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GlobalFoundries IPO Lets You Invest in a Chip-Shortage Problem Solver

InvestorPlace - Stock Market News, Stock Advice & Trading Tips GFS stock represents a still-early stake in a semiconductor maker with established ties to some very famous tech names. The post GlobalFoundries IPO Lets You Invest in a Chip-Shortage Problem Solver appeared first on InvestorPlace. More From InvestorPlace Stock Prodigy Who Found NIO at $2… Says Buy THIS Now Man Who Called Black Monday: “Prepare Now.” #1 EV Stock Still Flying Under the Radar Interested in Crypto? Read This First........»»

Category: topSource: investorplaceNov 24th, 2021

Futures Top 4,500 As Market Meltup Accelerates

Futures Top 4,500 As Market Meltup Accelerates Over the weekend, a Goldman flow trader explained why it expected a powerful market meltup to emerge in coming days, and this time Goldman was right because after trading at 4317 just one week ago, spoos are now almost 200 points higher, rising above 4500 this morning after a powerful ramp pushed US equity futures and global markets as an upbeat profit forecast from Johnson & Johnson which boosted (get it "boosted") its Revenue and EPS guidance, added to the positive momentum in corporate earnings generated by big banks last week and helped counter concerns about elevated inflation. At 715 a.m. ET, Dow e-minis were up 183 points, or 0.52%, S&P 500 e-minis were up 22.75 points, or 0.51%, and Nasdaq 100 e-minis were up 61.75 points, or 0.40%. Treasury yields were unchanged at 1.60% and the dollar slumped to a 4 week low. In premarket trading Johnson & Johnson - whose covid vaccine will soon be "mixed and matched" with mRNA platforms - rose 1.7% after it raised its 2021 adjusted profit forecast, even as it stuck to its outlook of $2.5 billion in sales from its COVID-19 vaccine this year. Walmart rose 2% after Goldman Sachs added the world’s largest retailer to its “Americas Conviction List”. Travelers Cos Inc rose 2.7% after the property and casualty insurer beat estimates for third-quarter profit. Large-cap FAAMG names all rose between 0.3% and 0.7%. Netflix Inc rose 0.1% ahead of its quarterly results later in the day, where it is expected to report blowout guidance for subscriber growth on the back of Squid Games. Here are some of the biggest U.S. movers today: Crypto stocks in spotlight as Bitcoin continued its climb toward all-time highs, bolstered by optimism over the launch of the first Bitcoin futures exchange-traded fund in the U.S. on Tuesday Hive Blockchain (HIVE US) +1.8%, Riot Blockchain (RIOT US) +2.3%, Marathon Digital (MARA US) +0.9%, Bitfarms (BITF US) +3.9% AgEagle Aerial Systems (UAVS US) shares rise as much as 16% in U.S. premarket after the provider of drones, sensors and software entered into a definitive agreement to buy Sensefly from Parrot at a valuation of $23m in cash and stock Steel Dynamics (STLD US) +1.5% in U.S. premarket trading after it reported 3Q adj. EPS above average analyst estimate Frontline (FRO US) jumps 6.5% in U.S. premarket trading, helped by rising oil prices Apple (AAPL US) marginally higher Tuesday premarket after analysts were upbeat on the company following an event where it showcased a revamp of its MacBook Pro laptops, along with new audio products EverQuote (EVER US) shares slipped Monday postmarket after co. cut 3Q revenue outlook TaskUS (TAS US) fell 6.8% Monday postmarket after holders offered shares via Goldman Sachs, JPMorgan Markets have taken comfort from robust earnings, but also grappling with the prospect of tightening monetary policy to quell price pressures. As Bloomberg notesm, traders are waiting to see if a slate of Federal Reserve speakers this week will try to calm the jitters stemming from the scaling back of pandemic-era policy support. “The world is watching interest rates more closely than it has for some time -- and rightly so, the moves have been emphatic, especially in the short-term maturities,” Chris Weston, head of research at Pepperstone Financial Pty, wrote in a note. He added it’s “impressive how resilient and calm markets are in the face of the rates repricing.” Still, the recent bounce in the Nasdaq 100 index has failed to shoo away the bears, with net short positions on the tech-heavy benchmark higher than at the peak of the pandemic, Citigroup strategists said. J&J, P&G, Philip Morris, Netflix and United Airlines are scheduled to report today. “We’ve seen companies post some fairly decent beats,” said Michael Hewson, chief market analyst at CMC Markets in London. “While it’s been notable that most have cited concerns about rising costs, as well as supply-chain disruptions, we haven’t seen many significant profit downgrades yet.” In Europe, gains for mining companies outweighed a retreat for the travel industry, lifting the Stoxx Europe 600 Index up 0.2%. Danone dropped 2.2% in Paris after the French food giant reported sales that were overall in line with expectations, but warned of rising costs of milk, packaging and transportation. Ericsson AB fell after sales were hit by supply chain issues.  Miners and oil & gas are the strongest sectors, healthcare and travel underperform. Here are some of the biggest European movers today: Moneysupermarket.com shares climb as much as 8.9% after the British price comparison website posted its 3Q update and announced the acquisition of cashback site Quidco for GBP101m in cash. Hochschild gains as much as 6.8% after the silver miner said it plans to spin off the rare earths project it bought two years ago and list the new company in Canada. Software AG drops as much as 14%, the most since 2014, after the company cut its FY bookings growth guidance in the Digital Business segment, which analysts highlight as a negative. Bachem falls as much as 11% to CHF745 after placing 750,000 new shares at CHF778 apiece to raise CHF584m for growth. Beijer Ref trades down as much 7.2% after the cooling and heatings systems manufacturer missed analyst estimates on both sales and profit in 3Q. Earlier in the session, Asian equities gained, buoyed by a rebound in technology shares listed in Hong Kong and elsewhere in the region amid better-than-expected earnings and lower valuations. The MSCI Asia Pacific Index climbed as much as 1%, as TSMC and Alibaba provided some of the biggest boosts. The Hang Seng Tech Index rose to its highest since Sept. 13, as Chinese authorities are said to be considering opening up access for content on Tencent and ByteDance platforms to search engines such as Baidu. “Markets are currently adjusting their expectations around regulatory risks,” said Jun Rong Yeap, market strategist at IG Asia.  Most benchmarks in the region were in the green as the earnings season comforted edgy investors, who are keenly watching inflation figures, supply chain bottlenecks and China’s growth slowdown. The Asian measure crossed above a key technical level that it’s been flip-flopping around for most of 2021. Some material and energy stocks took a breather, even as supply shortages and strong demand cause a price surge for raw materials. Profits for Asian oil refiners have shot back up to pre-pandemic levels as the shortage of gas and coal sparks a rush to secure alternative supplies. “The policy misstep, which I think is unlikely, is for central banks to confuse themselves by saying there’s inflation because of us, as aggregate demand is way too strong and so let’s fix a supply chain, Covid-driven pickup in costs by tightening monetary policies,” Ajay Kapur, head emerging markets strategy at BofA Global Research told Bloomberg Television. In a notable development, China Evergrande Group’s main onshore unit paid interest due Tuesday on a yuan bond, Reuters reported, citing four people with knowledge of the matter. Japanese equities rose, powered by advances in technology stocks as cyclicals fell. Electronics makers and telecommunications providers were the biggest boosts to the Topix, which gained 0.4%. Fast Retailing and SoftBank Group were the largest contributors to a 0.7% rise in the Nikkei 225. Australian stocks snapped a 3-day winning streak as banks, miners declined. The S&P/ASX 200 index fell 0.1% to close at 7,374.90, edging lower after three consecutive days of advances. Mining stocks and banks were the biggest drags on the benchmark. Appen was among the top performers, extending gains for a fifth straight session. Chalice Mining retreated, snapping a four-day winning streak. Higher interest rates would remove some of the heat from the nation’s property market, though it would come at the cost of fewer jobs and weaker wages growth, the Reserve Bank of Australia said in minutes of its October meeting released Tuesday.  In New Zealand, the S&P/NZX 50 index rose 0.5% to 13,065.92. “We are going to get a lot of information on whether margins are being squeezed by these shortages and higher prices and wages continuing to go up,” JoAnne Feeney, Advisors Capital Management partner and portfolio manager, said on Bloomberg Television. She added the delta-plus Covid variant could be among sources of volatility in the next few months. In rates, Treasury yields fell, led by the front end; Bund yields were also lower but by less than U.S. peers. Yields are richer by 2bp-3bp across front-end of the curve, cheaper by ~1bp across long-end, with 2s10s, 5s30s spreads steeper by 2bp-3bp; 10-year is little changed at 1.597%, with bunds, gilts lagging by ~2bp. Daily ranges remain narrow while bunds and gilts underperform. Stock index futures are rising, lifting S&P 500 futures to highest level in more than a month.  In FX, the Bloomberg Dollar Spot Index plunged as the dollar steepened its losses throughout the day; the greenback fell versus all of its Group-of-10 peers and risk-sensitive antipodean and Scandinavian currencies were the best performers.  The euro advanced a fifth consecutive day against the greenback to touch an almost three-week high of $1.1663. Options suggest the euro will rise above a string of resistance levels that it faces in the spot market. Australian and New Zealand dollars both advanced to the strongest in more than a month as lower Treasury yields dragged down the U.S. currency. Australia’s sovereign bonds rebounded after minutes from the nation’s latest central bank meeting prompted a rollback of early rate-hike bets. The central bank said it is committed to maintaining a supportive policy until actual inflation is sustainably within its 2%-3% target range. The yen snapped a three-day decline aided by falling U.S. yields and as traders saw the recent losses as excessive; Japan’s 20-year debt sale drew the lowest bid-to-cover ratio since 2015. In commodities, oil gained as Russia signaled that it won’t go out of its way to offer European consumers extra gas to ease the current energy crisis unless it gets regulatory approval to start shipments through the controversial Nord Stream 2 pipeline. Spot gold rallied, clawing back half of Friday’s losses to trade near $1,780/oz. Base metals are well bid. LME nickel and tin outperform, both rising over 2%. Looking at the day ahead, and we’ll hear from an array of central bank speakers, including the BoE’s Governor Bailey, Pill and Mann, the ECB’s Rehn, Centeno, Elderson, Panetta and Lane, along with the Fed’s Daly, Barkin, Bostic and Waller. Otherwise, US Data releases including September’s housing starts and building permits, and earnings today include Johnson & Johnson, Procter & Gamble, Netflix, Philip Morris International and BNY Mellon. Market Snapshot S&P 500 futures up 0.2% to 4,488.50 STOXX Europe 600 up 0.2% to 467.87 MXAP up 1.0% to 200.25 MXAPJ up 1.2% to 658.33 Nikkei up 0.7% to 29,215.52 Topix up 0.4% to 2,026.57 Hang Seng Index up 1.5% to 25,787.21 Shanghai Composite up 0.7% to 3,593.15 Sensex up 0.5% to 62,070.31 Australia S&P/ASX 200 little changed at 7,374.85 Kospi up 0.7% to 3,029.04 Brent Futures up 0.4% to $84.63/bbl Gold spot up 1.0% to $1,782.67 U.S. Dollar Index down 0.36% to 93.61 German 10Y yield rose 4.7 bps to -0.155% Euro up 0.4% to $1.1652 Top Overnight News from Bloomberg Bank of France Governor Francois Villeroy de Galhau says there is no reason to raise rates next year as inflation will come back below ECB’s 2% target, according to France Info radio interview U.S. Treasuries, European sovereigns, U.K. gilts and emerging-market credit are all set to lose money over the 12 months through September as dwindling coupons provide little cushion against rising yields, according to forecasts from Bloomberg Intelligence. Adding to the potentially toxic environment for bonds is the prospect of major central banks unwinding debt purchases and raising interest rates U.K. Prime Minister Boris Johnson promised to find a solution to Brexit’s Northern Ireland Protocol, a sign that a compromise will be reached with the European Union in a dispute that had threatened to spiral into a trade war. Bitcoin continued its climb toward all-time highs, bolstered by optimism over the upcoming launch of the first Bitcoin futures exchange-traded fund in the U.S. by asset manager ProShares China’s property and construction industries contracted in the third quarter for the first time since the start of the pandemic, weighed by a slump in real estate China’s central bank has room to cut the amount of cash banks must hold in reserve in order to boost liquidity and support economic growth, a government adviser said Contagion effects on inflation from the recent surge in energy prices can’t be excluded, but they are not the most likely scenario, Riksbank Deputy Governor Martin Floden says in parliamentary hearing A more detailed look at global markets courtesy of Newsquawk Asian equity markets were kept afloat with the region encouraged after the mostly positive lead from US, where equity markets shrugged off the hawkish calls on global rates and big tech gained including Apple which benefitted following its hardware event. ASX 200 (-0.1%) was initially marginally higher as tech mirrored the outperformance of the sector stateside and with notable gains in property stocks, although the advances in the index were capped and upside faded ahead of resistance at the 7,400 level and due to weakness in mining-related stocks following yesterday’s cooldown in commodity prices, as well as lower production results from BHP. Nikkei 225 (+0.7%) was underpinned as exporters benefitted from favourable currency flows, while the KOSPI (+0.7%) was also firmer with the index unfazed by the latest North Korean projectile launches which were said to be ballistic missiles and therefore banned under UN Security Council resolutions. Hang Seng (+1.5%) and Shanghai Comp. (+0.7%) adhered to the upbeat mood with Hong Kong the biggest gainer in the region amid strength across a broad range of sectors aside from energy due to the recent pullback in oil and with casino names also underwhelmed by weaker Q3 Macau gaming revenue compared with the prior quarter. Finally, 10yr JGBs nursed some of yesterday’s losses after global counterparts also found reprieve from the latest bout of bond selling pressure but with the recovery only marginal amid the mostly positive risk tone and following mixed results from the 20yr JGB auction. Top Asian News Alibaba Unveils One of China’s Most Advanced Chips Secretive Body Leads Xinjiang’s AI Policing, Report Finds China’s Central Bank Should Cut RRR, Government Adviser Says China’s Curbs on Fertilizer Exports to Worsen Global Price Shock European equities (Euro Stoxx 50 +0.1%; Stoxx 600 +0.2%) trade with an upside in an attempt to claw back some of yesterday’s losses with fresh macro impulses relatively light since Monday’s close. The Asia-Pac session was predominantly firmer with indices kept afloat by the mostly positive lead from the US and performance in the tech sector. As it stands, US equity index futures are marginally firmer with performance across the majors relatively even (ES +0.4%) as markets await a slew of large-cap earnings. In terms of market commentary, JP Morgan notes that global EPS revisions remain plentiful as sell-side analysts’ global EPS upgrades continue to outnumber EPS downgrades. That said, JPM is of the view that the trend is slowing. In terms of the sector breakdown, analysts note that Defensive Sectors show improving EPS revisions, whilst Global Cyclicals sectors such as Technology, Financials, Energy, Industrials and Discretionary dominate the largest upgrades. Back to Europe, sectors are mostly firmer with outperformance in Basic Resources amid upside in underlying commodity prices. Elsewhere, Retail names also outperform peers with some of the French luxury names such as Kering, LVMH and Hermes trying to claw back some of yesterday’s post-Chinese GDP losses with the former set to release earnings after-hours. To the downside, the Telecoms sector sits in modest negative as Ericsson (-0.3%) acts as a drag post-Q3 results. In terms of individual movers, Pearson (+3.6%) stands at the top of the Stoxx 600 after being upgraded at Credit Suisse, whilst Iberdrola (+3.2%) is also a notable gainer amid news that it is to invest USD 8.3bln into a North Sea wind farm complex – its largest global investment. Laggards include Teamviewer (-4.8%) following a broker downgrade at Exane, whilst broker action has also hampered IAG (-3.5%). In terms of large cap earnings, Danone (-1%) shares are seen lower after flagging rising costs and a slowdown in sales growth. Top European News European Gas Prices Drop on Windy and Mild Weather Forecasts Most of Barclays’ U.S. Workers Now Back in Office, Staley Says Poland Escalates Rule-of-Law Dispute, Risking EU Recovery Money Goldman Sachs Investment Banker Joins Nordic Venture Fund Hadean In FX, a downbeat session for the Dollar thus far as the index retreats further from the 94.000 mark to extend the lower bound of a two-week range. There has been little in terms of fundamental catalysts to trigger the selloff as yields remain elevated (albeit off recent highs), and market sentiment remains tentative. State-side, there is a lack of developments Capitol Hill, with US President Biden stating that he is "right now" going to try for a deal with Moderate Democratic Senator Manchin, while it was separately reported that Senator Manchin said he does not see how a deal on Biden's agenda will happen by October 31st. The DXY is more interesting from a technical standpoint after falling just short of the 100 WMA (94.213) during yesterday's session to a high of 94.174 and losses exacerbated overnight by a breach of support at the 21 DMA (98.879) – with the line acting as firm support over the past three consecutive trading sessions. The next levels to the downside naturally reside at the 93.500 mark – with clean air seen until the psychological mark. Below that, the September 28th low resides at 93.360, followed by the 50 DMA at 93.242 and the 27th Sept base at 93.206. Ahead, the data docket remains light, but Fed speak is abundant, although from regulars. AUD, NZD, CAD - The antipodeans top the G10 chart, with the NZD the marked outperformer as participants mull stepper RBNZ rate hikes following yesterday's hot Kiwi CPI metrics. ANZ Bank brought forward its forecast for the RBNZ to lift the OCR to a neutral rate of 2% by August 2022 from a prior forecast of a neutral rate by the end of 2022. NZD/USD surpassed its 200 DMA - which matches the 0.7100 psychological level (vs low 0.7079). The pair now probes 0.7150 with some potential resistance seen at 0.7156 (September 10th high), 0.7167 (September 6th high), and 0.7170 (September 3rd high). The Aussie meanwhile saw a relatively mundane RBA minutes release, but the AUD optimism is likely spurred by the rebound in base metals. AUD/USD found support at its 100 DMA (0.7406) and inches closer towards 0.7450. Gains in the CAD are still somewhat hampered by the slide in crude prices yesterday; nonetheless, USD/CAD re-eyes levels last seen in July. EUR, GBP, JPY - All benefit from the softer Dollar, although the Sterling fares slightly better as BoE market pricing provides further tailwinds; markets are currently assigning a 78% probability of a 25bps hike at the November 4th confab. HBSC weighed in this morning and suggested the economic fundamentals do not appear to have changed sufficiently to warrant the recent market move, with market pricing looking too aggressive given the balance of supply and demand in their view. This followed GS and JPM reeling in their BoE hike forecasts yesterday. GBP/USD extends upside above 1.3800 and topped its 100 DMA situated at 1.3809. On the UK docket, BoE’s Mann and Chief Economic Pill could provide some more meat on the bones following Governor Bailey’s weekend remarks. EUR/USD was bolstered above its 21 DMA (1.1620) and posts gains north of 1.1650 at the time of writing, with the pair also eyeing chunky OpEx with EUR 1.3bln between 1.1600-15 and EUR 581mln between 1.1670-75. EUR/GBP meanwhile tests 0.8450 to the downside from a current 0.8463 high. USD/JPY has pulled back after failing to breach resistance just ahead of the 114.50 mark, with the softer Buck bringing the pair back towards the 114.00 ahead – with Friday's base at 113.63. In commodities, WTI and Brent front-month futures are nursing yesterday’s wounds and prices remain elevated despite a lack of fresh catalysts and with the macro landscape little changed as of late. The themes remain a) OPEC+ supply, b) supply crunch in the natural gas, LNG, electricity, and coal markets and c) winter demand. Elsewhere, the White House said it is continuing to press OPEC members to address the oil supply issue and is also addressing logistics of supply. Furthermore, the White House will use every lever at its disposal and the FTC is also looking at possible price gouging. WTI Nov extends gains above USD 83/bbl (vs 82.05/bbl low) while Brent Dec aims at USD 85/bbl (vs low 83.83/bbl). Elsewhere, metals have been spurred by the retreat in the Dollar, with spot gold topping its 50 DMA (1,778/oz) after testing its 21 DMA (1,760/oz) overnight, with the yellow metal also seeing its 200 and 100 DMAs at 1,793/oz and 1,794/oz respectively. Over to base metals, Dalian iron ore futures snapped a four-day losing streak, with iron ore shipments departing from Australia and Brazil lower W/W according to Mysteel data. Copper prices meanwhile are buoyed with the LME future holding onto comfortable gains north of USD 10k/t. US Event Calendar 8:30am: Sept. Building Permits MoM, est. -2.4%, prior 6.0%, revised 5.6% 8:30am: Sept. Housing Starts MoM, est. -0.2%, prior 3.9% 8:30am: Sept. Building Permits, est. 1.68m, prior 1.73m, revised 1.72m 8:30am: Sept. Housing Starts, est. 1.61m, prior 1.62m DB's Jim Reid concludes the overnight wrap At home we have recently bought a wooden bench for our kitchen table with the names of our three kids carved into the seats. We are pretty confident that there’ll be no need for more names. The problem was though that we chose an elegant, flamboyant font. The twins have just started to learn how to recognise and write their own names with the school having a very strict letter formation. As such last night when we were discussing it, young James refused to accept that this was his name on the bench and was hysterical with anger screaming that the bench needed to go as it was wrong. He kept on shouting “that’s not my name”. Nothing could persuade him otherwise. I thought I was defusing the situation by playing the famous Ting Tings song “that’s not my name” on the kitchen speakers but this just made matters far worse just before bedtime. So if anyone wants a bench with Edward, Maisie and James carved into it let me know as it’s causing a lot of grief at home. It seems like rate hikes are increasingly being carved into markets at the moment as Bank of England Governor Bailey’s hawkish Sunday comments that we discussed yesterday set the tone for the last 24 hours. Rates opened very weak across the globe but a similar pattern broke out to that seen over the last couple of weeks where higher yields have either brought in fresh bond buyers or markets have decided that the higher rate story is enough of a potential risk-off or negative growth story that dip buying mentality sets in. So yields have been a bit 3 steps higher, two steps lower over the last couple of weeks even though the inflation data has been largely one way higher. It was the UK that saw the most seismic shifts yesterday after Governor Bailey’s comments, with yields on 2yr UK gilts (+13.1bps) seeing their biggest daily move higher since August 2015, and the 2s10s curve (-9.8bps) flattening by the most since the height of the pandemic in March 2020. Markets are now pricing in a move in the Bank Rate up to around 0.45% by the December meeting (from 0.1%), and up to around 0.95% by the June meeting, around 15-30bps more priced in across the next several meetings from Friday’s close. So tomorrow’s CPI release from the UK will be interesting in light of this but it will likely be the calm before the storm given favourable base effects and with other pipeline inflation items yet to feed into the data. You can get a sense of how the UK is moving much faster than others in its rate hike pricing in that the spread between 2yr gilts and treasury yields is now at its widest in favour of gilt yields since late 2014. Yields on shorter maturities saw the most sustained movement elsewhere as well as investors began to anticipate imminent rate hikes. In fact, by the close of trade yesterday, markets were just shy of pricing in 2 Fed hikes by the end of 2022, which is some way ahead of the Fed’s dot plot from last month, when half the members didn’t see any hikes until at least 2023. Indeed, December 2022 Eurodollar futures have increased some 40 basis points over the last month, whilst September 2022 futures have increased more than 20 basis points. 10yr Treasury yields climbed +3.0 to 1.600%, with the rise entirely driven by higher real yields (+4.6bps). They were at 1.625% at the session highs, though. Those movements were echoed in the Euro Area, although the main difference to the US and the UK was that higher inflation breakevens rather than real rates drove the moves higher in yields. By the close of trade, yields on 10yr bunds (+2.1bps), OATs (+2.2bps) and BTPs (+3.0bps) had all moved higher even if again a few bps off the highs for the session. On the inflation side, the 10yr German breakeven hit a post-2013 high of 1.85%, just as the 5y5y forward inflation swap for the Euro Area was up +4.5bps to 1.91%, its highest closing level since 2014. The prospect of faster rate hikes put a dampener on equities, especially earlier in the day, though the S&P 500 (+0.34%) recovered to close just -1.13% beneath its all-time closing high from early September. Cyclical industries led the index higher, with the FANG+ index of megacap tech stocks (+1.99%) seeing a strong outperformance as all but 1 of its 10 constituents moved higher on the day. It was a different story in Europe however, where the STOXX 600 fell -0.50% in line with the losses elsewhere on the continent. At the sectoral level, energy was the outperformer in Europe but faded into the US close. After 8 successive weekly advances for WTI oil prices, yesterday saw it hit fresh multi-year highs (again…) intraday, gaining as much as +1.89% during the London session. However WTI made an about turn after the London close, and ultimately finished only slightly higher (+0.19%) on the day. Elsewhere, Bitcoin increased +3.31% yesterday and is up another +1.95% this morning to $62,564, bringing it within 1.5% of its own all-time closing high back in April and 3.6% beneath its all-time intraday high. The cryptocurrency has rallied in recent weeks as news picked up that the first US bitcoin ETF would be approved. Later today the ProShares ETF is expected to start trading, offering US retail investors a new avenue to trade the world’s largest cryptocurrency. The ETF will offer exposure to bitcoin futures contracts rather than “physical” bitcoin. Stocks are trading higher in Asia overnight, with the Hang Seng (+1.30%), CSI (+1.01%), Shanghai Composite (+0.74%), the Nikkei (+0.73%) and the KOSPI (+0.61%) all advancing thanks to an outperformance from technology stocks. For now at least, positive earnings are outweighing the impact from the prospect of faster than expected interest rate hikes. However, the issues stemming from Evergrande will continue to remain in focus as the developer has a Yuan bond interest due today. Outside of Asia, futures are pointing towards modest gains at the open, with those on the S&P 500 (+0.06%) and the DAX (0.11%) moving higher. Turning to the pandemic, the continued decline in global cases over the last couple of months and the lack of new variants has rather taken it off the front business pages of late. That said, there were a few concerning indications yesterday when it came to the health picture. Firstly, China is dealing with a fresh cluster in its northwestern provinces, with further positive tests reported overnight. Second, there are signs that we could be facing a more severe flu season as we approach winter in the northern hemisphere, with the Walgreens Boots Alliance reporting that flu cases are 23% higher in the US relative to a year ago. Third, there were some questions from the UK, as former US FDA Commissioner Scott Gottlieb wrote on Twitter on Sunday that given the recent rise in UK cases and the “delta-plus” variant, that there should be “urgent research” to discover if it was more transmissible or had partial immune evasion. Finally, New Zealand (which had been pursuing a zero-Covid strategy in the past) reported a record 94 cases yesterday as Auckland remains in lockdown. There wasn’t a massive amount of data yesterday, though US industrial production fell -1.3% in September (vs. +0.1% expected), and the August number was also revised down half a percentage point to now show a -0.1% contraction. Partly that was thanks to the continuing effects of Hurricane Ida, which contributed around 0.6 percentage point of the overall drop in production, but the contraction also reflected supply-chain issues (eg auto chip shortages). Otherwise, the NAHB housing market index for October unexpectedly rose to 80 (vs. 75 expected). To the day ahead now, and we’ll hear from an array of central bank speakers, including the BoE’s Governor Bailey, Pill and Mann, the ECB’s Rehn, Centeno, Elderson, Panetta and Lane, along with the Fed’s Daly, Barkin, Bostic and Waller. Otherwise, US Data releases including September’s housing starts and building permits, and earnings today include Johnson & Johnson, Procter & Gamble, Netflix, Philip Morris International and BNY Mellon. Tyler Durden Tue, 10/19/2021 - 07:50.....»»

Category: dealsSource: nytOct 19th, 2021

4 Solid Microchip Stocks to Buy on Soaring Global Demand

Growing demand for microchips amid supply crunch has been helping companies like NVIDIA Corporation (NVDA), Microchip Technology (MCHP), ON Semiconductor (ON) and STMicroelectronics (STM). The semiconductor industry has been on a high, with sales soaring on surging demand. However, a supply crunch has kept several other industries worried, with carmakers suffering the most. The pandemic saw massive sales of electronic goods, leading to higher demand for microchips.According to a new report form Deloitte, the crisis may continue for months. Thus, microchip demand is only going to soar, helping chipmakers like NVIDIA Corporation NVDA, Microchip Technology MCHP, ON Semiconductor ON and STMicroelectronics STM.Microchip Shortage to ContinueAccording to Deloitte’s new Technology, Media & Telecommunications (TMT) 2022 Predictions report, the global semiconductor shortage could last till early 2023.Things will start stabilizing only around late 2022 when customers will have to wait around 10 to 20 weeks after placing orders to get the supply in hand. However, the crisis doesn’t mean that customers will continue to suffer.Given the growing demand and resultant supply crisis, massive investment will be made to boost production in the coming days. The report predicts that venture capital firms will invest over $6 billion in microchip companies next year to boost production. This is thrice more than the total investment made by venture capital firms between 2000 and 2016.The report further says that the shortage is expected to last about 24 months from when it began, much like the 2008-09 microchip crisis.The ongoing shortage is severely affecting the production of automobiles and is now biting into their profits. A number of carmakers have already cut down on their production and expect sales to be down in the fourth quarter too. This is also somewhat delaying the automobile industry’s recovery after the battering it suffered due to the pandemic.Semiconductor Industry on a HighNot only automobile manufacturers, but also production of electronic goods, including laptops and smartphones,is being hampered now due to the supply crunch. That said, surging demand has been working miracles for the chipmakers, as sales are skyrocketing.According to the Semiconductor Industry Association, global semiconductors sales totaled $144.8 billion in the third quarter of 2021, jumping 27.6% year over year and 7.4% from the second quarter.  Also, the semiconductor industry achieved a milestone of shipping the highest number of semiconductor units in the market’s history during this period.The chip industry had somewhat slowed down, but the pandemic worked miracles. As more people worked and learned from home, they invested in electronic goods, computers and accessories, giving a boost to the demand for microchips anddriving sales.The trend continueswithchip sales growing every month and hitting new record highs. Semiconductor sales totaled $48.3 billion in September, jumping 27.6% year over year and 2.2% month over month.This growth is expected to continue in the coming months too.Our ChoicesGiven the rising demand for semiconductors and continuing supply crunch, the semiconductor industry is only likely to benefit in the near term. Below are five chip stocks that investors can gain from in the current scenario.NVIDIA Corporation is the worldwide leader in visual computing technologies and inventor of the graphic processing unit, GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.NVIDIA’s GPU success can be attributed to its parallel processing capabilities supported by thousands of computing cores, which are necessary to run deep learning algorithms.NVIDIA’s expected earnings growth rate for the current year is 73.1%. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the past 60 days. Shares of NVDA have gained 21.7% in the past 30 days. NVIDIA’s carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ON Semiconductor Corporation is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components.ON continues to gain traction among electric vehicle manufacturers for both silicon carbide and insulated-gate bipolar transistor-based products. ON Semiconductor has a well-diversified business generating a significant percentage of revenues from each of the computing, consumer, industrial, communications and automotive end markets.ON Semiconductor’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 12.4% over the past 60 days. Shares of ON have gained 9.5% in the past month. ON Semiconductors holds a Zacks Rank #2.STMicroelectronics N.V. designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. STM is currently witnessing very strong demand across most product lines and end markets. This is leading to strong pricing and allowing STMicroelectronicsto operate at full capacity.STMicroelectronics’expected earnings growth rate for the current year is 65.3%. The Zacks Consensus Estimate for current-year earnings has improved 4.7% over the past 60 days. Shares of STM have advanced 6.8% in the past 3 months. STMicroelectronics carries a Zacks Rank #2.Microchip Technology Incorporated develops and manufactures microcontrollers, memory, and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks. MCHP reported second-quarter fiscal 2022 earnings of $1.07 per share, beating the Zacks Consensus Estimate of $1.06 per share. Microchip Technology Incorporated reported revenues of $1.65 billion for the quarter ended September 2021, surpassing the Zacks Consensus Estimate by 0.10%.Microchip Technology Incorporated’s expected earnings growth rate for the current year is more than 33.9%. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the past 60 days. Shares of MCHP have gained 6.9% in the past 30 days. Microchip Technology has a Zacks Rank #2. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report STMicroelectronics N.V. (STM): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report ON Semiconductor Corporation (ON): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

General Motors (GM) Lifts Profit Projections, Stock Rallies

General Motors (GM) raises its full-year 2021 EBIT projection to $14 billion from the previous guided range of $11.5-13.5 billion. Shares rise 5% following the revised forecast. Shares of General Motors GM rose 5.1% yesterday as the U.S. auto giant raised its full-year 2021 EBIT forecast. It now envisions the pretax profit to total $14 billion, higher than the previous guided range of $11.5-13.5 billion. High demand for vehicles amid preference for personal mobility along with robust consumer spending is expected to aid General Motors’ results. Rising prices of new vehicles amid tight inventories due to global chip crunch will likely buoy profits.While the revised profit forecasts have lifted investors’ confidence in the stock, the near-term headwinds surrounding the firm are far from over. General Motors’ CFO Paul Jacobson notified that the company continues to reel under the shortage of semiconductor supply and low production and is not likely to operate at a full run rate by the end of next year. It expects the chip crisis to continue at least till the first half of 2022 and cautioned that the vehicle production and inventories won't get back to normal until late 2022.Jacobson also acknowledged the rising commodity costs that GM is grappling with. High commodity costs, including platinum group metals and steel prices, are likely to play a spoilsport. In fact, General Motors notified on its last earnings call that it expects second-half 2021 commodity costs to be $1.5-$2 billion higher than the first half of the year. Further, it anticipates commodity costs in the fourth quarter to increase from the third quarter. High product launch costs and R&D expenses related to electrification, battery technology and software solutions are anticipated to weigh on the firm’s cash flows. Amid such near-term hiccups, General Motors currently carries a Zacks Rank #3 (Hold).If you wish to invest in the auto space, you can consider adding Tesla TSLA, Harley-Davidson HOG and Goodyear Tire GT to your portfolio, each of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Tesla: Tesla is riding on the rising deliveries of Models 3 and Y. With China being the biggest EV market, Tesla’s ambitious production plans in the country bode well. The company’s energy generation and storage revenues are also boosting earnings. The electric vehicle king has an expected earnings growth rate of 167% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 6 cents over the last 30 days. Tesla beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once.Harley Davidson: In sync with the long-term growth objectives to optimize product portfolio and expand customer base, Harley-Davidson is focusing on motorcycle models and technologies that better align with market trends. The firm's turnaround plan, dubbed as ‘Rewire’, and the five-year strategic plan ‘Hardwire’ boosts optimism.The iconic motorcycle maker has an expected earnings growth rate of an astounding 36,100% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 2 cents over the last seven days. Harley-Davidson beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once.Goodyear: Goodyear’s acquisition of Cooper Tire, which closed in June, has strengthened the firm's leadership position in the global tire industry. Frequent rollouts of innovative products and services, electrification efforts and restructuring initiatives are also set to drive the firm’s prospects.Goodyear has an expected earnings growth rate of 196.86% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 42 cents over the last 30 days. GT beat the Zacks Consensus Estimate for earnings in the last four quarters. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HarleyDavidson, Inc. (HOG): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

Cabot (CBT) to Divest Purification Solutions Unit for $111M

Cabot (CBT) announces the selling off of its Purification Solutions business to One Equity Partners to divert resources to areas that promise strong growth and innovation. Cabot Corporation CBT recently entered into an agreement to sell its Purification Solutions business to One Equity Partners, a middle-market private equity firm. The transaction, valued at $111 million and expected to close in the second quarter of fiscal 2022, is subject to customary closing conditions and applicable works council consultations.Cabot’s Purification Solutions business is a renowned player in the research, development, manufacturing, and sale of high-performing activated carbon used in a range of environmental, health, safety, and industrial applications.The company expects to recognize a pre-tax impairment charge in the range of $155-$165 million in the first quarter of fiscal 2022 in relation to the sale, with net cash proceeds from the transaction expected to be roughly $80 million.While Credit Suisse is acting as the financial advisor, K&L Gates is giving legal counsel to Cabot for the transaction.Cabot is enthusiastic about the deal as One Equity Partners has a proven track record of advancing market-leading industrial companies. The transaction will allow the company to channel its resources on its core business segments and invest in units with strong future growth and innovation potential, such as Battery Materials.Cabot’s shares have risen 31% over the past year, outperforming the 15.2% rise of the industry.Image Source: Zacks Investment ResearchIn the fourth quarter of fiscal 2021, Cabot reported adjusted earnings of $1.11 per share, topping the Zacks Consensus Estimate of $1.02. Revenues were $904 million in the quarter, which jumped 37.2% year over year but missed the Zacks Consensus Estimate of $924.5 million.In its fourth-quarter earnings call, Cabot stated that it expects continued strong end-market demand and benefits from growth investments. It expects to benefit from higher volumes driven by strong forecasted levels of tire production and higher pricing in the Reinforcement Materials segment. In the Performance Chemicals segment, Cabot projects continued demand growth across its broad set of applications, with particular strength in battery materials and inkjet packaging.The company also expects challenges such as rising input costs, global supply-chain disruptions and the semiconductor chip shortage to moderate through the next fiscal year. The company expects adjusted earnings per share for fiscal 2022 in the range of $5.20-$5.60.Cabot Corporation Price and Consensus Cabot Corporation price-consensus-chart | Cabot Corporation QuoteZacks Rank & Key PicksCabot currently carries a Zacks Rank #3 (Hold).Better-ranked stocks from the basic materials space include Univar Solutions Inc. UNVR and AdvanSix Inc. ASIX sporting a Zacks Rank #1 (Strong Buy), and Celanese Corp. CE carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Univar has an expected earnings growth rate of 55.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 9% upward over the past 60 days.Univar beat the Zacks Consensus Estimate for earnings in the four trailing quarters, with an earnings surprise of 24.1%, on average. UNVR’s shares have rallied 50.5% over a year.AdvanSix has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 14.1% upward over the last 60 days.AdvanSix beat the Zacks Consensus Estimate for earnings in the four trailing quarters, with an earnings surprise of 47%, on average. ASIX’s shares have also surged 157.4% over a year.Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 9.1% upward over the last 60 days.Celanese beat the Zacks Consensus Estimate for earnings in the four trailing quarters and pulled off an earnings surprise of 12.7%, on average. Shares of CE have rallied around 22.6% over a year. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celanese Corporation (CE): Free Stock Analysis Report Cabot Corporation (CBT): Free Stock Analysis Report Univar Solutions Inc. (UNVR): Free Stock Analysis Report AdvanSix (ASIX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

Covid Woes And Supply Chain Issues Among The Drivers In FTSE Reshuffle

The FTSE All Share Index Quarterly Review is based on closing prices today and is due to be announced on Wednesday 1 December, with the changes effective after the close on Friday 17 December. Q3 2021 hedge fund letters, conferences and more A sparky performance by Electrocomponents pushes it into a prime position to move into […] The FTSE All Share Index Quarterly Review is based on closing prices today and is due to be announced on Wednesday 1 December, with the changes effective after the close on Friday 17 December. 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); Q3 2021 hedge fund letters, conferences and more A sparky performance by Electrocomponents pushes it into a prime position to move into the FTSE 100. Dechra pharma, another FTSE 100 contender has clawed opportunity from the soaring popularity for pets. Cyber Security firm DarkTrace set to slip out of the FTSE 100 following a share slide as the lock-in IPO period ended. Johnson Matthey’s position in the FTSE 100 looks shaky after it abandoned its battery plans. Supply chain issues plague electrical retailer AO World as it looks set to slide from FTSE 250. Petershill Partners eyes up a FTSE 250 position and fresh acquisitions of private equity assets. Fresh Covid woes hit The Restaurant Group as it looks set to slide out of the FTSE 250. Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown summarises the runners and riders: Electrocomponents – Contender To Enter The FTSE 100 "The sparky performance by Electrocomponents plc (LON:ECM), with adjusted pre-tax profits up 91% for the first half of the year, has led to a surge in its share price, pushing it into a prime position to move into FTSE 100 territory. The vast range of industrial and electronics products held by the distributor is partly behind its success, as well as its smooth online operations fulfilling the lucrative business-to-business segment. It’s not been immune from higher transport and labour costs, and global supply chain issues, but it appears to have deftly managed its inventory and kept margins intact. Although there are likely to be further cost pressures ahead, Electrocomponents appears in a robust position, particularly given that demand for electrical parts shows little sign of waning." Dechra Pharma - Contender To Enter The FTSE 100 "Dechra Pharmaceuticals plc (LON:DPH) has clawed opportunity from the soaring popularity for pets during the pandemic. Its share price has bounded upwards and it is a prime contender to take a walk into the FTSE 100. With so many more people working from home, it’s been an ideal opportunity to settle in a new furry friend and Dechra is in the business of keeping them healthy throughout their lifetimes. Demand for the pharmaceutical company’s veterinary products has been strong, with full year results showing pre-tax profits almost doubling. There is a risk that with incomes facing a squeeze from rising inflation, spending per head could decline, so there could be headwinds to navigate. But other results from pet orientated companies indicate that demand for pets doesn’t seem to be falling away, which bodes well for future revenues streams." Darktrace – Likely To Be Demoted From The FTSE 100 "Cyber security firm Darktrace PLC (LON:DARK) made a stealthy entry into the top-flight at the last reshuffle, but it’s a leading contender to leave the blue chip index given that shares have fallen by 52% since reaching a record high in September. This appears to be down to the end of the lock-up period following its IPO, with big chunks of new shares flooding the market prompting the falls. Darktrace is not alone in being a former IPO darling, now experiencing the pain of a rapid deceleration in its share price. Its successful launch in the spring was seen as a coup for the London market, and if it exits the top-flight it will leave a big tech gap in the FTSE 100. However, given ongoing growth reported by the company and some pretty upbeat trading updates, it may not stay outside the top-flight for long.  There is growing demand for sophisticated technology to counter the growing armies of cyber criminals and Darktrace uses AI to scan regular business operations and detect tiny irregularities, providing an early warning system of cyber-attacks. The ongoing shift to digital is likely to keep opening up new opportunities and markets for Darktrace as firms scale up their operations to meet demand, whilst trying to ensure their systems stay secure." Johnson Matthey – Likely To Be Demoted From The FTSE 100 "Investors are clearly worried about Johnson Matthey PLC (LON:JMAT)’s strategy for the future and amid this uncertainty, the company risks sliding out of the FTSE 100. The engineering company’s decision to abandon plans to become a battery supplier by selling off its eLNO business saw shares slide, because this appeared to be JMAT’s answer to the shift towards electric vehicles and away from combustion engines, for which it makes catalytic converters. Management says it will focus on other potential growth avenues, but ultimately the group will be starting from scratch as it looks for new opportunities alongside the new greener auto industry. Although catalytic converters won’t be rendered obsolete immediately, the clock is ticking and as the transition to electric vehicles speeds up, Johnson Matthey will need to quickly find a new sense of direction." AO World – Likely To Be Demoted From The FTSE 250 "Online electrical retailer AO World PLC (LON:AO) was well set up to capitalise on the accelerated shift to e-commerce during the first stages of the pandemic, with profits soaring as demand for white goods and IT equipment bounded higher. But the company has come down to earth with a bump, falling to a £10 million half year loss, sending shares plummeting, and this dramatic reversal of fortunes is likely to see it kicked out of the FTSE 250. Its rapid growth seems to have been part of the problem, given that it hasn’t had as much time to build up deep relationships with suppliers, so when the supply crunch hit for electrical goods, it was lower down on the list of priorities. Higher labour and transport costs exacerbated by the shortage of drivers have also dented margins, given that it’s so reliant on its delivery network to make sales and provide after care. A quick turnaround is unlikely given that the company has warned that the crucial Christmas trading period will be tough, with supply chain issues lingering, so AO World may find it hard to climb back up the ladder into FTSE 250 territory for some time." The Restaurant Group – Likely To Be Demoted From The FTSE 250 "As fears about the Omicron variant swirl, there are fresh concerns that restrictions could be tightened on hospitality firms and The Restaurant Group PLC (LON:RTN) hasn’t escaped this fresh round of volatility. Although shares are up marginally today, they have fallen by 35% over the past month as investors worry that despite a big round of cost cutting and the slimming down of its restaurant footprint, a big bounce back in fortunes remains elusive.  Although its star brand Wagamama is dishing out fast food as fast as it can make it to crowds queuing outside restaurants or ordering in from home, its airport concessions arm has struggled with a 53% fall in like-for-like sales at the last quarterly reading, as tourism has been slow to recover. Like many other firms in the sector the company is also facing the challenges of higher costs and wage pressures, amid a shortage of staff and those problems look set to linger." Provident Financial - Contender For The FTSE 250 "Provident Financial plc (LON:PFG), the sub-prime firm known for specialising in credit cards, online loans and consumer car finance is likely to gain a foothold in the FTSE 250 after its valuation recovered as it’s pivoted the business. The company called time on its doorstep lending business earlier this year as part of its attempt to climb out of a financial black hole, after being forced to pay compensation for mis-selling its products. Shifting its business model away from riskier high interest loans towards a mid-cost credit model is now more of a focus for the company and it’s a direction of travel investors have embraced. Although the shine has come off the share price in recent days, which may be partly due to fears that if the new variant leads to another downturn, the potential for bad loans could increase, shares are still up by 41% over the past six months." Petershill Partners – Contender For The FTSE 250 "Petershill Partners PLC (LON:PHLL) only started trading on the London Stock Exchange in September but already it’s a leading contender to step into the FTSE 250. Petershill owns minority stakes in a range of alternative asset managers such as venture capital firms and private equity companies, many of which had been managed by Goldman Sachs for a decade or more.  Assets under management at the investment firm increased by 8% in the third quarter, and it has its eye on fresh prizes with new acquisitions being sized up. Petershill has capitalised on the hunger for private equity investments in an era of ultra-low rates, enabling firms to borrow cheaply to finance takeovers.  With an increase in interest rates looming there is a risk that appetite for such assets may wane, and that might partly account for a slight nudging downwards in the share price over the past month." About Hargreaves Lansdown Over 1.67 million clients trust us with £138.0 billion (as at 30 September 2021), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month. Updated on Nov 30, 2021, 12:19 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: valuewalkNov 30th, 2021

5 steps to start researching and buying stocks like the Wall Street pros

Researching the right stocks for your portfolio can feel like a daunting task. Here are the basics you need to know. Risk tolerance and budget are two key factors that should inform your stock research.Terry Vine/Getty Your budget, investment style, and risk tolerance should guide your stock research. Understanding a company's fundamentals is key to finding quality stocks. Certain documents, such as a company's annual report, reveal key financial information and risks. Visit Insider's Investing Reference library for more stories. For individual investors, choosing the right stocks can feel like a daunting task. But if you want to manage your own portfolio, you can apply the same kind of techniques that the pros on Wall Street use in their research and analysis.Not sure how to begin? Use these 5 steps to help guide your approach.Step 1: Understand the types of stock analysisThe first step to researching stocks is to understand the different types of stock analysis. When researching stocks, the three main types of analyses are:Fundamental analysis: Examines fundamentals such as earnings, cash flow, and financial position to forecast performance.Technical analysis: Uses past prices and trading patterns to forecast future price changes.Quantitative analysis: Uses mathematical and statistical modeling to assess the value of a stock.Each approach has its merits. However, in most cases, fundamental analysis should be your primary tool to assess the value of a given stock, according to Robert Johnson, chairman and CEO at index provider Economic Index Associates. "Investors should concern themselves primarily with a company or asset's fundamentals (earnings, cash flow, financial position, products, and the like)," he says.The reason for this is that fundamental analysis breaks down the real-world performance of a company. Technical analysis, on the other hand, may reveal anomalies in an asset's price. But those can occur for many reasons, such as negative news coverage."Technical analysis is an assessment of statistics generated by market activity, such as past prices and volume," says Melanie Mortimer, president at SIFMA Foundation, which provides financial literacy programs. "Technical analysts use charts and other tools to project a security's potential future activity, taking cues from patterns in the data."Quantitative analysis may use some of the same metrics as technical analysis but can incorporate statistical modeling in an attempt to determine whether a stock is a good investment opportunity. "Quantitative funds tend to rely more heavily on valuation metrics and market technicals such as price momentum," says Carl Ludwigson, director of manager research at Bel Air Investment Advisors.Quick tip: Start your analysis by checking a company's fundamentals, such as earnings, profit margin, and revenue growth. You can then use technical and quantitative analysis to supplement your fundamental analysis to gain deeper insight.Step 2: Establish your risk tolerance and budgetIt's important to establish both your risk tolerance and budget before you research stocks. After all, there are many types of stocks and theoretically no limit to how much you can invest.For instance, blue-chip stocks such as those included in the Dow Jones Industrial Average may provide a consistent return but not have quite the potential for gains  as a startup company. However, there is naturally a greater chance of a startup performing poorly, or even going out of business. Therefore, you must determine the balance between how much risk you are willing to take and what kind of return you expect."With a longer time to retire and fewer financial obligations, an individual has the ability to absorb some volatility in their investment portfolio, knowing that time can help balance any short-term losses with longer-term gains, or the ups and downs of economic cycles," says Mortimer.Willingness to bear risk, on the other hand, is more subjective. "One way to gauge a person's willingness to bear risk is to simply ask the question: If your portfolio suddenly declined in value by X percent, would you lose sleep over it and suffer substantial regret?" Johnson says. "If the answer switches from yes to no when X is 10 percent, then the person has very little willingness to bear risk, and quite frankly, has limited investment options."Your budget also plays a role. There is a large difference between a 10% return on a $1,000 investment and a 10% return on a $100,000 investment. In other words, if your budget is relatively small, you may have to take bigger risks to see the return you want. That is not unusual, though, as those who are early in their careers tend to have less to invest — but also more time to take risks. Understanding where you are on this spectrum is key to forming your investment strategy.Step 3: Know which investing metrics to pay attention toThere's no shortage of investing metrics available, especially for larger, well-established companies. Some are more critical than others. Key metrics to consider include:Price/earnings ratioPrice/book ratioNet profit marginFree cash flowReturn on equityReturn on assetsWhich metrics are most important depends in large part on the style of investing you prefer. For instance, two common forms of investing are value and growth investing. Value investing involves buying stock in companies that are undervalued, therefore selling at a discounted rate. Growth investing, on the other hand, means buying stocks of companies that are expected to grow at a rate faster than the market."Value-oriented managers tend to focus on price-to-book, price-to-cash flow, and other measures that indicate a depressed price compared to the normalized earnings or intrinsic value of a business which creates a margin of safety," says Ludwigson. In other words, for value investors, the key metrics are those that indicate the price is lower than competitors' stocks, such as on a price-to-earnings or price-to-book basis. The lower these ratios are, the better.One thing to watch out for with value investing is the tendency toward mean reversion, according to Johnson. "Historically, asset prices and historical returns gradually move toward the long-term mean. So, if a particular stock is selling at a low P/E or price-to-sales multiple, all else equal, the P/E or price-to-sales ratio will likely revert to the mean at some point," he says.Growth investors take an entirely different approach, says Ludwigson. "Growth managers tend to focus on revenue and earnings growth with less focus on metrics like price-to-earnings as they expect the earnings to expand over time to justify the price," he says. Oftentimes, growth stocks are companies that have not fully matured, so revenue and earnings growth is more important than price.Quick tip: Certain metrics are more important than others to pay attention to, depending on the style of investing. For instance, price-based metrics lend themselves to value investing, while growth investors focus more on growth of earnings and revenue. Step 4: Find the data you need to start your researchNow that you have an idea of which companies you want to analyze, it's time to dive deeper. Here are some of the documents, reports, and tools you may want to check:SEC reportsThe company's revenue and incomeOnline brokerage research platformsCompany press releasesStock screenersIndustry trendsWhen first starting your research, you can check each company on an online brokerage's research platform as well as in stock screeners. These are a good way to check some of those metrics, like profit margin and price-to-earnings. Then, you can take a deeper dive into reports on the companies that look good.There is no shortage of reports to detail the companies you are considering for investment. However, there are certain places you should direct your focus first, says Kevin L. Matthews II, founder of investment education company BuildingBread. "Any company that you're looking into usually has an investor relations section on the website. If you go there you can find any important press releases, financial documents, and  documents filed with the SEC like the 10-K and 10-Q," he says.Matthews notes that the 10-K (the annual report) is his favorite document to help with company research as it outlines performance as well as potential risks and other strategic and financial details.In addition to reports found on a company's investor relations page, there are some databases you should know about, says Johnson. "The SEC's role of running the EDGAR database is of utmost importance to investors. The key types of documents on EDGAR include Annual reports (10-Ks), Quarterly Reports (10-Qs), Proxy Statements (DEF 14As), Prospectuses (S-1s), and Interim Reports of Material Events (8-Ks)," he says.Step 5: Narrow your focus and pick stocks that fit your portfolioAs you have probably already discovered, there aren't any magic bullets that fit perfectly into your portfolio. Instead, you should look for the investments that best align with your investing goals. For example, do you prefer value or growth investing? What is your budget and what is your risk tolerance?Once you answer these questions, you can start to formulate your investing strategy. Certain metrics, such as price-to-earnings, lend themselves more to value investing, while metrics like profit margin are more important for growth investing. You can then hone in on a company's fundamentals using an online broker and company reports to identify the right stocks for you.Depending on how risky a given stock is, you can weigh it against your risk tolerance and budget to determine whether to invest — and if so, how much. Then, you can continue to evaluate using future quarterly and annual reports to ensure the company still fits within your strategy.The financial takeawayResearching stocks can seem overwhelming, but it doesn't have to be. First, determine your preferred investment style, budget, and risk tolerance. Then, you can use an online broker as well as internal and external company filings to find out more about each stock you are considering.Once you have done that, you're ready to start investing. Be sure to continue to evaluate each of your investments, either quarterly or annually. You may want to make changes if a company no longer aligns with your strategy — just be aware of potential capital gains taxes if you decide to sell.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 29th, 2021

U.S. Weekly Jobless Claims Drop to 52-Year Low: 5 Top Picks

We have narrowed our search to five staffing stocks that have popped in the past three months. These are: KFRC, KFY, CCRN, RHI and RGP. U.S. weekly unemployment benefit claims declined steadily over the last six months barring some minor fluctuations. The latest data released by the Department of Labor on Nov 24 showed that initial claims plunged to a 52-year low. The labor market, which was the best-performing segment of the U.S. economy before the outbreak of coronavirus, suffered the most during the pandemic. Of late, the U.S. labor market is stabilizing around the pre-pandemic level.At this stage, it will be fruitful to invest in staffing stocks with a favorable Zacks Rank. Here we have selected five such companies. These are — Korn Ferry KFY, Kforce Inc. KFRC, Cross Country Healthcare Inc. CCRN, Robert Half International Inc. RHI and Resources Connection, Inc. RGP.Signs of Systematic RecoveryThe Department of Labor reported that the weekly jobless claims plunged by 71,000 to 199,000 for the week ended Nov 20, marking the lowest level since Nov 15, 1969. The consensus estimate was 260,000 and the data for the previous week was revised upward to 270,00 from 268,000 reported earlier. Notably, initial claims were hovering around 200,000 in the pre-pandemic period.Continuing claims (those who already received government benefit) declined 60,000 to 2.05 million for the week ended Nov 13. This is the lowest reading since Mar 14, 2020. The total number of people receiving benefits under all programs fell 752,390 to 2.43 million, as of Nov 6. Notably, receivers of unemployment benefits topped more than 30 million at the pandemic high.Robust Job Additions in OctoberThe U.S. economy added 571,000 jobs in October, exceeding the consensus estimate of 442,000. Moreover, September’s job additions were revised upward to 312,000 from a disappointing 194,000 reported earlier. August’s data was also revised upward to 483,000 from 366,000 reported earlier.Total private payrolls rose 604,000 in October, partially offset by 73,000 declines in government jobs. The unemployment rate came down to 4.6% in October from 4.8% in September. The consensus estimate was 4.7%.Momentum Likely to ContinueThe U.S. economy is witnessing an impressive recovery since the beginning of 2021, faster-than-expected by a large number of market participants. The vaccination drive on a priority basis and an unprecedented stimulus helped the economy ramp up the activities level.On Nov 15, President Joe Biden signed a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. Total spending may go up to $1.2 trillion if the plan is extended to eight years.The infrastructure development project will be a major catalyst for the U.S. stock markets in 2022. Various segments of the economy such as basic materials, industrials, utilities and telecommunications will benefit immensely with more job creation for the economy.Moreover, the White House has put pressure on Congress to quickly pass legislation providing $52 billion to help computer chip manufacturers and ease a shortage of the components vital to many industries.Our Top PicksWe have narrowed our search to five staffing stocks that have popped in the past three months. These stocks have strong growth potential for the rest of 2021 and have seen positive earnings estimate revisions within the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The chart below shows the price performance of our five picks in the past three months.Image Source: Zacks Investment ResearchKforce Inc. is a full-service, web-based specialty staffing firm providing flexible and permanent staffing solutions in the United States. KFRC operates through the Technology and Finance and Accounting segments. kforce.com offers web-based services including online resumes and job postings, interactive interviews and job placements and career management strategies.Zacks Rank #1 Kforce has an expected earnings growth rate of 35.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the last 30 days. The stock price of KFRC has jumped 40.3% in the past three months.Korn Ferry  is the world's leading and largest executive recruitment firm with the broadest global presence in this industry. KFY operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing & Professional Search.Zacks Rank #2 Korn Ferry has an expected earnings growth rate of more than 100% for the current year (ending April 2022). The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 7 days. The stock price of KFY has advanced 17% in the past three months.Cross Country Healthcare Inc. provides talent management and other consultative services for healthcare clients in the United States. CCRN operates in three segments: Nurse and Allied Staffing, Physician Staffing, and Search.Zacks Rank #1 Cross Country Healthcare has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10% over the last 7 days. The stock price of CCRN has climbed 40.2% in the past three months.Robert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. RHI operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services.Zacks Rank #1 Robert Half International has an expected earnings growth rate of 95.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 60 days. The stock price of RHI surged 14.3% in the past three months.Resources Connection Inc. is a multinational professional services firm that helps business leaders execute internal initiatives. RGP provides experienced accounting and finance, human resources management and information technology professionals to clients on a project-by-project basis.Zacks Rank #1 Resources Connection has an expected earnings growth rate of -0.8% for the current year (ending May 2022). The Zacks Consensus Estimate for current-year earnings has improved 19.4% over the last 60 days. The stock price of RGP has appreciated 20.1% in the past three months. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KornFerry International (KFY): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Resources Connection, Inc. (RGP): Free Stock Analysis Report Kforce, Inc. (KFRC): Free Stock Analysis Report Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 25th, 2021

Thanks to Wall Street for a Wonderful Rally YTD: 5 Top Picks

We have narrowed the search to five U.S. corporate behemoths that have skyrocketed more than 50% year to date. These are: GOOGL, TSLA, LOW, HD and XOM. Wall Street started 2021 from where it ended in 2020. Year to date, U.S. stock markets have seen an impressive rally after completing an astonishing 2020 despite being pandemic-ridden. Instead of the technology-driven rally like last year, Wall Street is witnessing a broad-based rally this year — across all segments (large, mid and small caps) and various sectors of the economy. Very few economists and financial analysts had anticipated such a powerful rally at the beginning of this year.At this stage, it will be prudent to invest in corporate giants that have popped in 2021 with a favorable Zacks Rank and strong upside left. Here are five such stocks — Tesla Inc. TSLA, Alphabet Inc. GOOGL, The Home Depot Inc. HD, Exxon Mobil Corp. XOM and Lowe's Companies Inc. LOW.Impressive 2021 So FarWall Street has had a dream run so far this year. The pandemic is not over yet and the resurgence of the Delta variant of coronavirus disrupted U.S. economic recovery this summer. To make the situation worse, inflation is currently at its peak in more than three decades thanks to prolonged global supply-chain bottleneck and acute labor shortage.Despite these headwinds, year to date, the three large-cap centric indexes — the Dow, the S&P 500 and the Nasdaq Composite — have surged 17%, 24.9% and 22.4%, respectively. The small-cap specific Russell 2000 and S&P 600 Index have advanced 17.9% and 28.1%, respectively. The mid-cap benchmark S&P 400 Index has surged 24.6% in the same period.Year to date, all 11 broad sectors of the market’s benchmark – S&P 500 Index – are in positive territory. Aside from the technology sector, cyclical sectors like energy, financials, consumer discretionary, materials and industrials have contributed significantly to the S&P 500 rally.The momentum of U.S. stocks markets is likely to continue and will pave the way for a year-end rally. Here are the reasons:Government’s Spending PlansOn Nov 15, President Joe Biden signed a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. Total spending may go up to $1.2 trillion if the plan is extended to eight years.The infrastructure development project will be a major catalyst for the U.S. stock markets in 2022. Various segments of the economy such as basic materials, industrials, telecommunications and utilities will benefit immensely with more job creation for the economy.On Nov 19, the House of Representatives passed a massive $1.75 trillion social safety net and climate bill proposed by the Biden administration. The bill will now head toward the Senate. Moreover, the White House has put pressure on Congress to quickly pass legislation providing $52 billion to help computer chip manufacturers and ease a shortage of the components vital for a range of industries.Strong Projections for Holiday SalesThe National Retail Federation has projected November/December retail sales in 2021 to go up 8.5% to 10.5% from 2020. Deloitte forecasts retail sales growth of 7% to 9% during the November-to-January period.Digital Commerce 360 has estimated that holiday retail sales through all channels, including physical stores, will likely rise 9.4% during the season. KPMG expects 2021 U.S. holiday sales to be 7% higher than last year. Mastercard SpendingPulse forecasts a 7.4% year-over-year rise in U.S. holiday sales.Solid Growth of U.S. GDP and Corporate ProfitIn its latest projection on Nov 17, the Atlanta Fed reported that the U.S. economy will grow by 8.2% in fourth-quarter 2021. U.S. GDP grew 6.4%, 6.7% and 2%, in the first, second and third quarters of this year, respectively.As of Nov 17, total third-quarter earnings of the market's benchmark — the S&P 500 Index — are projected to jump 40.3% from the same period last year on 17.2% higher revenues. Moreover, in fourth-quarter 2021, total earnings of the S&P 500 index are expected to up 19.4% year over year on 11.1% higher revenues.Our Top PicksWe have narrowed the search to five U.S. corporate behemoths (market capital > $100 billion) that have skyrocketed more than 50% year to date. These stocks still have more upside left for the rest of 2021 and have seen positive earnings estimate revisions within the last 30 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The chart below shows the price performance of our five picks year to date.Image Source: Zacks Investment ResearchAlphabet Inc. has been strongly emphasizing AI techniques and the home automation space that should aid business growth in the long term. Solid momentum across search, advertising, cloud and YouTube businesses aided the results of GOOGL. Further, the growing proliferation of consumer online activities and rising advertiser spending remained as tailwinds.Alphabet's robust cloud division continues to be the key catalyst. Expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results. Moreover, GOOGL’s mobile search is constantly gaining traction.Alphabet has an expected earnings growth rate of 84% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the last 30 days. The stock price of GOOGL has soared 66.4% year to date.Tesla Inc. has acquired a substantial market share within the electric car segment. Increasing Model 3 delivery, which forms a significant chunk of TSLA’s overall deliveries, is aiding its top line. Along with Model 3, Model Y is contributing to its revenues.In addition to increasing automotive revenues, Tesla’s energy generation and storage revenues boost its earnings prospects. The automaker said that its overall deliveries surged 20% in the third quarter from its previous record in the second quarter, marking the sixth consecutive quarter-on-quarter gain.Tesla has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 9.7% over the last 30 days. The stock price of TSLA has jumped 57.2% year to date.The Home Depot Inc. is witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.Amid the pandemic, customers have been increasingly blending the physical and digital elements of the shopping experience, making the interconnected One Home Depot strategy most relevant. The Home Depot is effectively adapting to the demand for renovations and construction activities, driven by prudent investments. HD is gaining from growth in Pro and DIY customer categories as well as digital momentum.The Home Depot has an expected earnings growth rate of 28.2% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the last 7 days. The stock price of HD has surged 53.8% year to date.Exxon Mobil Corp. made multiple world-class oil discoveries at the Stabroek Block, located off the coast of Guyana. XOM has raised the estimate for discovered recoverable resources from the Stabroek Block to approximately 10 billion oil-equivalent barrels.Exxon Mobile’s bellwether status and an optimal integrated capital structure, which has historically produced industry-leading returns make it a relatively lower-risk energy sector play. The integrated oil behemoth expects to reduce greenhouse gas emissions by 30% in its upstream business. By the same time, XOM expects to reduce flaring and methane emissions by 40%.Exxon Mobil has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 7 days. The stock price of XOM has advanced 53.2% year to date.Lowe's Companies Inc. remains well-positioned to capitalize on the demand in the home improvement market backed by investments in technology, merchandise category and strength in Pro business. Management is committed toward expanding LOW’s market share and boosting the operating margin.Lowe's Companies new total home strategy, which includes providing complete solutions for various types of home repair and improvement, bodes well. The strategy is an extension of LOW’s retail-fundamentals approach.Lowe's Companies has an expected earnings growth rate of 33.8% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 7 days. The stock price of LOW has climbed 57% year to date. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2021

Samsung Reportedly Picks This Tiny Town In Texas For A Massive $17 Billion Chip-Making Factory

Samsung Reportedly Picks This Tiny Town In Texas For A Massive $17 Billion Chip-Making Factory WSJ reports Texas Gov. Greg Abbott is scheduled to make a major "economic announcement" on Tuesday at 5 pm local time concerning new plans for a massive semiconductor plant in Taylor, Texas.  South Korean tech giant, Samsung Electronics Co., is doubling down in Texas with another facility, about 30 miles from its manufacturing hub in Austin. The new Taylor facility will cost a whopping $17 billion and create 1,800 jobs. Chip production wouldn't start until the second half of 2024. WSJ said officials in Taylor incentivized Samsung by giving them "property-tax breaks of up to 92.5% for the first ten years, with the write-offs gradually declining over the next several decades." "A final decision has not yet been made regarding the location," a Samsung spokeswoman said. Samsung is taking advantage of the Biden administration's effort to lure advanced manufacturing back to the U.S., especially semiconductor production, as global supply chains are being reworked around China.  In February, President Biden signed an executive order to address the global semiconductor chip shortage. "Make no mistake, we're not simply planning to order up reports. We are planning to take actions to close gaps as we identify them," an administration official said at the time. Then in July, the Biden administration announced a "supply-chain disruptions task force" to identify bottlenecks. Secretary of Commerce Gina Raimondo has headed up the task force with the help of "Mayor Pete," focused on semiconductors and other areas, including homebuilding and construction.  This year's semiconductor shortage has been very disruptive to domestic manufacturing firms. The problem is that while U.S. semiconductor firms account for 47% of global chip sales, only 12% of production is domestic. In the 1990s, the U.S. accounted for 37% of the global output.  Is this move the beginning of Biden's "Build Back Better" strategy working? Or is this reflective of a red state's more-open and less-taxed status as being attractive for global competition? The U.S. is also seeking independence from China on large-capacity batteries for electric vehicles, rare earth minerals, and pharmaceuticals.  Tyler Durden Tue, 11/23/2021 - 11:28.....»»

Category: blogSource: zerohedgeNov 23rd, 2021

Samsung Reportedly Picks Texas for $17 Billion U.S. Semiconductor Plant

Samsung is planning to invest $17 billion and create about 1,800 jobs in Taylor, Texas over the first 10 years, according to documents submitted to local officials. Samsung Electronics has decided to build an advanced U.S. chip plant in Texas, a win for the Biden administration as it prioritizes supply chain security and greater semiconductor capacity on American soil. South Korea’s largest company has decided on the city of Taylor, roughly 30 miles from its existing giant manufacturing hub in Austin, a person familiar with the matter said. Samsung and Texas officials will announce the decision Tuesday afternoon, according to people familiar with the matter, asking not to be identified because the news hasn’t been made public. A Samsung representative said it hadn’t made a final decision and declined further comment. [time-brightcove not-tgx=”true”] Samsung is hoping to win more American clients and narrow the gap with Taiwan Semiconductor Manufacturing Co. Its decision, which came months after de facto leader Jay Y. Lee was released from prison on parole, follows plans by TSMC and Intel Corp. to spend billions on cutting-edge facilities globally. The industry triumvirate is racing to meet a post-pandemic surge in demand that’s stretched global capacity to the max, while anticipating more and more connected devices from cars to homes will require chips in future. The new plant will augment Samsung’s already sizable presence in Austin, where it’s invested about $17 billion to date on a sprawling complex that houses more than 3,000 employees and fabricates some of the country’s most sophisticated chips. Samsung’s planning to invest another $17 billion and create about 1,800 jobs over the first 10 years, according to documents the company submitted to Taylor officials. Korea’s Yonhap and the Wall Street Journal had reported earlier on Taylor’s selection. The Asian giant is taking advantage of a U.S. government effort to counter China’s rising economic prowess and lure home some of the advanced manufacturing that in past decades has gravitated toward Asia. That ambition crystallized after a global chip shortage hobbled the tech and auto industries, cost companies billions in lost revenue and forced plants to furlough workers, exposing U.S. vulnerability to diversified supply chains. In June, President Joe Biden laid out a sweeping effort to secure critical supply chains, including a proposed $52 billion to bolster domestic chipmaking. His administration has repeatedly voiced the need to increase chip production in the U.S., saying that was the best way to compete with China and mitigate supply chain disruptions like the one stemming from Covid 19. Last month, the U.S. created an “early alert system” to detect Covid-related shocks. And it asked producers and consumers of semiconductors to complete a survey about inventories, demand, and delivery systems, to identify potential issues. Recently, Intel’s troubles ramping up on technology and its potential reliance in the future on TSMC and Samsung for at least some of its chipmaking have underscored the extent to which Asian giants have pulled ahead in recent years. The administration discouraged Intel from pursuing plans to operate a factory in Chengdu, China to manufacture silicon wafers. The White House has also called on Democrats in the House of Representatives to pass a $52 billion bill known as the CHIPS Act, which would fund domestic semiconductor research and manufacturing. Administration officials have pointed to the bill when pressed about security concerns in Taiwan, the world’s foremost chip producer. Commerce Secretary Gina Raimondo said Congress should pass the legislation as “quickly as possible” when asked if the U.S needed a clearer defense strategy related to the island. Samsung adds to a growing list of companies moving to or expanding in Texas. In the last year, electric carmaker Tesla Inc. said it would move headquarters to the state, as did Oracle Corp. and Hewlett Packard Enterprise Co. Samsung’s move would be a win for Texas Republican governor Greg Abbott, who has long touted the Lone Star state’s business-friendly tax policies and is gearing up for a re-election battle next year. The local government pulled out the stops to snag Samsung, including waiving 90% of property taxes for a decade, and 85% for the following 10 years. Abbott is scheduled to make a statement about the state’s economy at 5 p.m. local time Tuesday. Samsung itself has been accelerating investment activity since Lee was released from jail, where he was serving time for corruption. It unveiled a commitment to bolster South Korea’s economy by spending 240 trillion won ($205 billion) and expand hiring to 40,000 people over the next three years. It’s going head-to-head in Intel’s backyard with TSMC, which is on track to start production on its own $12 billion chip plant in Arizona by 2024. Samsung is trying to catch TSMC in the so-called foundry business of making chips for the world’s corporations — a particularly pivotal capability given a deepening shortage of semiconductors in recent months. Samsung’s envisioned U.S. foundry will adopt ASML Holding NV’s extreme ultraviolet lithography equipment. The company, which has struggled with poor yields on advanced chip processes for years, has been improving and accelerating its capacity expansion at home. It aims to mass-produce 3-nanometer chips via so-called Gate All Around technology around 2022, employing what some regard as game-changing technology that can more precisely control current flows across channels, shrink chip areas and lower power consumption. Rival Intel has pledged to retake its industry lead by 2025. —With assistance from Justin Sink, Debby Wu, Peter Elstrom, Tom Giles and Matthew Miller......»»

Category: topSource: timeNov 23rd, 2021

Auto Stock Roundup: AAP"s Impressive Q3 Show, ALV"s 3-Year Targets & More

Advance Auto Parts (AAP) posts a comprehensive beat for Q3 and lifts full-year view. Meanwhile, Autoliv (ALV) sets three-year financial targets and aims for 12% adjusted operating margin for 2022-2024. Recalls are rampant in the auto industry across the globe and a steep rise has been noticed in recent years, according to the National Highway Traffic Safety Administration. Last week, auto biggies like Stellantis STLA, Toyota TM and Volkswagen VWAGY issued separate recalls to fix multiple defects. Meanwhile, Advance Auto Parts AAP reported stellar third-quarter 2021 results and lifted the full-year outlook. Autoliv ALV also grabbed eyeballs as it set three-year financial targets.The European Automobile Manufacturers Association (“ACEA”) released data for passenger car registrations made in October 2021. In a telling sign that the chip shortage continues to wreak havoc on the auto industry, new car registrations tailed off 30.3% year over year to 665,001 units, marking the fourth straight monthly decline. Most of the European Union (EU) markets saw double-digit declines. Registrations in major markets like Spain, Germany, France, and Italy plummeted 20.5%, 34.9%, 30.7%, and 35.7%, respectively. Despite the recent sales drop amid the global chip crunch, cumulative volumes over the first 10 months of 2021 totaled 8.2 million units, up 2.2% year over year.Last Week’s Key Stories1. Advance Auto reported adjusted earnings of $3.21 per share for third-quarter 2021 (ended Oct, 2021), increasing 21.6% from the prior-year figure. The reported figure also beat the Zacks Consensus Estimate of $2.78 on higher-than-expected comps growth. For the third quarter, comparable store sales witnessed 3.1% growth, outpacing the consensus mark of 0.2%. The auto parts retailer generated net revenues of $2,621.2 million, topping the Zacks Consensus Estimate of $2,564 million and rising 3.1% from the year-ago reported figure.Advance Auto has raised its full-year 2021 view. It now estimates full-year net sales in the band of $10.9-$10.95 billion, up from the previous projection of $10.6-$10.8 billion. Comparable store sales growth and adjusted operating income margin are now envisioned in the range of 9.5-10% and 9.4-9.5%, higher than the previous projection of 6-8% and 9.2-9.4%, respectively. AAP expects free cash flow of a minimum of $725 million, up from the previous forecast of a minimum of $700 million.2. Autoliv set its three-year (2022-2024) financial targets. The company expects to outgrow annual light vehicle production by 4% between 2022 and 2024. Post 2024, sales are envisioned to grow organically by 4-6% per year. The auto equipment provider outlined other key agendas, including its aim for sustainable growth, improvement in efficiency targeting a 12% adjusted operating margin from 2022 to 2024, commitment toward shareholder value creation and cash conversion of at least 80% as well as a new stock repurchase program of up to $1.5 billion over the next three years.In a separate development, Autoliv and SSAB initiated collaborative research to develop fossil-free steel components for automotive safety products such as airbags and seatbelts. The partnership aims for a new technology that will replace the traditional coking coal with hydrogen and be the world's first fossil-free steelmaking technology with a zero-carbon footprint. Investors should note that ALV is committed to becoming carbon neutral by 2030 and aims for net-zero missions across the supply chain by 2040. 3. Stellantis issued a recall for more than 246,000 Ram Heavy Duty and Chassis Cab trucks, mainly in North America, to replace the fuel pumps that can lead to stalling or failure of the engine due to wear. The initiative covers 2019 and 2020 truck models equipped with 6.7-liter Cummins diesel engines.According to reports, customer complaints about fuel pump failures and hefty repair bills prompted an investigation by the National Highway Traffic Safety Administration. Stellantis, however, claimed that the recall decision was made before the announcement of the inquiry. Owners can get the pumps repaired from dealers at zero cost and will be notified by next month. STLA currently sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.4. Volkswagen is set to recall more than 240,000 Audi vehicles in the United States and Canada. The affected ones include certain Audi A4, RS5, A5, S4, and S5 models built between 2017 and 2020.Volkswagen notified that an electric cable defect could disable the passenger airbag. The possibility of a faulty cable used in the passenger occupant detection system may put the vehicle’s software at risk of misdiagnosing a problem and disabling the passenger airbag, thereby increasing the chances of injury in a crash.To fix the problem, dealers will replace the cable and the heating map or the entire seat cover. Letters notifying the same to owners will be sent out starting Jan 7, 2022. The current recall is an expansion of the same problem faced in 2019. Vehicles repaired then will have to be fixed again.5. Toyota is recalling more than 227,400 Camry sedans that stand the risk of suddenly losing the power assist in the brake system. The recall initiative covers certain 2018 and 2019 midsize sedans models, especially in North America.Toyota stated that there can be premature wear in some brake system components. The failure of power assistance will not hamper the operation of the brakes. However, it will make the driver more prone to crash. Owners of recalled cars will be notified by mid-January 2022. The dealers will inspect a vacuum pump and repair or replace it in the affected vehicles.Price PerformanceThe following table shows the price movement of some of the major auto players over the past week and six-month period.Image Source: Zacks Investment ResearchWhat’s Next in the Auto Space?Industry watchers will keep a tab on October commercial vehicle registrations in the EU, likely to be released by the ACEA this week. Also, stay tuned for updates on how automakers will tackle the semiconductor shortage and make changes in business operations. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Autoliv, Inc. (ALV): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Volkswagen AG (VWAGY): Free Stock Analysis Report Stellantis N.V. (STLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 22nd, 2021

South Korean Chipmaker SK Hynix Halts Expansion Plans In China Due To U.S. Trade Restrictions

South Korean Chipmaker SK Hynix Halts Expansion Plans In China Due To U.S. Trade Restrictions It appears that the U.S. preventing companies like Intel from expanding their chipmaking operations in China is having an affect on other chipmakers globally. That's because South Korea's SK Hynix, a top supplier of memory chips globally, has halted the installation of new production equipment in China as a result of American trade policies. The company was planning on bringing extreme-ultraviolet lithography equipment to its Jiangsu Province plant, which makes about 40% of its DRAM chips, according to Nikkei.  But the company put a halt to the plans as a result of American measures that have been put in place to "restrict Chinese access to advanced technology that could boost its military power". Direct supply of EUV equipment to Chinese companies should be restricted, according to U.S. authorities. Dutch chipmaking equipment maker ASML held back deliveries in 2019 to Chinese chipmaker Semiconductor Manufacturing International Corp. as a result of the same concerns, the report notes. Recall, just days ago, Chinese Foreign Ministry spokesman Zhao Lijian said at a press briefing in Beijing that the U.S. is "stretching the concept of national security" by preventing plans for expansion by semi companies like Intel. Lijian said that the U.S. is using national security as a means to "build up trade barricades". Lijian also accused the Biden administration of forcing Samsung and Taiwan Semiconductor to hand over "sensitive information" related to their supply chains. Recall, we wrote last week that Intel had proposed "using a factory in Chengdu, China, to manufacture silicon wafers,". It could have been online by 2022, but the White House, "strongly discouraged" the move. Intel likely had to listen since the company is seeking government support in helping expand its capacity for manufacturing semis in the U.S. Intel told Bloomberg it was now looking at “other solutions that will also help us meet high demand for the semiconductors essential to innovation and the economy.” The company continued: “Intel and the Biden administration share a goal to address the ongoing industrywide shortage of microchips, and we have explored a number of approaches with the U.S. government. Our focus is on the significant ongoing expansion of our existing semiconductor manufacturing operations and our plans to invest tens of billions of dollars in new wafer fabrication plants in the U.S. and Europe.” Days prior to this report, we wrote how U.S. firms were splurging on Chinese semi deals, drawing scrutiny from the White House. U.S. venture capital firms have been "ramping up investments" in Chinese semiconductor companies despite the obvious security conflicts, a report from the Wall Street Journal said. Cumulatively, U.S. firms have helped raise "billions" for Chinese chip startups, we noted.  There has been more than 58 deals in China's semiconductor industry from 2017 to 2020, we wrote. Among the "active investors" was Intel, who had invested in a Chinese company called Primarius Technologies Co., which makes chip-design tools that the U.S. currently holds the lead in making.  Intel told the WSJ last week that its China investments "are less than 10% of the deals in a global portfolio designed to support its business and generate return". Tyler Durden Sat, 11/20/2021 - 13:00.....»»

Category: blogSource: zerohedgeNov 20th, 2021

Instagram star Alexis Ren says the dollar-based economy is "collapsing" so she"s going into crypto

"They keep printing more of it, so that it has no value. [The dollar] used to be backed by gold and it's not anymore.," she says. Alexis Ren says she has lost faith in the value of the US dollar.Alexis Ren/We Are Warriors Model Alexis Ren believes "the way that we are utilizing the US dollar is really scary". Ren, who founded YourStage, a tech platform for learning, believes that the economy "is collapsing." She believes crypto offers a viable alternative and encouraged people to invest regularly. Most people know model Alexis Ren from her appearance in Sports Illustrated's swimsuit edition or as a contestant on the US edition of Dancing With the Stars. Maybe you have seen her on Instagram, where she has more than 15 million followers.But Ren is hoping that eventually you might know her best as the founder of YourStage.io — a tech platform that lets people host videos, meetings, and classes for mentor-driven learning — and as a force in the crypto-based non-fungible token (NFT) world.Currently, the main brand on YourStage is We Are Warriors, Ren's online school for women interested in fitness, health, and personal finance.After an introduction at Web Summit in Lisbon, our conversation was supposed to be focused on her new business but it quickly took an unusual turn into economics and cryptocurrency, which ended up becoming the predominant part of the interview.'The way that we are utilizing the US dollar is really scary'It turns out that Ren's interest in crypto is driven by her doubts about the direction of travel of the dollar-based economy.In a video she published in April (see the 11.33 mark), she said: "I think the economic structure we have been living on is a lie and it's delusional and it's just an agreement and so we need to find something better, and I think bitcoin and cryptocurrency is that."Ren went on to say that the economic "agreement" that had been in place for a "very long time" needed to be changed for something new and acknowledged that was "scary"."I'm in fear but the way that we are utilizing the US dollar is really scary and it's going to hurt a lot of people," she said. "Our economy is going to fail."Insider asked her about it on our video call: Is the economy really going to fail? Ren believes that crypto could be "an economy that's sustainable and that can move with us."WarriorsInflationary devaluation of the US dollar is a real problem, she said as her golden doodle barked in the background."They keep printing more of it, so that it has no value," Ren told Insider."It used to be backed by gold and it's not anymore. And so we don't have any value except their belief and faith in it and that's even scarier. Because now they're just utilizing our faith in the dollar. And then there's no set amount. And so there needs to be a new thing."Ren went on to say that the economy was "collapsing" and that the dollar was getting less valuable. (This isn't quite true. In fact, since May, the dollar has gained nearly 6% against the British pound and nearly 7% against the euro in the same period.)And surely the American economy is growing right now, not collapsing? US GDP growth was 2% in Q3 2021 after all."I know that but we're in debt, so we're trying, we're printing more money to pay back debt and then we just keep accumulating more debt. It's a black hole," she says. She is right about the growth of debt. US debt is currently above 120% of GDP, an historic high, according to the St. Louis Fed's statistical database.US debt has recently grown to above 120% of GDP.FRED"It doesn't necessarily end badly but it's not sustainable and I think that's what we're looking for, right? An economy that's sustainable and that can move with us," she says.Using NFTs as tickets and diplomasShe is putting her money where her mouth is. YourStage — which she has built without venture capital backing — will switch from a cash subscription model to an NFT access model, she hopes.Warriors currently hosts fifteen or more courses with each course comprising a dozen or more videos. One of them is a 30-day fitness routine based on ballet, in which Ren is the tutor. You have to subscribe — using US dollars — to access it.Although Ren is the most famous person on the site she is hoping that users stick around for the other mentors who, in addition to fitness, offer courses on health, skincare, beauty, personal finance, and more esoteric stuff like how to "dream plan your life." If Warriors takes off, Ren hopes that other companies will use the YourStage.io platform to host their own classes and courses.In the short term, Ren wants access to Warriors to be based on NFTs."We Are Warriors community is switching over to being NFTs," she said."So instead of it being a monthly subscription, it's an NFT community. So you have to have a ticket, an NFT virtual ticket, to be in the community as opposed to a monthly fee, which I find it way better because then the girls own a part of it because that's where NFT's are going," Ren says.The YourStage cofounder likened her NFT community to that of Soho House, a private club in Los Angeles where membership is needed to enter. NFTs can also be used as certificates to show that you have passed a course, Ren says. Ren believes you should invest a little in cryptocurrencies every monthAnd yes, Ren invests in crypto. She's on a mission to demystify it for other women."It's a very masculine-driven area" right now, she says. Her advice is to put "a little" money into coins every month as a recurring payment, and then forget about it.Alexis RenAlexis Ren / We Are Warriors"You're gonna put $10 into ethereum a month and $10 into Bitcoin a month and you're never gonna look at it," she said."And it's gonna be a recurring payment and you're never gonna see it, and 10 years from now you're gonna be very grateful you did that, you know what I mean?" Ren also said that she didn't want people to gamble but rather invest over time, smartly.Cryptocurrencies can be risky and volatile: The price of bitcoin has bounced wildly between $29,000 and $67,000 this year alone. "Whatever you think you can afford monthly, put that into bitcoin. Put that into ethereum. But don't stress about it."She's also realistic about the fact that crypto is a notional currency rather than something backed by the assets of the US Federal Reserve. "They go up and down because it really is all not real."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 20th, 2021

Top 5 Stocks Likely to Gain From U.S. Infrastructure Spending

Five stocks are likely to gain from the Biden administration's infrastructure development legislation. These are; NUE, QCOM, CWT, CR, and CMC. U.S. stock markets have been witnessing an impressive rally this year, with just around seven weeks to complete 2021. However, market participants seem a little nervous as the coronavirus-led massive fiscal stimulus has ended and the Fed has decided to systematically eliminate the monetary stimulus paving the path for the first rate hike next year since March 2020. Moreover, soaring inflationary pressure has compelled many investors to think that the central bank may hike rates early next year instead of mid-2022.At this stage, the new law of the Biden administration to spend $1 trillion in infrastructure development will act as a new catalyst for Wall Street. Various companies will gain from this project. Notable among them are Nucor Corp. NUE, Commercial Metals Co. CMC, QUALCOMM Inc. QCOM, Crane Co. CR and California Water Service Group CWT.Biden's Infrastructure ProjectOn Nov 15, President Joe Biden signed a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. With this, the bill has become a new law. The law aims at establishing the United States with the world's best economic infrastructure. Total spending may go up to $1.2 trillion if the plan is extended to eight years.The infrastructure development law will provide $100 billion toward roads, bridges and other major projects. It will invest $66 billion in freight and passenger rail, including potential upgrades to Amtrak. The project will provide $11 billion toward reducing car crashes and fatalities through a “Safe Streets for All” program. The law allocates $39 billion to modernize public transit and improve access for disabled people.In addition, the law has proposed $66 billion for passenger and freight rail, $15 billion for electric vehicles and buses, and $17 billion for airports, ports and waterways. The project will invest $50 billion in water infrastructure and $55 billion in clean water projects. Moreover, $65 billion will be invested in high-speed Internet (broadband), $21 billion in environmental clean-up and $73 billion in Power infrastructure.Future Driver for Wall StreetThe newly introduced massive infrastructure development project will be a major catalyst for the U.S. stock markets in 2022. Various segments of the economy such as basic materials, industrials, telecommunications and utilities will benefit immensely with more job creation for the economy.On Nov 15, President Biden also urged the Congress to clear a new $1.75 trillion spending plan for investment in the social safety net and climate policy. Biden is “confident” that the House will pass the bill eventually the Senate. The President said, “Together with the infrastructure bill, millions of lives will be changed for the better.”On Nov 4, Bloomberg reported citing a National Security Council official that the ‘White House is pressing U.S. Congress to quickly pass legislation providing $52 billion to help computer chip manufacturers and ease a shortage of the components vital for a range of industries.’In the absence of the pandemic-induced fiscal and monetary stimulus, two above-mentioned infrastructure projects and the proposed CHIPS Act to usher in a resurgence of semiconductor manufacturing in the United States, will play the role of the stock market’s future catalysts.Our Top PicksWe have narrowed down our search to five stocks that are likely to gain from the Biden administration’s infrastructure development legislation. These companies have strong growth potential for the rest of 2021 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The chart below shows the price performance of our five picks in the past month.Image Source: Zacks Investment ResearchNucor Corp. is a leading producer of structural steel, steel bars, steel joists, steel deck and cold-finished bars in the United States. NUE operates through three segments: Steel Mills, Steel Products, and Raw Materials.Nucor has been seeing consistent momentum in the non-residential construction market. Demand in the non-residential construction markets was strong in the most recent quarter. The downstream products unit of Nucor has been benefiting from continued strength in the non-residential construction markets.Zacks Rank #1 NUE has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 7.2% over the last 30 days.Qualcomm Inc. is well-positioned to benefit from a solid 5G traction with greater visibility to meet its long-term revenue targets. For calendar-year 2021, 5G handsets with QCOM chip are expected to witness 150% year-over-year growth at the midpoint to about 450-550 units.Qualcomm has raised the bar for driverless cars with the launch of the first-of-its-kind automotive platform — Snapdragon Ride — which enables automakers to transform their vehicles into self-driving cars using AI.Zacks Rank #2 QCOM has an expected earnings growth rate of 23.1% for the current year (ending September 2022). The Zacks Consensus Estimate for current-year earnings improved 1.1% over the last 7 days.Crane Co. manufactures and sells engineered industrial products in the United States, Canada, the United Kingdom, Continental Europe, and internationally. Crane Co. is poised to benefit from its diverse portfolio and efficient management team. CR has exposure in many end markets like non-residential construction, aerospace, electronics, automated payment solutions, chemical, power and various general industries.Zacks Rank #2 CR has an expected earnings growth rate of 67.5% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 7.6% over the last 30 days.Commercial Metals Co. is poised to gain on robust steel demand, stemming from elevated spending on residential and construction sector in North America and recovery in the manufacturing sector. Steel sales volumes in Europe are anticipated to remain healthy on increasing demand from construction and industrial end market.Construction activity in Poland remains particularly strong aided by the residential markets. These factors will boost steel shipment levels in North America and Europe, and support CMC’s results in fiscal 2022.Zacks Rank #1 CMC has an expected earnings growth rate of 3.7% for the current year (ending August 2022). The Zacks Consensus Estimate for current-year earnings improved 25.3% over the last 30 days.California Water Service Group has invested in infrastructure. This along with CWT’s strategic acquisitions will help it provide customers with efficient water and wastewater services. New rates coming into effect will constantly drive the earnings of California Water Service. Also, the utility is benefiting from consistent customer wins.California Water Service is not only boosting its operations via inorganic activities but also resorting to organic prospects. In August, it completed a water main replacement project in northern Salinas while in September CWT concluded similar large-scale projects, one each in Woodside and Bodfish.In July, the utility retired its old 100,000-gallon elevated water tank from service as it did not meet the new seismic standards. Such strategic actions to upgrade California Water Service’s infrastructure are likely to boost its customer base in the future, by increasing the resilience and reliability of its operations.Zacks Rank #2 CWT has an expected earnings growth rate of 0.5% for the current year. The Zacks Consensus Estimate for current-year earnings improved 7.6% over the last 30 days. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Nucor Corporation (NUE): Free Stock Analysis Report Commercial Metals Company (CMC): Free Stock Analysis Report California Water Service Group (CWT): Free Stock Analysis Report Crane Co. (CR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 16th, 2021

Hazelton Capital Partners 3Q21 Commentary: REGI And MU

Hazelton Capital Partners commentary for the third quarter ended September 2021, discussing their top holdings; Renewable Energy Group Inc (NASDAQ:REGI) and Micron Technology, Inc. (NASDAQ:MU). Q3 2021 hedge fund letters, conferences and more Dear Partner, Hazelton Capital Partners, LLC (the “Fund”) declined by 7.8% from May 1, 2021 through September 30, 2021 and has returned […] Hazelton Capital Partners commentary for the third quarter ended September 2021, discussing their top holdings; Renewable Energy Group Inc (NASDAQ:REGI) and Micron Technology, Inc. (NASDAQ:MU). 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); Q3 2021 hedge fund letters, conferences and more Dear Partner, Hazelton Capital Partners, LLC (the “Fund”) declined by 7.8% from May 1, 2021 through September 30, 2021 and has returned 7.0% year-to-date. By comparison, the S&P 500 returned 0.6% during the same quarter and 15.9% year-to-date. The Quarter in Review Hazelton Capital Partners ended the 3rd quarter with a portfolio of 16 equity positions and a cash level of less than 10% of assets under management. The top five portfolio holdings, which are equal to roughly 57% of the Fund’s net assets, are: Renewable Energy Group Inc (NASDAQ:REGI), Micron Technology, Inc. (NASDAQ:MU), Caesars Entertainment Inc (NASDAQ:CZR), Apple Inc (NASDAQ:AAPL), and DXC Technology Co (NYSE:DXC). Renewable Energy Group and Micron Technology were responsible for the majority of the portfolio’s quarterly decline, falling 18% and 14% respectively in the quarter. Both companies had earnings that beat expectations and in REGI’s case, guided for earnings slightly better for the upcoming quarter. In September, the S&P 500 declined nearly 5% as slowing supply chains, disappointing employment numbers, and the delta variant began to weigh on consumer spending. By October 19, the market had not only quickly recovered from the selloff but continued its upward climb. Market sentiment has become very reactionary as investors, fearful of a market reversal, are quick to sell stocks on any negative outlook. At the same time, not wanting to miss out on the upside, investors are crowding into technology names that have little exposure to supply chains or staffing issues (technology jobs pay well and are coveted), especially with the flexibility to work remotely. This bifurcated market will continue until market sentiment becomes less reactionary. Renewable Energy Group (REGI) - Current Holding Since the beginning of the year, Renewable Energy Group’s share price has declined over 35% and nearly 60% since February when Hazelton Capital Partners cut its position in half. During the 3rd quarter, Hazelton Capital Partners repurchased another tranche, returning REGI to the Fund’s largest portfolio holding with a share count greater than where the position started the year. Renewable Energy Group continues to execute well in a market where supply and demand pressures remain both dynamic and uncertain. Beneath the veneer of a company that has a track record of meeting/beating its revenue and profit guidance, lies a management team whose main focus is on its supply chain and logistic operations. REGI leverages its competitive edge at both procuring cheap feedstocks and delivering its refined biodiesel & renewable diesel to the highest value markets while growing downstream opportunities. The company recently announced partnerships with both GoodFuels, which supplies biofuels to the marine industry and Canadian National Railway. Both companies are looking to expand biodiesel into their fuel mix to reduce their greenhouse gas emissions. In October of 2021, Renewable Energy Group broke ground on its 250 million gallon/year (mmgy) renewable diesel refinery expansion at its Geismar, Louisiana refinery. The $950 million project is expected to come online by 2023, achieving a full run rate by 2024. With debt of $550 million and a net cash position of roughly $500 million, REGI’s balance sheet is prepared for the upcoming expansion. About 80% of the long lead items have been procured, and their prices locked in. The construction costs will be spread out over the upcoming years, with 15% of the total construction costs hitting in 2021, 45% in 2022, and the remainder in 2023. The nameplate capacity of the new refinery is 250mmgy but given that all of REGI’s refineries have an effective capacity that exceeds their nameplate, one can expect that Geismar will be producing over 400mmgy (Geismar 1st refinery effective capacity should benefit from site improvements as well). That will greatly change Renewable Energy Group’s renewable diesel mix from 17% to 46% of total production and have a meaningful impact on the company’s future margins and cash flows. Micron Technology (MU) - Current Holding It’s hard to explain how shares of Micron Technology, manufacture of DRAM and NAND semiconductor chips, can fall during a global chip shortage. In most industries, focusing on demand can give you a clear insight into what lays ahead for a company. Today, the memory and storage chip industry is no different. However, in the past, companies focused on market share led to the reckless build out of chip fabrication plants (FABs), oversupply, falling average selling prices (ASPs) of memory and storage chips, lower margins, and declining cash flows. As the industry consolidated – there are now just 3 major producers of DRAM and 5 on the NAND side – rational behavior among the key players began to take hold as competitors began focusing more on R&D. Currently, chip pricing remains cyclical although less so than in the past and that cyclicality has a long-term upward bias. The ongoing transition to newer and more robust platforms (3D 176-layer NAND & 1-Alpha node DRAM) has provided the memory and storage chip industry with improved supply capacity under its current manufacturing footprint, ultimately pressuring ASPs. Over the past three years, as most of the large platform conversions have already taken place, being able to add more bits per wafer has reached a saturation point. With no major FAB build outs planned in the near-term by competitors Samsung or SK Hynix, constrained supply and flattening cost curves should lead to durable and upward sloping ASPs once the recent volatility from the chip shortage subsides. Currently Micron Technology trades at just 8x 2022 estimate earnings. MU is expecting growth in both DRAM and NAND not just from the supply of more chips to data centers, artificial intelligence, the auto sector, and mobile devices, but also from greater demand for gigabyte capacity per unit within those segments. With a healthy balance sheet, improving return on invested capital, and expanding cash flows, not only should Micron benefit from improving future earnings but its multiple should also reflect the transition to a flattening cost curve. Interest Rates are Still Driving the Boat In late August, the Federal Reserve Chairman, Jerome Powell, tried to calm inflation fears by reiterating that “longer-term inflation expectations have moved much less than actual inflation … suggesting that households, businesses, and market participants also believe that current high inflation readings are likely to prove transitory." Powell went on to frame “transitory” to mean that the recent rapid increase in both wages and cost of goods will continue in the near term but will “likely moderate.” For those of us not used to the often-obscure language of the Federal Reserve, let me try to translate: Expect prices of goods and services to be more expensive now and in the future. There are two key factors impacting inflation: the source and the speed of the price increase. The source of inflation, like all economic conditions, is generated by supply and demand imbalances. This was demonstrated during Covid, when people from the cities began to move to the suburbs and the demand for homes inflated suburban housing prices. Currently, the costs of goods have been rising due to inflated shipping and delivery costs. Reopening of the global economy has led to greater consumer demand, especially from the US, and US ports are currently seeing a 15-20% increase in shipments compared to 2019. In 2019, it took less than 40 days to get products from China to US store shelves vs. nearly 80 days today. The extended shipping times comes, in part, from overwhelmed US ports that are unable to unload ships at their prior cadence due to increased shipments and the lack of “free” workable space at the shipyards. A shipyard is a complex ecosystem that unloads, stores, delivers, and reloads shipping containers daily. The speed at which a yard can accomplish this choreographed dance is dependent on space. Because of the significant shipping imbalance that started during Covid (more products being shipped to the US vs. from the US) a glut of empty shipping containers has been building up at the shipyards, making it difficult to find working space to unload cargo ships and drastically slowing the unloading process. This, in turn, is causing a logjam of anchored ships just outside the port waiting for weeks to get a berth to unload. Once unloaded, getting shipping containers to the warehouse and distribution centers has also been a challenge due to a shortage of truck drivers. It is estimated that there are currently 22,000 fewer truck drivers in the US than in 2019 and to attract drivers, trucking companies have had to increase their wages and benefits. In addition, as shipyards are limiting the amount of empty shipping containers they are willing to stockpile, truck drivers/trucking companies are scrambling to find places to store the empty containers in order to return to the shipyard, slowing down the delivery process even further. All of these headwinds are causing delays in addition to the higher shipping and transportation costs that most retailers and businesses are forced to pass along to their customers. The rate at which these costs are rising is also impacting consumers and the economy. Most consumers are used to the idea of “creeping” inflation, where goods and services have an upward bias over time. Business can often adjust their expenses or structure deals with their suppliers to offset the impact. However, when costs continue to spike higher most businesses have no alternative other than to pass those higher costs of goods onto their customers. In the short-run, consumers may be accepting of the higher costs but, over time, even consumers flush with cash will begin to reduce their spending habits, decrease restaurants visits, pause monthly subscriptions, and cut back on holiday travel. Although it appears that we are not at that stage just yet, continued higher expenses and uncertainty could cause the US consumer to recoil. In addition to inflation, the US economy is also facing headwinds in the form of an exploding national debt (~$29 trillion), ongoing domestic and geopolitical conflicts, and the continued overhang from the Covid-19 pandemic. In the past, any one of these headwinds would have easily disrupted the stock market’s upward glide path. So how is it that the stock market continues to appreciate unabated? The one economic variable yet to be mentioned is interest rates. What the last twelve years have taught investors is that cheap and accessible money can overpower most economic and geopolitical headwinds. Providing cheap and accessible money is like pouring lighter fluid on a barbecue, it will create an intense fire, but the only way to keep that towering fire going is to continue dousing the flames with lighter fluid. That is exactly what the Federal Reserve’s “zero” interest rate policy and monthly bond purchases (~120 billion/month) were designed to do. “Winter is Coming” The Federal Reserve is expected to begin tapering its monthly bond purchases by year’s end in advance of raising interest rates. Consider the Fed’s tapering to be a clear indication that the carefree days of summer are coming to an end and it’s time to start preparing for the change in seasons. In the HBO series, “Game of Thrones,” the phrase “winter is coming” is used throughout the series as a reminder that challenging times lie ahead. The ongoing uncertainty surrounding geopolitics, interest rates, and inflation will have an impact on the markets, but will this affect the way Hazelton Capital Partners manages its portfolio? The short answer is no. The more involved answer is that market headwinds will not change the Fund’s investing criteria, but they may influence the margin of safety required before investing. It is a lot easier to ride a bike when the wind is at your back. Riding into the wind requires more energy, focus, and time to get to your destination. A strong investing headwind, all things being equal, will require a greater margin of safety as more uncertainty is created as to when the company’s share price will reflect its future intrinsic value. In the short run, headwinds can disrupt a company’s business model, negatively impact its profit margins, and, if left unchecked, reduce its competitive edge. It is important to remember that a company’s value today is a discount of its future value based on its expected revenues, margins, earnings, and cash flows. Since those future metrics are uncertain, the company’s stock price today is more a reflection of changes in market sentiment. However, over a longer period of time a company’s share price will reflect management’s ability to improve revenues, margins, and profitability. Embedded in Hazelton’s core strategy is a 5–7 year investing horizon, reflecting the historic business cycle which is roughly 5-1/2 years long (trough to peak). Given that Hazelton Capital Partners tends to be early in its investments, the Fund rarely initiates a full position from the start, choosing instead to invest gradually in tranches that reflect a growing margin of safety. Having a long-term outlook helps the Fund weather the periodic financial storm, flood, and hurricane. However, these supposedly infrequent events have been occurring with chronic regularity and disruption making it difficult for investors to remain calm and anchored to a longterm plan. Winter is always coming. It has been a long time since the US economy has had to deal with inflationary pressures, let alone the possibility of rising interest rates. Investors have naturally forgotten that companies can continue to prosper even during economic headwinds, it will just take more focus and time. Having cheap and easy access to capital has been a huge tailwind for the equity markets and the main reason why the stock market has appreciated to its current level. Unfortunately, a company’s ability to borrow cannot offset the current supply chain bottlenecks and labor shortages that inflate prices and impact corporate margins. Hazelton Capital Partners fully expects there to be continued disruption and downward pressure on the market and its portfolio as assets move from the weak hands of reactionary investors to the strong hands of long-term investors. As long as there is a meaningful margin of safety between the current price of a stock and its future intrinsic value, Hazelton Capital Partners will continue to invest for the long-term and not try and time the market. Investing in Hazelton Capital Partners Hazelton Capital Partners was created as an investment vehicle, allowing those interested in long-term exposure to the equity market to invest alongside me. With a substantial portion of my own capital in the fund, I manage Hazelton Capital Partners’ assets in the same way I manage my own capital. The best source of introduction to potential investors in the Fund has come from those that have invested or followed Hazelton Capital Partners progress over the years. Introductions are both welcome and appreciated. If you are interested in making or increasing your contribution to Hazelton Capital Partners or just learning more about The Fund, please feel free to contact me. Please do not hesitate to call me at (312) 970-9202 or email me bpasikov@hazeltoncapital.com with any questions or concerns. Warm Regards, Barry Pasikov Managing Member Hazelton Capital Partners Updated on Nov 15, 2021, 2:03 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: valuewalkNov 15th, 2021

CCP Accuses US Of "Building Trade Barricades" By Not Allowing Intel To Produce Semi Components In China

CCP Accuses US Of "Building Trade Barricades" By Not Allowing Intel To Produce Semi Components In China It was just hours ago we wrote how the White House had rejected a plan from Intel to produce more semiconductor components in China.  Now, China is weighing in on the issue. Chinese Foreign Ministry spokesman Zhao Lijian said at a press briefing on Monday in Beijing that the U.S. is "stretching the concept of national security" by preventing Intel's plans. Lijian said that the U.S. is using national security as a means to "build up trade barricades", Bloomberg reported Monday morning.  Lijian also accused the Biden administration of forcing Samsung and Taiwan Semiconductor to hand over "sensitive information" related to their supply chains. Because, as we all know, the CCP always stays out of the plans of large China-based tech conglomerates.  Lijian then accused Biden's actions of harming the supply chain for the U.S. and other countries, Bloomberg reported. The report says that he suggested the U.S. "abandon the zero-sum game mindset, uphold a fair and nondiscriminatory business environment, and contribute to the building of an open world economy with concrete actions". Recall, we wrote just hours ago that Intel had proposed "using a factory in Chengdu, China, to manufacture silicon wafers,". It could have been online by 2022, but the White House, "strongly discouraged" the move. Intel likely had to listen since the company is seeking government support in helping expand its capacity for manufacturing semis in the U.S. Intel told Bloomberg it was now looking at “other solutions that will also help us meet high demand for the semiconductors essential to innovation and the economy.” The company continued: “Intel and the Biden administration share a goal to address the ongoing industrywide shortage of microchips, and we have explored a number of approaches with the U.S. government. Our focus is on the significant ongoing expansion of our existing semiconductor manufacturing operations and our plans to invest tens of billions of dollars in new wafer fabrication plants in the U.S. and Europe.” Days prior to this report, we wrote how U.S. firms were splurging on Chinese semi deals, drawing scrutiny from the White House. U.S. venture capital firms have been "ramping up investments" in Chinese semiconductor companies despite the obvious security conflicts, a report from the Wall Street Journal said. Cumulatively, U.S. firms have helped raise "billions" for Chinese chip startups, we noted.  There has been more than 58 deals in China's semiconductor industry from 2017 to 2020, we wrote. Among the "active investors" was Intel, who had invested in a Chinese company called Primarius Technologies Co., which makes chip-design tools that the U.S. currently holds the lead in making.  Intel told the WSJ last week that its China investments "are less than 10% of the deals in a global portfolio designed to support its business and generate return". VC firms Sequoia Capital, Lightspeed Venture Partners, Matrix Partners and Redpoint Ventures have also made "at least 67 investments" in Chinese chip companies since the beginning of 2020, the report said. Sequoia and Redpoint said their deals have been done "independent" of their U.S. offices in Silicon Valley.  The Journal wrote that "Sequoia Capital’s China unit has made at least 40 investments in Chinese chip-sector companies since 2020".  We noted last week that the massive tranche of deals had Washington alarmed, with national security adviser Jake Sullivan claiming this summer that the Biden administration is “looking at the impact of outbound U.S. investment flows that could circumvent the spirit of export controls or otherwise enhance the technological capacity of our competitors in ways that harm our national security.” Tyler Durden Mon, 11/15/2021 - 15:29.....»»

Category: blogSource: zerohedgeNov 15th, 2021

White House Rejects Intel Proposal To Add Semi Production Capacity In China

White House Rejects Intel Proposal To Add Semi Production Capacity In China Days ago we wrote about how VC companies in the U.S. were making significant investments in Chinese semiconductor companies.  Shortly thereafter, it was reported that the White House had rejected a plan by Intel to bolster their chip production capacity in China, according to Bloomberg. Intel had proposed "using a factory in Chengdu, China, to manufacture silicon wafers," the report said. It could have been online by 2022, but the White House, "strongly discouraged" the move. Intel likely had to listen since the company is seeking government support in helping expand its capacity for manufacturing semis in the U.S. Intel told Bloomberg it was now looking at “other solutions that will also help us meet high demand for the semiconductors essential to innovation and the economy.” The company continued: “Intel and the Biden administration share a goal to address the ongoing industrywide shortage of microchips, and we have explored a number of approaches with the U.S. government. Our focus is on the significant ongoing expansion of our existing semiconductor manufacturing operations and our plans to invest tens of billions of dollars in new wafer fabrication plants in the U.S. and Europe.” Recall, just days ago we wrote how U.S. firms were splurging on Chinese semi deals, drawing scrutiny from the White House. U.S. venture capital firms have been "ramping up investments" in Chinese semiconductor companies despite the obvious security conflicts, a report from the Wall Street Journal said. Cumulatively, U.S. firms have helped raise "billions" for Chinese chip startups, we noted.  There has been more than 58 deals in China's semiconductor industry from 2017 to 2020, we wrote. Among the "active investors" was Intel, who had invested in a Chinese company called Primarius Technologies Co., which makes chip-design tools that the U.S. currently holds the lead in making.  Intel told the WSJ last week that its China investments "are less than 10% of the deals in a global portfolio designed to support its business and generate return". VC firms Sequoia Capital, Lightspeed Venture Partners, Matrix Partners and Redpoint Ventures have also made "at least 67 investments" in Chinese chip companies since the beginning of 2020, the report said. Sequoia and Redpoint said their deals have been done "independent" of their U.S. offices in Silicon Valley.  The Journal wrote that "Sequoia Capital’s China unit has made at least 40 investments in Chinese chip-sector companies since 2020".  We noted last week that the massive tranche of deals had Washington alarmed, with national security adviser Jake Sullivan claiming this summer that the Biden administration is “looking at the impact of outbound U.S. investment flows that could circumvent the spirit of export controls or otherwise enhance the technological capacity of our competitors in ways that harm our national security.” Now, it looks as though Intel is experiencing this scrutiny first hand. Tyler Durden Sun, 11/14/2021 - 16:30.....»»

Category: blogSource: zerohedgeNov 14th, 2021

The Threat of Hyperinflation and Why You Should Be Concerned

If you have visited a car dealership, gas station, or grocery store recently, there is a strong chance you’ve noticed a significant increase in prices. Similarly, if you look into consumer goods, investments, real estate properties, and even utility bills, you will see a huge difference in prices compared to previous years. This unfortunate phenomenon […] If you have visited a car dealership, gas station, or grocery store recently, there is a strong chance you’ve noticed a significant increase in prices. Similarly, if you look into consumer goods, investments, real estate properties, and even utility bills, you will see a huge difference in prices compared to previous years. This unfortunate phenomenon is called inflation. 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); Q3 2021 hedge fund letters, conferences and more The definition of inflation has changed throughout the years. Central banks and economists, who support the bank’s monetary policies, will define it slightly differently than its detractors. But something everyone seems to agree upon is that inflation is the loss of a currency’s purchasing power. What Is Hyperinflation? Hyperinflation is declared when inflation rates surpass a 50% monthly rate. Currently, the Federal Reserve stated that for September, inflation rose to 5.3%. That number might seem minuscule compared to the 50% rate a country must hit before mentioning hyperinflation. Many top-level investors still fear that's where we are heading. The Fed seems incapable of controlling the devaluation of the dollar after years of unlimited printing. With the combination of problems that usually hurt the economy on a good year, the world is facing a definite problem. Currently, we have an oil crisis that has stifled production and increased the energy crisis significantly. Secondly, we have a labor shortage, where over 5 million people have not returned to work. Combine those issues with a mounting supply chain issue, and the larger picture becomes clear. This is why economists worry about a possible hyperinflationary crisis reaching our shores soon. Many people believe hyperinflation can't happen in the U.S. but they are wrong. Some of the largest economies of the world have faced this issue before. Holy Roman Empire's Crisis Of The Third Century Inflation can come about in several ways. Back in the Roman Empire, there was a period when the Roman government overspent on wars and other expenditures. They tried raising taxes but it wasn’t enough to pay for the empire’s military. The Romans decided to reduce the amount of silver in their coins. When word got out to the public and other nations of this change, the value of the Roman currency dropped significantly. In reaction to the knowledge of a devalued currency, merchants raised prices and wealth inequality hit record highs. This created a crisis that wrecked the Roman Empire's sphere of influence. From the years 27 BC – 14 AD of Emperor Augustus’ reign, the Roman currency called the denarius, contained 95% silver. By 265 AD the denarius had only 5% silver. Many price control policies were implemented, and unfortunately, this drove people towards the black market. After years of economic struggle, the Roman Empire couldn’t shake off the effects of inflation. The loss in its currency’s value hurt its military, society, and gave the perfect opportunity to its enemies to make great advances on Rome’s dwindling territory. As a result, the Roman Empire slowly crumbled. Germany's Weimar Republic Hyperinflation Disaster Before WW1, Germany’s currency was pegged to gold, giving it a reputation of strong stability. When WW1 broke out, Germany decided to take their currency off of the gold standard so that their central bank could print unlimited amounts of money to fund their war efforts. Germany went from having 2 billion marks in circulation to 45 billion after the conclusion of WW1. Disastrous mistake. After Germany’s surrender in WW1, the country was left in financial ruin. Due to their defeat, Germany was forced to pay reparations to the Allied Powers. As a result, Germany printed without end, extraordinary amounts of marks to pay reparations and other debts. This brought the nation into a hyperinflationary catastrophe that brought poverty and strife to an already defeated society. Since the German government couldn't afford to pay back its reparation obligations, France sent troops into the Rhineland and occupied Ruhr. The occupation of Ruhr hurt Germany significantly since a large source of income came from mines that were located in that region. The central bank of Germany continued to print bills uncontrollably. The mark went from 160,000 per dollar to 4,200,000,000,000 per dollar in one year! Finally, the United States offered a loan to Germany for purposes of paying reparations. The German central bank became a separate entity and created a new currency, the Rentenmark. The production of the Rentenmark was strictly limited. This helped Germany return to a much more stable economy for a couple of years until the Great Depression. Source: Wall Street Mojo The Velocity Of Money And Its Effects On Inflation Another factor that causes hyperinflation is called money velocity. If a significant amount of currency enters the economy at a high rate, you will get a high money velocity rate. When GPD is high and the economy is doing well, you will see higher rates of money velocity. But when the economy shrinks, with high unemployment and higher prices, this is an indicator of hyperinflation. Many economists overlook the effects money velocity has on inflation. At the beginning of the COVID-19 pandemic, governments and central banks around the world increased the money supply. Then, they froze debt payments and shut down many industries. This led to a significant amount of people beginning to hoard large amounts of money. Once COVID-19 restrictions eased and the economy opened up for business, a flood of money rushed into the economy. This flood of money overcharged the demand for goods to unprecedented levels. The Fed said that the reason for inflation is a supply chain issue due to the pandemic. He is partially right, but not in the context he is presenting. The Fed blames the supply chain crisis on shutdowns. Plus, slow recovery from manufacturers due to labor shortages and other issues. Others suggest that the reason why manufacturers are struggling is that they can’t keep up with the extremely high demands for products. If you have a population of people that are hoarding large amounts of cash and credit with nowhere to spend it,  you will have an extreme amount of money flooding the system at once. This is where you will start to see inflation spikes. As demand increases, supply decreases. This is why we continue to see high prices in cars, real estate, gas, groceries, clothes, electronics, etc... So the higher than normal demand is a significant reason for our energy, chip, food, staff, and shipping crisis. When Can Hyperinflation Set In And How To Protect Your Wealth Against It? Inflation rates can compound at an extremely fast pace. As you read above, hyperinflation took less than a year to set in and cause havoc. The best thing you can do to prepare for the possibility of hyperinflation is by protecting your wealth in assets used to hedge against currency devaluation. Precious metals, like gold, silver, platinum, and palladium, have been used for centuries to protect your wealth. Currently, gold and silver have gained tremendous strength over the past couple of years, as investors look for asset protection. Bitcoin and other cryptocurrencies have also arisen as a new vehicle for hedging against inflation but come with certain risks. Summary Only time will tell if the US dollar will survive this stint of hyperinflation. In the meantime, protecting your wealth and stocking up on nonperishable foods should be of utmost importance when preparing for an economic downturn. Precious metals have passed the test of time as a means of wealth protection. Diversifying your portfolio with Bitcoin can help you with liquidity. Make sure you plan before the tide comes. It's better to be safe than sorry. Updated on Nov 12, 2021, 1:59 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: valuewalkNov 12th, 2021

A 20-year truck-driving veteran explains why the solution to the supply-chain crisis is in sight but greed is getting in the way

The trucking sector is cashing in "on the mess it created," Ryan Johnson said. It could fix it by raising pay, but that would hit profits, he added. The Port of Long Beach on October 27, 2014, in Long Beach, California. Bob Riha, Jr./Getty Images The US doesn't have enough drivers to solve the shipping crisis because of greed, one driver said. On top of higher pay, companies must accept smaller profits in the port business, he said. Firms' prioritization of profits created a workforce "that will leave in a heartbeat," he added. Companies know how to solve the supply-chain crisis, a truck-driving veteran said, but they just don't want to pony up the cash.Nearly every element of the US supply chain is stretched too thin. Key ports are badly congested, with a historic number of cargo ships waiting to unload containers. The mess boils down to "pure supply and demand economics," Ryan Johnson, who has been a truck driver for 20 years, said in an October 27 Medium post. As the economy reopened, Americans flush with pandemic savings unleashed a wave of pent-up demand that has swamped the supply chain.At this stage, Johnson said he didn't see any immediate solutions because trucking companies would rather wait out the supply-chain crisis than rethink their wage structure and profit margins. He said they could fix it but wouldn't.Among the biggest choke points is the country's supply of port truckers. Only a handful of trucks have the tags, registration, and driver certifications needed to work in shipping ports, and companies can charge higher rates elsewhere, which leaves little incentive to invest in the port business, Johnson said. The industry has also long relied on "low wages and bare-minimum staffing" to boost their profits, Johnson told Insider. When the pandemic hit and a large number of drivers were laid off, many saw little reason to return, and Johnson said he saw no signs that trucking companies would raise wages to bring workers back."You can go make $20 an hour at McDonald's with no benefits, or you can make $4 an hour driving a truck with no benefits," Johnson said, referring to how many drivers are paid per load, not by the hour. "I don't blame them for leaving."And the massive backlog of containers guarantees truck drivers will run at full capacity for the foreseeable future. The bottlenecks hurt suppliers and consumers, but shipping companies' profit margins are intact, Johnson said.Trucking companies, then, are in no rush to rehire, he added. More drivers would mean higher operating costs. Automation at ports would theoretically make firms more productive, but that would also require pricey investments that business owners just don't want to make, Johnson said."Since they're not paying the workers any more than they did last year or five years ago, the whole industry sits back and cashes in on the mess it created," he said.The government can't solve the shipping crisisThe Biden administration announced in October that the Port of Los Angeles, Walmart, UPS, FedEx, and other companies would move to 24/7 operations to ease shipping pressures. But even around-the-clock work won't do the trick, Johnson said.For starters, labor laws and biological needs keep truckers from operating around-the-clock. The few companies that work with ports also lack the equipment needed to haul more containers. While ports and warehouses are working 24/7, the drivers crucial to moving items between them are still scarce. Deploying the National Guard to work as drivers would probably do more harm than good, Johnson said. Members would "have no idea what they're doing" the moment they arrive in the port, since the situation is already a logistical mess, he added.Using the National Guard would also prompt regular drivers to leave, Johnson said. Shipping capacity would plunge, and once the National Guard left, companies would have to make do with even fewer drivers, he said.The problem, like with the greater labor shortage, is low pay, Johnson said. Trucking "is the same as it's always been," with long hours and unattractive wages. he added. The pandemic led many truckers to realize they would be better off elsewhere, and the industry hasn't adapted yet.By not paying drivers more, companies "created the labor force that will leave in a heartbeat," Johnson said."When you run everything on a shoestring budget and the shoestring breaks, you can't put it back together again," he said. "This is the new normal. There's no doubt in my mind about that."Read the original article on Business Insider.....»»

Category: personnelSource: nytNov 11th, 2021

A 20-year truck-driving veteran explains why the solution to the supply-chain crisis is in sight, but greed is getting in the way

The trucking sector is cashing in "on the mess it created," Ryan Johnson said. They could fix it by raising driver pay, but that would hit profits. Semi truck drivers arrive to pickup and deliver products at the Port of Long Beach, October 27, 2014 in Long Beach, California. Bob Riha, Jr./Getty Images The US doesn't have enough truck drivers to solve the shipping crisis. Corporate greed is to blame, one 20-year driver said. Raising pay is just half of it - they'd also have to accept a smaller profit margin in the port business. By prioritizing profits over compensation, firms created a workforce "that will leave in a heartbeat," he says. Companies know how to solve the supply-chain crisis. They just don't want to pony up the cash.Nearly every element of the US supply chain is stretched too thin. Key ports are badly congested, with a historic number of cargo ships waiting to unload containers. The mess boils down to "pure supply and demand economics," Ryan Johnson, a 20-year truck driver, said in an October 27 Medium post. As the economy reopened, Americans flush with pandemic savings unleashed a wave of pent-up demand that has swamped the supply chain.At this stage, Johnson doesn't see any immediate solutions, because trucking companies would rather wait out the current supply-chain crisis than rethink their wage structure and profit margins. He says they could - but they won't.Among the biggest choke points is the country's supply of port truckers. Only a handful of trucks have the tags, registration, and driver certifications needed to work in shipping ports, and companies can charge higher rates elsewhere, leaving little incentive to invest in the port business, Johnson said. The industry has also long relied on "low wages and bare minimum staffing" to boost their profits, Johnson told Insider. When the pandemic hit and swaths of drivers were laid off, many saw little reason to return, and he sees no signs that trucking companies will raise wages to bring workers back."You can go make $20 an hour at McDonald's with no benefits, or you can make $4 an hour driving a truck with no benefits," Johnson, referring to how many drivers are paid per load, not by the hour. "I don't blame them for leaving."Also, the massive backlog of containers guarantees truck drivers will run at full capacity for the foreseeable future. The bottlenecks hurt suppliers and consumers, but shipping companies' profit margins are intact, Johnson said.Trucking companies, then, are in no rush to rehire. More drivers would only mean higher operating costs. Automation at ports would theoretically make firms more productive, but that would also require pricey investments that business owners just don't want to make, Johnson said."Since they're not paying the workers any more than they did last year or five years ago, the whole industry sits back and cashes in on the mess it created," he said.The government can't solve the shipping crisisThe Biden administration announced in October that the Port of Los Angeles, Walmart, UPS, Fedex, and other companies would move to 24/7 operations to ease shipping pressures. But even around-the-clock work won't do the trick, Johnson said.For starters, labor laws and biological needs keep truckers from operating around the clock. The few companies that work with ports also lack the equipment needed to haul more containers. While ports and warehouses are working 24/7, the drivers crucial to moving items between them are still scarce. Deploying the National Guard to work as drivers would probably do more harm than good, Johnson said. Members would "have no idea what they're doing" the moment they arrive in the port, since the situation is already a logistical mess.Using the National Guard would also prompt regular drivers to leave, Johnson added. Shipping capacity will plunge, and once the National Guard leaves, companies will have to make do with even fewer drivers.The problem, like with the greater labor shortage, is low pay, Johnson said. Trucking "is the same as it's always been," with long hours and unattractive wages. The pandemic led many truckers to realize they would be better off elsewhere, and the industry hasn't adapted yet.By not paying drivers more, companies "created the labor force that will leave in a heartbeat," Johnson said."When you run everything on a shoestring budget and the shoestring breaks, you can't put it back together again," he said. "This is the new normal, there's no doubt in my mind about that."Read the original article on Business Insider.....»»

Category: smallbizSource: nytNov 11th, 2021