have seemingly been leading the market ever upward, have struggled lately. Since their September peak, they have lost ~9%, or nearly $1 trillion, in market value. Due to FAAMG’s heavy weighting in the S&P 500 (~22%), if this area of the market continues struggling, the S&P 500 likely won’t perform well. Even so, we think there could be plenty of opportunities to make money investing in companies that have lower index weightings and/or that are outside the major indices. Some of the biggest “pandemic winners” are struggling too, with shares in Zoom Video Communications Inc (NASDAQ:ZM), Peloton Interactive Inc (NASDAQ:PTON), and Teladoc Health Inc (NYSE:TDOC) down 24%, 43%, and 34%, respectively, in 2021. (Though it’s worth noting that each company’s share price is trading significantly higher than before the pandemic.) One pandemic standout that has continued to soar throughout 2021 is vaccine maker Moderna, whose shares are up 192% in 2021 and up over 1,000% since March 2020. In hindsight, many signs of an imminent pullback were present. Market sentiment, for example, was very bullish (usually a contrarian indicator). At the beginning of August, two-thirds of JP Morgan clients surveyed were planning to increase their stock exposure in the coming weeks. A recent Bank of America gauge that tracks levels of optimism among market strategists was at a postcrisis high, and as of mid-August, 56% of all Wall Street analyst recommendations on S&P 500 index components were buys, the highest figure since 2002. However, we aren’t market timers. That’s because we know that trying to pinpoint the exact start of a market correction is a fool’s errand that impedes long-term results by prompting more trades (making results less tax-efficient) while removing the chance to make spectacular gains with companies that may be temporarily overvalued based on current earnings but that still have great long-term potential. When selling a high-quality company that has temporarily gotten ahead of itself in terms of valuation but that has excellent future growth prospects, knowing when to repurchase shares is extremely difficult, because the company’s share price often never drops enough to tempt investors into buying it again. So if you sell early to lock in a profit, anticipating a future correction, your profit on a well-timed sale might short-change you on future outsized gains. Reasons for Optimism According to Bloomberg, the final quarter of the year has been the strongest quarter for stocks since 2001, with an average increase of 4.1%. If history is any guide, 4Q 2021 could be a good quarter: 412 members of the S&P 500 are heading into it with gains for the year, the third-highest figure during the past 20 years. During that same period, each time 400 or more stocks have been positive through 3Q, the S&P 500 has produced a gain for 4Q.In another potentially bullish sign for stocks, cash holdings among S&P 500 companies hit $1.8 trillion in August 2021, as reported by Dow Jones Market Data—an increase of almost 30% from 3Q 2019. According to recent research by Goldman Sachs cited by Hardika Singh in a Wall Street Journal article, corporate America seems unlikely to be hoarding this cash, with S&P 500 companies expected to increase cash spending to $2.8 trillion in 2021 (mostly on capital expenditures, mergers, and business investment). Corporations also seem willing to buy back their own shares, having collectively authorized ~$870 billion in share repurchases thus far in 2021, $50 billion ahead of the record set in the first 9 months of 2018. If they deploy this capital wisely, share buybacks could buoy share prices in the short run, with capital investments spurring long-term earnings growth. What Does TINA Have to Do with the Stock Market? TINA, meaning “there is no alternative,” has become a popular catchphrase among investors, used to express the idea that stocks should continue doing well simply because interest rates are so low as to leave investors few investment options to produce an adequate rate of return. With the 10-year Treasury yielding ~1.6% and municipal bonds yielding ~1.17%, investors certainly are lacking attractive traditionally “safe” investment opportunities! Interest rates are so low that even the yields on some risky European junk bonds don’t earn any real return after factoring in inflation. Until rates rise meaningfully, equities should continue to see support—because there truly are few alternatives. The State of Value Investing Since April 2020, the S&P 500 value index has risen a little under 60%, while the S&P 500 growth index has surged over 90%, says Jacob Sonenshine of Barron’s. Value stocks should start outperforming if history is any guide: in the first 2 years of a recovery after a recession, value has bested growth by an average of 24%, based on data from Research Affiliates. The swift rotation back into value shares that began in September 2020 ended abruptly in July of this year as the delta variant slowed down the economic recovery, interest rates fell, and investors once again began embracing technology-oriented shares. But value looks like it might be making a comeback, with interest rates rising again and investors starting to embrace industrial and financial shares. Market Tops With the S&P 500 having advanced well over 80% since its March 2020 highs, and in view of all the political and economic uncertainty on the horizon, investors are questioning whether the latest bull market has ended. However, Mark Hulbert of the Wall Street Journal points out that unlike bear-market bottoms, which usually occur quickly (thankfully), bull markets end slowly, because individual sectors or investment styles peak and retreat at different times: “A recent illustration that not all sectors and styles hit their bull-market highs at the same time came at the top of the internet-stock bubble in early 2000. Though the S&P 500 and Nasdaq Composite indexes hit their bull-market highs in March 2000, value stocks—and small-cap value stocks, in particular—kept on rising. The S&P 500 at its October 2002 bear-market low was 49% lower than its March 2000 high, and the Nasdaq Composite was 78% lower, but the average small-cap value stock was 2% higher than it was in March 2000. Hulbert analyzed 30 bull-market tops since the mid-1920s, using data maintained by Ned Davis Research, and identified the dates when individual sectors and market styles (value, growth, blend) reached their bull-market peaks, reporting a 225-day spread between the dates when the first and last market sectors reached their bull-market tops. There are exceptions, of course, such as with bear markets caused by exogenous events such as 9/11 and the pandemic, but in general, he says, “it’s more accurate to view a bull-market top as a process rather than a single event.” As Hulbert points out, even the so-called experts can’t determine when a market peaks. Over the past 40 years, on days when the S&P 500 reached a bull-market high, the market timers that he followed recommended equity exposure at an average of 65.7%—a higher level of recommended investment than on 95% of all other days over the period. The experts were even worse at picking bear market lows, with their average equity exposure at market lows over the same period a mere 5%—yet another example of investors buying high and selling low! The takeaway is that knowing when a market has peaked is pretty much impossible to do regularly: even the so-called experts are consistently wrong. Individual investors would do much better to base their decisions on the value of each of their holdings rather than trying to guess whether they’re in a bull or bear market. Speculation in the Market The amount of speculation in the stock market worries us. A good example is the heightened use of stock options, which have legitimate hedging purposes, but which individuals seem to have recently embraced for speculative purposes. CBOE data indicate that option trading by individual investors has risen 4x over the past 5 years. As noted by Gundan Banerdi in the Wall Street Journal, “Nine of 10 of the most-active call-options trading days in history have taken place in 2021, Cboe Global Markets data show. Almost 39 million option contracts have changed hands on an average day this year, up 31% from 2020 and the highest level since the market’s inception in 1973, according to figures from the Options Clearing Corp.” As a result, the options market has grown so large that in some respects it’s bigger than the stock market. In 2021, for example, according to CBOE data, the daily average notional value of single stock options was over $432 billion, compared with $404 billion in stocks. We’ve said it before, and we’ll say it again: staying the course and taking a long-term view is one of individual investors’ best ways of stacking the odds of investment success in their favor. According to Dalbar, over the past 20 years the S&P 500 has advanced 7.5% annually, yet the average investor has gained a mere 2.9% (barely beating the 2.1% inflation over the period). Why this underperformance? Partly because investors let their emotions get the best of them and chase the latest investment fad (or they pile into equities at market peaks and sell out at market troughs)—or sell for nonfundamental reasons, such as simply because a company’s share price (or an index) has increased in value. By contrast, taking a multiyear view tilts the odds of success in investors’ favor. Since 1950, the range of stock market returns measured by the S&P 500 (using data supplied by JP Morgan) in any given year has been from +47% to -39%. For any given 5-year period, however, that range is +28% to -3%—and for any given 20-year period, it is +17% to +6%. In short, since 1950, there has never been a 20-year period when investors did not make at least 6% per year in the stock market. Although past performance is certainly no guarantee of future returns, history shows that the longer the time frame you give yourself, the better your chances of earning a satisfactory return. As always, we’re available to answer any questions you might have. If you’d like to discuss these issues further, please reach out to us at jboyar@boyarvaluegroup.com or 212-995-8300. Best regards, Mark A. Boyar Jonathan I. Boyar Boyar Value Group Updated on Oct 14, 2021, 2:01 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 14th, 2021

Bitcoin futures premium doubles ahead of SEC"s potential approval of an ETF next week

The annualized premium of CME bitcoin futures prices over bitcoin's spot value was 15%, compared to an average of 7.7% in the first 9 months of 2021. Bitcoin Nurphoto / Getty Images Bitcoin futures premium has doubled this month as the SEC rules on the potential of approval of several ETFs.SEC Chairman has recently voiced his support for bitcoin ETFs that hold futures contracts rather than directly holding bitcoin.The SEC is set to either approve, deny, or delay bitcoin ETF proposals from four firms over the next two weeks.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.The premium tied to bitcoin futures contracts has doubled this month as investors anticipate the SEC's potential approval of several bitcoin ETFs over the next two weeks.The SEC is set to either approve, deny, or delay bitcoin ETF proposals from ProShares, Valkyrie Investments, Invesco, and VanEck, which were all submitted to the regulatory agency in August. While still wary of a pure bitcoin ETF due to concerns for potential fraud, SEC Chairman Gary Gensler has voiced his support in recent weeks for a bitcoin ETF that buys underlying futures contracts on the cryptocurrency rather than directly buying bitcoin itself. Since Gensler has made clear his thoughts on the possibility of bitcoin futures-based ETF, several issuers have submitted new ETF applications that would utilize that same approach, including Cathie Wood's ARK Invest.With approval of a bitcoin futures ETF looking more likely than ever, the annualized premium of CME bitcoin futures prices over bitcoin's spot value was 15%, compared to an average of 7.7% over the first nine months of the year, according to the Wall Street Journal.Given that there could very soon be a surge in demand for bitcoin futures contracts due to the onslaught of new ETFs, the Chicago Mercantile Exchange is planning to raise the limit on the number of bitcoin futures contacts a single firm can hold. The SEC also seems to be ramping up education about bitcoin futures contracts ahead of their decision on the ETFs later this month. On Thursday, the SEC Investor Education Twitter account shared a link to more information on bitcoin futures and said, "Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits."Whichever firm receives approval for the first bitcoin futures-based ETF could see a significant first-mover advantage as investors seek exposure to bitcoin in their traditional brokerage and retirement accounts. Bitcoin is up more than 30% so-far in October, and is up just over 100% year-to-date. Markets Insider Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 14th, 2021

"The Most Asymmetric Trade For The Coming Years" - Hedge Funds Flood Into Uranium Stocks

"The Most Asymmetric Trade For The Coming Years" - Hedge Funds Flood Into Uranium Stocks One month ago, we brought readers' attention to one of our favorite market sectors which we have been recommending ever since Dec 2020 - uranium - which we were confident was set for a powerful move higher as a result of an auspicious confluence of technicals and fundamentals: on one hand, as delineated in "A Bitcoin-Like Opportunity In Uranium?", the Sprott Physical Uranium Trust has emerged as a powerful buyer of physical uranium, which in a market as illiquid as uranium, would serve as a powerful catalyst to move prices of both the underlying commodity and various producers sharply higher (the subsequent upsizing of the Sprott Trust by $1 billion only assured that this price-indescriminate buying would continue). That's precisely what happened. On the other hand, the recent global energy crisis has once again turned global attention to nuclear power as an efficient alternative to unreliable "green" energy, with countries from Japan to Finland and France hinting they are making preparations to restart NPPs. In subsequent days we saw a record investor rush into uranium ETFs... ... coupled with a spike in retail buying as Uranium producer CCJ briefly became the most talked about stock on the Wall Street Bets forum. And while the sector did see a modest pullback in the second half of September as the initial excitement over the move in uranium died down, a new leg higher may now be starting. Only this time it's not retail investors that are seeking to spark upward momentum, but much more patient hedge funds that are piling in. As the FT wrote overnight, after years of stagnant prices, a 37% rally in prices for nuclear fuel uranium has helped attract investors back to the sector. Funds such as Ben Melkman’s New York-based Light Sky Macro, Anchorage Capital and Tribeca Investment Partners who have emerged as positive on the outlook for the raw material, as a global energy crunch highlights the role of nuclear power in a transition away from fossil fuels. The price of raw uranium rose to its highest level since 2012 at $50 a pound last month before giving up some of its impressive gains at the end of the month. The move - which was inspired by the buying momentum triggered by the Sprott Trust and subsequent retail influx - has attracted new, and much deeper pocketed investors into the market for the first time since before the financial crisis, when buying by investors drove the price from $20 a pound to a record high of $136 a pound in June 2007. "We’ve been patiently waiting for something to happen for a long time," Ben Cleary, of Tribeca Investment Partners whose fund is up 345% net of fees this year, told the FT. “Clearly there’s speculative money coming back into the sector, there were massive price moves in September.” Well yes, and we documented them all, but they were mostly retail money and ETF buying. The difference this time is that finally the institutions are waking up to what could be a historic surge, especially if the fake ESG lobby starts dumping the bloated FAAMG names and seeks refuge in such "soon to be green" sectors as uranium. Incidentally, the entire Uranium sector is a tiny fraction of Apple's market cap. Of course, first and foremost we have to again give props to Sprott’s Physical Uranium Trust - as we have done repeatedly in the past 2 months - which is one of the few that buys and stores physical uranium. however, most other funds add exposure through mining equities, which have rallied 58% this year. The rapid rise in natural gas and coal prices to fresh highs this month has exacerbated an energy crisis in Europe and China, and has “placed uranium back in the spotlight”, said Rob Crayfourd at CQS New City Investment Managers. And, echoing what we said a month ago, Crayfourd said that “the political fallout of this energy crisis will be a greater willingness in the west to extend the life of the existing reactor fleet. It has focused governments on the benefits of secure supply of energy from the nuclear fleet. We expect that to lend support [to prices].” For an example of just that look no further than French President Emmanuel Macron who today said that France would aim to become a leader in green hydrogen by 2030 and build new, smaller nuclear reactors as he unveiled a five-year investment plan on Tuesday aimed at fostering industrial champions and innovation. While the funds making their way into the uranium sectors are still relatively small, they are hardly inexperienced: Light Sky’s founder Melkman, who was previously a partner at hedge fund Brevan Howard, has gained more than 5% this year, said a person who had seen the numbers. “Light Sky Macro sees an immediate and sizeable opportunity in the uranium sector, making it one of our highest conviction views for 2021,” he wrote in a note to clients, seen by the Financial Times, earlier this year. A drawdown of inventory during the coronavirus pandemic has compounded tightening supply, while demand is expected to surge in the coming decades, added Melkman, who has been investing in the sector since 2018. “The growing focus on ‘green energy’ at a political level and the growing demand for [sustainable] assets in the investment community should turn uranium into one of the most asymmetric trades for the coming years,” he wrote, meaning that the possibility of potential gains far outweighs the risk of losses. Also profiting is Sean Benson, founder of London-based Tees River. His uranium fund, which buys equity stakes in uranium miners, is up 115% this year. Benson argued in an investor letter that a deficit of supply relative to demand and a “very supportive” climate change agenda mean that “the current uranium cycle is better than the last on every fundamental metric”. His Critical Resources fund, which invests about one-third of assets in uranium, is up 44% this year. Judging by the surge in uranium stocks today the market is finally starting to pay attention, and while the recent move may seem outsized at least when comped to recent history, when one considers just how much upside there could be in the sector should nuclear power make a triumphal return, we could be in the early stages of a truly staggering move higher. Tyler Durden Tue, 10/12/2021 - 14:10.....»»

Category: blogSource: zerohedgeOct 12th, 2021

Warren Buffett used the "Mona Lisa" to explain why art is a terrible investment - but then compared Berkshire Hathaway to an art museum

"We like to think we're the Metropolitan Museum of businesses," Buffett said in 2000, comparing the companies he buys to works of art. Warren Buffett. Getty Images / Jemal Countess Warren Buffett dismissed art as a bad investment nearly 60 years ago. France could have made $1 quadrillion if it had invested instead of buying the Mona Lisa, he said. Buffett described investing, valuing and building businesses, and Berkshire Hathaway as art. See more stories on Insider's business page. Warren Buffett invoked one of the most famous paintings in history to explain why art is a poor investment.The billionaire investor tackled the topic in his 1963 letter to clients of his Buffett Partnership, the investment fund he ran before turning his attention to Berkshire Hathaway. He wanted to convey the power of compound interest in building wealth over time.Buffett noted that Francis I, the former king of France, bought Leonardo Da Vinci's "Mona Lisa" in 1540 for 4,000 gold crowns, or the equivalent of $20,000. If the monarch had plowed that money into an investment generating a modest after-tax return of 6% a year, the country's coffers would be overflowing with more than $1 quadrillion by 1963, or 3,000 times its national debt, the investor pointed out.Meanwhile, the "Mona Lisa" was insured at a value of $100 million in 1962, or over $900 million in today's dollars."I trust this will end all discussion in our household about any purchase of paintings qualifying as an investment," Buffett quipped. His comments resurfaced this month courtesy of Dividend Growth Investor, a Twitter user who tweets about investing.The famed boss of Berkshire Hathaway might not view art as a worthwhile holding, but he considers his job to be something of an art form."Investing is the art of laying out cash now to get a whole lot more cash later on," he said at Berkshire's annual shareholder meeting in 1998. He also described valuing businesses as an "art" during the next year's meeting.Moreover, Buffett has compared building a business to crafting a painting. He deployed that analogy to persuade the cofounder of National Indemnity, Jack Ringwalt, to sell his insurance company to Berkshire in 1967, he recalled at the annual meeting in 2000.The investor asked Ringwalt if he would be happy to have a trust officer dispose of his life's work the day after he died. He reassured the entrepreneur that Berkshire would respect and not resell his business, and also allow him to continue "painting" it."We won't come in and tell you to use reds instead of yellows or anything like that," Buffett recalled telling Ringwalt. "So even though it's a masterpiece now, you can keep adding to it."The Berkshire chief took the metaphor even further, framing his conglomerate as a collector of fine art."We like to think we're the Metropolitan Museum of businesses and that we can get really outstanding creations to reside in our museum," he said.Buffett has also described Berkshire - which owns scores of subsidiaries including Geico and See's Candies as well as multibillion-dollar stakes in Apple, Coca-Cola, and other public companies - as his magnum opus."I regard Berkshire Hathaway sort of like a painter regards a painting, the difference being the canvas is unlimited," Buffett said in 2016.Read the original article on Business Insider.....»»

Category: dealsSource: nytSep 26th, 2021

George Soros-backed fund buys $35M in Tesla bonds, ups stakes in Alphabet and Netflix

An investment fund run by billionaire George Soros bought up $35 million worth of Tesla convertible notes in the first quarter, and bought tens of thousands of shares of Alphabet, Inc. and Netflix, a new filing shows. The quarterly filings from Sor.....»»

Category: topSource: bizjournalsMay 16th, 2018

George Soros-backed fund buys $35 million in Tesla convertible bonds, raises equity stakes in Alphabet and Netflix

George Soros-backed fund buys $35 million in Tesla convertible bonds, raises equity stakes in Alphabet and Netflix.....»»

Category: topSource: bizjournalsMay 16th, 2018

Affirm Stock Has Affirmed A Bottom

Buy now and pay later purchase financing provider Affirm (NASDAQ:AFRM) stock is rebounding after bottoming out at $13.64. The buy-now-pay-later (BNPL) platform had a very negative sentiment heading into its fiscal Q3 2022 earnings release on the heels of weak performances from Block (NYSE:SQ) and PayPal (NASDAQ:PYPL). To the pleasant surprise of shareholders, the results […] Buy now and pay later purchase financing provider Affirm (NASDAQ:AFRM) stock is rebounding after bottoming out at $13.64. The buy-now-pay-later (BNPL) platform had a very negative sentiment heading into its fiscal Q3 2022 earnings release on the heels of weak performances from Block (NYSE:SQ) and PayPal (NASDAQ:PYPL). To the pleasant surprise of shareholders, the results were indeed impressive triggering a short squeeze that doubled its recent low price. Shares are still down (-74%) year-to-date, which leaves room both for upside and opportunity for pullbacks. The Company is still growing its top line at over 50% annually. Affirm continues to grow its active merchants now at 207,000 and active customers which have grown 137% to 12.7 million as total transactions grew to 10.5 million, up 162%. Perhaps, most importantly the 81% re-engagement rate from repeat customers underscores how sticky the network effect is with Affirm’s e-commerce platform. The Company announced a multi-year extension of its partnership with Shopify (NASDAQ:SHOP) and continues to partner with retail behemoths Target (NYSE:TGT) and Amazon (NASDAQ:AMZN). Travel and ticketing were strongly elevated in the quarter with double the volume from last year reflecting the accelerating recovery. Affirm seeks to reach run-rate profitability on an adjusted operating income basis by July 1, 2023. Prudent investors seeking exposure can watch for opportunistic pullbacks in shares of Affirm. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Q3 Fiscal 2022 Earnings Release On May 12, 2022, Affirm released its fiscal third-quarter 2022 results for the quarter ending March 2022. The Company reported a GAAP earnings-per-share (EPS) loss of (-$0.19) excluding non-recurring items meeting consensus analyst estimates for a loss of (-$0.39), a $0.20 beat. Revenues grew by 53.8% year-over-year (YOY) to $354.8 million beating analyst estimates for $344.01 million. Adjusted operating income was $4 million down from $4.9 million in the year-ago period. Gross merchandise value (GMV) grew 73% YoY to $3.9 billion. Active merchants grew from 12,000 to 207,000 driven by the adoption of Shop Pay Installments by merchants. Active consumers grew 137% to 12.7 million, and increased by 1.5 million, up 13% sequentially. Affirm CEO Max Levchin commented, “The number of active merchants on our platform grew from 12,000 to 207,000 year over year, and active consumers increased 137% to 12.7 million people. The secular trend toward adopting honest financial products and our ability to drive strong demand among merchants resulted in GMV growing by 73% year over year. We are especially proud of the re-engagement we are driving with consumers as 81% of our transactions were from repeat Affirm users. This represents the highest repeat transaction rate we have ever reported. As we advance our strategy to drive growth, maintain attractive unit economics, and deploy superior risk management, we plan to achieve a sustained profitability run rate on an adjusted operating income basis by July 1, 2023.” In-Line Guidance Affirm issued inline guidance for fiscal Q4 2022 revenues of $345 million to $355 million versus $352.92 consensus analyst estimates. Conference Call Takeaways CEO Levchin set the tone by pointing out that active merchants have grown 16-fold YoY and total transactions grew 162% YoY. Most notably, 81% of those transactions are from repeat Affirm customers. GMV grew 73% YoY to $3.9 billion, excluding Peloton. He noted how the travel and ticketing segment has been strong as volume more than doubled from the year-ago. Affirm became available on American Airlines (NYSE: AAL) in the quarter. The Company announced a new agreement with Stripe. He pointed out, “Our plan is to achieve a sustained profitability run-rate on an adjusted basis by the end of the next fiscal year. That is to say, we expect to generate revenue that consistently exceeds our adjusted operating expense starting July 1, 2023. We do not expect our plan for reaching profitability to compromise growth just as we demonstrated this quarter. We also do not plan to raise any new equity capital, because we believe Affirm is fully funded to profitability. We will share our full fiscal year ‘23 outlook and full-year guidance in our next earnings report.” Affirm Opportunistic Pullback Levels Using the rifle charts on the weekly and daily time frames provides a precise view of the playing field for AFRM stock. AFRM stock bottomed out at the $13.64 Fibonacci (fib) level and staged a rally into its fiscal Q3 2022 earnings which ended up accelerating the share price on the gap to peak at $27.50. The weekly market structure low (MSL) buy triggers a breakout through $27.50. The weekly rifle chart has an inverse pup breakdown with a falling 5-period moving average (MA) at $26.59 followed by the 15-period MA at $35.00. The weekly stochastic is attempting a 10-band cross-up. The daily rifle chart is attempting to reverse the downtrend with a rising 5-period MA at $22.88 that needs to crossover up through the 15-period MA at $24.79. The daily 50-period MA resistance sits at $34.19 with daily upper Bollinger Bands (BBs) at $40.10. The daily stochastic is rising towards the 50-band. Prudent investors can look for opportunistic pullback levels at the $21.29 fib, $19.83 fib, $18.37 fib, $16.29 fib, $15.05 fib, $13.64 fib, $12.48, $10.38 fib, and the $8.51 fib level. Upside trajectories range from the $33.67 fib level up to the $52.41 fib level. Should you invest $1,000 in Affirm right now? Before you consider Affirm, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Affirm wasn't on the list. While Affirm currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Jea Yu, MarketBeat Updated on May 27, 2022, 4:15 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk11 hr. 7 min. ago

Is This The Low For Alibaba (NYSE:BABA)?

It’s been a while since there was any good news for investors of Alibaba (NYSE:BABA) to get excited about. Antitrust concerns last year were compounded by a large risk of delisting on US exchanges, which was in turn dwarfed by the impact of rising interest rates and the strong risk-off sentiment that’s been in place […] It’s been a while since there was any good news for investors of Alibaba (NYSE:BABA) to get excited about. Antitrust concerns last year were compounded by a large risk of delisting on US exchanges, which was in turn dwarfed by the impact of rising interest rates and the strong risk-off sentiment that’s been in place so far in 2022. Together, these sent shares of the Chinese e-commerce giant down as much as 75% from their 2020 high. But it’s starting to look like a low has been put in, and considering just how hard Alibaba has been able to rally under the right conditions in the past, investors might want to sit up and take notice. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Alibaba’s shares jumped 15% in yesterday’s session, a move that was undoubtedly helped by the strong performance seen across all equities but mostly driven by the company’s latest earnings. They were released before the start of Thursday’s session and came in quite strong. Both EPS and revenue beat analyst expectations, with the latter showing year-on-year growth of 9%. Their annual active consumers across the world reached approximately 1.3 billion which is an astounding figure and gives a hint at the scale of potential that’s on offer with Alibaba. Bullish Comments Unsurprisingly, management struck a bullish tone, saying with the release that “we believe our company will continue to generate strong operating cash flow to maintain strategic flexibility as we calibrate our operations against changing economic and competitive circumstances. In the fiscal year 2023, our operating principles include focusing on sustainable, high-quality revenue growth and optimizing our cost structure to enhance overall return.” However, given the near-term headwinds that still exist, they again stopped short of offering any guidance update, which will remain a red flag for many investors. To that point, they said that "since mid-March 2022, our domestic businesses have been significantly affected by the COVID-19 resurgence in China, particularly in Shanghai. Considering the risks and uncertainties arising from COVID-19, which we are not able to control and are difficult for us to predict, we believe it is prudent at this time not to give financial guidance as we typically do at the start of the fiscal year.” Still, investors and Wall Street alike were more than happy to buy into the potential recovery rally that we now have on our hands. Alibaba's upbeat report was seen as a sign that the company's business has weathered the worst of the widespread lockdowns this year that have become so common in Shanghai and other cities in China. The thinking here is, if they can manage this kind of performance during that kind of environment, what’s going to be possible once COVID becomes the backpage story that it is already in most of the West already? In addition, concerns around the ruling Communist party’s antitrust stance appear to be abating. It’s only two weeks since Chinese Vice-Premier Liu He told executives at top tier tech firms that the relationship between the government and the firms would be "properly managed". It was also reported that Liu said China would continue to fight "the battle for key core technologies," another sign that China is easing regulatory pressures on its tech companies. So with two of the biggest risks, COVID disruptions and antitrust measures, starting to take a back seat, the only big one still acting as a major break on shares is the SEC here in the US. Considering A Position Earlier this week, an official with the Securities and Exchange Commission said "significant issues remain" in resolving the lack of transparency on being able to audit Chinese firms. YJ Fischer, Director, Office of International Affairs, said that the Public Company Accounting Oversight Board, or PCAOB needs access to audit paperwork from Chinese firms and the claim that the audit paperwork cannot be produced because of national security concerns is "questionable at best." In addition, Fischer noted that although there have been "ongoing and productive discussions" between U.S. and Chinese authorities concerning the audit investigations, time is "quickly running out." If Alibaba and the other Chinese tech giants can navigate this hurdle, you have to be thinking that most of the pressure that's sent them down this far is off. And if that happens, their shares are suddenly going to start looking very cheap at less than $100. Should you invest $1,000 in Alibaba Group right now? Before you consider Alibaba Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Alibaba Group wasn't on the list. While Alibaba Group currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Sam Quirke, MarketBeat Updated on May 27, 2022, 4:20 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk11 hr. 7 min. ago

Short Sellers Provide Entry Into Hibbett Inc At Rock Bottom Prices

Hibbett Inc Pulls Back Despite Rosy Outlook Hibbett Inc (NASDAQ:HIBB) shares are pulling back nearly 10% in premarket action after what we consider to be a rosy report. While the Q1 results are mixed and earnings are below expectations the guidance is positive and accompanied by some news we (and the market) want to hear. […] Hibbett Inc Pulls Back Despite Rosy Outlook Hibbett Inc (NASDAQ:HIBB) shares are pulling back nearly 10% in premarket action after what we consider to be a rosy report. While the Q1 results are mixed and earnings are below expectations the guidance is positive and accompanied by some news we (and the market) want to hear. Hibbett Inc says supply chain headwinds have improved, inventory is up, and the company is well-positioned for the summer. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more The takeaway for us is that this company’s earnings are strong, there is growth in the forecast, and the dividend is safe. More, we think the company could raise the dividend with the next declaration and it may be a large increase indeed. The company has only paid a dividend for four quarters but the metrics are heavily biased in favor of distribution increases. Not only is the payout a respectable 2.0% but the payout ratio is a super-low 7% of the Marketbeat.com EPS consensus and the balance sheet is a fortress. Hibbett Inc Has Rough Quarter, Sort Of Hibbett Inc had a tough quarter impacted by supply chain headwinds that cut into sales. The company did not quantify the loss but did say inventory levels improved significantly near the end of the quarter. Regardless, the $424.05 million is down 16.3% and is in line with the expectations. The decline is due to an incredibly tough comparison to last year that was supported by stimulus checks and social distancing so not a surprise. On a comp-store basis, sales are down -18.9% versus last year but up 23% versus the pre-pandemic level and expected to remain strong going forward. On a channel basis, B&M sales declined 22% while eCommerce gained 4.1%. eCommerce, it should be noted, is up 117% versus 2019 and is expected to grow in size and as a percentage of the net. As it is, eCommerce sales are up 630 basis points as a percentage of sales in the 2-year comparison. The problem for the company, the real problem, is deleveraging and inflation. Deleveraging fixed costs, increased input costs, and higher freight cost the company about 440 basis points of margin at the gross and operating level and left earnings well below forecast. The $2.89 in GAAP earnings is down 42% YOY and missed the consensus by $0.26 but that’s the worst of the news. Looking forward, the company predicts its inventory position will support sales and drive revenue and earnings above the Marketbeat.com consensus. Execs are looking for flat revenue growth versus down 2.5% and for EPS of $9.75 at the low end of the range compared to the $9.64 average estimate which is good but might be optimistic. While there is some risk in the guidance, we do not think it is worth the premarket selloff that it caused. Hibbett Inc Returns Cash To Shareholders Hibbett Inc is returning cash to shareholders in the form of dividends and buybacks and it is doing so without increasing its debt. The company repurchased about $22.4 million worth of shares during the quarter and can be expected to repurchase more shares as the opportunities arise. The dividend is worth about 2% to shareholders and $3.3 million in cash to the company bringing the total returned in Q1 to $25.7 million. That leaves about $13.6 million in cash flow the company is using to build its cash position and inventory. Inventory, by the way, is up 72.6% versus last year and should continue to grow as the company adds stores. Hibbett is forecasting 30 to 40 new stores in under-served areas which we think is a good strategy, it’s working for Tractor Supply Company. The Technical Outlook: Hibbett Moves Down To Support The price action in Hibbett moved down almost 10% in premarket trading to retest a key support target and that support is already showing its face. Support at the $40 looks very strong and is turning into a bottom that we think is buyable. The move to this level was caused in large part by short selling and it looks like short-covering is in order. Because the short interest is nearly 20%, the short-covering rally could be lengthy, vigorous, or both. Assuming the market follows through on what we are seeing, we think this stock could easily get up to the $65 region and then possibly move higher. Should you invest $1,000 in Hibbett right now? Before you consider Hibbett, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hibbett wasn't on the list. While Hibbett currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Thomas Hughes, MarketBeat Updated on May 27, 2022, 4:31 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk11 hr. 7 min. ago

Medtronic"s (MDT) New JV With DaVita to Expand Renal Care Line

NewCo is expected to operate successfully, leveraging Medtronic's (MDT) capabilities as a healthcare technology leader and DaVita's deep expertise as a comprehensive kidney care provider. Medtronic plc MDT recently entered into an agreement with kidney care provider, DaVita Inc. DVA to form an independent kidney care-focused medical device company. The newly-formed company, termed now NewCo, is targeted to enhance patient treatment experience and improve overall outcomes.Per the terms of the deal, Medtronic and DaVita will both co-own NewCo with equal equity stakes. The new company will be operated by an independent management team. Both companies will provide an initial investment to fund NewCo and some future operating capital. No other financial terms of the deal were disclosed.More Insight on NewCoAccording to both the founding companies, NewCo will focus on developing a comprehensive range of advanced kidney care products and solutions, which include future home-based products, to make different dialysis treatments more accessible.This new company is expected to successfully align with its targets, leveraging on Medtronic's capabilities as a healthcare technology leader and DaVita's deep expertise as a comprehensive kidney care provider.Image Source: Zacks Investment ResearchVen Manda, the current president of Medtronic's Renal Care Solutions business, will be NewCo's CEO upon close. According to him, Medtronic’s singular focus on end-to-end kidney health solutions will position this new company to make a measurable difference in the lives of more than three million patients with kidney failure globally. This figure is expected to double over the next decade, he stated.The deal will close expectedly in the next calendar year, subject to fulfillment of the customary closing conditions.Importance of the Deal for MDTMedtronic’s Renal Care Solutions (RCS) business, including the current product portfolio (renal access, acute therapies, and chronic therapies), product pipeline, and global manufacturing R&D teams and facilities will be shifted under the new company’s operations. No other Medtronic products or portfolios, including those in the AV access portfolio in the Peripheral Vascular Health business, however, will be added.Medtronic, on the Q4 earnings conference call, noted that while its RCS business will contribute to NewCo, in return, it expects to receive up to $400 million in value from NewCo.According to Medtronic, this deal will be a strategic fit for the company, considering DaVita is a global leader in kidney care and will be a great partner in commercializing and scaling kidney solution technology. This Renal Care Solutions joint venture with DaVita is going to be a smaller initial step in terms of MDT’s portfolio management work.Industry ProspectsGoing by the Insight Partners report published in Cision, the global kidney disease market is expected to reach $133.4 billion by 2027 from $81.1 billion in 2019. The market is estimated to witness a CAGR of 6.5% from 2020 to 2027.With solid market prospects in this space, Medtronic’s latest strategic JV with DaVita to form NewCo, seems well-timed.Share Price PerformanceShares of Medtronic declined 21.4% over the past year as compared to a 25.8% plunge of the industry.Zacks Rank and Key PicksMedtronic currently carries a Zacks Rank #3 (Hold).Two better-ranked stocks in the broader medical space include UnitedHealth Group Incorporated UNH and Medpace Holdings, Inc. MEDP.UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%. Just Released: The Biggest Tech IPOs of 2022 For a limited time, Zacks is revealing the most anticipated tech IPOs expected to launch this year. Concerns about Federal interest rates and inflation caused many private companies to stay on the bench- leading to companies with better brand recognition and higher growth rates getting into the game. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity. See the complete list today.>>See Zacks Hottest IPOs NowWant 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 UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report DaVita Inc. (DVA): Free Stock Analysis Report Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks16 hr. 6 min. ago

The Crypto Industry Was On Its Way to Changing the Carbon-Credit Market, Until It Hit a Major Roadblock

Crypto entrepreneurs hoped to revolutionize the carbon credit market to fight climate change. They've been met with resistance. Last year, the startup Toucan launched with a bold vision: it was going to use the blockchain to upend the entire carbon credits system. The traditional voluntary carbon market—in which polluting companies can pay for credits that fund emission-reducing efforts—was disorganized, archaic, and lacked incentives, Toucan’s founders argued. By pushing carbon markets onto the blockchain—a public and decentralized database—they felt they could turbocharge the climate fight with crypto economics, provide a global infrastructure data layer, and force polluting companies to either pay higher prices for carbon credits or seek more environmentally friendly approaches to their businesses. And upend the system they did—though not necessarily in the ways that they hoped. Toucan’s aim was to create infrastructure to facilitate the buying of carbon credits, which would be retired and then placed on-chain in the form of a new token. From there, the tokens would be stored publicly and safely, and could then be bought and traded like any other crypto asset, with the hopes of enticing prospective buyers who previously had no interest in the carbon credit world. And in October, millions of carbon credits started arriving on chain thanks to a campaign from another crypto environmental group called KlimaDAO. But many of them were attached to low-quality, long-dormant projects that didn’t actually improve the environment, according to some scientists and watchdogs. Market prices swung wildly, causing mild panic among traditional carbon-credit issuers and buyers. [time-brightcove not-tgx=”true”] Now, after several months of deliberation, Verra, the primary carbon credits issuer and a standard-bearer for the industry, has taken a stand against Toucan’s activity. On May 25, Verra announced it would ban the conversion of retired Verra credits into crypto tokens, which is Toucan’s central mechanism. After just seven months, the first phase of the crypto’s supposed carbon-credit revolution is over. Verra did open the door for a potential new chapter of collaboration, in which only live Verra credits could be tokenized. This would give Verra greater control and oversight over the flow of credits throughout these new markets. But Robin Rix, the chief legal, policy, and markets officer at Verra, told TIME that while his organization definitely wants to scale up the carbon-credit market, it is now leaning towards trying to do so through bank-led initiatives, like Carbonplace, as opposed to crypto ones. The decision will force Toucan and others to make a hard pivot in their operational models. Toucan’s initial response about Verra’s news was cautiously optimistic: it believes that Verra’s actions show Toucan’s outsize impact, and that despite Verra’s rhetoric about preferring banks, Toucan will nonetheless somehow play a role in this next stage of innovation. Carbon credit insiders, for their part, believe that while crypto carries long-term potential in the fight against climate change, many difficulties and obstacles stand in the way in the creation of a streamlined system that all parties are happy with. “Both crypto and carbon are pretty complex and difficult—And when you put them together, it’s like difficulty squared,” says Ollie Gough, strategy lead for the carbon-rating startup Sylvera. “Mistakes have been made—and we’re waiting to see how it pans out.” Streamlining a messy market The voluntary carbon market was developed in the ‘90s as a means by which companies in industries ranging from air travel to banking to oil could, in theory, track and offset their CO2 emissions. The idea was to ascribe a specific cost of the environmental damage of CO2 emissions, and then enable companies to purchase carbon offsets, which were similarly cost-assessed based on their ability to reduce environmental damage. Those credits might be tied to a forestation project, say, or a new wind farm. But three decades later, the carbon market is still largely unregulated and fragmented, with interested parties squabbling over criteria for inclusion and decision-making processes. Several studies have shown that the system has overvalued projects that have had little-to-no positive impact on the environment. One study from last year, for example, found that many forest-growing carbon-reduction projects in California systemically over-exaggerated their climate benefits. “I am continually underwhelmed by the quality we’re seeing,” Grayson Badgley, a co-author of that study and a research scientist at the climate nonprofit CarbonPlan, says. “I think there are a lot of low-quality carbon-offset projects that are out there, and I think their usefulness has been exaggerated.” Crypto proponents believe the blockchain could be wielded to keep a streamlined public record of the whole system. The blockchain, for example, could help solve the problem of “double counting,” in which two parties claim credit for the same emission-reducing action. Many members of the traditional carbon world were immediately intrigued. “It’s important to understand how untransparent the markets are,” Gough says. “This was really the first time ever you had some sort of indices roughly tracking the price at which the market was paying for carbon in a very public format.” Sweeping the floor Toucan hoped that other crypto projects would build on top of its infrastructure. In October, an organization called KlimaDAO did just that, creating its own token, Klima, that could be acquired with Toucan’s token, BCT, with the hopes of turning carbon credits into an in-demand market commodity. If crypto traders got involved and started investing in these tokens, KlimaDAO’s team argued, they might drive the price of the credits up, forcing polluting companies to either pay for higher-priced, higher-quality carbon credits or find more energy-efficient production methods. KlimaDAO’s first approach was what they called “sweeping the floor,” or rallying crypto enthusiasts to buy the cheapest carbon credits available via Toucan. (Cheaper credits are often attached to projects that the market has determined are of dubious environmental value, like Chinese hydropower dams.) The idea was to take all of the bad credits out of commission, so that only the better and more expensive ones remained. And crypto traders eagerly jumped in: in Toucan’s first six months, more than a quarter of all carbon credits bought on Verra were done so via Toucan and transferred on-chain. But there was one problem: most of these bad credits hadn’t been in circulation for years, because established carbon credit buyers already understood their lack of worth. Because of their age, many of these credits weren’t even eligible to be sold on some established trading markets. So instead, KlimaDAO’s tokens created fake value for worthless carbon-credits, worsening the situation. Suddenly, dozens of old projects that were once deemed unsellable began to reemerge, taking advantage of a gold rush and offering themselves up to this new clientele. “We aren’t convinced that ‘sweeping the floor’ is doing anything but increasing churn in a market that needs fundamental reform, not new software platforms,” Badgley and Danny Cullenward, policy director of Carbonplan, wrote on the non-profit’s website in April. The Toucan team, first excited by KlimaDAO’s entrance, now watched with alarm as scientists and carbon credit issuers like Verra began to criticize or distance themselves from crypto carbon projects. “I do think that hype ultimately wasn’t beneficial for everyone. It pushed expectations and prices into areas that made zero sense,” Raphaël Haupt, co-founder of Toucan, says. “And it’s really hard for an infrastructure provider like Toucan to suddenly have to play the police.” For months, the Toucan team debated on the best way to excise these bad credits from the system. In May, they finally changed their criteria to ban old, low-integrity credits. But the gaffe made clear the perils of a brash approach to a complicated problem. Haupt argues that Toucan had no choice but to take an imperfect approach—and that by doing so, they were able to both galvanize the crypto world’s interest while forcing issuers like Verra to adapt to their methods. “We don’t see retirement as the right way of doing things, but it was the lack of a clear system that forced us to take this route,” he said. “It was the first little door we could open to match the demand that exists right now.” Bigger problems with carbon credits Toucan’s efforts exposed some of the baseline flaws of the carbon market: the lack of a single standard of quality, and the likelihood that many sub-optimal projects end up being valued even if they aren’t helping the environment. In 2020, Greenpeace even went as far as calling the entire system “​​a distraction from the real solutions to climate change,” like actually reducing the emissions from fossil-fuel energy generation. Gough, at Sylvera, says it’s extremely difficult to establish a simple set of criteria for valuating carbon-offset projects because of all of the different factors in play. “You can try and do it by registry, age, or project type, but it doesn’t work: You will let some things in of low quality, and you will cut out actually high quality stuff,” he says. This year, a carbon-offset task force of hundreds of companies and sustainability experts were forced to scale back their efforts because they couldn’t agree on how to define a high-quality project. Meanwhile, many carbon-reducing programs already set in motion have also raised questions about viability. A recent study by Kyla Mandel in TIME found that current reforestation plans would require nearly 1.4 million square miles to meet their goals, which is nearly half of the continental United States. Even if all those trees get planted, there’s no guarantee of their long-term impact. “Trees can die, burn, or get chopped down,” says Badgley, all of which immediately negate any CO2 offsetting they’d offered. More crypto confusion Environmentalists and carbon market experts are also concerned by the volatility crypto introduces into their efforts. So much of crypto markets is currently fueled by speculation: the desire for traders to make money fast on tokens that swing wildly in value. “If [carbon-offset] prices keep fluctuating as widely as some of the crypto assets have been fluctuating, that makes it difficult…to plan and develop” carbon-reduction projects, says Ben Rattenbury, vice president of policy at Sylvera. In recent weeks, values have been depressed across the crypto world, and carbon crypto projects are no exception: As of writing, Toucan’s BCT token is less than half of what it was in February, and KlimaDAO’s token is a third of what it was in March. The number of credits coming on chain through those two projects has essentially grinded to a halt; with prices so low, there’s very little incentive for people to enter the market. Haupt, at Toucan, says he’s fine with this slowdown. “We’re in the consolidation phase. We came out guns blasting more than we thought,” he says. “We’re building this long-term, and it’s cool to have the opportunity to speak with different people on how they see the world and make sure we build a functioning system.” Toucan is far from the only player in this space. Since its launch last year, venture capital money has flooded into the space and a slew of new crypto carbon projects have been launched, each one jockeying for attention with what they argue is a unique twist or perspective. There’s Chia, an independent blockchain that’s forged a partnership with the World Bank’s Climate Warehouse; Flow Carbon, which is backed by WeWork founder Adam Neumann and just raised $70 million; Open Forest Protocol, Moss, and many more. Some of the projects collaborate and are interoperable; others are not. Many players in the space expect that some sort of consolidation will happen, although there is little agreement on exactly how that might come to pass. “Now we have like a trillion carbon projects that all want to bring carbon to web 3 that all use their own tokens and are not compatible with each other,” Haupt says. And then there’s the question of the climate harm of these blockchain projects themselves. In March, President Biden signed an executive order requesting research on the potential climate impact of digital assets, given the high energy costs of crypto mining. A letter written in response, penned by a climate-focused blockchain committee that included members of Toucan, conceded that “currently, Blockchains do have an energy problem,” before pledging to make the entire crypto industry net-zero in terms of greenhouse gas emissions by 2040, in part by switching completely to renewable sources of energy. (Some critics are skeptical that this is an achievable goal.) Verra halts Toucan’s activity Verra’s decision to stop the tokenization of retired credits means Toucan’s main activity will halt for the foreseeable future. Meanwhile, it’s unclear what will happen to 22 million retired credits that have already been placed on chain, and whether they will be worth anything going forward. Both the Toucan and Klima tokens dropped severely in price following Verra’s decision. The Twitter user who goes by Rez and is the head of protocol for the climate-crypto community Solid World DAO wrote on Twitter that Verra’s announcement sent the climate-crypto markets “into a sort of existential limbo.” Crypto carbon proponents hope they will be able to help Verra build a new system of tokenizing “live” credits as opposed to retired ones. But Verra’s legal officer Rix told TIME that Verra is leaning toward working with a project like Carbonplace, which was created by a consortium of banks including CIBC and UBS. Carbonplace has many similar aims to Toucan, including to scale and organize carbon markets. But crucially, it operates on a closed, proprietary system, as opposed to the blockchain, which theoretically allows anyone to see its code, contribute to its governance processes, and build on top of it. Verra choosing a more centralized project like Carbonplace would also allow greater control over who buys credits; Rix expressed concern over crypto tokens being used for shady purposes like laundering money. “Banks have sophisticated KYC [know-your-customer] processes in place. They’re regulated entities,” Rix says. “That strikes us as a very good model to follow and a way to work with credible leading financial institutions.” When asked if crypto projects could play a role in this next stage of development, Rix didn’t rule it out, and said Verra would begin a public consultation process. “It doesn’t have to be banks. It could be any entity that has sophisticated KYC checks and the infrastructure to be able to do this,” he said. “But [banks] are probably the direction things are going.” Haupt, in an interview on Wednesday morning, held out hope that Toucan and other crypto entities would be involved moving forward. “Given the point we are in this climate crisis, I don’t think restricting the amount of innovation you can have around this is the right way to go,” he says. “I personally think this is unstoppable: I don’t see a world in which only banks will have the monopoly over carbon.”.....»»

Category: topSource: timeMay 26th, 2022

How To Get Rich From Nothing To Millions

The desire to become rich is universal. ‌But‌ ‌that‌ ‌probably impossible if you start with very little or no money. ‌After all, there’s an old saying “you have to have money to make money.” ‌If you don’t already have some cash to work with, you might think you’ll never be able to build significant wealth. […] The desire to become rich is universal. ‌But‌ ‌that‌ ‌probably impossible if you start with very little or no money. ‌After all, there’s an old saying “you have to have money to make money.” ‌If you don’t already have some cash to work with, you might think you’ll never be able to build significant wealth. However, this isn’t entirely true. ‌In spite of having little money to spare, there are steps you can take to ‌‌‌amass ‌a‌ ‌certain‌ ‌amount‌ ‌of wealth‌ ‌over‌ ‌time. That’s not to say that it won’t be easy. Depending on your geographic location, amount of debt, and income, this will be more challenging for some. Still, it’s possible. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Don’t believe me? Well, Andrew Carnegie, Oprah, Larry Ellison, Dolly Parton, Sheldon Adelson, George Soros, Ralph Lauren, and Shahid Khan all have inspiring rags to riches stories. Some grew up in poverty or had to overcome personal adversity, while others began their careers working below minimum wage. Simply put,‌ if you want to become a millionaire, ‌you‌ ‌have‌ ‌to‌ ‌start‌ ‌somewhere. You may feel as if you are behind others, but be sure not to compare yourself with‌ ‌others. ‌Put your focus on what you can control, like your own finances. After you get started, building wealth may not be as difficult as you thought. With that in mins, let’s look at some steps‌ ‌to‌ ‌get‌ ‌you‌ ‌started from getting rich from nothing to millions. Change your mindset. Changing your money mindset will affect how you see money, as well as how you relate to‌ ‌it. What’s more, it’s been determined that a positive attitude towards money can alleviate‌ ‌financial stress. Why is that a good thing? ‌As a result of avoiding financial stress, you’re‌ ‌likely‌ ‌to: Budget your money Conserve‌ ‌money Plan your shopping before you go Make sure you’re‌ ‌prepared‌ ‌for‌ ‌unexpected‌ ‌expenses For your financial situation to improve, you need to be able to do those things. In short, to know how to get rich from nothing, it’s important to adopt the right mindset. ‌After all, having the confidence that you possess the skills necessary to make money, then following through on the plan, is how you will succeed. ‌As a result, you will need plenty of patience to stay committed. Do the math. After that, crunch the numbers to determine what it takes to reach your seven-figure goal, suggests Grant Cardone, author of “The Millionaire Booklet: How To Get Super Rich.” “For any goal to be achievable, you must believe in its possibility as a realistic and doable goal,” writes Cardone. “The way to do this is simply by doing Million Dollar Math. How many different ways can you collect one million dollars?” According to Cardone, if you can convince 5,000 people to buy a $200 product, you will have $1 million. ‌Alternatively, if 5,000 people paid you $17 a month for a year, then you would also get ‌to‌ ‌$1‌ ‌million. ‌Even though these examples are highly simplified, Cardone’s point remains: “Do the math to create possibility, then create strategy,” says Cardone. Take a financial inventory. You need to know where you’re starting from before you can become rich. ‌An inventory of your financial assets can help you determine if you’re truly starting from 0‌ ‌(or‌ ‌in‌ ‌the‌ ‌negative)‌ ‌with wealth‌ ‌creation. But, what exactly is a financial inventory? It’s simply an individual financial inventory is a list of all of one’s assets and liabilities. ‌If you want to figure this out, you might list everything you own on one side: A‌ ‌house Cars or other vehicles Bank accounts Investment accounts Collectibles, antiques or other heirlooms Life insurance policies On the other side, you’d list what you owe, including: A mortgage Auto‌ or personal ‌loans A student’s loan Credit cards The cost of medical care Taxes Loans for for your business Using a net worth calculator, you can plug the numbers from both sides in. ‌Using this indicator can show you how close, or how far, you are to reaching your long-term goals for becoming wealthy. Live below your means. Despite the misconception, you don’t have to be a ‌penny pincher or miss out on life experiences when you live below your means. ‌Actually, it “simply means that you’re spending less or equal than you’re making each month,” explains Deanna Ritchie in a previous Due article. “As a result, you aren’t putting yourself into debt by living off of plastic. And more importantly, this will help you create a more stable financial future.” “Of course, living within your means requires discipline and a little sacrifice,” adds Deanna. “However, if you stick with it, you’ll reap the following rewards, in addition to avoiding debt:” Anxiety and stress are reduced. Besides making you more successful, it’s also good for your health. Your credit score won’t be a concern for you. The‌ ‌ability‌ ‌to‌ ‌accumulate‌ ‌wealth. There will be more freedom for you. You’ll be financially secure. Living within your means. The question is how can one truly live within their means without depriving themselves? ‌Let me offer a few suggestions: Use the 50/30/20 rule to create a budget. ‌Spend a half of your income on necessities such as food and shelter, a third on wants, and a quarter on saving. Automate your savings to save money before you spend it. ‌Put another way, put a percentage of your paycheck into a savings or retirement account with automatic deposits. Don’t waste your money on unused expenses, such as gym memberships. Stop‌ ‌trying to keep up with ‌the‌ ‌Joneses. ‌Despite their apparent financial prosperity, they may be hiding their true financial status. They could, in fact, be deeply in ‌debt. Refrain from immediate‌ ‌gratification. ‌If you want to avoid paying full price for groceries, clothing, electronics, or travel, you might wait for a sale. Take advantage of‌ ‌tax‌ ‌deductions. A tax deduction reduces the amount of income that is taxable at the federal and state level. It is often advantageous to invest in retirement plans, make charitable contributions, and contribute to college funding if you are subject to taxes. Restructure‌ ‌your‌ ‌debt. ‌Conveniently repay your debt. ‌Debt consolidation or negotiating a better interest rate with lenders are two examples. Just say “no.” Furthermore, Jeff Rose, CFP® and founder of Good Financial Cents, suggests getting comfortable saying “no”‌ ‌to‌ ‌yourself. “This is important when you are shopping, or just out and about,” he ‌emphasizes. He urges avoiding impulse buys in this instance. ‌For example, buying something you like because it’s not too pricey. “Even worse is the ability to purchase things online nowadays and have it delivered to your doorstep in just a few days,” he adds. “If you do that several times a week, the spending can really add up.” “One trick is to enforce a ‘72 Hour Rule’ on any purchases, especially online items,” he ‌recommends. “If you really think you need to buy , after you add it to your cart make yourself wait 72 hours before you purchase it.” ‌You will be able to tell after three days if you need or if you just want the item (and do not need it). Start saving early. The‌ ‌simplest‌ ‌way‌ ‌to‌ ‌‌‌maximize ‌your‌ ‌savings‌? ‌Start‌ ‌as early as possible. In this way, you can leverage the power of compound interest. ‌Let’s say that you’re twenty years‌ ‌old. ‌Contributing $6,000 annually ($500 a month) for 40 years would result in your total investment being‌ ‌$240,000. Assuming a 7% return, the investment would have grown to more than $1.37 million due to compounding. ‌So, if you saved $500 a month, you would be a millionaire by the age of 57. Enhance‌ ‌your‌ ‌current‌ ‌income. By boosting your income, you can begin the journey towards becoming wealthy. ‌A great way and simple to do this is to ask for a raise at your present‌ ‌job. ‌It’s important that you have an excellent work record and have worked for the company for a while before before asking, though. ‌It is possible that if you are a good employee, they will increase your salary in order to keep you from looking for another position. What if your salary request is denied? ‌Well,‌ ‌if‌ ‌you‌ ‌have‌ ‌been‌ ‌working for your current employer for a long period of time and have done a good job, now is the time to move on to‌ ‌greener‌ ‌pastures. ‌Upgrade your resume and start looking for an opportunity that can give you the pay bump you deserve. If you want to get a better-paying job, you may also consider furthering your education. ‌As an alternative to taking out student loans for college, however, you can consider a career in the trades. Some examples would be an electrician, plumber, HVAC tech, dental assistant, or hairdresser. Also, trade career programs are usually less expensive and take less time to complete than colleges. Create multiple income streams. The old saying about not putting all your eggs in one basket applies to your income. ‌In fact, a millionaire typically ‌has‌ ‌seven‌ ‌streams‌ ‌of‌ ‌income. Why? ‌You create financial stability and grow your wealth faster when you diversify your income. With a side hustle as well as your day job, you can create two income streams instead of relying solely on one. ‌Your side hustle will still provide you with income if you do lose your job for some reason. ‌You‌ ‌can‌ ‌even‌ ‌expand your side hustle to a small business if it’s profitable. Your main job, a side job, passive income, investment accounts, interest from savings accounts, and rental properties are all examples of income streams. ‌The possibilities are endless. To become wealthy, you should establish multiple streams of income. It is important to understand that many get-rich-quick schemes are in fact just that — schemes. Therefore, instead of looking for a get rich quick scheme, focus on building multiple income stream. Invest wisely. Investing your money is a major step towards getting rich from nothing. ‌No matter what your financial situation is, you still can invest‌ ‌to‌ ‌‌‌begin ‌‌‌accumulating ‌wealth. Additionally, you will want to eventually diversify your investments, just as you create multiple income streams. Again, having multiple sources of income allows you to generate more income. Among them are: Stocks Bonds ETFs and mutual funds 401(k) IRAs Real estate Businesses Precious metals Environment, social and governance Just like with savings, investing early will help you build wealth faster. Just don’t let your fear of the stock marker hold you back. Work with a brokerage or robo-advisor to get you started. Avoid inflation. As I’m sure you’re well aware of right now, the price of everyday items rises automatically when inflation hits. ‌Overcoming this hurdle will be a challenge. But it’s doable. Perhaps you should look elsewhere for a less expensive option instead of that very expensive house. ‌Even though you’ll still get equity, it won’t put you in debt. Lifestyle inflation affects those living on minimum wage as well. ‌Even if you can’t trim out a lot of expenses, you can ‌become‌ ‌a‌ ‌millionaire. ‌Just be creative and persistent. If you received a salary increase at your job, you might have chosen to upgrade your vehicle instead of saving all that money. ‌Self-made‌ ‌millionaires‌ ‌avoid this kind of spending. Rather, they save this additional money. Or, they use it to pay down their debt. Almost everyone’s number one concern is food. ‌Food is essential, and your favorite brands may be more expensive than off-brand ones. ‌If you fit within a certain income bracket, you may be eligible for EBT or to receive food stamps from the government. Moreover, this can make it easier for you to save money while you buy food. Meal planning and making freezer meals are other ways to save money on food. If your wallet is hurting at the pump, you can save money on fuel using a gas app to find the best prices. Surround yourself with supporters. Because they are familiar, we often surround ourselves with naysayers and people who keep us down. ‌For anyone who wants to become something they aren’t, it is necessary to surround themselves with people who are already there or are en route. No matter how unlikely your ideas might sound, these people will support you instead of discouraging them. ‌Motivated people help each other achieve their goals and can be an inspiration. In the absence of anyone close to you or in your life who fits this description, do the next best thing. Read about someone who does. ‌Reading‌ ‌biographies‌ ‌of‌ ‌people‌ ‌with similar accomplishments keeps you motivated and on track. Perhaps you’ll even come up with ideas of your own based on their business savvy. ‌Consider people who were not born into wealth and privilege; rather, look for people who had an average life before becoming successful. Ask for help. When it comes to your finances, it’s incredibly easy to become overwhelmed. Case in point, planning for your retirement. With so many investment options and uncertainty, this can be ‌quite stressful. ‌In fact, 60% of working people are uneasy about planning their retirement. ‌In light of these numbers, it’s not surprising that only 25% of Americans say they are confident that they are planning for retirement correctly. This is why it’s so important to seek professional help. ‌Unfortunately, in America, only 29% use a financial advisor, while 65% do not. To ensure you’re making the right financial decisions, you should work with a qualified ‌advisor. A financial advisor can assist you in choosing investments, setting up a budget, and establishing a plan‌ ‌to‌ ‌reach‌ ‌your‌ ‌goals. ‌You can use that money once you’re ready to start investing it, and they can help you maximize its value. Don’t check out. “This is my most important tip,” Melissa Houston writes in Forbes. “Hiring financial help such as accountants and financial advisors does not leave you with the right to check out of the financial activity in your business.” “Nobody will care about your money as much as you do, so never give your financial power away,” adds Houston. ‌Invest the time to educate yourself on money management. Why? When you do, you can see what’s going on and know when an investment isn’t helping you achieve your goals. To sum it up, learning how to get rich is a process. ‌Despite the best financial habits, investments or business ideas, even the most successful ones can‌ ‌fail‌. ‌However, if you get educated and get assistance, you will be more likely to succeed, says Houston. Frequently Asked Questions How many millionaires are there in America? In their latest Global Wealth Report, Credit Suisse estimates there are ‌22 million‌ ‌millionaires‌ ‌in‌ ‌America. ‌That’s means almost 6.5% of the total population is millionaires. And, the amount of millionaires are growing. Why do I want to be a millionaire? Wanting to be a millionaire and knowing the why of becoming a millionaire are two completely different things. ‌For something to be accomplished, one must first understand why they want ‌it. Wanting to be a millionaire just to have a lot of money probably won’t provide you with the necessary drive to achieve it. Instead,‌ ‌take the time to examine why you would like to achieve‌ ‌your‌ ‌goals: Are you looking for financial stability by becoming a millionaire? Do you want to‌ ‌travel‌ ‌more? Are you looking to‌ ‌have‌ ‌more‌ ‌freedom? Is it to‌ ‌give‌ ‌back‌ ‌to‌ ‌your community? It’s also worth watching Simon Sinek’s TED talk on why a clear why is key to success in business. ‌Maybe you can find your own answer there. What’s the easiest way to become a millionaire? Using compound interest as soon as possible is the best way to become a millionaire. ‌Investing early will help you accumulate interest more quickly. ‌Investing early will also increase your interest income. As a rule of thumb, you should save‌ ‌15%‌ ‌of‌ ‌your‌ ‌income. ‌If you cut down on unnecessary expenses and get professional financial advice, you can also reach your million-dollar goal. ‌And, if possible, get a second job if you can upgrade your skills. In order to become a millionaire, how much do I have to invest? In order to become a millionaire, you must invest a certain amount of money based on your current situation. ‌ For instance, younger people have more time to accumulate wealth and a greater tolerance for risk, so they are able to sock away less money. ‌You’ll have to save more money every month if you wait until you’re older. How can I become rich with nothing? You can’t become rich doing nothing unless you come from a very wealthy family, expect to win the lottery, or a successful business idea. ‌If you want to become a millionaire, then you’ll need discipline, a plan, and, possibly, the help of a registered professional who can ‌guide you throughout your journey. Article by John Rampton, Due About the Author John Rampton is an entrepreneur and connector. When he was 23 years old while attending the University of Utah he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months he had several surgeries, stem cell injections and learned how to walk again. During this time he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine, Finance Expert by Time and Annuity Expert by Nasdaq. He is the Founder and CEO of Due. Updated on May 26, 2022, 2:17 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMay 26th, 2022

It’s A Good Time To Own Ralph Lauren (NYSE:RL)

After sliding close to 40% in value since February, shares of fashion kingpin Ralph Lauren (NYSE:RL) were in need of some good news, and this week they got it. The company reported its fiscal Q4 numbers at the start of Tuesday’s session, and right off the bat, they looked good. EPS for the quarter came […] After sliding close to 40% in value since February, shares of fashion kingpin Ralph Lauren (NYSE:RL) were in need of some good news, and this week they got it. The company reported its fiscal Q4 numbers at the start of Tuesday’s session, and right off the bat, they looked good. EPS for the quarter came in at $0.49, 20% higher than what analysts had been expecting, while revenue also beat and showed year-on-year growth of 18%. In terms of forward guidance, the company said that for Q1 they expect revenue growth will be in a range centered around 8% in constant currency compared to last year. Operating margin is expected to be in a range centered around 13.5% in constant currency, while gross margin is expected to be down slightly to last year in constant currency with continued AUR growth offset by industry-wide increases in freight and product costs. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Bullish Comments But overall, the company was happy. Ralph Lauren, Executive Chairman and Chief Creative Officer, summed up the sense of positivity in the company by saying "from our latest fashion show to the launch of our powerful Morehouse and Spelman colleges collection, we continue to inspire people all over the world to dream. Whether it’s our clothes or how we think about our impact on the planet, we imprint all we do with a spirit of optimism and timelessness that gives people a sense of possibility." CEO Patrice Louvet followed up from a more strategic viewpoint, saying that “our teams around the world executed exceptionally well to deliver fourth-quarter and full-year results that exceeded our expectations as we continued to progress on our long-term strategic commitments. We have laid the groundwork for healthy sustainable growth and value creation in Fiscal 2023. As we continue to navigate a highly dynamic global macroeconomic environment, our growth will be supported by the strength of our brand and multiple engines — from recruiting new high-value consumers to developing high-potential product categories and geographic and channel expansion." Louvet and his team felt good enough about the results and the company’s near-term prospects to raise the dividend, which is one of the most bullish signals management can give to investors. It tells them that they have enough faith in the company’s momentum and potential growth to justify an increased payout, which is especially notable given the current economic climate. It’s solid stuff for both investors and would-be investors to be hearing, and it’s no surprise that Ralph Lauren shares are up 12% from this week’s previous low already. They have a ways to go yet before they can definitively say they’ve broken the multi-month downtrend but this is a good start. Interestingly, however, this isn’t a sentiment shared by all on Wall Street. Considering A Position Early Wednesday morning, the team at Wells Fargo cut their price target on Ralph Lauren stock in response to Tuesday’s report. Analyst Ike Boruchow and his team said they saw good progress from Ralph Lauren during the quarter, but macro headwinds remain at the top of their minds. In a note to client, Boruchow said "while we commend Ralph Lauren for significantly improving their model over the past 18 months - cleaning up North America wholesale, enhancing digital capabilities and increasing AURs - building cost pressures and inflated GMs (400bps+ above pre-pandemic levels) are likely to keep investors at bay as we continue to move through a highly uncertain macro." It could well be the case that Wells Fargo isn’t bullish on any retailer right now, but for those of us with a long enough time horizon, there are more things to like about Ralph Lauren than dislike, especially when shares are trading down at these levels. Their price-to-earnings ratio of 14 makes it very hard for anyone to call them expensive, and they’re managing to grow revenue by 18% year on year during one of the biggest cost of living crises in decades. That’s impressive, and if management can keep that kind of momentum going throughout the summer, there’s every reason to think Ralph Lauren shares will be back trading in the triple digits before too long. Ralph Lauren is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs. Should you invest $1,000 in Ralph Lauren right now? Before you consider Ralph Lauren, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ralph Lauren wasn't on the list. While Ralph Lauren currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Sam Quirke, MarketBeat Updated on May 26, 2022, 2:37 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMay 26th, 2022

Beware The Rebound In Retail Stocks

Retail Sector Bottoms On Mixed Results The Retail Sector (NYSEARCA:XRT) is rebounding but we don’t think investors should cheer too loudly. The move is driven by the combination of oversold markets and mixed results and we don’t see it going very high. While the XRT Retail Sector ETF is bouncing from a technical support target […] Retail Sector Bottoms On Mixed Results The Retail Sector (NYSEARCA:XRT) is rebounding but we don’t think investors should cheer too loudly. The move is driven by the combination of oversold markets and mixed results and we don’t see it going very high. While the XRT Retail Sector ETF is bouncing from a technical support target but that target is a weak one and there is strong resistance ahead. Resistance at the $70 level was once a strong support level so should now be viewed with absolute caution. A move above that level is possible but we don’t think it’s coming. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more The more likely scenario is that a trading range will form with resistance at the $70 level as the high end. Rotation will drive the market action over the next quarter or so, rotation from the underperforming names into the higher-quality pandemic winners that have proven to have true legs, and there is the possibility of even lower prices for the ETF as well. The Fed Triples-Down On Inflation The minutes from the last FOMC meeting were met without much ado but the message they sent is clear. The FOMC has been slowly ramping its stance on inflation and is now forecasting a more aggressive series of hikes than the market was pricing in. To paraphrase, the committee’s stance now is that it is prepared to move past tightening policy to restricting economic activity and forcing a recession. The odds of aggressive rate hiking, however, have come down based on the CME’s FedWatch Tool. The FedWatch Tool tracks Fed Funds Futures and predicts the pace of interest rate hikes, a forecast that has tempered in the last few weeks. The FedWatch Tool had been predicting as many as 12 25 basis point interest rate hikes by December but is now pricing in only 7. In the near term, the market is expecting 50 basis point hikes for the next 2 meetings but only 1 in September. The odds of 75 basis points of increase, 3 X 25 bps, was as high as 12% for June but that fell to only 3% but there is risk in the outlook. The risk in this outlook is the data and we will be getting a new data point on Friday. The PCE Price Index is expected to hold flat on a month-to-month basis at 0.3% and subside to only 4.9% on a YOY basis, both of which are hot numbers in our book. The risk here is that price increases could easily outpace the expectations and the impact on the consumer is still there regardless of the pace of FOMC action. The latest Retail Sales data was weak at only 0.9%, below the consensus, and well below the pace of inflation. The take on this is that a volume-based recession is already underway in consumer-land, and the U.S. is only producing growth because of higher pricing. The Technical Outlook: The S&P 500 Moves Lower On Deflating Estimates The S&P 500 (NYSEARCA:SPY) has been moving lower and will likely continue to move lower despite the rebound in retail. The Marketbeat.com consensus estimates for all three of the remaining quarters of 2022 are moving lower and we don’t see the bottom yet. Turning to the chart, the S&P 500 appears to be at a bottom but it does not yet look like the absolute bottom for this bear market. While futures action is moving higher, it is still below the near-term down trend line, the short-term EMA, and the key resistance target at 4,100. The index may move up to the level but we would expect to see it produce strong resistance to higher prices unless the PCE price index comes in well below the expectations. Should you invest $1,000 in SPDR S&P Retail ETF right now? Before you consider SPDR S&P Retail ETF, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SPDR S&P Retail ETF wasn't on the list. While SPDR S&P Retail ETF currently has a "N/A" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Thomas Hughes, MarketBeat Updated on May 26, 2022, 2:42 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMay 26th, 2022

Genesco Pops On Earnings But Don’t Expect A Rally

Genesco Guides Higher But Fails To Impress Genesco, Inc (NYSE:GCO), owner of brands like Journeys and Schuh, has proven its place in post-pandemic retail. The company’s brand position and omnichannel offering have it set up to outperform many of its mall-based competitors but there is a problem for the market. While the Q1 results are […] Genesco Guides Higher But Fails To Impress Genesco, Inc (NYSE:GCO), owner of brands like Journeys and Schuh, has proven its place in post-pandemic retail. The company’s brand position and omnichannel offering have it set up to outperform many of its mall-based competitors but there is a problem for the market. While the Q1 results are good, the guidance is only in-line with the Marketbeat.com consensus estimates which means the news is already priced into the stock. The stock offers a value trading at only 6.87X its earnings but that may not be enough to support the share price. The stock does not pay a dividend where other successful names in retail do, and the sell-side is a wild card that could cap gains in the near to mid-term if not longer. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more The 3 analysts rating the stock have it pegged at a weak Buy but the last commentary came out in early January so take that with a grain of salt. The Marketbeat.com consensus price target is about 22% above the current action and a bullish factor but there are caveats to be aware of. The primary is that this target is old and consistent with the post-pandemic top in price action. The second is that institutional activity, while net bullish over the past year, turned decidedly bearish in Q2 2022. The net of activity is still on the small side but a powerful force in the market nonetheless. If the bias of activity doesn’t turn price action will most likely wallow in the $50 to $60 range, if the Q2 activity becomes a trend price action could move down to set a new low. Genesco Pops On Surprise Profit Genesco only had an OK quarter but there is one jewel to be aware of. The company produced $520.79 million for a decline of 3.3% versus last year but posted a surprise profit on the bottom line. The revenue was driven by a 16% decline in the core Journey’s brand offset by a 28% increase at Schuh and a 46% increase at Johnston & Murphy. eCommerce, a pillar of the company’s growth strategy, fell by 29% but this is against last year’s record-setting pop and sales in this channel are still up 74% versus the pre-pandemic level. As a percentage of sales, eCommerce declined from last year’s 25% of the net to 19% but is up 800 basis points from the prepandemic level. Moving down to the margin, the news is very mixed indeed. The company posted a 50 basis point improvement in the gross margin but this was offset by an increase in operating expenses. Operating expenses increased by 200 basis points to put the squeeze on operating income which fell about 50% YOY depending on which comparison you look at. The bottom line is that margins were mixed and YOY earnings fell but margins came in well above the consensus and produced $0.37 in GAAP and $0.44 in adjusted EPS or $0.53 better than expected. Turning to the guidance, the guidance is positive but tepid in light of the Q1 earnings strength. The company merely reiterated the FY guidance for revenue while upping the range for EPS to $7.00 to $7.75. This is good at face value but only bracketing the consensus of $7.41. In our view, the guidance is not only tepid but there is a downside risk in that consumer spending may be sluggish over the summer and into the fall. The Technical Outlook: Genesco Capped At The Short-Term EMA Shares of Genesco popped on the earnings beat and guidance but the action was capped at the short-term 30-day EMA. The move created a bearish-looking doji candle confirming a new downtrend and resistance near the $57.50 level. If the market follows through on this move, we see this stock retesting the recent lows and possibly moving lower. If, however, the price action stabilizes near the current level Genesco stock will most likely enter a trading range that could dominate it for the next quarter or two. Should you invest $1,000 in Genesco right now? Before you consider Genesco, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Genesco wasn't on the list. While Genesco currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Thomas Hughes, MarketBeat Updated on May 26, 2022, 2:45 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMay 26th, 2022

Elon Musk is funding more of his $44 billion Twitter buyout with his own wealth and seeking additional backers after Tesla stock dip, report says

Musk's plan to fund the buyout includes $33.5 billion in equity, up from the initial $27.25 billion, according to a regulatory filing. Elon Musk tweeted that the deal was on hold Friday.picture alliance/Getty Images Elon Musk is fronting more of his own wealth to finance his $44 billion buyout offer for Twitter, The Wall Street Journal reported. He's also seeking other financial backers, including former Twitter CEO Jack Dorsey, according to The Journal. The news comes following a sharp decline in Tesla stock since Twitter announced the proposed acquisition in April. Tesla chief Elon Musk is leaning on more of his own wealth and seeking additional financial backers to fund his $44 billion deal to buy Twitter, The Wall Street Journal reported Wednesday.Last month, Twitter announced it accepted Musk's buyout offer of $44 billion, pending regulatory approval by shareholders. The deal is expected to close in 2022, Twitter said.According to a regulatory filing obtained by The Journal on Wednesday, Musk's plan to fund the buyout includes $33.5 billion in equity, up from the initial $27.25 billion. The Tesla CEO is also discussing with Twitter shareholders — including former Twitter CEO Jack Dorsey — about possibly retaining their stakes following the proposed acquisition as means of additional financing for the buyout.The Journal also reported that Musk no longer plans to fund the buyout deal with Tesla shares, which saw a sharp decline by about a third following the announcement of Musk's acquisition in April.The change in funding comes after the billionaire Tesla CEO tweeted on May 13 that his potential takeover of the social media platform was "temporarily on hold," citing a detail from a filing that said less than 5% of Twitter accounts are spam or fake — which Musk has pledged to address upon acquiring the site.Twitter later confirmed that it was committed to enforcing Musk's merger agreement despite the hesitations."We are working through this transaction process," CEO Parag Agrawal said at Twitter's annual shareholder gathering. "Even as we work toward closing this transaction, our teams and I remain focused on the important work we do every day."Representatives from Tesla did not immediately respond to Insider's request for comment.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 26th, 2022

Elon Musk is funding his $44 billion Twitter buyout with his own wealth and seeking additional backers following dip in Tesla stock, new report says

Musk's plan to fund the buyout includes $33.5 billion in equity, up from the initial $27.25 billion, according to a regulatory filing. Elon Musk tweeted that the deal was on hold Friday.picture alliance/Getty Images Elon Musk is fronting more of his own wealth to finance his $44 billion buyout offer for Twitter, The Wall Street Journal reported. He's also seeking other financial backers, including former Twitter CEO Jack Dorsey, according to The Journal. The news comes following a sharp decline in Tesla stock since Twitter announced the proposed acquisition in April. Tesla chief Elon Musk is leaning on more of his own wealth and seeking additional financial backers to fund his $44 billion deal to buy Twitter, The Wall Street Journal reported Wednesday.Last month, Twitter announced it accepted Musk's buyout offer of $44 billion, pending regulatory approval by shareholders. The deal is expected to close in 2022, Twitter said.According to a regulatory filing obtained by The Journal on Wednesday, Musk's plan to fund the buyout includes $33.5 billion in equity, up from the initial $27.25 billion. The Tesla CEO is also discussing with Twitter shareholders — including former Twitter CEO Jack Dorsey — about possibly retaining their stakes following the proposed acquisition as means of additional financing for the buyout.The Journal also reported that Musk no longer plans to fund the buyout deal with Tesla shares, which saw a sharp decline by about a third following the announcement of Musk's acquisition in April.The change in funding comes after the billionaire Tesla CEO tweeted on May 13 that his potential takeover of the social media platform was "temporarily on hold," citing a detail from a filing that said less than 5% of Twitter accounts are spam or fake — which Musk has pledged to address upon acquiring the site.Twitter later confirmed that it was committed to enforcing Musk's merger agreement despite the hesitations."We are working through this transaction process," CEO Parag Agrawal said at Twitter's annual shareholder gathering. "Even as we work toward closing this transaction, our teams and I remain focused on the important work we do every day."Representatives from Tesla did not immediately respond to Insider's request for comment.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 26th, 2022

Short-Covering Begins In Big Lots

Why Did Big Lots Gain 12% Today? Short-Covering We were pleasantly surprised to see shares of Big Lots (NYSE:BIG) up 12% but could not understand why until we saw the short interest. The stock has been in a downtrend for some time driven by dwindling analysts’ sentiment, fear of slowing sales, and an ever-growing short […] Why Did Big Lots Gain 12% Today? Short-Covering We were pleasantly surprised to see shares of Big Lots (NYSE:BIG) up 12% but could not understand why until we saw the short interest. The stock has been in a downtrend for some time driven by dwindling analysts’ sentiment, fear of slowing sales, and an ever-growing short interest that reached lofty levels above 25% in the weeks ahead of the Q2 report. With the report still due out and the analysts still downgrading the stock, the only thing left to drive it higher is short covering and that makes us think this downtrend is over. The analysts have set the bar so low that Big Lots should easily outperform and even if it doesn’t, trading at 5.8X its earnings and yielding 4.6% it’s a buy, in our book. Regardless of the reason, the shorts are starting to get scared and feel it’s time to get out of the stock. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more The analysts ignored Big Lots for nearly two years and then came out with a series of downgrades and price target reductions in Q1 and Q2. The 8 current ratings, those less than 1 year old, all came out in that time and have the stock pegged at a very weak Hold verging on Sell with a price target only 10% above the recent price action. The latest commentary comes from Bank of America analyst Jason Haas who maintained an Underperform rating while cutting the price target. He cut the price target to $25 or below the current price action on an expectation for a BIG miss this reporting season. In his view, challenging weather conditions, tough comps, late Easter, and increased promotions will all cut into the results and drive shares lower. “Although management has done a good job improving the Big Lots concept, we’re concerned that these changes won’t be enough to offset a challenging macro environment,” he told clients. “In fact, many of the changes made over the past 5+ years have shifted BIG away from food & consumables and towards big ticket furniture making the company less defensive in a downturn.” The Institutions Are Buying Big Lots As sour as the analysts are on Big Lots, the institutions are buying this cheap dividend growth stock. The activity in the YTD portion of 2022 is worth a net 5.1% of the market cap and has total institutional holdings up to nearly 95%. This is a very significant factor for share prices and should put a floor in the market assuming the results are not too far off the consensus. Add in the fact the short interest was running at 26%, this could lead to a very sharp short-covering rally if not a short-squeeze. The risk, of course, is that results will be worse than expected which may lead to institutional selling. Looking at the numbers, Big Lots should not have a bad quarter in terms of sales. The analysts are expecting sequential and YOY decline but that is both seasonal and expected given last year’s unnatural strength. In regards to the 2020 and prepandemic comps, the analysts are expecting flat and up 12% which we view as very positive. The risk is in the earnings, the analysts are expecting only $1.00 compared to last year’s $2.62 and $1.26 in 2020 but we view it as an upside risk. The Technical Outlook: Big Lots Might Be At The Bottom Shares of Big Lots might be at the bottom but we’ve seen short-covering rallies like this before in this market. If the results are good and the market follows through on the move we’ll start to be more bullish. Until then we view this as a relief rally within a bear market and one that may hit resistance a the short-term moving average. Should you invest $1,000 in Big Lots right now? Before you consider Big Lots, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Big Lots wasn't on the list. While Big Lots currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Thomas Hughes, MarketBeat Updated on May 25, 2022, 4:46 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMay 25th, 2022

Dick’s Sporting Goods Falls Flat On Weak Guidance

Dick’s Sporting Goods Deflates In The Absence Of Stimulating Tailwinds Dick’s Sporting Goods (NYSE:DKS) is a great example of a phenomenon we are observing in the market today. The company once supported and inflated by stimulus tailwinds and stay-at-home spending is deflating in the absence of the said stimulus. This deflation is not just on […] Dick’s Sporting Goods Deflates In The Absence Of Stimulating Tailwinds Dick’s Sporting Goods (NYSE:DKS) is a great example of a phenomenon we are observing in the market today. The company once supported and inflated by stimulus tailwinds and stay-at-home spending is deflating in the absence of the said stimulus. This deflation is not just on the top line but the bottom line as well, as the previous two-year’s revenue strength led to significant leverage. Now, the shares are down another 15% in premarket trading, roughly 60% from the high, and might be at the bottom of the move. The pre-market support level near $62.50 is coincident with the 2020/2021 consolidation and trend-following bounce that got the market into this situation in the first place. At this level, the stock is trading at only 6.8X its guidance and paying what looks like a safe 2.75% with a positive outlook for distribution growth. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Dick’s Has Mixed Quarter And The Guidance Is Awful Dick’s had an OK quarter considering the conditions, definitely not bad enough to warrant the premarket stock implosion, but the guidance is a different story. The Q1 revenue came in at $2.7 billion which is 266 basis points better than expected but down 7.5% from last year. Last year was, of course, a record quarter for the company so a little giveback is to be expected and the comp to 2019 is +40%. On a comp-store basis, sales are down -8.4% versus last year and offset by a small amount of expansionary growth. Moving on to the margins, the company experienced significant margin compression related to rising costs of goods, labor, and freight. The EBIT margin contracted by 381 bps, 406 adjusted, to drive a 28% decline in net income. That decline grows to 29% when adjusted. On the bottom line, both the GAAP and adjusted earnings were aided by share repurchases but still fell 27.6% and 24.8% on a YOY basis which is a little better than expected. The problem for the market is that revenue weakness is expected to increase and margins are expected to narrow as the year wears on. The company’s new guidance is calling for FY 2022 comp sales to fall -8% to -2% versus last year. That gives a range of $11.30 to $12.09 compared to the $12.55 billion Marketbeat.com consensus figure and the EPS guidance is worse. The company lowered its guidance for adjusted earnings to $9.15 to $11.70 compared to the previous low-end of $11.70 and the consensus of $12.55. Capital Allocations Shift At Dick’s Sporting Goods Management made some changes to capital allocation that may impact the stock price. The major change was a decrease in share repurchases that, if continued, will reduce support for the stock. The net change was -40% compared to last year but that was offset by a 38% increase in dividend payments that put the yield near 3.0% with shares at their new low. Based on the metrics, the payout is incredibly safe even with the reduced guidance. The payout ratio is a mere 21% of the low end for adjusted EPS and the balance sheet is very healthy. The company’s debt level increased by 395% but leverage remains low, cash is up 21% to $2.3 billion, and inventory is up 40% as well. The Technical Picture: Dick’s Sporting Goods Might Be At The Bottom Dick’s Sporting Goods fell as much as 20% in early premarket trading and may fall further. The catch is the price action is at a fairly significant support target that could result in a dead cat bounce at the very least. If support holds at this level, we expect to see the price action trend sideways for some time before it is able to stage a significant comeback. If not, this stock could shed another 33% and move down to the $40 range. Should you invest $1,000 in DICK'S Sporting Goods right now? Before you consider DICK'S Sporting Goods, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DICK'S Sporting Goods wasn't on the list. While DICK'S Sporting Goods currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Thomas Hughes, MarketBeat Updated on May 25, 2022, 4:52 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMay 25th, 2022