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Univar (UNVR) Buys Kale Kimya, Expands Product Portfolios

Univar (UNVR) acquires leading Turkey-based specialty chemical distributor Kale Kimya to strengthen its ingredients & specialty business. Univar Solutions Inc. UNVR acquired Kale Kimya, a Turkey-based specialty chemicals distributor. Terms of the deal have been kept under wraps.This acquisition will help Univar to expand its Beauty and Personal Care, Home and Industrial Cleaning portfolios. Through the top-notch formulation laboratory capabilities and technical expertise of Kale Kimya, Univar can offer extensive products like surfactants, actives, emulsifiers, preservatives, UV filters, fragrances, polymers, conditioners, esters and emollients in the market.The company expects its Ingredients and Specialty business to grow further and boost its geographic footprint through this acquisition. It anticipates that investment in Kale Kimya will help the company capitalize on changing consumer trends in the market. UNVR also expects to serve its consumer efficiently in the region through experience and knowledge of Kale Kimya.Both Univar and Kale Kimya share market-leading reputations, expert technical support, a spirit of innovation and relentless dedication, which are expected to aid the two companies in providing exceptional customer service.UNVR’s shares have gained 21.1% in the past year, outperforming industry’s growth of 4.1%.Image Source: Zacks Investment ResearchUnivar, in its fourth-quarter call, said that it expects strong operational execution, market share gains and savings from cost management. The company expects its adjusted EBITDA for the fourth quarter of 2022 to be between $180 million and $200 million. For full-year 2022, UNVR expects its adjusted EBITDA to be in the range of $1,050 million to $1,080 million compared with $1,040-$1,080 million expected earlier. Univar Solutions Inc. Price and Consensus Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. QuoteZacks Rank & Key PicksUnivar currently carries a Zacks Rank #4 (Sell).Better-ranked stocks to consider in the basic materials space include Nucor Corporation NUE, Commercial Metals Company CMC and Cal-Maine Foods, Inc. CALM. All three stocks have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  Nucor’s shares have gained 65.5% in the past year. The company has a projected earnings growth rate of 21.5% for the current year. NUE beat the Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 28.4% on average.Commercial Metals’ shares have gained 54.8% in the past year. The Zacks Consensus Estimate for CMC’s current fiscal-year earnings has been revised 9.9% upward in the past 60 days. Commercial Metals beat the Zacks Consensus Estimate in all of the last four quarters.It delivered a trailing four-quarter earnings surprise of 16.7% on average.Cal-Maine’s shares have gained 37.3% in the past year. The Zacks Consensus Estimate for CALM’s earnings for the current fiscal has been revised 73.8% upward in the past 60 days. The company has a projected earnings growth rate of 417.7% for the current fiscal year.Cal-Maine topped Zacks Consensus Estimate in three of the last fourth quarters while missing once. It delivered a trailing four-quarter earnings surprise of 15.3% on average.  Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>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 Nucor Corporation (NUE): Free Stock Analysis Report CalMaine Foods, Inc. (CALM): Free Stock Analysis Report Commercial Metals Company (CMC): Free Stock Analysis Report Univar Solutions Inc. (UNVR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksJan 25th, 2023

NuVasive (NUVA) Suffers From Macro Headwinds, Price Issue

NuVasive (NUVA) believes that its 2022 guidance is appropriately conservative, considering macroeconomic pressures on net sales and operating profit. NuVasive NUVA business suffers frompricing and payers pressure, reimbursement issues and a competitive landscape. The stock bears a Zacks Rank #5 (Strong Sell).During the thirdquarter of 2022, NuVasive’s revenue missed the consensus mark by 0.8%. The company’s performance continues to be challenged by inflationary costs, supply chain disruptions, volatility in foreign exchange rates and the persistent COVID-led impact.In the reported quarter, Selling, general and administrative expenses climbed 5.4% year over year to $154 million, whereas research and development (R&D) expenses rose 1.1% year over year to $23.7 million. The increase in operating expenses was primarily driven by variable expenses on higher net sales, freight costs and continued R&D investments to advance core spine and enabling technologies product portfolios.The company believes its 2022 guidance is appropriately conservative, considering macroeconomic pressures on net sales and operating profit experienced till the third-quarter earnings release. NUVA expects to experience similar levels of impact throughout the year.NuVasive, Inc. Price  NuVasive, Inc. price | NuVasive, Inc. Quote Further, stiff competition and pricing pressure continue to pose challenges as well. The orthopedic industry, in particular, is highly competitive with the presence of bellwethers like Zimmer Holdings, Stryker, Johnson & Johnson’s DePuy. In terms of pricing, the company experiences declining prices for its products due to increasing competition in the spine market.On a positive note, NuVasive exited the third quarter of 2022 with earnings beating the Zacks Consensus Estimate. Strong sales performance across the U.S. Spinal Hardware and U.S. Surgical Support businesses instill optimism. Robust international performance is encouraging. The continued demand for the Simplified Cervical Disc and the Pulse platforms is also encouraging. The expansion of both margins is an upside.NuVasive is undertaking efforts to advance its position in the $2.6-billion cervical sub-segment. The company’s C360 portfolio currently features the NuVasive ACP system with Advanced Material Science interbodies and the Simplified Cervical Disc.During the third quarter earnings call, the company mentioned the recent commercial launch of Reline Cervical. Reline Cervical was designed to be integrated with Pulse allowing surgeons to support more complex deformity cases with the help of global alignment planning, neuro monitoring, radiation reduction in imaging enhancement, navigation and patient-specific Rod bending.In the past three months, NuVasive has outperformed its industry. The stock has lost 23.1% compared with the industry's 33% fall.Key PicksSome better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Boston Scientific Corporation BSX and Merit Medical Systems, Inc. MMSI.AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AMN Healthcare has lost 10.6% compared with the industry’s 30.3% decline in the past year.Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.3%. BSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 1.9%.Boston Scientific has gained 6.8% against the industry’s 42.6% decline over the past year.Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.Merit Medical has gained 13.7% against the industry’s 8.7% decline in the past year. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the  $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.>>Show me how I could profit from the metaverse!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 Boston Scientific Corporation (BSX): Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report NuVasive, Inc. (NUVA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksJan 14th, 2023

Best Investment for 2023: Value vs. Growth?

Should we expect the same for 2023 or will growth and technology stocks start to make a comeback? The age-old investing is, question, should you chase growth, or buy value stocks? After an extended period of underperformance, the value factor made a major comeback in 2022.Should we expect the same for 2023 or will growth and technology stocks start to make a comeback?Value vs. GrowthThere are a few different definitions of value and growth so I will cover them here and share a few stock recommendations based on the different definitions. A categorical definition would divide them by business type and culture. A value-type company is usually an older, slower growth business that produces consistent free cash flow. Think of something like Procter and Gamble. It probably offers a dividend and may forgo reinvesting profits for growth, as the opportunities have diminished and will favor distribution of cash to shareholders.A growth company, usually has high and increasing sales growth, is technology focused and can reinvest capital because of the tremendous Total Addressable Market of their product or service. This is Amazon AMZN, or Mongo Databases MDB.Another definition is more technical. A value investment is usually something with a low Price to Earnings ratio because its growth prospects are lower, while a growth investment has higher P/E considering its high sales growth trajectory.But if something like Apple AAPL, traditionally considered a growth company, were to trade at a significantly lower price, and subsequently a lower P/E ratio, it could potentially be considered a value investment. And wouldn’t that be a great opportunity?PerformanceThe charts below show the comparative performance between Vanguard’s Value ETF VTV, and their Growth ETF VUG. Over the last two years you can see how much value outperformed growth, especially impressive considering how challenging 2022 was. And below that, the long-term chart shows after a massive 5-year outperformance by growth, the returns have nearly converged. Worth noting is these returns include dividends, which make up a considerable portion of returns from the Value fund.Image Source: Zacks Investment ResearchImage Source: Zacks Investment ResearchIf you had to ask me which investment style, I thought would perform better in 2023 my guess would be value. I think markets will continue to face considerable uncertainty this year, and the steady nature of value stocks will provide a smoother, low risk investment this year. But of course, I may very well be wrong, so I will share some stocks that show up in both Zacks filters.ValueUsing Zacks filters I conducted a search for value focused companies. One of the first to jump out at me was The Geo Group GEO. GEO is a government contractor specializing in the development and support service of secure facilities, processing centers, and community reentry centers internationally. Simply put, they build and run prison facilities.GEO currently sports a Zacks Rank #2 (Buy), and not surprisingly, an A Value score. It trades at a TTM P/E of 4.3x, well below the industry average of 16.5x. FY 2022 sales are expected to grow at 4.6%, and FY 2023 sales are forecasted to grow 6.3%, based on Zacks estimates. 2022 earnings are projected to gorw 0.4% YOY, while 2023 estimates expect earnings to shrink by 5.6%.Interesting to note is that famous investor Michael Burry is a significant holder of the stock. While well known for shorting the housing market in 2008 he is also an avid value investor and holds nearly 40% of his fund in GEO currently.Image Source: Zacks Investment ResearchAnother classic value stock is Berkshire Hathaway. BRK.B might be the prototypical value company. Always spitting off tons of cash and looking to invest in companies that do the same.Berkshire currently scores a Zacks Rank #1 (Strong Buy) given its upward earnings revisions. BRKB is expected to grow sales 8% in 2022 and 2.5% in 2023. Earnings are even more impressive projected to grow 22.5% in 2022, and another 11.9% gain in 2023.Warren Buffett and his holding company are coming into 2023 following a very impressive performance in 2022. While the market was down 18%, Berkshire Hathaway fell only marginally. And that is why you invest in value. The years when the broad market is up, you don’t do anything spectacular, but when the market is down you get to sleep easy. And that is when performance really matters.Image Source: Zacks Investment ResearchGrowthTransdigm TDG, an aerospace and defense company that designs, produces, and supplies aircraft components in the United States and internationally, must be one of the most interesting and successful stocks in recent history. Since its IPO in 2006 the stock has compounded at 27.5% annually, and since 2008 is up 3778% vs the S&P 314%. Over that same period TDG has outperformed the likes of AMZN, GOOGL, and AAPL.Image Source: Zacks Investment ResearchTransdigm’s sales and earnings forecasts are just as impressive. FY 2023 sales are projected at 11.5% and earnings are forecasted to grow 26.4%. And the stock price outperformed the market in 2022 as well finishing the year up ~2%. You’re going to have to pay up for an epic company like TDG though. Transdigm’s TTM P/E is 45x, well above the industry average of 28.4x, and the S&P 18x.Image Source: Zacks Investment ResearchBoth?How about a stock that fits both value and growth criteria? Cal-Maine Foods CALM, the largest producer packager, and distributor of shell eggs in the US fits into both styles.While conducting my searches using Zacks screener tool I looked for both value and growth. CALM came up on both the growth and value screen. It boasts a very impressive Zacks Rank #1 (Strong Buy), and As across the board in Value, Momentum, and Growth style scores.Image Source: Zacks Investment ResearchWith tailwinds of inflation, as well as a historic bird flu, egg prices are skyrocketing, and CALM is benefiting from it. Over the last 90 days CALM has had its 2024 earnings estimates increased by 56%.Image Source: Zacks Investment ResearchConclusionConsidering value and growth when investing in a stock is consideration and can have a major impact on investment portfolios. But an interesting quote by sage investor Charlie Munger has always stuck with me. “All good investing is value investing.” And he makes a good point. The goal is to buy securities for less than you think they are worth. Whether it’s a fast-growing company or slow the fundamentals don’t change. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the  $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.>>Show me how I could profit from the metaverse!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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Transdigm Group Incorporated (TDG): Free Stock Analysis Report CalMaine Foods, Inc. (CALM): Free Stock Analysis Report Geo Group Inc The (GEO): Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports MongoDB, Inc. (MDB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksJan 14th, 2023

Defense Wins Ballgames; 3 Top Picks for a Defensive Approach

I'm willing to bet many have heard the saying "defense wins ballgames" from an old coach or anybody interested in sports. However, it doesn't just apply to sports; investors can also use this ideology in their stock selection process. I’m willing to bet many have heard the saying “defense wins ballgames” from an old coach or anybody with an interest in sports.Of course, it doesn’t just apply to sports; investors can also use this ideology in their stock selection process.Low-beta stocks can help strengthen a portfolio’s defense, as these stocks are less sensitive to the broader market’s movements.And several of them, including – The Coca-Cola Company KO, Walmart Inc. WMT, and Procter & Gamble PG – have seen their earnings outlooks shift positively over the last several months.Below is a chart illustrating the performance of all three over the last year, with the S&P 500 blended in as a benchmark.Image Source: Zacks Investment ResearchOn top of improved earnings outlooks, all three reward their shareholders via dividends. Let’s take a closer look at each one.Walmart Inc. Walmart, a titan in the retail space with an extensive product catalog, operates through various retail channels, including brick-and-mortar and an e-commerce platform. Currently, the company carries a Zacks Rank #2 (Buy).Image Source: Zacks Investment ResearchWMT’s annual dividend yield currently stands at 1.5%, a few ticks above its Zacks Retail and Wholesale sector average. In addition, dividend growth is apparent; the company’s payout has grown by 2% over the last five years.Image Source: Zacks Investment ResearchDespite a challenging business environment, WMT has recently posted strong quarterly results, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in back-to-back quarters.In its latest release, the retail titan reported earnings more than 13% above expectations and penciled in a 3.6% sales surprise.Image Source: Zacks Investment ResearchThe Coca-Cola CompanyThe Coca-Cola Company is an American multinational corporation best known for its flagship Coca-Cola beverage. The company currently sports a Zacks Rank #2 (Buy).Impressively, KO is a Dividend King, showing an unparalleled commitment to shareholders through 50+ consecutive years of increased dividend payouts.The company’s annual dividend presently sits at 2.9%, modestly above its Zacks Consumer Staples sector average.Image Source: Zacks Investment ResearchSimilar to WMT, Coca-Cola has consistently posted better-than-expected earnings, exceeding top and bottom line estimates in seven consecutive quarters.In its latest release, Coca-Cola raised its organic revenue forecast for its current fiscal year, now expecting growth of 14% - 15% (previously 12% - 13%).Image Source: Zacks Investment ResearchProcter & GambleProcter & Gamble is a branded consumer products company that markets its products in more than 180 countries. Like the stocks above, PG’s earnings outlook has recently improved, pushing the stock into a Zacks Rank #2 (Buy).The consumer staples titan rewards its shareholders via its annual dividend, currently yielding 2.4% paired with a payout ratio sitting at 63% of its earnings.Image Source: Zacks Investment ResearchStill, the company’s valuation multiples could steer away more value-conscious investors; currently, PG shares trade at a 25.7X forward earnings multiple, above the 23.9X five-year median and Zacks sector average.PG carries a Style Score of “D” for Value.Image Source: Zacks Investment ResearchBottom LineLow-beta stocks are less sensitive to the market’s movements, helping provide investors with a valuable level of stability and defense.And after a rough showing from the market in 2022, many are undoubtedly considering adding more defensive stocks to their portfolios.All three low-beta stocks above – The Coca-Cola Company KO, Walmart Inc. WMT, and Procter & Gamble PG – could be considerations for those looking to heighten their portfolio’s defense.All three sport a favorable Zacks Rank and reward their shareholders, undoubtedly a strong pairing. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the  $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.>>Show me how I could profit from the metaverse!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 CocaCola Company The (KO): Free Stock Analysis Report Procter & Gamble Company The (PG): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksJan 14th, 2023

Tesla’s Production Capacity Outstrips Incoming Orders – Shortseller

Stanphyl Capital’s commentary for the month ended December 31, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). Inventory Pile Up Despite running its new factories in the U.S. and Germany at only around 20% of capacity, massive amounts of excess Tesla inventory piled up in Q4, spurring huge, margin-slashing price cuts in China, Europe, […] Stanphyl Capital’s commentary for the month ended December 31, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). Inventory Pile Up Despite running its new factories in the U.S. and Germany at only around 20% of capacity, massive amounts of excess Tesla inventory piled up in Q4, spurring huge, margin-slashing price cuts in China, Europe, the U.S. and Canada & Mexico, and even forcing the company’s China plant to slash December and January production. 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 2022 hedge fund letters, conferences and more   Tesla’s production capacity now hugely outstrips its rate of incoming orders, which undoubtedly explains why the company is implementing layoffs and a hiring freeze, and its used car prices are plunging too, further killing demand for new ones. Goodbye “story-stock tech company” and hello “cyclical car company” in an industry with single-digit PE ratios! As Tesla slashes prices it will undoubtedly sell more cars (I expect Q4 deliveries to be slightly over 400,000 vs. previous quarters in the 300,000s, thanks to the aforementioned massive price cuts plus a rush to beat big year-end expiring EV incentives in China, Germany, France and Norway), but any other car company can slash prices and do the same thing. And again, Tesla’s apparent market saturation rate of around 1.6 million cars/year worldwide (at least until it slashes prices yet again!) is massively below its current factories’ production capacity, much less the bulls’ absurd expectations of adding a new factory every six months for the next ten years in order to sell 20 million cars a year! For some valuation perspective, BMW sells around 2.5 million cars a year with very high margins (including the best electric SUV now on the market (the new iX), the best luxury EV (the new i7), and among the best small luxury EVs (the new i4), and has a market cap of around $59 billion. If Tesla grew annual deliveries to the size of BMW’s (50% higher than its current run-rate!) and had BMW-level margins, at BMW's current market cap it would sell for less than $19/share vs. this month's closing price in the $123s! (Remember: Tesla now has 3.16 billion shares outstanding!) Meanwhile, Elon Musk remains the most vile person ever to head a large-cap U.S. public company, and we remain short Tesla, the biggest bubble-stock in modern market history, because: It has a sliding share of the world’s EV market yet—even after its recent plunge—still has a market cap greater than those of Toyota, Volkswagen, Hyundai, GM and Ford combined (all of which now offer great EVs), despite stalling out at around 1.6 million annual deliveries vs. a combined 34 million for those other companies! It has no “moat” of any kind; i.e., nothing meaningfully proprietary in terms of its electric car technology (which has now been equaled or surpassed by numerous competitors) and its previously proprietary Superchargers are being opened to everyone). Excluding working capital benefits and sunsetting emission credit sales, Tesla generates only minimal earnings and free cash flow. Elon Musk is a pathological liar who - through his recent “Twitter insanity” - has wrecked the already competition-diminished Tesla brand. Expectations From Q4 Earnings In January Tesla will likely announce Q4 deliveries of a bit over 400,000 cars, yet thanks to the massive amount of price-cutting necessary to sell those cars, its earnings (excluding unforeseen extraordinary items) will likely only slightly surpass its Q3 GAAP number of around .87/share excluding sunsetting emission credit sales. And if—after viewing this chart from Twitter user @Keubiko—you believe that Q3 earnings number wasn’t grossly exaggerated, I have a bridge to sell you in Brooklyn: Furthermore, Tesla’s minimal depreciation of its new factories appears fraudulently low, as does its warranty reserve. Even if you believe Tesla’s clearly nonsensical reported earnings, excluding emission credit sales they annualize to only $3.48/share, which based on the current price of $123.18 = a run-rate PE ratio of around 35 for a now slow-growing, margin-slashing car company in an industry with a current average PE of around 5! Meanwhile, Tesla has objectively lost its “product edge,” with many competing cars now offering comparable or better real-world range, better interiors, similar or faster charging speeds and much better quality. (Tesla ranks near the bottom of Consumer Reports’ reliability survey while British consumer organization Which? found it to be one of the least reliable cars in existence.) Thus, due to competitors’ temporary production constraints, waiting times are now longer for nearly all of Tesla’s direct EV competitors than they are for a Tesla. In fact, Tesla is likely now the second, third or fourth choice for many EV buyers, and only maintains its volume lead though a short-lived edge in production capacity that will disappear over the next 12 to 36 months as competitors rapidly increase the ability to produce their superior EVs. Tesla’s poorly-built Model Y faces current (or imminent) competition from the much better made (and often just better) electric Hyundai Ioniq 5, Kia EV6, Ford Mustang Mach E, Cadillac Lyriq, Nissan Ariya, Audi Q4 e-tron, BMW iX3, Mercedes EQB, Volvo XC40 Recharge, Chevrolet Blazer EV & $30,000 Equinox EV and Polestar 3. And Tesla’s Model 3 now has terrific direct “sedan competition” from Volvo’s beautiful Polestar 2, the great new BMW i4, the upcoming Hyundai Ioniq 6 and Volkswagen Aero, and multiple local competitors in China. And in the high-end electric car segment worldwide the Porsche Taycan (the base model of which is now considerably less expensive than Tesla’s Model S) outsells the Model S, while the spectacular new BMW i7, Mercedes EQS, Audi e-Tron GT and Lucid Air make it look like a fast Yugo, and the extremely well reviewed new BMW iX, Mercedes EQS SUV and Audi Q8 eTron (as well as multiple new Chinese models) do the same to the Model X. Tesla Is Netflix Indeed, for years I’ve said “Tesla is Blackberry”—the maker of a first-generation version of a product that—once the market was proven—would be supplanted into niche obscurity by newer, better versions; now I can provide a much more recent analogy: Tesla is Netflix. For years Netflix had an absurd valuation based on its pioneering position in streaming media, but once it proved that such a market existed myriad competitors swarmed all over it, and in 2022 the stock collapsed when we learned that not only is Netflix no longer in “hypergrowth” mode but for the first time since 2011 (when it transitioned from physical DVDs) it actually lost subscribers. I believe Musk knows that Tesla is “the next Netflix” (hence his recent “Twitter buying distraction”), with VW Group, Hyundai/Kia, Ford, GM, Stellantis, BMW, Mercedes, BYD & other Chinese competitors and, in a few years, Toyota & Honda, being the Disney, HBO Max, Amazon Prime, Peacock, Hulu, Paramount+, etc. of the electric car market, stealing Tesla’s share and eventually pounding its stock price into low double-digits, where it would be valued as “just another car company.” Meanwhile, the NHTSA’s investigation of Tesla’s deadly Autopilot has expanded into “an engineering analysis,” the last required step before (finally!) demanding a full recall, and in October it was reported that this deadly scam is being investigated by both the SEC and the DOJ. The refund liability potential for Tesla for this is in the billions of dollars, and possibly even the tens of billions if a class action lawsuit proves that the cars involved were purchased solely due to the (fallacious) promise of “full self-driving.” And, of course, there will be a massive “valuation reappraisal” for Tesla’s stock as the world wakes up to the fact that its so-called “autonomy technology” is deadly, trailing-edge garbage. Meanwhile, the NHTSA continues to report a slew of Autopilot-related deaths, yet Tesla has sold this trashy software for over six years now: …and still promotes it on its website via a completely fraudulent video! (For all Tesla-related deaths cited in the media—which is likely only a small fraction of those that have occurred—please see TeslaDeaths.com.) Want to see another Elon Musk/Tesla fraud summarized in a simple bar graph? In this recent Consumer Reports test, note which of these cars never comes close—in any environmental conditions—to meeting its claimed EPA range: Another favorite Tesla hype story has been built around so-called “proprietary battery technology.” In fact though, Tesla has nothing proprietary there—it doesn’t make them, it buys them from Panasonic, CATL and LG, and it’s the biggest liar in the industry regarding the real-world range of its cars. And if new-format 4680 cells enter the market, even if Tesla makes some of its own,  other manufacturers will gladly sell them to anyone, and BMW has already announced it will buy them from CATL and EVE. And oh, the joke of a “pickup truck” Tesla previewed in 2019 (and still hasn’t shown in production-ready form) won’t be much of “growth engine” either. As by the time it’s in mass-production in late 2023/early 2024 it will enter a dogfight of a market vs. Ford’s hot-selling all-electric F-150 Lightning and GM’s fantastic 2023 electric Silverado (which already has nearly 200,000 reservations), while Rivian’s pick-up has gotten excellent early reviews, and Ram will also be out with a great electric truck in 2024. Regarding safety, as noted earlier in this letter, Tesla continues to deceptively sell its hugely dangerous so-called “Autopilot” system, which Consumer Reports has completely eviscerated; God only knows how many more people this monstrosity unleashed on public roads will kill despite the NTSB condemning it. Elsewhere in safety, the Chinese government forced the recall of tens of thousands of Teslas for a dangerous suspension defect the company spent years trying to cover up, and Tesla has been hit by a class-action lawsuit in the U.S. for the same defect. Tesla also knowingly sold cars that it knew were a fire hazard and did the same with solar systems, and after initially refusing to do so voluntarily, it was forced to recall a dangerously defective touchscreen. In other words, when it comes to the safety of customers and innocent bystanders, Tesla is truly one of the most vile companies on Earth. Meanwhile the massive number of lawsuits of all types against the company continues to escalate. So Here Is Tesla’s Competition In Cars... (note: these links are regularly updated) Porsche Taycan Porsche Taycan Cross Turismo Porsche Macan Electric SUV Officially Coming in 2023 Volkswagen ID.3 Volkswagen ID.4 Electric SUV Volkswagen unveils ID.6 SUV EV in China Volkswagen ID.Buzz Electric Van Volkswagen unveils the ID. AERO sedan with 385 miles of range New sketch of 2025 Volkswagen ID.1 unveiled VW’s Cupra Born Volkswagen unveils $7.1B commitment to boost product line-up, R&D, mfg in N. America Audi Q8 e-tron electric SUV Audi e-tron GT Audi Q4 e-tron Audi Q6 e-tron electric SUV Audi A6 e-tron: 2023's new electric Tesla fighter spied Audi will expand EV lineup with electric A6 wagon Audi TT to be axed in 2023 for 'emotional', electric replacement Hyundai Ioniq 5 Hyundai Ioniq 6 Hyundai Kona Electric Genesis reveals their first EV on the E-GMP platform, the electric GV60 crossover Genesis Electrified GV70 Revealed With 483 Horsepower And AWD Kia Niro Electric: 239-mile range & $39,000 before subsidies Kia EV6: Charging towards the future Kia EV9 to land in US in 2023 with 300-miles range, $50,000 price Kia EV4 on course to grow electric SUV range Jaguar’s All-Electric i-Pace Jaguar to become all-electric brand; Land Rover to Get 6 electric models Daimler will invest more than $47B in EVs and be all-electric ready by 2030 Mercedes EQS: the first electric vehicle in the luxury class 2023 Mercedes EQS SUV Is a Seven-Seat EV Flagship with up to 536 HP 2023 Mercedes EQE Electric Sedan Mercedes EQE SUV to rival BMW iX and Tesla Model X Mercedes EQC electric SUV available now in Europe & China Mercedes-Benz Launches the EQV, its First Fully-Electric Passenger Van Mercedes-Benz EQB Makes Its European Debut, US Sales Confirmed Mercedes-Benz unveils EQA electric SUV with 265 miles of range and ~$46,000 price Ford Mustang Mach-E Ford F-150 Lightning Ford set to launch ‘mini Mustang Mach-E’ electric SUV in 2023 Ford to launch 7 EVs in Europe in big electric push Ford unveils Lincoln Star electric SUV concept as it readies to add four new EVs by 2026 Chevrolet Blazer EV Chevrolet Equinox EV Chevrolet Bolt sedan, 259-mile range starting at $31,000 Chevrolet Bolt EUV electric crossover Cadillac All-Electric Lyriq GMC Electric Hummer Pick-Up and SUV GM electric Silverado pickup truck GMC Sierra EV Denali GM Launches BrightDrop to Electrify the Delivery of Goods and Services GM & Honda Will Codevelop Affordable EVs Targeting Most Popular Vehicle Segments Two Jeep EVs to make U.S. debuts in 2024 BMW leads off EV offensive with iX3 BMW expands EV offerings with iX tech flagship and i4 sedan BMW i7 EV, with 600 hp, will be most powerful variant of new 7 Series flagship BMW iX1 Revealed With 313 HP, 272 Miles WLTP Range Renault-Nissan alliance plows $26B into EV blitz- will jointly launch 35 new EVs Nissan Ariya: All-Electric Crossover SUV Nissan LEAF e+ with 226-mile range is available now Nissan Unveils $18 Billion Electric-Vehicle Strategy Polestar 2 sedan Polestar 3 electric SUV Volvo XC40 Recharge electric SUV Volvo C40 Recharge electric crossover Volvo EX90 electric SUV Renault upgrades Zoe electric car as competition intensifies Renault Dacia Spring Electric SUV Renault to boost low-volume Alpine brand with 3 EVs Renault's electric Megane will debut new digital cockpit Stellantis promises 'heart-of-the-market SUV' from new, 8-vehicle EV platform Chrysler to go all-EV by 2028 Honda, Sony to start premium EV deliveries in 2026 Honda pours $40 billion into electrification, targets 2 million EV production by 2030 Alfa Romeo's First Electric Car Will Arrive in 2024 Peugeot e-208 PEUGEOT E-2008: THE ELECTRIC AND VERSATILE SUV Peugeot 308 will get full-electric version Subaru shows off its first electric vehicle, the Solterra SUV Citroen compact EV challenges VW ID3 on price Rivian electric pickup trucks & SUVs Maserati GranTurismo Debuts As Brand’s First EV With Three Motors, AWD Mini Cooper SE Electric Toyota bZ4X Toyota will have lineup of 30 full EVs by 2030; Lexus will be all-electric brand Opel Corsa-e Opel expands EV lineup with battery-electric Astra Vauxhall Mokka electric Skoda Enyaq iV electric SUV Skoda Enyaq electric coupe Skoda plans small EV, cheaper variants to take on French, Korean rivals BYD presents three BEVs for European market Nio expands into Europe and beyond Lucid Motors: Electric Luxury Cars Rolls-Royce Electric Spectre, Available 2023 Bentley will start output of first full EV in 2025 Aston Martin will build electric vehicles in UK from 2025 Two new electric cars from Mahindra in India; Global Tesla rival e-car soon Sono Sion Foxconn aims for 10% of electric car platform market by 2025 And in China, where Tesla’s EV market share is now declining… BYD is #1 in Chinese EVs, selling FAR more than Tesla Volkswagen to boost Chinese EV capacity to 1m by 2023 Audi-FAW's $3.3 billion electric vehicle venture Nio Xpeng Motors Hozon/Neta Li Auto GAC Aion Leap Motors GM plans to launch over 15 EV models in China by 2025 Ford Mustang Mach-E Rolls Off Assembly Line in China Cheaper than Tesla: Honda takes aim at China's middle class BMW i3 Debuts As All-Electric 3 Series Only For China Hongqi Geely Zeekr Premium EVs by Geely Baidu and Geely put nearly $400 million more into their electric car venture China-made Mercedes-Benz EQE hits market BAIC Hyundai, BAIC Motor to inject $942 mn in China JV for EVs Toyota partners with BYD to build affordable $30,000 electric car Lexus RZ 450e Steers For China Dongfeng SAIC Renault launches sales of first EV in China Nissan expects 40% of sales in China to be electrified by 2026 Changan forms subsidiary Avatar Technology to develop smart EVs with Huawei, CATL WM Motors/Weimar Chery Seres Enovate Singulato JAC Motors Iconiq Motors Aiways Skyworth Auto Youxia Human Horizons Xiaomi announces plans for four electric vehicle models Here’s Tesla’s Competition In Autonomous Driving; The Independents All Have Deals With Major OEMs… Waymo ranked top & Tesla last in Guidehouse leaderboard on automated driving systems Tesla has a self-driving strategy other companies abandoned years ago Waymo operates robotaxis NOW GM’s Cruise operates robotaxis NOW Mobileye operates driverless test fleets in Europe and the U.S. Cadillac Super Cruise Sets the Standard for Hands-Free Highway Driving Ford’s hands-free “Blue Cruise” Mercedes Launches SAE Level 3 Drive Pilot System Honda Legend Sedan with Level 3 Autonomy Now Available in Japan Motional (Hyundai) & Uber Announce Autonomous Ride-hail and Delivery Services Stellantis Completes Acquisition of aiMotive to Accelerate Autonomous Driving Journey Amazon’s Zoox will test its autonomous vehicles on Seattle’s rainy streets Baidu to further deploy 200 driverless vehicles in China in 2023 Alibaba-backed AutoX unveils first driverless RoboTaxi production line in China Pony.ai approved for public driverless robotaxi service in Beijing SAIC-backed Xiangdao Chuxing kicks off Robotaxi pilot operation in Shenzhen WeRide greenlighted for autonomous road test with empty driver’s seat in Beijing Here’s Where Tesla’s Competition Will Get Its Battery Cells… Panasonic (making deals with multiple automakers) LG Samsung SK Innovation Toshiba CATL BYD Northvolt Volkswagen to Build Six Electric-Vehicle Battery Factories in Europe GM’s Ultium GM to develop lithium-metal batteries with SolidEnergy Systems SK On and Ford form BlueOval SK, an EV battery joint venture Hyundai teams with SK to make batteries for U.S.-built EVs Hyundai Motor developing solid-state EV batteries BMW & Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles Stellantis affirms commitment to build battery factory in Italy with Mercedes, TotalEnergies Stellantis and Samsung SDI to Invest Over $2.5B in Battery Production Plant in United States Stellantis and LG to Invest Over $5 Billion CAD in Joint Venture for Li-Ion Battery Plant in Canada Stellantis and Factorial Energy to Jointly Develop Solid-State Batteries for Electric Vehicles Mercedes-Benz to build 8 battery factories in push to become electric-only automaker Mercedes-Benz and Sila achieve breakthrough with high silicon automotive battery Toyota to invest $5.3bn to make EV batteries in U.S. and Japan Toyota Outlines Solid-State Battery Tech, $13.6 Billion Investment Honda Motor, LG Energy to build $4.4 bln U.S. EV battery plant Daimler joins Stellantis as partner in European battery cell venture ACC Renault signs EV battery deals with Envision, Verkor for French plants Nissan to build $1.4bn EV battery plant in UK with Chinese partner Nissan Announces Proprietary Solid-State Batteries UK companies AMTE Power and Britishvolt plan $4.9 billion investment in battery plants Foxconn breaks ground on first EV battery plant Envision-AESC ONE EVE Freyr Verkor Farasis Microvast Akasol Cenat Wanxiang Eve Energy Svolt Romeo Power ProLogium Morrow Here’s Tesla’s Competition In Charging Networks… Infrastructure Bill: $7.5 billion Towards Nationwide Network of 500,000 EV Chargers Electrify America EVgo Chargepoint Ionity Europe Shell 51 U.S. electric companies commit to build nationwide EV fast charging network by end of 2023 GM, EVgo, and Pilot will install 2,000 fast chargers at travel centers GM to Expand Access to EV Charging with More than 40,000 Charging Stations Ford To Have One Of The Largest DC Fast-Charging Networks In US Volkswagen powers up the grid to take on Tesla Volkswagen-backed CAMS eyes deployment of 17,000 charging points in China by 2025 Circle K begins North American EV fast charger rollout, plans 200-site network by 2024 Porsche to build out its own network of EV charging stations Petro-Canada Coast-to-Coast Canadian Charging Network Volta E.On BP Volkswagen and BP partner to deploy up to 8,000 EV chargers across EU/UK Smatric Allego Podpoint Instavolt Fastned Total Nio Battery Swap Stations BMW to Build 360,000 Charging Points in China to Juice Electric Car Sales Evie Tritium, DC-America Join Forces to Provide coast-to-coast EV charging network And Here’s Tesla’s Competition In Storage Batteries… Panasonic Samsung LG Energy Solutions CATL BYD AES + Siemens (Fluence) GE Hitachi ABB Toshiba Saft Johnson Contols EnerSys SOLARWATT Sonnen Generac GM Energy Canadian Solar Kokam Eaton Tesvolt Leclanche Lockheed Martin Honeywell EOS Energy Storage ESS Electriq Power Redflow Primus Power Simpliphi Power Invinity Murata Bollore Adara Blue Planet Aggreko Orison Powin Energy Nidec Powervault Kore Power Shanghai Electric LithiumWerks Natron Energy Energy Vault Ambri Voltstorage Cadenza Innovation Morrow Gridtential Villara Elestor SolarEdge Q-Cells Huawei Toyota ADS-TEC Form Energy Enphase Sumitomo Electric Stryten Energy Freyr Growatt Polarium Alfen Quino Energy Gotion ZincFive Thanks, Mark Spiegel, Stanphyl Capital.....»»

Category: blogSource: valuewalkJan 3rd, 2023

Annuities: The Pros And Cons

In the wake of the stock market crash and rising interest rates, consumers are buying annuities. In fact, in the third quarter of 2022, insurance industry trade group Limra estimates that annuity sales totaled almost $80 billion — just beating the Q2 record of $79.4 billion. As of 2022, consumers are expected to purchase almost […] In the wake of the stock market crash and rising interest rates, consumers are buying annuities. In fact, in the third quarter of 2022, insurance industry trade group Limra estimates that annuity sales totaled almost $80 billion — just beating the Q2 record of $79.4 billion. As of 2022, consumers are expected to purchase almost $300 billion in annuities. Compared to 2008, which was the previous record year, this would smash it by a wide margin. Fear of stock market volatility and a recession seems to be driving many purchasing decisions, just like during the 2008 financial crisis. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   In June, the S&P 500 entered a bear market. As of early November, it’s still down nearly 19% in 2022. In the last year, an investor holding U.S. bonds, which usually act as a ballast when stocks fall, lost almost 16%. Aside from that, the Fed is trying to cool the economy by raising borrowing costs, aiming to tame high inflation; some economists think they might go too far and tip the economy into recession. It’s only natural that people want safety and security during these turbulent times. Annuities do just that. But, before you dump a ton of money into an annuity, you should first compare the pros and cons. Let’s Cover the Basics of Annuities It’s imperative to understand the basics of annuities before evaluating them. And, the first place to start is quickly explaining what an annuity is. Basically, it’s an insurance contract where the insurer pays you a stream of payments over a specified period in exchange for the premiums you pay. Until the contract is “annuitized” and the owner starts getting payments, these premium deposits earn interest at the rate defined in the annuity contract. Often, this arrangement is sold as “guaranteed income.” The terms, however, can vary from one annuity to another. The owner of an annuity transfers the risk of outliving their retirement funds to the insurance company. This isn’t like stocks, bonds, shares, or mutual funds, which the buyer buys to make money. As a result, an annuity is only as reliable as the insurance company that provides it. Even though it doesn’t happen often, insurers can and do become bankrupt and/or default on payments, so annuity holders don’t always get what they’re supposed to. Keep in mind that transferring risk isn’t the same as eliminating it. There’s also the complexity and opacity of the contracts involved in annuities. Due to the precise and limited way benefits are defined, annuity terms can be as thick as a dictionary. You’ll only know what’s offered and whether it’s right for you if you read the contract carefully. Explaining the Different Types of Annuities Annuities come in three main types: fixed, variable, and indexed. A fixed annuity guarantees you a minimum rate of interest, though these rates can change every year or so. Alternatively, you can invest in mutual funds or other investment funds with a variable annuity. As a result, your payments will be determined by the performance of your investments instead of a fixed rate. Although indexed annuities are technically variable annuities, they combine the best of both worlds. Your indexed annuity returns aren’t based on your investment decisions. You’ll actually follow the performance of an index, like the S&P 500. It’s important to note that in this case, your money doesn’t actually get put into the index. Your account will be credited with the index’s returns instead. In indexed contracts, annuity companies often use participation rates or rate caps to limit returns. They work like this: Participation rate. If the S&P 500 grows by 10% in a year and your contract has a 60% participation rate, what will happen? The annuity company will take that 10% growth and give you 60%, which is 6%. Rate cap. Taking the S&P 500 as an example, let’s say it grows by 8% over a year, and your contract caps rates at 5%. Due to the rate cap, your contract earns 5%, since it can earn no more than that. Deferred annuities and immediate annuities are also options. If you choose the latter, you give the company a lump sum and start getting payouts right away. Deferred annuities let you pay a lump sum or series of payments, but it takes years for payouts to start. You can earn interest or appreciate your money this way. Annuity Pros An annuity is one of the best ways to grow your retirement savings and diversify your portfolio. Annuities are essentially a hybrid between insurance and retirement accounts that let you grow your money. Since annuities have so many advantages, they’ve become increasingly popular. You’ll Receive Regular Lifetime Payments Annuities are primarily sold on the fact that you’ll get regular payments from an insurance company. In addition to Social Security and pension benefits, these recurring payments can supplement your retirement income. If you’re worried that you won’t have enough money saved to cover your regular expenses or you’ll outlive your savings, this will help you relax. Considering half of Americans worry about outliving their savings, an annuity sounds appealing. The majority of annuities guarantee you a lifetime income, but you can choose to receive payments over a certain period of time. Also, your annuity payments will vary in value and number. Annuities vary depending on what kind you bought and what your contract says. Guaranteed Income No matter how long the annuity owner lives, the insurer is responsible for paying the income. This promise, however, is only as good as the company backing it. The major independent rating agencies only rate insurers for financial strength if they receive high ratings. Customization Depending on what is important to you, you can pay only for the features you need. Depending on your circumstances, you might opt for a guaranteed income, invest more heavily in the stock market, or make a fixed payout to your heirs. Tax-Deferred Contributions You can make tax-deferred contributions to annuities. Your money isn’t taxed until after you retire with a tax-deferred annuity. You don’t have to pay taxes until you start getting annuity payments. Annuities don’t require you to pay taxes on capital gains if you don’t touch the money while it’s in them. When you set up a tax-deferred annuity, you can start getting payments as soon as one year later. Premium Protection How does premium protection work? Simply put, it means that you will never lose your purchase payment. Fixed annuities, for instance, guarantee minimum interest rates on your investment. Don’t expect the highest rates. However, it’s safe and predictable. With Due, you’ll always get 3% back on every deposit. In addition to premium protection, fixed-indexed annuities offer growth potential during times of market decline. In other words, you have the possibility of growing your investment when the market is rising. As these annuities are shielded from market volatility, there is little risk associated with them. In addition, annuities have the advantage of not exposing your principal to risk, as opposed to investments such as stocks. Contribution Limits An annuity doesn’t have annual contribution limits like a 401(k) or IRA. As a result, annuities allow you to invest as much as you want. No Mandatory Withdrawals After age 72, you are not required to start taking minimum distributions from your annuity if it is not part of an IRA or other qualified retirement plan. In the event that you are hoping to earn income in later years, that can be a sigh of relief. Long-Term Care Most annuities allow you to add a long-term care rider — for an additional cost. As with life insurance, long-term care can help you cover the cost of long-term care if you need it. Long-term care annuities have a growth component and can be passed on to your heirs, unlike life insurance. The reality is that 7 out of 10 people will need long-term care. Furthermore, long-term care is becoming more expensive. An example would be the cost of a private room at a nursing home, which costs $290 per day ($8,821 per month). The average cost of semi-private rooms is $255 per day ($7,756 per month). While long-term care annuities don’t cover everything, they’re still less expensive than insurance policies. According to the American Association for Long-Term Care Insurance, a 55-year-old couple would pay $3,050 per year in premiums. In most cases, a long-term care annuity will increase your annuity payout. This is usually multiplied by the length of time you will need long-term care. In the case of surgery recovery, your normal income stream could double for five years. It is also possible to withdraw large amounts for free if you require long-term. There is one more thing. Long-term care riders on annuities are less medically underwritten than traditional long-term care policies. You can still take out an annuity if you need income even if you don’t need long-term care. Death Benefits Are Typically Available Death benefits can be paid as lump sums or as a percentage of regular income payments to beneficiaries. In some cases, the death benefit may not be generous at all, or might even not be paid at all. In addition, annuity holders can increase their death benefits. Annuity Cons Annuities aren’t immune to disadvantages, and neither are other financial products. A lot of annuities charge overbearing fees, for example. Additionally, annuities are safe, but their returns can sometimes be lower than traditional investments. Complexity. There is a lot of complexity and personalization involved in annuities. In retirement, you may face unwelcome surprises if you do not understand the stipulations of your annuity contract. Fees and Commissions There are some annuities that charge fees, and there are others that don’t. Those that do will likely pay 2% to 3% a year in fees. Compared to other types of investments, that fee range is higher. It is for this reason that some investors and financial advisors might find annuity fees problematic. Among the other fees associated with annuities are: Surrender charges. When you sell or withdraw money from a variable annuity during the surrender period, the seller subtracts this charge from the cash value of the annuity. It usually lasts between six and eight years. Mortality and expense risk charges. A variable annuity can charge up to 1.25% for this type of charge. Usually every month, the seller adds this charge to cover lost income if an annuity holder dies before the seller had anticipated. Administrative fees. You may have to pay fees to the seller of your annuity in order to maintain the account. Costs such as recordkeeping and accounting can be covered by these fees. Several annuities may also charge a sales commission of 7% or higher in addition to these fees. Costly Riders Often, annuities are attractive because of their optional riders. However, if you want lifetime payouts or a minimum guaranteed income, you’ll want to pay more, as an example. Your investment is further diluted if you add fees and commissions. Illiquidity Having limited access to your money is one major criticism of annuities. Withdrawals during the surrounding period are especially tricky. Normally, you can only take out 10% of the annuity’s value a year. There may also be a surrender fee with some companies. Early withdrawals, meaning before the age of 59 ½, may be penalized between 5% and 20%. Furthermore, you will no longer be able to withdraw funds from your account once you begin receiving payments. Because of this, you won’t be able to access your money unless you make the scheduled payments. Difficulty Passing On and Getting Out Of An annuity can be passed on to someone else if you pass away. However, there are a lot of legal and financial concerns when it comes to passing on an annuity. Plus, plans that let you pay a beneficiary are usually more expensive and pay out less. It is also true that an immediate annuity may not let you cancel if you decide you want to get out. Most likely, you’ll have to pay a fee if you cash out. Missed Opportunity Costs A lifetime annuity reduces your risk and guarantees a steady income for life. The question is, at what cost? An annuity is a long-term investment. Therefore, they have poor liquidity, which makes them unsuitable for handling an emergency or taking advantage of an investment opportunity. Fluctuating Returns As a result of market fluctuations, the cash value of a variable annuity can rise or fall. In retirement, this can make your income stream less predictable. Typically, variable annuities invest in mutual funds that own stocks, bonds, and money market instruments, like Treasury bills. As a result, variable annuities don’t have fixed returns. Inflation-prone Annuities are particularly vulnerable to inflation and rising living costs since they provide a fixed stream of income. As a result, each annuity distribution has less and less buying power. The problem is especially acute for retirement savers, who often experience higher inflation because of increased medical spending. You Still Pay Taxes During the growth phase of an annuity, you don’t pay taxes. During this time, your earnings are tax-deferred. As soon as you start taking distributions, you’re taxed at a higher rate than most investments. In basic terms, annuity gains are treated like ordinary income, not capital gains. Rich investors in the top tax bracket, which is 37%, are especially impacted. In contrast, capital gains investments are taxed at 0%, 15%, or 20%. The Bottom Line Annuities have pros and cons, so weigh them carefully before signing a contract. In the end, annuities aren’t right for everyone. To determine whether an annuity is good or bad, you must have a clear plan for your retirement. Knowing your risks and what you need for your goals is the only way to decide when and what type of annuity to buy. That is, if they make any sense altogether. FAQs What is an annuity? It’s a contract between you and an insurance company. The insurer gives you a guaranteed fixed income stream in exchange for a lump sum or series of premiums. Insurance payouts can last for a period of time or for the rest of your life. Similar to a pension, annuities guarantee income in retirement. What is the difference between a traditional savings account and an annuity? Savings accounts and annuities are both considered low-risk investment options. Despite this, there are many differences, including fees, liquidity, and minimum account balances. You can save for retirement tax-advantaged with annuities and retirement accounts, like 401(k)s and IRAs. The difference between annuities and IRAs is that annuities are insurance products that grow money. There are also generally higher fees associated with annuities than with retirement accounts, but there is no limit to the amount you can contribute. How much does an annuity cost? The amount you put into your annuity is up to you. These can range from $10,000 to $1 million or more, depending on the type of annuity. Commissions and fees for annuities can vary, though. The more complex the product, the higher the fee. Compared to variable or indexed annuities, fixed annuities cost less. The reason is that fixed annuities aren’t influenced by stock markets or investment portfolios. What happens to my annuity if I die? You’ll have to check how the insurance company structured your annuity contract. Depending on the annuity, payments end when you die. But, your spouse or other designated beneficiary will keep getting payments if the annuity has a death benefit provision. Is an Annuity a Good Investment? Annuities aren’t necessarily good or bad investments. For conservative investors who like a hands-off, guaranteed income stream and have a short time horizon, it can be a good investment. Investors with a long-term time horizon, money to endure near-term market volatility, and the capability to generate income from other investments may find it to be a bad investment. Article by John Rampton, Due About the Author John Rampton is an entrepreneur and connector. When he was 23 years old, while attending the University of Utah, he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months, he had several surgeries, stem cell injections and learned how to walk again. During this time, he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine and Finance Expert by Time. He is the Founder and CEO of Due......»»

Category: blogSource: valuewalkDec 12th, 2022

Ford Revving Up Production Of EV Power Units At U.K. Plant

Ford said Thursday it would invest $180 million to transition a U.K. factory away from internal combustion engines and toward EV power systems. It’s currently focusing its AI efforts on driver-assisted technologies, rather than self-driving vehicles. Ford, along with other automakers, reports November sales on Friday, with industry analysts expecting numbers to come in flat. […] Ford said Thursday it would invest $180 million to transition a U.K. factory away from internal combustion engines and toward EV power systems. It’s currently focusing its AI efforts on driver-assisted technologies, rather than self-driving vehicles. Ford, along with other automakers, reports November sales on Friday, with industry analysts expecting numbers to come in flat. Although EV startups such as NIO (NYSE:NIO) and Mullen Automotive (NASDAQ:MULN) are grabbing attention, along with 800-pound gorilla Tesla (NASDAQ:TSLA), long-established automakers such as Ford (NYSE:F) and General Motors (NYSE:GM) are quickly ramping up EV production and marketing. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. Ford said Thursday that it would invest $180 million to increase production of EV power units by 70% at a plant in the U.K. It’s part of the company’s push to bring more EVs to market and transition its products away from internal combustion engines. While, GM’s EVs are in the spotlight for a poignant reason, as a commercial for its models including Volt, Blazer, Equinox, and Silverado is set to “Everywhere,” written by Fleetwood Mac’s Christine McVie, who died on Wednesday, Ford’s announcement is an important signal. Ford’s move is part of the company’s European electrification plan, which is focused on zero-emission cars by 2030, followed by all vehicles five years later. The power units manufactured at the plant, in Halewood, England, will be installed in 70% of Ford EVs sold in Europe by 2026. The plant currently makes transmissions for internal combustion vehicles but is transitioning to EV parts manufacturing. The power unit is made there replaces conventional engines and transmissions. Slashing AI Spending That’s a clear sign that the auto industry is changing at a rapid pace. In October, Ford said it had slashed capital spending on its artificial intelligence-powered Level 4 driver assistance systems. In its third-quarter earnings release, the company noted that “large-scale profitable commercialization of Level 4 advanced driver assistance systems will be further out than originally anticipated. However, it added that “Development and customer enthusiasm for benefits of L2+ and L3 ADAS warrant dialing up the company’s near-term aspirations and commitment in those areas.” The Level 2 and Level 3 driver assist technologies typically include features such as rear-end accident avoidance and lane-centering. Cars currently on the market, even those a few years old, now utilize these technologies. In contrast, Level 4 technologies deliver something closer to a fully self-driving experience. The AI in this case calculates when a crash may be about to occur, and corrects accordingly. It also allows hands-free driving. Although Ford said its partner in the L4 systems, Argo AI, which also had investment from Volkswagen (OTCMKTS:VWAGY), “had been unable to attract new investors.” Ford took an impairment charge in the quarter related to Argo AI’s closure and said it would hire some of Argo AI’s engineers. In the third-quarter earnings conference call, Ford chief financial John Lawson emphasized that the company is very bullish on the potential for driver-assisted technologies, despite not seeing “a profitable, scalable business in the L4, L5 space for at least five years. We also see that to get there, it's going to take billions of dollars.” Ford is deploying existing capital and human resources toward the L2+ and our L3 systems. “We believe that addressable market expands our entire product portfolio from our retail customers to our commercial customers,” Lawson said. Flat Sales Expected Ford is slated to release its November sales figures on Friday. Industry analyst J.D. Power-LMC Automotive forecast industry-wide sales to be flat for the month, as higher vehicle prices and higher interest rates mute demand. Within the automaker's industry group, Ford’s price performance lags European car makers, including Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS: BMWYY), commonly known as BMW, as well as Stellantis (NYSE: STLA), whose brand portfolio includes Peugeot, Groupe PSA, Citroën, Opel, Dodge, and Chrysler. Ford’s earnings and revenue track records have been erratic. Earnings growth declined in four of the past eight quarters, but there have also been quarters where increases looked good, due to easy comparisons over sluggish sales in 2020, due to pandemic restrictions. For the full year, Wall Street sees Ford earning $1.98 per share, an increase of 25% over 2021. That’s seen declining by 11 next year, to $1.76 per share. Ford Motor is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs. Should you invest $1,000 in Ford Motor right now? Before you consider Ford Motor, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ford Motor wasn't on the list. While Ford Motor currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by Kate Stalter, MarketBeat.....»»

Category: blogSource: valuewalkDec 4th, 2022

Tesla Delivery Wait Times Decline Substantially Worldwide – Shortseller

Stanphyl Capital letter to investors for the month ended November 30, 2022, discussing their short thesis for Tesla Inc (NASDAQ:TSLA). Despite big, margin-slashing price cuts in both China and Europe, Tesla delivery wait times worldwide have declined substantially, down to just one week in China while in the U.S. (where Musk’s Twitter boondoggle is rapidly […] Stanphyl Capital letter to investors for the month ended November 30, 2022, discussing their short thesis for Tesla Inc (NASDAQ:TSLA). Despite big, margin-slashing price cuts in both China and Europe, Tesla delivery wait times worldwide have declined substantially, down to just one week in China while in the U.S. (where Musk’s Twitter boondoggle is rapidly destroying the brand) Tesla is choking on Model 3 inventory and offers December Model Y delivery. 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 2022 hedge fund letters, conferences and more   While Europe’s backlog is expected to be completely gone by year-end. This means Tesla’s production capacity now outstrips its rate of incoming orders despite the new German and Texas factories producing at only around 10% of capacity! Expectations For Q4 Deliveries Meanwhile, combined deliveries for the last two quarters (Q2 & Q3 2022) were lower than those for the previous two quarters (Q4 2021 & Q1 2022). As Tesla slashes prices it will undoubtedly sell more cars (I expect Q4 deliveries to be in the range of around 400,000 vs. previous quarters in the 300,000s. Thanks to the cuts plus a rush to beat year-end expiring EV incentives in China, Germany and France), but any other car company can slash prices and do the same thing. (Welcome to the auto business, which currently sells for around 5x earnings!) Tesla’s apparent market saturation rate of around 1.6 million cars/year worldwide (at least until it slashes prices yet again!) is massively below its current factories’ production capacity, much less the bulls’ absurd expectations of adding a new factory every six months for the next ten years! For some valuation perspective, BMW sells around 2 million cars a year with very high margins (including the best electric SUV now on the market (the new iX), the best luxury EV( the new i7), and among the best small luxury EVs (the new i4), and has a market cap of around $59 billion. If Tesla grew annual deliveries to the size of BMW’s and had BMW-level margins, at BMW's current market cap it would sell for less than $19/share vs. this month's closing price in the $194s! (Remember: Tesla now has 3.16 billion shares outstanding!) Meanwhile, Elon Musk remains the most vile person ever to head a large-cap U.S. public company, and we remain short Tesla, the biggest bubble-stock in modern market history, because: It has a sliding share of the world’s EV market and a share of the overall auto market that’s less than 2%, yet a market cap almost as big the next 6 largest automakers (by market cap) combined. It has no “moat” of any kind; i.e., nothing meaningfully proprietary in terms of its electric car technology (which has now been equaled or surpassed by numerous competitors) and its previously proprietary Superchargers are being opened to everyone), while existing automakers—unlike Tesla­—have a decades-long “experience moat” of knowing how to mass-produce, distribute and service high-quality cars consistently and profitably. Excluding working capital benefits and sunsetting emission credit sales Tesla generates only minimal free cash flow. Growth in sequential demand for Tesla’s cars is at a crawl relative to expectations. Elon Musk is a pathological liar. Tesla's Q3 Earnings In October Tesla claimed that it had Q3 GAAP earnings of around .87/share excluding sunsetting emission credit sales. If you believe that after viewing this chart (courtesy of Twitter user @Keubiko), I have a bridge to sell you in Brooklyn: Furthermore, Tesla’s minimal depreciation of its new factories appears fraudulently low, as does its warranty reserve. Even if you believe Tesla’s clearly nonsensical earnings number, it annualizes to only $3.48/share, which based on November’s closing price of $194.70 = a run-rate PE ratio of around 56 for a now slow-growing (or growing-but-margin-slashing) car company in an industry with a current average PE of around 5. Meanwhile, Tesla has objectively lost its “product edge,” with many competing cars now offering comparable or better real-world range, better interiors, similar or faster charging speeds and much better quality. (Tesla ranks near the bottom of Consumer Reports’ reliability survey while British consumer organization Which? found it to be one of the least reliable cars in existence.) Thus, due to competitors’ temporary production constraints, waiting times are now longer for many of Tesla’s direct EV competitors than they are for a Tesla. In fact, Tesla is likely now the second, third or fourth choice for many EV buyers, and only maintains its volume lead though a short-lived edge in production capacity that will disappear over the next 12 to 36 months as competitors rapidly increase the ability to produce their superior EVs. Tesla’s poorly-built Model Y faces current (or imminent) competition from the much better made (and often just better) electric Hyundai Ioniq 5, Kia EV6, Ford Mustang Mach E, Cadillac Lyriq, Nissan Ariya, Audi Q4 e-tron, BMW iX3, Mercedes EQB, Volvo XC40 Recharge, Chevrolet Blazer EV & $30,000 Equinox EV and Polestar 3. And Tesla’s Model 3 now has terrific direct “sedan competition” from Volvo’s beautiful Polestar 2, the great new BMW i4, the upcoming Hyundai Ioniq 6 and Volkswagen Aero, and multiple local competitors in China. And in the high-end electric car segment worldwide the Porsche Taycan (the base model of which is now considerably less expensive than Tesla’s Model S) outsells the Model S, while the spectacular new BMW i7, Mercedes EQS, Audi e-Tron GT and Lucid Air make it look like a fast Yugo. And the extremely well reviewed new BMW iX, Mercedes EQS SUV and Audi Q8 eTron (as well as multiple new Chinese models) do the same to the Model X. Tesla Is Netflix Indeed, for years I’ve said “Tesla is Blackberry”—the maker of a first-generation version of a product that—once the market was proven—would be supplanted into niche obscurity by newer, better versions; now I can provide a much more recent analogy: Tesla is Netflix. For years Netflix had an absurd valuation based on its pioneering position in streaming media, but once it proved that such a market existed myriad competitors swarmed all over it, and this year the stock collapsed when we learned that not only is Netflix no longer in “hypergrowth” mode but for the first time since 2011 (when it transitioned from physical DVDs) it actually lost subscribers. I believe Musk knows that Tesla is “the next Netflix” (hence his recent “Twitter buying distraction”), with VW, Hyundai/Kia, Ford, GM, Stellantis, BMW, Mercedes, BYD & other Chinese competitors. And, in a few years, Toyota & Honda, being the Disney, HBO Max, Amazon Prime, Peacock, Hulu, Paramount +, etc., of the electric car market, stealing Tesla’s share and eventually pounding its stock price down 90% or so from today’s, into the valuation of “just another car company.” Despite this obvious “writing on the wall,” many Tesla bulls sincerely believe that ten years from now the company will be twice the size of Volkswagen or Toyota, thereby selling around 20 million cars a year (up from the anticipated Q4 annualized run-rate of around 1.6 million); in fact in May Musk himself even raised this as a possibility. Setting aside the absurdity of selling that many cars into the limited market of Tesla’s high price points, the “logistical absurdity” of selling 20 million cars/year in ten years means that in addition to 2.4 million cars a year of sold-out existing claimed production capacity (once the German and Texas factories are fully operational). Tesla would have to add 35 more brand new 500,000 car/year factories with sold out production; i.e., a new factory approximately every single quarter for the next ten years! Only a Teslemming could be dumb enough to believe this! An Engineering Analysis Meanwhile, in June the NHTSA announced that its investigation of Tesla’s deadly Autopilot has expanded into “an engineering analysis,” the last required step before (finally!) demanding a full recall, and in October it was reported that this deadly scam is being investigated by both the SEC and the DOJ. The refund liability potential for Tesla for this is in the billions of dollars, and possibly even the tens of billions if a class action lawsuit proves that the cars involved were purchased solely due to the (fallacious) promise of “full self-driving.” And, of course, there will be a massive “valuation reappraisal” for Tesla’s stock as the world wakes up to the fact that Tesla’s so-called “autonomy technology” is deadly, trailing-edge garbage. In fact, the NHTSA has reported a slew of Autopilot-related deaths just since last year. For all Tesla deaths cited in the media—which is likely only a small fraction of those that have occurred—see TeslaDeaths.com. And Tesla has sold this trashy software for over six years now: …and still promotes it on its website via a completely fraudulent video! Want to see another Elon Musk/Tesla fraud summarized in a simple bar graph? In this recent Consumer Reports test, note which of these cars never comes close—in any environmental conditions—to meeting its claimed EPA range: Nothing Proprietary Another favorite Tesla hype story has been built around so-called “proprietary battery technology.” In fact though, Tesla has nothing proprietary there—it doesn’t make them, it buys them from Panasonic, CATL and LG, and it’s the biggest liar in the industry regarding the real-world range of its cars. And if new-format 4680 cells enter the market some time in 2024 (as is now expected), even if Tesla makes some of its own,  other manufacturers will gladly sell them to anyone, and BMW has already announced it will buy them from CATL and EVE. And oh, the joke of a “pickup truck” Tesla previewed in 2019 (and still hasn’t shown in production-ready form) won’t be much of “growth engine” either, as by the time it’s in mass-production in 2024 it will enter a dogfight of a market. In fact, Ford’s terrific 2022 all-electric F-150 Lightning now has over 200,000 retail reservations (plus many more fleet reservations), GM has introduced its fantastic 2023 electric Silverado which already has nearly 200,000 reservations, Rivian’s pick-up has gotten excellent early reviews, and Ram will also be out with a great truck in 2024. Regarding safety, as noted earlier in this letter, Tesla continues to deceptively sell its hugely dangerous so-called “Autopilot” system, which Consumer Reports has completely eviscerated; God only knows how many more people this monstrosity unleashed on public roads will kill despite the NTSB condemning it. Elsewhere in safety, the Chinese government forced the recall of tens of thousands of Teslas for a dangerous suspension defect the company spent years trying to cover up, and Tesla has been hit by a class-action lawsuit in the U.S. for the same defect. Tesla also knowingly sold cars that it knew were a fire hazard and did the same with solar systems, and after initially refusing to do so voluntarily, it was forced to recall a dangerously defective touchscreen. In other words, when it comes to the safety of customers and innocent bystanders, Tesla is truly one of the most vile companies on Earth. Meanwhile the massive number of lawsuits of all types against the company continues to escalate. So Here Is Tesla’s Competition In Cars... (note: these links are regularly updated) Porsche Taycan Porsche Taycan Cross Turismo Porsche Macan Electric SUV Officially Coming in 2023 Volkswagen ID.3 Volkswagen ID.4 Electric SUV Volkswagen unveils ID.6 SUV EV in China Volkswagen ID.Buzz Electric Van Volkswagen unveils the ID. AERO sedan with 385 miles of range New sketch of 2025 Volkswagen ID.1 unveiled VW’s Cupra Born Volkswagen unveils $7.1B commitment to boost product line-up, R&D, mfg in N. America Audi Q8 e-tron electric SUV Audi e-tron GT Audi Q4 e-tron Audi Q6 e-tron electric SUV Audi A6 e-tron: 2023's new electric Tesla fighter spied Audi will expand EV lineup with electric A6 wagon Audi TT to be axed in 2023 for 'emotional', electric replacement Hyundai Ioniq 5 Hyundai Ioniq 6 Hyundai Kona Electric Genesis reveals their first EV on the E-GMP platform, the electric GV60 crossover Genesis Electrified GV70 Revealed With 483 Horsepower And AWD Kia Niro Electric: 239-mile range & $39,000 before subsidies Kia EV6: Charging towards the future Kia EV9 to land in US in 2023 with 300-miles range, $50,000 price Kia EV4 on course to grow electric SUV range Jaguar’s All-Electric i-Pace Jaguar to become all-electric brand; Land Rover to Get 6 electric models Daimler will invest more than $47B in EVs and be all-electric ready by 2030 Mercedes EQS: the first electric vehicle in the luxury class 2023 Mercedes EQS SUV Is a Seven-Seat EV Flagship with up to 536 HP 2023 Mercedes EQE Electric Sedan Mercedes EQE SUV to rival BMW iX and Tesla Model X Mercedes EQC electric SUV available now in Europe & China Mercedes-Benz Launches the EQV, its First Fully-Electric Passenger Van Mercedes-Benz EQB Makes Its European Debut, US Sales Confirmed Mercedes-Benz unveils EQA electric SUV with 265 miles of range and ~$46,000 price Ford Mustang Mach-E Ford F-150 Lightning Ford set to launch ‘mini Mustang Mach-E’ electric SUV in 2023 Ford to launch 7 EVs in Europe in big electric push Ford unveils Lincoln Star electric SUV concept as it readies to add four new EVs by 2026 Chevrolet Blazer EV Chevrolet Equinox EV Chevrolet Bolt sedan, 259-mile range starting at $31,000 Chevrolet Bolt EUV electric crossover Cadillac All-Electric Lyriq GMC Electric Hummer Pick-Up and SUV GM electric Silverado pickup truck GMC Sierra EV Denali GM Launches BrightDrop to Electrify the Delivery of Goods and Services GM & Honda Will Codevelop Affordable EVs Targeting Most Popular Vehicle Segments Two Jeep EVs to make U.S. debuts in 2024 BMW leads off EV offensive with iX3 BMW expands EV offerings with iX tech flagship and i4 sedan BMW i7 EV, with 600 hp, will be most powerful variant of new 7 Series flagship BMW iX1 Revealed With 313 HP, 272 Miles WLTP Range Renault-Nissan alliance plows $26B into EV blitz- will jointly launch 35 new EVs Nissan Ariya: All-Electric Crossover SUV Nissan LEAF e+ with 226-mile range is available now Nissan Unveils $18 Billion Electric-Vehicle Strategy Polestar 2 sedan Polestar 3 electric SUV Volvo XC40 Recharge electric SUV Volvo C40 Recharge electric crossover Volvo EX90 electric SUV Renault upgrades Zoe electric car as competition intensifies Renault Dacia Spring Electric SUV Renault to boost low-volume Alpine brand with 3 EVs Renault's electric Megane will debut new digital cockpit Stellantis promises 'heart-of-the-market SUV' from new, 8-vehicle EV platform Chrysler to go all-EV by 2028 Honda, Sony to start premium EV deliveries in 2026 Honda pours $40 billion into electrification, targets 2 million EV production by 2030 Alfa Romeo's First Electric Car Will Arrive in 2024 Peugeot e-208 PEUGEOT E-2008: THE ELECTRIC AND VERSATILE SUV Peugeot 308 will get full-electric version Subaru shows off its first electric vehicle, the Solterra SUV Citroen compact EV challenges VW ID3 on price Rivian electric pickup trucks & SUVs Maserati GranTurismo Debuts As Brand’s First EV With Three Motors, AWD Mini Cooper SE Electric Toyota’s Electric bZ4X Goes On Sale in Spring 2022 Toyota will have lineup of 30 full EVs by 2030; Lexus will be all-electric brand Opel Corsa-e Opel expands EV lineup with battery-electric Astra Vauxhall Mokka electric Skoda Enyaq iV electric SUV Skoda Enyaq electric coupe Skoda plans small EV, cheaper variants to take on French, Korean rivals BYD presents three BEVs for European market Nio expands into Europe and beyond Lucid Motors: Electric Luxury Cars Rolls-Royce Electric Spectre, Available 2023 Bentley will start output of first full EV in 2025 Aston Martin will build electric vehicles in UK from 2025 Two new electric cars from Mahindra in India; Global Tesla rival e-car soon Sono Sion Foxconn aims for 10% of electric car platform market by 2025 And In China, Where Tesla’s EV Market Share Is Now Declining... BYD is #1 in Chinese EVs, selling FAR more than Tesla Volkswagen to boost Chinese EV capacity to 1m by 2023 Audi-FAW's $3.3 billion electric vehicle venture Nio Xpeng Motors Hozon/Neta Li Auto GAC Aion Leap Motors GM plans to launch over 15 EV models in China by 2025 Ford Mustang Mach-E Rolls Off Assembly Line in China Cheaper than Tesla: Honda takes aim at China's middle class BMW i3 Debuts As All-Electric 3 Series Only For China Hongqi Geely Zeekr Premium EVs by Geely Baidu and Geely put nearly $400 million more into their electric car venture China-made Mercedes-Benz EQE hits market BAIC Hyundai, BAIC Motor to inject $942 mn in China JV for EVs Toyota partners with BYD to build affordable $30,000 electric car Lexus RZ 450e Steers For China Dongfeng SAIC Renault launches sales of first EV in China Nissan expects 40% of sales in China to be electrified by 2026 Changan forms subsidiary Avatar Technology to develop smart EVs with Huawei, CATL WM Motors/Weimar Chery Seres Enovate Singulato JAC Motors Iconiq Motors Aiways Skyworth Auto Youxia Human Horizons Xiaomi announces plans for four electric vehicle models Here’s Tesla’s Competition In Autonomous Driving; The Independents All Have Deals With Major OEMs... Waymo ranked top & Tesla last in Guidehouse leaderboard on automated driving systems Tesla has a self-driving strategy other companies abandoned years ago Waymo operates robotaxis NOW GM’s Cruise operates robotaxis NOW Mobileye operates driverless test fleets in Europe and the U.S. Cadillac Super Cruise Sets the Standard for Hands-Free Highway Driving Ford’s hands-free “Blue Cruise” Mercedes Launches SAE Level 3 Drive Pilot System Honda Legend Sedan with Level 3 Autonomy Now Available in Japan Motional (Hyundai) & Uber Announce Autonomous Ride-hail and Delivery Services Stellantis Acquires aiMotive, a Leading Autonomous Driving Start-up Amazon’s Zoox will test its autonomous vehicles on Seattle’s rainy streets Baidu Apollo starts fully autonomous test in Shanghai Driverless Demo Zone Alibaba-backed AutoX unveils first driverless RoboTaxi production line in China Pony.ai approved for public driverless robotaxi service in Beijing Here’s Where Tesla’s Competition Will Get Its Battery Cells... Panasonic (making deals with multiple automakers) LG Samsung SK Innovation Toshiba CATL BYD Northvolt Volkswagen to Build Six Electric-Vehicle Battery Factories in Europe GM’s Ultium GM to develop lithium-metal batteries with SolidEnergy Systems SK On and Ford form BlueOval SK, an EV battery joint venture Hyundai teams with SK to make batteries for U.S.-built EVs Hyundai Motor developing solid-state EV batteries BMW & Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles Stellantis affirms commitment to build battery factory in Italy with Mercedes, TotalEnergies Stellantis and Samsung SDI to Invest Over $2.5B in Battery Production Plant in United States Stellantis and LG to Invest Over $5 Billion CAD in Joint Venture for Li-Ion Battery Plant in Canada Stellantis and Factorial Energy to Jointly Develop Solid-State Batteries for Electric Vehicles Mercedes-Benz to build 8 battery factories in push to become electric-only automaker Mercedes-Benz and Sila achieve breakthrough with high silicon automotive battery Toyota to invest $5.3bn to make EV batteries in U.S. and Japan Toyota Outlines Solid-State Battery Tech, $13.6 Billion Investment Honda Motor, LG Energy to build $4.4 bln U.S. EV battery plant Daimler joins Stellantis as partner in European battery cell venture ACC Renault signs EV battery deals with Envision, Verkor for French plants Nissan to build $1.4bn EV battery plant in UK with Chinese partner Nissan Announces Proprietary Solid-State Batteries UK companies AMTE Power and Britishvolt plan $4.9 billion investment in battery plants Foxconn breaks ground on first EV battery plant Envision-AESC ONE EVE Freyr Verkor Farasis Microvast Akasol Cenat Wanxiang Eve Energy Svolt Romeo Power ProLogium Morrow Here's Tesla's Competition In Charging Networks... Infrastructure Bill: $7.5 billion Towards Nationwide Network of 500,000 EV Chargers Electrify America EVgo Chargepoint Ionity Europe Shell 51 U.S. electric companies commit to build nationwide EV fast charging network by end of 2023 GM, EVgo, and Pilot will install 2,000 fast chargers at travel centers GM to Expand Access to EV Charging with More than 40,000 Charging Stations Volkswagen powers up the grid to take on Tesla Volkswagen-backed CAMS eyes deployment of 17,000 charging points in China by 2025 Circle K begins North American EV fast charger rollout, plans 200-site network by 2024 Porsche to build out its own network of EV charging stations Petro-Canada Coast-to-Coast Canadian Charging Network Volta E.On BP Volkswagen and BP partner to deploy up to 8,000 EV chargers across EU/UK Smatric Allego Podpoint Instavolt Fastned Total Nio Battery Swap Stations BMW to Build 360,000 Charging Points in China to Juice Electric Car Sales Evie Tritium, DC-America Join Forces to Provide coast-to-coast EV charging network And Here's Tesla's Competition In Storage Batteries... Panasonic Samsung LG Energy Solutions CATL BYD AES + Siemens (Fluence) Hitachi ABB Toshiba Saft Johnson Contols EnerSys SOLARWATT Sonnen Generac GM Energy Canadian Solar Kokam Eaton Tesvolt Leclanche Lockheed Martin Honeywell EOS Energy Storage ESS Electriq Power Redflow Primus Power Simpliphi Power Invinity Murata Bollore Adara Blue Planet Aggreko Orison Powin Energy Nidec Powervault Kore Power Shanghai Electric LithiumWerks Natron Energy Energy Vault Ambri Voltstorage Cadenza Innovation Morrow Gridtential Villara Elestor SolarEdge Q-Cells Huawei Toyota ADS-TEC Form Energy Enphase Sumitomo Electric Stryten Energy Freyr Growatt Polarium Alfen Quino Energy Thanks, Mark Spiegel Stanphyl Capital.....»»

Category: blogSource: valuewalkDec 1st, 2022

Canadian Solar Reports Third Quarter 2022 Results

GUELPH, ON, Nov. 22, 2022 /PRNewswire/ -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ:CSIQ) today announced financial results for the third quarter ended September 30, 2022, with 57% year-over-year ("yoy") revenue growth and net income of $1.12 per diluted share as the Company continues to prioritize profitable growth. Highlights 18.8% gross margin exceeds the guidance range of 15.0% to 16.5%. 57% increase in revenue to $1.93 billion, compared to $1.23 billion in 3Q 2021. 123% increase in net income attributable to Canadian Solar to $1.12 per diluted share compared to $0.52 per diluted share in 3Q 2021. 62% increase in solar module shipments to 6.0 GW, compared to 3.7 GW in 3Q 2021. Global Energy battery storage project development pipeline expands to 40 GWh and solar project development pipeline at 25 GWp, as of September 30, 2022. Company expects full year 2023 module shipments to be in the range of 30 GW to 35 GW, representing 56% yoy growth at the mid-point of the range. Carve-out IPO of CSI Solar Co., Ltd. ("CSI Solar" or the "CSI Solar subsidiary") back on track awaiting completion of CSRC registration. Dr. Shawn Qu, Chairman and CEO, commented, "We achieved a 123% increase in net income on a year-over-year basis, despite the headwinds from ongoing COVID-19 shutdowns and macroeconomic challenges. We continue to execute our long-term strategy and build on our competitive position with a further expansion of our upstream capacity and increased level of vertical integration in our solar manufacturing capacity. The benefits of greater control over our supply chain and an improved cost structure will further strengthen our competitive moat, driving a differentiated value proposition for our customers through better products with lower carbon footprint. We are also actively evaluating options in the U.S. market given the recent passing of the Inflation Reduction Act and its potential positive impact as another growth catalyst. Finally, after a short procedural pause, CSI Solar's carve-out IPO is back on track awaiting registration with the China Securities Regulatory Commission." Yan Zhuang, President of Canadian Solar's CSI Solar subsidiary, said, "We achieved significant growth in both profit and volume during the third quarter, driven by strong demand, ongoing reductions in manufacturing cost, and currency benefits from a strong U.S. Dollar relative to the Renminbi. CSI Solar continues to successfully balance growth and profitability, prioritizing margins by enhancing our pricing power in higher-priced markets and delivering greater system-value to our customers. With that in mind, we officially launched two proprietary battery storage products, the SolBank for large utility scale applications and the EP Cube for residential applications, which received an overwhelmingly positive response from customers. CSI Solar's battery storage turnkey pipeline at the end of the third quarter more than doubled to 25 GWh, with several new projects across the U.S. and Europe recently signed. Supported by strong partnerships through the battery storage supply chain, we are confident that energy storage will become an increasingly important driver of our long-term growth and value creation." Ismael Guerrero, Corporate VP and President of Canadian Solar's Global Energy subsidiary, said, "The third quarter was, as anticipated, a sequentially smaller but profitable quarter for Global Energy as we monetized around 890 MWp of solar projects. The majority of projects sold were earlier-stage pre-construction projects in the U.S. and Brazil, and a small operational project in Japan, supporting a 47% gross margin during the quarter. Strategically, we are focusing more resources on developing battery storage projects, both stand-alone and hybrid, where we have an edge and can not only help our customers de-carbonize operations and electric grids, but also de-risk project portfolios, enhance overall project values and meaningfully contribute to the stability and reliability of the grid." Dr. Huifeng Chang, Senior VP and CFO, added, "In the third quarter, we achieved 57% revenue growth year-over-year and expanded our gross margin to 18.8%, delivering net income of $1.12 per diluted share. Our team continues to do a great job managing inventory levels to support our customers, while maintaining a healthy balance sheet to support our long-term working capital, product roadmap and capacity expansion strategy. We ended the quarter with a total cash position of $2.0 billion and remain well positioned to benefit from the acceleration in growth the industry is seeing worldwide in both solar and battery storage." Third Quarter 2022 Results Total module shipments recognized as revenues in the third quarter of 2022 were 6.0 GW, up 62% yoy. Of the total, 196 MW were shipped to the Company's own utility-scale solar power projects. Net revenues in the third quarter of 2022 were up 57% yoy and down 16% quarter-over-quarter ("qoq") to $1.93 billion. The sequential decline primarily reflects lower revenue from project sales and battery storage solutions and a small decline in module average selling price ("ASP"). This was partially offset by higher solar module shipment volumes. The yoy improvement was mainly driven by an increase in module shipments and ASPs. Gross profit in the third quarter of 2022 was $363 million, up 59% yoy and down 2% qoq. Gross margin in the third quarter of 2022 was 18.8%, compared to 16.0% in the second quarter 2022, and considerably above prior guidance. The sequential gross margin increase was mainly driven by lower manufacturing costs that were also attributable to the depreciation of the Renminbi relative to the U.S. Dollar, higher margin contribution from project sales, and lower sales from battery storage solutions. Total operating expenses in the third quarter of 2022 were $274 million compared to $255 million in the second quarter of 2022 and $176 million in the third quarter of 2021. The sequential increase was mainly driven by an impairment charge related to certain manufacturing assets and higher shipping and handling expenses. Depreciation and amortization charges in the third quarter of 2022 were $56 million, compared to $63 million in the second quarter of 2022 and $71 million in the third quarter of 2021. Net interest income in the third quarter of 2022 was $4 million, compared to net interest expense of $15 million in the second quarter of 2022 and net interest expense of $11 million in the third quarter of 2021. The increase in net interest income was mainly driven by a one-time interest benefit of $17 million deriving from the interest income generated by the anti-dumping and countervailing duty deposit refunds. Net foreign exchange and derivative gain in the third quarter of 2022 was $39 million, compared to a net gain of $6 million in the second quarter of 2022 and a net loss of $14 million in the third quarter of 2021. The net foreign exchange gain was mainly driven by the strengthening of the U.S. Dollar against the Renminbi. Net income attributable to Canadian Solar in the third quarter of 2022 was $78 million, or $1.12 per diluted share ("diluted EPS"), compared to net income of $74 million, or $1.07 per diluted share, in the second quarter of 2022, and net income of $35 million, or $0.52 per diluted share, in the third quarter of 2021. For the three months ended September 30, 2022, diluted EPS of $1.12 was calculated to include the dilution effect of the outstanding convertible notes. Diluted EPS of $1.12 was calculated from total earnings of $80 million, adding back the 2.5% coupon of $1.3 million, divided by 71.4 million diluted shares, including 6.3 million shares issuable upon the conversion of the convertible notes. For the three months ended June 30, 2022, diluted EPS of $1.07 was calculated from total earnings of $76 million, adjusted for the effects of the convertible notes. For the three months ended September 30, 2021, diluted EPS of $0.52 was calculated from total earnings of $37 million, adjusted for the effects of the convertible notes. Net cash flow provided by operating activities in the third quarter of 2022 was $68 million, compared to $293 million in the second quarter of 2022. The decrease in operating cash inflow was mainly driven by changes in working capital. Total debt was $2.7 billion as of September 30 and June 30, 2022. Non-recourse debt used to finance solar power projects increased to $311 million as of September 30, 2022, from $264 million as of June 30, 2022. Corporate Structure The Company has two business segments: Global Energy and CSI Solar, which operate as follows: The Global Energy segment carries out the Company's global project development activities for both solar and battery storage project development, which include sourcing land, interconnection agreements, structuring power purchase agreements (PPAs) and other permits and requirements. The Global Energy segment develops both stand-alone solar and stand-alone battery storage projects, as well as hybrid solar plus storage projects. Its monetization strategies vary between develop-to-sell, build-to-sell, and build-to-own, depending on business strategies and market conditions, with the goal of maximizing returns, accelerating cash turn, and minimizing capital risk. The CSI Solar segment consists of solar module manufacturing and total system solutions, including inverters, solar system kits and EPC (engineering, procurement and construction) services. The CSI Solar segment also includes the Company's battery storage system integration business, delivering bankable, end-to-end, turnkey battery storage solutions for utility scale, commercial and industrial, and residential applications. These storage systems solutions are complemented with long-term service agreements, including future battery capacity augmentation services. Global Energy Segment Canadian Solar has one of the world's largest and most geographically diversified utility-scale solar and energy storage project development platforms, with a strong track record of originating, developing, financing, and building over 7.3 GWp of solar power plants across six continents. The Company has built a leadership position in solar project development with 25 GWp total pipeline, as well as in energy storage project development with 40 GWh of aggregate pipeline. The continued pipeline expansion and strong project development track record will support Global Energy's growth in three key areas:  1.      Project sales: The Company plans to grow its volume of project sales by a compound annual growth rate of approximately 50% to 2026, while holding and accumulating assets through investment vehicles (see below) in order to better capture asset value. 2.      Investment vehicles: The Company is optimizing its project monetization strategy by establishing local investment vehicles that will help maximize the value of its project assets. The Company also intends to retain minority ownership in these vehicles. By 2026, the Company plans to reach 1.3 GW of combined net ownership in solar power projects through these vehicles. This approach will help the Company build and grow a stable base of long-term cash flows from contracted electricity. The Company plans to recycle a large portion of the capital into developing new solar projects for growth. Meanwhile, the Company expects to capture additional operational value throughout the partial ownership period, including long-term cash flows from power sales, O&M, asset management and other services (see point 3). The Company currently owns a 15% stake in the Canadian Solar Infrastructure Fund ("CSIF", TSE: 9284), the largest Japanese infrastructure fund listed on the Tokyo Stock Exchange, and has also established the CSFS Fund I, a closed-ended alternative investment fund of a similar nature in Italy. Through launching these localized vehicles, Canadian Solar is building its expertise in designing investment vehicles in local markets that will help maximize the value of its project assets. 3.      Services: The Company currently manages over 3.6 GW of operational projects under long-term O&M agreements, and an additional 2.2 GW of contracted projects that will be operated and maintained by the Company once they are placed in operation. The Company's target is to reach 20 GW of projects under O&M agreements by 2026. Management targets to achieve the following over the next few years: Global Energy Targets 2021A 2022E 2023E 2024E 2025E 2026E Annual Project Sales, GWp 2.1 2.2-2.3 2.8-3.3 3.5-4.0 4.0-4.5 4.3-4.8 Operational O&M Projects, GWp 2.1 4.2 7.5 11 15 20 Net Cumulative Projects Retained, MWp* 292 360 630 1,000 1,100 1,300 Gross Cumulative Projects Retained, MWp* 748 1,400 2,580 3,500 4,000 5,000 *Net projects retained represents CSIQ's net partial ownership of solar projects; the gross number represents the aggregate gross size of projects, including the share which is not owned by CSIQ. Project Pipeline – Solar As of September 30, 2022, the Company's total project pipeline was 25.0 GWp, including 1.0 GWp under construction, 5.2 GWp of backlog, and 18.8 GWp of projects in advanced and early-stage pipelines. We have updated our project pipeline classification as follows: Backlog projects are late-stage projects that have passed their Risk Cliff Date and are expected to start construction in the next 1-4 years. A project's Risk Cliff Date is the date on which the project passes the last high-risk development stage and varies depending on the country where it is located. This is usually after the projects have received all the required environmental and regulatory approvals, and entered into interconnection agreements, feed-in tariff ("FIT") arrangements and PPAs. Over 90% of projects in backlog are contracted (i.e., have secured a PPA or FIT), and the remaining are reasonably assured of securing PPAs. Advanced pipeline projects are mid-stage projects that have secured or have more than 90% certainty of securing an interconnection agreement. Early-stage pipeline projects are early-stage projects controlled by Canadian Solar that are in the process of securing interconnection. The following table presents Global Energy's total solar project development pipeline.   Total Project Pipeline (as of September 30, 2022) – MWp* Region In Construction Backlog Advanced Pipeline Early-Stage Pipeline Total North America - 603 2,125 3,818 6,546 Latin America 730** 3,211** 2,072 608 6,621 Europe, the Middle East and Africa ("EMEA") 21 379 4,067 1,880 6,347 Japan 46 156 - 105 307 Asia Pacific excluding Japan and China - 3 135 1,842 1,980 China 250 800** - 2,150 3,200 Total 1,047 5,152 8,399 10,403 25,001 *All numbers are gross MWp. **Including 189 MWp in construction and 670 MWp in backlog that are owned by or already sold to third parties.   Project Pipeline – Battery Storage In addition to developing utility-scale solar power projects, the Global Energy segment has also been developing hybrid solar plus energy storage projects, as well as stand-alone battery storage projects. The Company co-hosts energy storage facilities with solar power plants on the same piece of land for nearly all projects under development. By using a single interconnection point per project, the Company expects to significantly enhance the efficiency of its development and the value of its assets under development. Canadian Solar's storage development business model also includes signing storage tolling agreements with a variety of power purchasers, including community choice aggregators, investor-owned utilities, universities, and public utility districts. In addition, the Company has signed development services agreements to retrofit operational solar projects with battery storage, many of which were previously developed by the Company. The table below sets forth Global Energy's total battery storage project development pipeline. Storage Project Development Backlog and Pipeline (as of September 30, 2022) – MWh Region In Construction Backlog Advanced Pipeline Early-Stage Pipeline Total North America 1,400* - 4,776 8,600 14,776 Latin America - 2,300 1,806 970 5,076 EMEA - 82 2,608 6,000 8,690 Japan - - - 19 19 Asia Pacific, excluding Japan and China 20 462 - 2,320 2,802 China - 300 - 8,700 9,000 Total 1,420 3,144 9,190 26,609 40,363 * Including 1,120 MWh that have already been sold to a third party.   Projects in Operation - Solar and Battery Storage Power Plants As of September 30, 2022, the Company's solar power plants in operation totaled 508 MWp, with a combined estimated net resale value of approximately $575 million to Canadian Solar. The estimated resale value is based on selling prices that Canadian Solar is currently negotiating or comparable asset sales. Solar Power Plants in Operation – MWp* Latin America Japan Asia Pacific ex. Japan and China China Total 277 134 15 82 508 *All numbers are net MWp owned by Canadian Solar; total gross MWp of projects is 903 MWp, including volume that is already sold to third parties.   Operating Results The following table presents select unaudited results of operations data of the Global Energy segment for the periods indicated. Global Energy Segment Financial Results (In Thousands of U.S. Dollars, Except Percentages) Three Months Ended Nine Months Ended September 30,2022 June 30,2022 September 30,2021 September 30,2022 September 30,2021 Net revenues 100,925 553,984 139,989 747,875 891,665 Cost of revenues 53,366 473,979 78,848 602,475 705,740 Gross profit 47,559 80,005 61,141 145,400 185,925 Operating expenses 20,512 24,326 30,442 63,685 74,018 Income from operations* 27,047 55,679 30,699 81,715 111,907 Gross margin 47.1 % 14.4 % 43.7 % 19.4 % 20.9 % Operating margin 26.8 % 10.1 % 21.9 % 10.9 % 12.6 % * Income from operations reflects management's allocation and estimate as some services are shared by the Company's two business segments.   CSI Solar Segment Solar Modules CSI Solar shipped 6.0 GW of solar modules to more than 70 countries in the third quarter of 2022. The top five markets ranked by shipments were China, the U.S., Brazil, Spain and Germany. CSI Solar's 2022 and 2023 solar capacity expansion targets are set forth below. Solar Manufacturing Capacity, GW* Sep. 2022 Actual Dec. 2022Plan Jun. 2023 Plan Dec. 2023 Plan Ingot 14.4 20.4 20.4 25.0 Wafer 15.3 20.0 20.0 25.0 Cell 17.3 19.8 26.6 35.0 Module 31.3 32.2 36.7 50.0 *Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans.   Battery Storage Solutions Within CSI Solar, the battery storage solutions team, namely CSI Energy Storage, provides customers with competitive turnkey, integrated, utility-scale battery storage solutions, including bankable and fully wrapped capacity and performance guarantees. These guarantees are complemented with long-term service agreements, which include future battery capacity augmentation services and bring in long-term, stable income. The table below sets forth CSI Energy Storage's project pipeline as of September 30, 2022, including projects contracted under long term service agreement.   LTSA (Long Term Service Agreement) Contracted/ In Construction Forecast Pipeline Total Storage (MWh) 861 2,372 4,304 17,345 24,882   LTSA projects are operational battery storage projects delivered by CSI Solar that are under multi-year long-term service agreements and generate recurring earnings. Contracted/in construction projects are expected to be delivered within the next 12 to 18 months. Forecast projects include those that have more than 75% probability of being contracted within the next 12 months, and the remaining pipeline includes projects that have received exclusivity agreements or have been shortlisted, but still have a below 75% probability of being contracted. In September 2022, CSI Solar launched the SolBank, an exciting new, self-manufactured battery storage product. The SolBank is a lithium iron phosphate (LiFePO4) chemistry-based battery enclosure with up to 2.8 MWh of usable energy capacity, specifically engineered for utility-scale applications. The SolBank is designed with liquid cooling and humidity control, active balancing BMS (Battery Management System) technologies, and complies with the latest international safety and compliance standards. CSI Energy Storage produces the SolBank on fully automated, state-of-the-art production and testing facilities. The table below sets forth CSI Energy Storage's battery storage manufacturing capacity expansion targets. Battery Storage ManufacturingCapacity, GWh* Sep. 2022 Actual Dec. 2022 Plan Dec. 2023 Plan SolBank 2.5 2.5 10.0 *Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans.   Operating Results  The following table presents select unaudited results of operations data of the ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaNov 22nd, 2022

Tesla Posted Nonsensical Earnings Numbers In Q3 – Shortseller

Stanphyl Capital’s commentary for the month ended October 31, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). The Tesla “hypergrowth” story is over. Here are the company’s most recent quarterly deliveries: Q4 ‘21: 309,000 Q1 ‘22: 310,000 Q2 2022 & Q3’s averaged (to account for 70,000 Q2 cars built & delivered in Q3 due […] Stanphyl Capital’s commentary for the month ended October 31, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). The Tesla “hypergrowth” story is over. Here are the company’s most recent quarterly deliveries: Q4 ‘21: 309,000 Q1 ‘22: 310,000 Q2 2022 & Q3’s averaged (to account for 70,000 Q2 cars built & delivered in Q3 due to Q2’s China factory closing): 300,000 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 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. Tesla's Production Capacity Is Outstripping Incoming Orders Tesla delivery wait times worldwide are now declining substantially and its production capacity is now outstripping its rate of incoming orders despite running its China factory below capacity and the new German and Texas factories producing at only around 10% of their capacity. This means one thing and one thing only: big, margin-slashing Tesla price cuts were needed to resume meaningful unit delivery growth, and in October they arrived in China. I expect Europe will soon follow, and then perhaps the U.S. in 2023. Sure, if Tesla slashes prices enough it will undoubtedly be able to sell more cars, but so can any other car company. Welcome to the auto business, which sells for less than 10x earnings! For some valuation perspective regarding this data, BMW sells around two million cars a year (including the best electric SUV now on the market, the new iX) with very high margins, and has a market cap of around $52 billion. Meanwhile, Tesla is now barely growing from around 1.3 million cars a year. If Tesla had BMW's market cap (at which point it would still be grossly overpriced, in my opinion) it would sell for only around $16/share vs. this month's closing price in the $227s! Meanwhile, Elon Musk remains the most vile person ever to head a large-cap U.S. public company, and we remain short Tesla, the biggest bubble-stock in modern market history, because: It has a sliding share of the world’s EV market and a share of the overall auto market that’s only around 1.7%, yet a market cap greater than the next 9 largest automakers (by market cap) combined. It has no “moat” of any kind; i.e., nothing meaningfully proprietary in terms of its electric car technology (which has now been equaled or surpassed by numerous competitors) and its previously proprietary Superchargers are being opened to everyone), while existing automakers—unlike Tesla­—have a decades-long “experience moat” of knowing how to mass-produce, distribute and service high-quality cars consistently and profitably. Excluding working capital benefits and sunsetting emission credit sales Tesla generates only minimal free cash flow. Growth in sequential demand for Tesla’s cars is at a crawl relative to expectations. Elon Musk is a pathological liar. In October Tesla claimed that it had Q3 diluted GAAP earnings of .95/share. If you believe that after viewing this chart (courtesy of Twitter user @Keubiko), I have a bridge to sell you in Brooklyn: Furthermore, Tesla’s minimal depreciation of its new factories appears fraudulently low, as does its warranty reserve. Even if you believe Tesla’s clearly nonsensical earnings number, it annualizes to only $3.80/share, which based on October’s closing price of $227.54 = a PE ratio of around 60 for a now slow-growing car company in an industry with a current average PE of around 5. Meanwhile, Tesla has objectively lost its “product edge,” with many competing cars now offering comparable or better real-world range, better interiors, similar or faster charging speeds and much better quality. (Tesla ranks second-to-last in Consumer Reports’ reliability survey while British consumer organization Which? found it to be one of the least reliable cars in existence.) Thus, due to competitors’ temporary production constraints, waiting times are now longer for many of Tesla’s direct EV competitors than they are for a Tesla. In fact, Tesla is likely now the second, third or fourth choice for many EV buyers, and only maintains its volume lead though a short-lived edge in production capacity that will disappear over the next 12 to 36 months as competitors rapidly increase the ability to produce their superior EVs. Tesla’s poorly-built Model Y faces current (or imminent) competition from the much better made (and often just better) electric Hyundai Ioniq 5, Kia EV6, Ford Mustang Mach E, Cadillac Lyriq, Nissan Ariya, Audi Q4 e-tron, BMW iX3, Mercedes EQB, Volvo XC40 Recharge, Chevrolet Blazer EV & $30,000 Equinox EV and Polestar 3. And Tesla’s Model 3 now has terrific direct “sedan competition” from Volvo’s beautiful Polestar 2, the great new BMW i4, the upcoming Hyundai Ioniq 6 and Volkswagen Aero, and multiple local competitors in China. And in the high-end electric car segment worldwide the Porsche Taycan (the base model of which is now considerably less expensive than Tesla’s Model S) outsells the Model S, while the spectacular Mercedes EQS, Audi e-Tron GT and Lucid Air make it look like a fast Yugo, and the extremely well reviewed new BMW iX and Mercedes EQS SUV (as well as multiple new Chinese models) do the same to the Model X. Tesla Is Netflix Indeed, for years I’ve said “Tesla is Blackberry”—the maker of a first-generation version of a product that—once the market was proven—would be supplanted into niche obscurity by newer, better versions; now I can provide a much more recent analogy: Tesla is Netflix. For years Netflix had an absurd valuation based on its pioneering position in streaming media, but once it proved that such a market existed myriad competitors swarmed all over it, and this year the stock collapsed when we learned that not only is Netflix no longer in “hypergrowth” mode but for the first time since 2011 (when it transitioned from physical DVDs) it actually lost subscribers. I believe Musk knows that Tesla is “the next Netflix” (hence his recent “Twitter buying distraction”), with VW, Hyundai/Kia, Ford, GM, Stellantis, BMW, Mercedes, BYD & other Chinese competitors. And, in a few years, Toyota & Honda, being the Disney, HBO Max, Amazon Prime, Peacock, Hulu, Paramount +, etc., of the electric car market, stealing Tesla’s share and eventually pounding its stock price down 95% or so from today’s, into the valuation of “just another car company.” Despite this obvious “writing on the wall,” many Tesla bulls sincerely believe that ten years from now the company will be twice the size of Volkswagen or Toyota, thereby selling around 20 million cars a year (up from the current run-rate of around 1.3 million); in fact in May Musk himself even raised this as a possibility. Setting aside the absurdity of selling that many cars into the limited market of Tesla’s high price points, the “logistical absurdity” of selling 20 million cars/year in ten years means that in addition to 2 million cars a year of sold-out existing claimed production capacity (once the German and Texas factories are fully operational) vs. the current stalled-out rate of 1.3 million. Tesla would have to add 36 more brand new 500,000 car/year factories with sold out production; i.e., a new factory nearly every single quarter for the next ten years! Only a Teslemming could be dumb enough to believe this! Meanwhile, in June the NHTSA announced that its investigation of Tesla’s deadly Autopilot has expanded into “an engineering analysis,” the last required step before (finally!) demanding a full recall, and in October it was reported that this deadly scam is being investigated by both the SEC and the DOJ. The refund liability potential for Tesla for this is in the billions of dollars, and possibly even the tens of billions if a class action lawsuit proves that the cars involved were purchased solely due to the (fallacious) promise of “full self-driving.” And, of course, there will be a massive “valuation reappraisal” for Tesla’s stock as the world wakes up to the fact that Tesla’s so-called “autonomy technology” is deadly, trailing-edge garbage. In fact, in October the NHTSA reported that there were at least 10 more Autopilot-related deaths just since May. For all Tesla deaths cited in the media—which is likely only a small fraction of those that have occurred—see TeslaDeaths.com. And Tesla has sold this trashy software for over six years now: …and still promotes it on its website via a completely fraudulent video! Want to see another Elon Musk/Tesla fraud summarized in a simple bar graph? In this recent Consumer Reports test, note which of these cars never comes close—in any environmental conditions—to meeting its claimed EPA range: Another favorite Tesla hype story has been built around so-called “proprietary battery technology.” In fact though, Tesla has nothing proprietary there—it doesn’t make them, it buys them from Panasonic, CATL and LG, and it’s the biggest liar in the industry regarding the real-world range of its cars. And if new-format 4680 cells enter the market some time in 2024 (as is now expected), even if Tesla makes some of its own, other manufacturers will gladly sell them to anyone, and BMW has already announced it will buy them from CATL and EVE. And oh, the joke of a “pickup truck” Tesla previewed in 2019 (and still hasn’t shown in production-ready form) won’t be much of “growth engine” either, as it will enter a dogfight of a market. In fact, Ford’s terrific 2022 all-electric F-150 Lightning now has over 200,000 retail reservations (plus many more fleet reservations), GM has introduced its fantastic 2023 electric Silverado which already has nearly 200,000 reservations, Rivian’s pick-up has gotten excellent early reviews, and Ram will be out with a great one in 2024. Regarding safety, as noted earlier in this letter, Tesla continues to deceptively sell its hugely dangerous so-called “Autopilot” system, which Consumer Reports has completely eviscerated; God only knows how many more people this monstrosity unleashed on public roads will kill despite the NTSB condemning it. Elsewhere in safety, the Chinese government forced the recall of tens of thousands of Teslas for a dangerous suspension defect the company spent years trying to cover up, and Tesla has been hit by a class-action lawsuit in the U.S. for the same defect. Tesla also knowingly sold cars that it knew were a fire hazard and did the same with solar systems, and after initially refusing to do so voluntarily, it was forced to recall a dangerously defective touchscreen. In other words, when it comes to the safety of customers and innocent bystanders, Tesla is truly one of the most vile companies on Earth. Meanwhile the massive number of lawsuits of all types against the company continues to escalate. So Here Is Tesla’s Competition In Cars... (note: these links are regularly updated) Porsche Taycan Porsche Taycan Cross Turismo Porsche Macan Electric SUV Officially Coming in 2023 Volkswagen ID.3 Volkswagen ID.4 Electric SUV Volkswagen unveils ID.6 SUV EV in China Volkswagen ID.Buzz Electric Van Volkswagen unveils the ID. AERO sedan with 385 miles of range New sketch of 2025 Volkswagen ID.1 unveiled VW’s Cupra Born Volkswagen unveils $7.1B commitment to boost product line-up, R&D, mfg in N. America Audi e-tron Audi e-tron Sportback Audi E-tron GT Audi Q4 e-tron Audi Q6 e-tron confirmed for 2022 launch 2022 Audi A6 e-tron set to take on Tesla Audi will expand EV lineup with electric A6 wagon Audi TT to be axed in 2023 for 'emotional', electric replacement Hyundai Ioniq 5 Hyundai Ioniq 6 Hyundai Kona Electric Genesis reveals their first EV on the E-GMP platform, the electric GV60 crossover Genesis Electrified GV70 Revealed With 483 Horsepower And AWD Kia Niro Electric: 239-mile range & $39,000 before subsidies Kia EV6: Charging towards the future Kia EV9 to land in US in 2023 with 300-miles range, $50,000 price Kia EV4 on course to grow electric SUV range Jaguar’s All-Electric i-Pace Jaguar to become all-electric brand; Land Rover to Get 6 electric models Daimler will invest more than $47B in EVs and be all-electric ready by 2030 Mercedes EQS: the first electric vehicle in the luxury class 2023 Mercedes EQS SUV Is a Seven-Seat EV Flagship with up to 536 HP 2023 Mercedes EQE Electric Sedan Mercedes EQE SUV to rival BMW iX and Tesla Model X Mercedes EQC electric SUV available now in Europe & China Mercedes-Benz Launches the EQV, its First Fully-Electric Passenger Van Mercedes-Benz EQB Makes Its European Debut, US Sales Confirmed Mercedes-Benz unveils EQA electric SUV with 265 miles of range and ~$46,000 price Ford Mustang Mach-E Ford F-150 Lightning Ford set to launch ‘mini Mustang Mach-E’ electric SUV in 2023 Ford to launch 7 EVs in Europe in big electric push Ford unveils Lincoln Star electric SUV concept as it readies to add four new EVs by 2026 Polestar 2 sedan Polestar 3 SUV With 372-Mile Range Coming Late 2022 Volvo XC40 Recharge Volvo C40 Recharge Chevrolet Blazer EV Chevrolet Equinox EV Chevrolet Bolt sedan, 259-mile range starting at $31,000 Chevrolet Bolt EUV electric crossover Cadillac All-Electric Lyriq GMC Electric Hummer Pick-Up and SUV GM electric Silverado pickup truck GMC Sierra EV Denali GM Launches BrightDrop to Electrify the Delivery of Goods and Services GM & Honda Will Codevelop Affordable EVs Targeting Most Popular Vehicle Segments Two Jeep EVs to make U.S. debuts in 2024 Honda, Sony to start premium EV deliveries in 2026 Honda pours $40 billion into electrification, targets 2 million EV production by 2030 BMW leads off EV offensive with iX3 BMW expands EV offerings with iX tech flagship and i4 sedan BMW i7 EV, with 600 hp, will be most powerful variant of new 7 Series flagship BMW iX1 Revealed With 313 HP, 272 Miles WLTP Range Renault-Nissan alliance plows $26B into EV blitz- will jointly launch 35 new EVs Nissan vows to hop back on EV podium with Ariya Nissan LEAF e+ with 226-mile range is available now Nissan Unveils $18 Billion Electric-Vehicle Strategy Renault upgrades Zoe electric car as competition intensifies Renault Dacia Spring Electric SUV Renault to boost low-volume Alpine brand with 3 EVs Renault's electric Megane will debut new digital cockpit Stellantis promises 'heart-of-the-market SUV' from new, 8-vehicle EV platform Chrysler to go all-EV by 2028 Alfa Romeo's First Electric Car Will Arrive in 2024 Peugeot e-208 PEUGEOT E-2008: THE ELECTRIC AND VERSATILE SUV Peugeot 308 will get full-electric version Subaru shows off its first electric vehicle, the Solterra SUV Citroen compact EV challenges VW ID3 on price Rivian R1T Is the Most Remarkable Pickup We’ve Ever Driven Maserati GranTurismo Debuts As Brand’s First EV With Three Motors, AWD Mini Cooper SE Electric Toyota’s Electric bZ4X Goes On Sale in Spring 2022 Toyota will have lineup of 30 full EVs by 2030; Lexus will be all-electric brand Opel sees electric Corsa as key EV entry 2021 Vauxhall Mokka revealed as EV with sharp looks, massive changes Skoda Enyaq iV electric SUV offers range of power, battery sizes Electric Skoda Enyaq coupe to muscle-in on Tesla Model 3 Skoda plans small EV, cheaper variants to take on French, Korean rivals BYD presents three BEVs for European market Nio expands into Europe and beyond The Lucid Air Achieves an Estimated EPA Range of 517 Miles on a Single Charge Rolls-Royce Electric Spectre, Available 2023 Bentley will start output of first full EV in 2025 Aston Martin will build electric vehicles in UK from 2025 Meet the Canoo, a Subscription-Only EV Pod Coming in 2021 Two new electric cars from Mahindra in India; Global Tesla rival e-car soon Former Saab factory gets new life building solar-powered Sono Sion electric cars Foxconn aims for 10% of electric car platform market by 2025 And In China, Where Tesla’s EV Market Share Is Now Declining... BYD is #1 in Chinese EVs, selling FAR more than Tesla Volkswagen to boost Chinese EV capacity to 1m by 2023 Audi-FAW's $3.3 billion electric vehicle venture Nio Xpeng Motors Hozon/Neta Li Auto GAC Aion Leap Motors GM launches Ultium EV production platform in China Ford Mustang Mach-E Rolls Off Assembly Line in China Cheaper than Tesla: Honda takes aim at China's middle class BMW i3 Debuts As All-Electric 3 Series Only For China Hongqi Geely Zeekr Premium EVs by Geely Baidu and Geely put nearly $400 million more into their electric car venture China-made Mercedes-Benz EQE hits market BAIC Hyundai, BAIC Motor to inject $942 mn in China JV for EVs Toyota partners with BYD to build affordable $30,000 electric car Lexus RZ 450e Steers For China Dongfeng SAIC Renault launches sales of first EV in China Nissan expects 40% of sales in China to be electrified by 2026 Changan forms subsidiary Avatar Technology to develop smart EVs with Huawei, CATL WM Motors/Weimar Chery Seres Enovate Singulato JAC Motors Iconiq Motors Aiways Skyworth Auto Youxia Human Horizons Xiaomi announces plans for four electric vehicle models Here’s Tesla’s Competition In Autonomous Driving; The Independents All Have Deals With Major OEMs... Waymo ranked top & Tesla last in Guidehouse leaderboard on automated driving systems Tesla has a self-driving strategy other companies abandoned years ago Waymo operates robotaxis NOW GM’s Cruise operates robotaxis NOW Mobileye operates driverless test fleets in Europe and the U.S. Cadillac Super Cruise Sets the Standard for Hands-Free Highway Driving Ford’s hands-free “Blue Cruise” Mercedes Launches SAE Level 3 Drive Pilot System Honda Legend Sedan with Level 3 Autonomy Now Available in Japan Motional (Hyundai) & Uber Announce Autonomous Ride-hail and Delivery Services Amazon’s Zoox will test its autonomous vehicles on Seattle’s rainy streets Baidu Apollo starts fully autonomous test in Shanghai Driverless Demo Zone Alibaba-backed AutoX unveils first driverless RoboTaxi production line in China Pony.ai approved for public driverless robotaxi service in Beijing Here’s Where Tesla’s Competition Will Get Its Battery Cells... Panasonic (making deals with multiple automakers) LG Samsung SK Innovation Toshiba CATL BYD Northvolt Volkswagen to Build Six Electric-Vehicle Battery Factories in Europe GM’s Ultium GM to develop lithium-metal batteries with SolidEnergy Systems SK On and Ford form BlueOval SK, an EV battery joint venture BMW & Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles Stellantis affirms commitment to build battery factory in Italy with Mercedes, TotalEnergies Stellantis and Samsung SDI to Invest Over $2.5B in Battery Production Plant in United States Stellantis and LG to Invest Over $5 Billion CAD in Joint Venture for Li-Ion Battery Plant in Canada Stellantis and Factorial Energy to Jointly Develop Solid-State Batteries for Electric Vehicles Mercedes-Benz to build 8 battery factories in push to become electric-only automaker Mercedes-Benz and Sila achieve breakthrough with high silicon automotive battery Toyota to invest $5.3bn to make EV batteries in U.S. and Japan Toyota Outlines Solid-State Battery Tech, $13.6 Billion Investment Honda Motor, LG Energy to build $4.4 bln U.S. EV battery plant Daimler joins Stellantis as partner in European battery cell venture ACC Renault signs EV battery deals with Envision, Verkor for French plants Nissan to build $1.4bn EV battery plant in UK with Chinese partner Nissan Announces Proprietary Solid-State Batteries UK companies AMTE Power and Britishvolt plan $4.9 billion investment in battery plants Foxconn breaks ground on first EV battery plant Envision-AESC ONE EVE Freyr Verkor Farasis Microvast Akasol Cenat Wanxiang Eve Energy Svolt Romeo Power ProLogium Hyundai Motor developing solid-state EV batteries Morrow Here’s Tesla’s Competition In Charging Networks... Infrastructure Bill: $7.5 billion Towards Nationwide Network of 500,000 EV Chargers Electrify America EVgo Chargepoint Ionity Europe Shell 51 U.S. electric companies commit to build nationwide EV fast charging network by end of 2023 GM, EVgo, and Pilot will install 2,000 fast chargers at travel centers GM to Expand Access to EV Charging with More than 40,000 Charging Stations Volkswagen powers up the grid to take on Tesla Volkswagen-backed CAMS eyes deployment of 17,000 charging points in China by 2025 Circle K begins North American EV fast charger rollout, plans 200-site network by 2024 Porsche to build out its own network of EV charging stations Petro-Canada Coast-to-Coast Canadian Charging Network Volta E.On BP Volkswagen and BP partner to deploy up to 8,000 EV chargers across EU/UK Smatric Allego Podpoint Instavolt Fastned Total Nio Battery Swap Stations BMW to Build 360,000 Charging Points in China to Juice Electric Car Sales Evie Tritium, DC-America Join Forces to Provide coast-to-coast EV charging network And Here’s Tesla’s Competition In Storage Batteries... Panasonic Samsung LG Energy Solutions CATL BYD AES + Siemens (Fluence) GE Hitachi ABB Toshiba Saft Johnson Contols EnerSys SOLARWATT Sonnen Generac GM Energy Canadian Solar Kokam Eaton Tesvolt Leclanche Lockheed Martin Honeywell EOS Energy Storage ESS Electriq Power Redflow Primus Power Simpliphi Power Invinity Murata Bollore Adara Blue Planet Aggreko Orison Powin Energy Nidec Powervault Kore Power Shanghai Electric LithiumWerks Natron Energy Energy Vault Ambri Voltstorage Cadenza Innovation Morrow Gridtential Villara Elestor SolarEdge Q-Cells Huawei Toyota ADS-TEC Form Energy Enphase Sumitomo Electric Stryten Energy Freyr Growatt Polarium Alfen Quino Energy Thanks, Stanphyl Capital.....»»

Category: blogSource: valuewalkNov 1st, 2022

10 Best Pharma Dividend Stocks To Buy

In this article, we discuss 10 best pharma dividend stocks to buy. If you want to see more stocks in this selection, check out 5 Best Pharma Dividend Stocks To Buy.  As per a Bloomberg report dated September 12, the global bio-pharma market was valued at $274.10 billion in 2020 and is forecasted to reach […] In this article, we discuss 10 best pharma dividend stocks to buy. If you want to see more stocks in this selection, check out 5 Best Pharma Dividend Stocks To Buy.  As per a Bloomberg report dated September 12, the global bio-pharma market was valued at $274.10 billion in 2020 and is forecasted to reach $703.28 billion by 2027 with a CAGR of 12.5% over the forecast period. The factors which will contribute to the growth of the pharma sector include the heightening prevalence of chronic diseases, increasing investment in research and development, and the growing pharmaceutical innovations. The global bio-pharma market will witness continuous growth on the back of higher need for vaccines with new diseases being discovered all over the world. The outlook for the pharma industry remains positive for 2023. The industry will potentially exceed $1 trillion by next year, given that multiple last-stage clinical trials are set to be approved and hundreds of new products will be patented in 2023 and beyond. Some key trends which will shape the pharmaceutical industry in 2023 include the use of artificial intelligence, the acceptance of cannabidiol (CBD) for medical purposes, precision medicine, the use of blockchain technology in the pharmaceutical industry, smaller manufacturing facilities, digitization, state-mandated discounts and rebates, and an increased focus on research and development. Nearly 38% of market experts anticipate big data to have the highest impact on the pharmaceutical industry. Investors who want to benefit from the growing pharma industry, and are seeking dividend-paying firms for their portfolios, can monitor stocks like Amgen Inc. (NASDAQ:AMGN), Bristol-Myers Squibb Company (NYSE:BMY), and Merck & Co., Inc. (NYSE:MRK).  Our Methodology  We selected the following pharma dividend stocks based on positive analyst coverage, strong business fundamentals, and solidity of dividend profiles. The dividend yields as of October 27 have been mentioned. We have assessed the hedge fund sentiment from Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022.  Pixabay/Public Domain Best Pharma Dividend Stocks To Buy 10. GSK plc (NYSE:GSK) Number of Hedge Fund Holders: 34 Dividend Yield as of October 27: 5.59% GSK plc (NYSE:GSK) was founded in 1715 and is headquartered in Brentford, the United Kingdom. The company engages in the development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products. It operates through four segments – Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company’s dividend yield on October 27 came in at 5.59%.  On October 20, GSK plc (NYSE:GSK) reported that its vaccine Shingrix was able to offer at least a decade of protection against shingles after initial vaccination in adults aged 50 years and over. Vaccine efficacy was 97% in individuals 50 years and older and 91% in adults 70 years and above over a follow-up period of roughly four years. Morgan Stanley analyst Mark Purcell on October 12 raised the price target on GSK plc (NYSE:GSK) to 1,650 GBp from 1,550 GBp and maintained an Equal Weight rating on the shares. According to Insider Monkey’s second quarter database, 34 hedge funds were long GSK plc (NYSE:GSK), compared to 33 funds in the prior quarter. Ken Fisher’s Fisher Asset Management featured as the biggest stakeholder of the company, with 19.6 million shares worth $851.80 million.  In addition to Amgen Inc. (NASDAQ:AMGN), Bristol-Myers Squibb Company (NYSE:BMY), and Merck & Co., Inc. (NYSE:MRK), GSK plc (NYSE:GSK) is one of the best pharma dividend stocks to invest in.  9. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Number of Hedge Fund Holders: 40 Dividend Yield as of October 27: 5.34% Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is based in Deerfield, Illinois, operating as an integrated healthcare, pharmacy, and retailer in the United States, the United Kingdom, Germany, and internationally. The company has three segments – U.S. Retail Pharmacy, International, and U.S. Healthcare. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the best dividend stocks to invest in.  On October 13, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) posted a FQ4 non-GAAP EPS of $0.80 and a revenue of $32.45 billion, outperforming estimates by $0.03 and $280 million, respectively. For FY2023, the firm expects adjusted EPS of $4.45 to $4.65 as resilient core business growth is more than offset by slowing 2022 COVID-19 execution and currency headwinds, versus the market consensus of $4.49. Deutsche Bank analyst George Hill raised the price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $41 from $38 and maintained a Hold rating on the shares on October 25. The analyst’s primary takeaway from the latest earnings call is that the speed of decline in the pharmacy sector may have troughed and that Walgreens Boots Alliance, Inc. (NASDAQ:WBA) may be in a position to gain market share. According to the second quarter database of Insider Monkey, 40 hedge funds were bullish on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), compared to 38 funds in the preceding quarter. Stephen Dubois’ Camber Capital Management is a significant position holder in the company, with 2.82 million shares worth $107 million.  Here is what Aristotle Capital Management Global Equity has to say about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q1 2022 investor letter: “We first invested in Walgreens Boots Alliance in early 2013. Over our holding period, Walgreens merged with U.K.-based Boots Alliance, establishing itself as a global leading retail pharmacy chain. CEO Stefano Pessina set the company on a path of pursuing strategic partnerships (as opposed to vertical integration deals) to increase store traffic and to, over time, transform the business into a neighborhood health destination around a more modern pharmacy. Using its strong FREE cash flow generation, the company ramped up its investments in technology, aiming to accelerate the digitalization of health information. Mr. Pessina was not successful, however, at turning around the firm’s U.S. retail segment and had to deal with increasing prescription drug reimbursement pressures. He stepped down as CEO in 2020, and in 2021, Roz Brewer took the reins of the firm. We admire Ms. Brewer’s impressive track record at companies that include Starbucks (NASDAQ:SBUX) and Walmart (Sam’s Club). However, given management’s decision to divest core cash-generative businesses and redeploy capital to embryonic healthcare startups, we prefer to step aside while we follow the company’s progress.” 8. Cardinal Health, Inc. (NYSE:CAH) Number of Hedge Fund Holders: 44 Dividend Yield as of October 27: 2.62% Cardinal Health, Inc. (NYSE:CAH) operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty drugs, and over-the-counter healthcare and consumer products. On September 15, PayrHealth announced a collaboration with Cardinal Health, Inc. (NYSE:CAH) to help the latter simplify payor contracting and optimize financial performance. It is one of the best dividend stocks to consider.  On August 29, UBS analyst Kevin Caliendo raised the price target on Cardinal Health, Inc. (NYSE:CAH) to $78 from $61 and maintained a Buy rating on the shares. The company’s Pharma segment and the potential for significant capital deployment will support the stock, the analyst told investors. He further cited Cardinal Health, Inc. (NYSE:CAH)’s “cleaner” balance sheet and estimated a forward free cash flow yield of about 10% before dividends. According to Insider Monkey’s data, 44 hedge funds were long Cardinal Health, Inc. (NYSE:CAH) at the end of June 2022, compared to 38 funds in the prior quarter. Richard S. Pzena’s Pzena Investment Management is the leading position holder in the company, with 2.9 million shares worth $151.35 million.  7. AstraZeneca PLC (NASDAQ:AZN) Number of Hedge Fund Holders: 47 Dividend Yield as of October 27: 3.29% AstraZeneca PLC (NASDAQ:AZN) is headquartered in Cambridge, the United Kingdom, and the company is focused on the discovery, manufacture, and commercialization of prescription medicines. AstraZeneca PLC (NASDAQ:AZN) is one of the best dividend stocks to invest in, with the stock yielding 3.29% as of October 27. Invitae Corporation (NYSE:NVTA) announced a partnership with AstraZeneca PLC (NASDAQ:AZN) on October 27, where the latter can use Invitae’s Citizen natural history data in a retrospective and prospective study of patients diagnosed with cholangiocarcinoma, a rare bile duct cancer.  On October 19, Berenberg analyst Luisa Hector maintained a Buy rating on AstraZeneca PLC (NASDAQ:AZN) but lowered the price target on the shares to 118 GBp from 120 GBp. Among the hedge funds tracked by Insider Monkey, 47 funds reported owning stakes worth $4.9 billion in AstraZeneca PLC (NASDAQ:AZN) at the end of June 2022, compared to 45 funds in the earlier quarter worth $4.5 billion. Ken Fisher’s Fisher Asset Management held the leading position in the company, comprising 21.3 million shares worth $1.4 billion.  Here is what Baron Funds specifically said about AstraZeneca PLC (NASDAQ:AZN) in its Q3 2022 investor letter: “AstraZeneca PLC (NASDAQ:AZN) is a global pharmaceutical company focused on oncology, respiratory, cardiovascular, and metabolism drugs. Despite incremental positive news flow, shares were hurt by the broader flight out of European stocks and the decline in the British Pound that started late in the quarter. We retain conviction in AstraZeneca given its best-in-class growth profile combined with its strong pipeline and commercial launch characteristics. We highlight breast cancer drugs Enhertu and Dato-DXd as two promising near-term opportunities.” 6. Amgen Inc. (NASDAQ:AMGN) Number of Hedge Fund Holders: 55 Dividend Yield as of October 27: 2.90% Amgen Inc. (NASDAQ:AMGN) is a California-based manufacturer of human therapeutics, focused on therapeutic areas such as inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience. On October 18, ChemoCentryx shareholders largely approved Amgen Inc. (NASDAQ:AMGN)’s $3.7 billion acquisition of the company. The acquisition will strengthen Amgen’s product pipeline further. On October 11, Morgan Stanley analyst Matthew Harrison upgraded Amgen Inc. (NASDAQ:AMGN) to Overweight from Equal Weight with a price target of $279, up from $257. The analyst sees “underappreciated upside” in the company’s mid-term pipeline. Amgen Inc. (NASDAQ:AMGN) has defensive positioning in the present macro backdrop, with “attractive” short-term options of AMG133 for obesity and the biosimilar Amjevita launch, the analyst told investors in a research note.  According to Insider Monkey’s data, 55 hedge funds were bullish on Amgen Inc. (NASDAQ:AMGN) at the end of the second quarter of 2022, compared to 56 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest position holder in the company, with 1.66 million shares worth $404.3 million.  Like AbbVie Inc. (NYSE:ABBV), Bristol-Myers Squibb Company (NYSE:BMY), and Merck & Co., Inc. (NYSE:MRK), Amgen Inc. (NASDAQ:AMGN) is one of the best dividend stocks to consider.  Here is what Aristotle Capital specifically said about Amgen Inc. (NASDAQ:AMGN) in its Q2 2022 investor letter: “Amgen Inc. (NASDAQ:AMGN), the pharmaceutical company focused on biotechnology-based therapeutics, was also a top contributor for the quarter. The company reported solid results, with a variety of products, such as bone-strengthening drugs Prolia and EVENITY, contributing to overall revenue growth. Amgen continued to increase the market share for cholesterol drug Repatha (a catalyst we had originally identified), delivering record quarterly sales as the drug’s usage expands with high-risk patients who have not yet had a cardiovascular event, and as barriers for prescribers, healthcare systems and patients are removed. In addition, we believe the company is poised to gain market share with its biosimilars (akin to generic versions of biologic drugs), also a previously identified catalyst. Biosimilars accounted for over $2 billion in revenue in 2021, and we believe this has the potential to more than double by the end of the decade, accelerated by six additional biosimilars (for a total of 11 products on the market). This includes the upcoming launch in the U.S. of arthritis treatment Amjetiva in January 2023. Meanwhile, the company is advancing its robust pipeline of early- and late-stage assets, with several phase III results due this year. These developments have caused us to remain enthusiastic about Amgen’s ability to build on its decades of success developing novel treatments using biopharmaceuticals.”     Click to continue reading and see 5 Best Pharma Dividend Stocks To Buy.    Suggested articles: 12 Best Energy Dividend Stocks To Buy 11 Best Low Risk Stocks To Invest In 10 Most Undervalued Stocks To Buy   Disclosure: None. 10 Best Pharma Dividend Stocks To Buy is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyOct 29th, 2022

Tesla Stock Predictions: Is Tesla’s Slide Worth A Second Glance?

A series of negative headlines have dragged Tesla stock to its lowest level since the 3-for-1 split. Analysts project 40% top-line growth and a 35% increase in earnings per share (EPS) next year. Given the Twitter overhang, vehicle delivery challenges and CEO volatility, the risk-reward still looks unfavorable. Tesla Inc. (NASDAQ:TSLA), the undisputed electric vehicle […] A series of negative headlines have dragged Tesla stock to its lowest level since the 3-for-1 split. Analysts project 40% top-line growth and a 35% increase in earnings per share (EPS) next year. Given the Twitter overhang, vehicle delivery challenges and CEO volatility, the risk-reward still looks unfavorable. Tesla Inc. (NASDAQ:TSLA), the undisputed electric vehicle (EV) heavyweight, has taken its share of punches. A series of negative headlines have dragged the stock to its lowest level since the 3-for-1 split and down more than 30% year-to-date. The elevated trading volume during the downturn suggests that investors expect more bad news to come. 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 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. It’s also an ominous sign for the S&P 500 when Tesla is the fifth largest holding. The benchmark’s five lead horses are each down 20% or more in 2022. Among Apple, Microsoft, Alphabet, Amazon and Tesla, the EV maker has arguably the best long-term growth potential. In a market in control of the bears, Tesla stock predictions show that the volatile stock might have the most to lose. Why is Tesla Stock Down? Ahead of the company’s earnings report next week, Tesla provided an underwhelming Q3 vehicle update. The October release showed that 343,830 vehicles were delivered during the summer period and represented 94% of what was actually produced. The 20,000-plus vehicle difference was blamed on an inability to find enough (reasonably priced) trailers to ship to customers as production ramped near the end of the quarter. While the shutdown of the Shanghai factory limited production, some have speculated that demand in China has slowed due to macro pressures and the rise of local players like Nio. Making matters worse, CEO Elon Musk’s on-again, off-again affair with Twitter continues to distract investors. In yet another plot twist, Musk filed court documents that will move the $44 billion Twitter acquisition forward after he tried to get out of it for months. It is a price tag that looks even more aggressive now that Tesla’s market value is two-thirds what it was at the start of the year. Adding to the fireworks was Musk’s controversial Twitter poll about the Russia-Ukraine war. Musk offered three likely Pro-Russia outcomes for the conflict that infuriated Ukrainians and Americans, setting the tone for Tesla’s ugly 15% one-week plunge. How Will Tesla Perform in 2023? The company also announced that Tesla semis will roll out starting December 1. PepsiCo Inc. (NASDAQ:PEP) will be the first to get its hands on the 500-mile range, fully electric transportation truck. The news caught the market by surprise because the semi wasn’t expected to roll off the assembly lines until next year. While it failed to revive the stock, it is good news for the long haul. It gives Tesla a fifth product on the road and advances its push into the commercial EV market much sooner than anticipated. Anheuser-Busch Inbev SA (NYSE:BUD) and Walmart Inc. (NYSE:WMT) are among the other consumer giants lined up to receive the highly touted semi. As manufacturing capacity expands in 2023, Tesla plans to crank out many more Model 3s, Model Ss and semis, shooting for 50% annual vehicle growth over time although supply chain disruptions could weigh on near-term growth. Combined with the revenue generated in the energy generation and storage businesses, analysts project 40% top line growth and a 35% increase in earnings per share (EPS) next year. The latter forecast would represent half the growth expected in 2022. It represents a large part of why the stock is trading nearly 50% below its November 2021 peak. Is Tesla Stock Overvalued? After suffering its worst pullback since the beginning of the pandemic, the share price is lower. Does that make Tesla's valuation more attractive? The stock’s lofty P/E ratio has always been a concern of the bears. The growth trajectory has been impressive, but tweet-influenced retail traders have long been bidding Tesla "to the moon." When a stock is priced to perfection and something goes wrong, the selloff can be profound. The 200% profit growth Tesla posted in 2021 was not sustainable but market euphoria priced the stock as if it were. With a more modest 70% earnings growth expected this year, the shares trade at 58x 2022 earnings. The P/E ratio goes down to 43x based on next year’s earnings estimate (compared to the S&P 500 at 15x the 2023 consensus earnings estimate). These valuations are far more reasonable than they were a year ago when Tesla could seemingly do no wrong. However, a witch's brew of negative press can swirl at any time, even for Tesla. Given the Twitter overhang, vehicle delivery challenges and volatile CEO, the risk-reward still looks unfavorable. There will come a point when the not-so-premium valuation becomes worth taking for a test drive. Tesla is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs. Should you invest $1,000 in Tesla right now? Before you consider Tesla, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Tesla wasn't on the list. While Tesla currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. Article by MarketBeat.....»»

Category: blogSource: valuewalkOct 11th, 2022

Tesla Price Cuts Are Needed To Resume Unit Delivery Growth – Shortseller

Stanphyl Capital’s commentary for the month ended September 30, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). Want to see a typical Elon Musk/Tesla fraud summarized in a simple bar graph? In this recent Consumer Reports test, note which of these cars never comes close—in any environmental conditions—to meeting its claimed EPA range: Q2 […] Stanphyl Capital’s commentary for the month ended September 30, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). Want to see a typical Elon Musk/Tesla fraud summarized in a simple bar graph? In this recent Consumer Reports test, note which of these cars never comes close—in any environmental conditions—to meeting its claimed EPA range: 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); Q2 2022 hedge fund letters, conferences and more   Want another example of what a fraudster Musk is? “Honest discovery” is a cornerstone of the American legal system. Here’s how Musk’s behaving in his ongoing Twitter trial: I’ve said it before and I’ll say it again: If you think any financial statement emanating from this guy is honest, you’re among the dumbest f*cks on planet Earth. If you’re an institutional investor and long a Musk-run company, you should be FIRED. Meanwhile, the Tesla “hypergrowth” story is over. Here are the company’s most recent quarterly deliveries: Q4 ‘21: 309,000 Q1 ‘22: 310,000 Q2 2022 & Q3’s estimate averaged (to account for 70,000 Q2 cars built & delivered in Q3 due to Q2’s China factory closing): 309,000 Production Capacity Outstrips Incoming Orders Tesla delivery wait times worldwide are now declining substantially (down to just one week in China where it now runs its factory below capacity). Tesla’s production capacity is now outstripping its rate of incoming orders despite the new German and Texas factories producing at only around 10% of their capacity! This means one thing and one thing only: big, margin-slashing Tesla price cuts are needed to resume meaningful unit delivery growth, and I expect we’ll see them within weeks. Sure, if Tesla slashes prices enough it will undoubtedly be able to use its excess capacity, but so can any other car company. Welcome to the auto business, which currently sells for around 5x earnings! Meanwhile, Elon Musk remains the most vile person ever to head a large-cap U.S. public company, and we remain short Tesla, the biggest bubble-stock in modern market history, because: It has a sliding share of the world’s EV market and a share of the overall auto market that’s only around 1.5%, yet a market cap greater than the next 14 largest automakers (by market cap) combined despite selling only around 2% of the cars they do. It has no “moat” of any kind; i.e., nothing meaningfully proprietary in terms of its electric car technology (which has now been equaled or surpassed by numerous competitors) and its previously proprietary Superchargers are being opened to everyone), while existing automakers—unlike Tesla­—have a decades-long “experience moat” of knowing how to mass-produce, distribute and service high-quality cars consistently and profitably. Excluding working capital benefits and sunsetting emission credit sales Tesla generates only minimal free cash flow. Growth in sequential demand for Tesla’s cars is at a crawl relative to expectations. Elon Musk is a pathological liar. I estimate that Tesla’s 2022 GAAP earnings will be only around $3/share after adjusting for emission credit sales that will soon go away when other auto manufacturers enough EVs of their own. Thus, slow-growth Tesla has a PE ratio of around 88 in an industry with an average current multiple of around 5. No More Product Edge Meanwhile, Tesla has objectively lost its “product edge,” with many competing cars now offering comparable or better real-world range, better interiors, similar or faster charging speeds and much better quality. (Tesla ranks second-to-last in Consumer Reports’ reliability survey while British consumer organization Which? found it to be one of the least reliable cars in existence.) Thus, due to competitors’ temporary production constraints, waiting times are now longer for many of Tesla’s direct EV competitors than they are for a Tesla. In fact, Tesla is likely now the second, third or fourth choice for many EV buyers, and only maintains its volume lead though a short-lived edge in production capacity that will disappear over the next 12 to 36 months as competitors rapidly increase the ability to produce their superior EVs. Tesla’s poorly-built Model Y faces current (or imminent) competition from the much better made (and often just better) electric Hyundai Ioniq 5, Kia EV6, Ford Mustang Mach E, Cadillac Lyriq, Nissan Ariya, Audi Q4 e-tron, BMW iX3, Mercedes EQB, Volvo XC40 Recharge, Chevrolet Blazer EV & $30,000 Equinox EV and Polestar 3. And Tesla’s Model 3 now has terrific direct “sedan competition” from Volvo’s beautiful Polestar 2, the great new BMW i4, the upcoming Hyundai Ioniq 6 and Volkswagen Aero, and multiple local competitors in China. And in the high-end electric car segment worldwide the Porsche Taycan (the base model of which is now considerably less expensive than Tesla’s Model S) outsells the Model S, while the spectacular Mercedes EQS, Audi e-Tron GT and Lucid Air make it look like a fast Yugo, and the extremely well reviewed new BMW iX and Mercedes EQS SUV (as well as multiple new Chinese models) do the same to the Model X. Tesla Is Netflix Indeed, for years I’ve said “Tesla is Blackberry”—the maker of a first-generation version of a product that—once the market was proven—would be supplanted into niche obscurity by newer, better versions; now I can provide a much more recent analogy: Tesla is Netflix. For years Netflix had an absurd valuation based on its pioneering position in streaming media, but once it proved that such a market existed myriad competitors swarmed all over it, and this year the stock collapsed when we learned that not only is Netflix no longer in “hypergrowth” mode but for the first time since 2011 (when it transitioned from physical DVDs) it actually lost subscribers. I believe Musk knows that Tesla is “the next Netflix” (hence his recent “Twitter buying distraction”), with VW, Hyundai/Kia, Ford, GM, Stellantis, BMW, Mercedes, BYD & other Chinese competitors and, in a few years, Toyota & Honda, being the Disney, HBO Max, Amazon Prime, Peacock, Hulu, Paramount +, etc., of the electric car market, stealing Tesla’s share and eventually pounding its stock price down 95% or so from today’s, into the valuation of “just another car company.” Despite this obvious “writing on the wall,” many Tesla bulls sincerely believe that ten years from now the company will be twice the size of Volkswagen or Toyota, thereby selling around 20 million cars a year (up from the current run-rate of around 1.3 million); in fact in May Musk himself even raised this as a possibility. Setting aside the absurdity of selling that many cars into the limited market of Tesla’s high price points, the “logistical absurdity” of selling 20 million cars/year in ten years means that in addition to 2 million cars a year of sold-out existing claimed production capacity (once the German and Texas factories are fully operational) vs. the current stalled-out rate of 1.3 million. Tesla would have to add 36 more brand new 500,000 car/year factories with sold out production; i.e., a new factory nearly every single quarter for the next ten years! Only a Teslemming could be dumb enough to believe this! Meanwhile, in July the head of Tesla’s “self-driving” program quit, while in June the NHTSA announced that its investigation of Tesla’s deadly Autopilot has expanded into “an engineering analysis,” the last required step before (finally!) demanding a full recall. The refund liability potential for Tesla for this is in the billions of dollars, and possibly even the tens of billions if a class action lawsuit proves that the cars involved were purchased solely due to the (fallacious) promise of “full self-driving.” And, of course, there will be a massive “valuation reappraisal” for Tesla’s stock as the world wakes up to the fact that Tesla’s so-called “autonomy technology” is just trailing-edge garbage. As of July the NHTA was investigating 48 crashes involving autonomous driving systems, 39 of which—and all the deaths but one—involve Tesla. (For all Tesla deaths cited in the media—which is likely only a small fraction of those that have occurred—see TeslaDeaths.com.) And Tesla has sold this trashy software for six years now: …and still promotes it on its website via a completely fraudulent video! Another favorite Tesla hype story has been built around so-called “proprietary battery technology.” In fact though, Tesla has nothing proprietary there—it doesn’t make them, it buys them from Panasonic, CATL and LG, and it’s the biggest liar in the industry regarding the real-world range of its cars. And if new-format 4680 cells enter the market some time in 2024 (as is now expected), even if Tesla makes some of its own, other manufacturers will gladly sell them to anyone, and BMW has already announced it will buy them from CATL and EVE. And oh, the joke of a “pickup truck” Tesla previewed in 2019 (and still hasn’t shown in production-ready form) won’t be much of “growth engine” either, as it will enter a dogfight of a market; in fact, Ford’s terrific 2022 all-electric F-150 Lightning now has over 200,000 retail reservations (plus many more fleet reservations), GM has introduced its fantastic 2023 electric Silverado which already has nearly 200,000 reservations, Rivian’s pick-up has gotten excellent early reviews, and Ram will be out with a great one in 2024. Regarding safety, as noted earlier in this letter, Tesla continues to deceptively sell its hugely dangerous so-called “Autopilot” system, which Consumer Reports has completely eviscerated; God only knows how many more people this monstrosity unleashed on public roads will kill despite the NTSB condemning it. Elsewhere in safety, the Chinese government forced the recall of tens of thousands of Teslas for a dangerous suspension defect the company spent years trying to cover up, and Tesla has been hit by a class-action lawsuit in the U.S. for the same defect. Tesla also knowingly sold cars that it knew were a fire hazard and did the same with solar systems, and after initially refusing to do so voluntarily, it was forced to recall a dangerously defective touchscreen. In other words, when it comes to the safety of customers and innocent bystanders, Tesla is truly one of the most vile companies on Earth. Meanwhile the massive number of lawsuits of all types against the company continues to escalate. So Here Is Tesla’s Competition In Cars... (note: these links are regularly updated) Porsche Taycan Porsche Taycan Cross Turismo Porsche Macan Electric SUV Officially Coming in 2023 Volkswagen ID.3 Volkswagen ID.4 Electric SUV Volkswagen unveils ID.6 SUV EV in China Volkswagen ID.Buzz Electric Van Volkswagen unveils the ID. AERO sedan with 385 miles of range New sketch of 2025 Volkswagen ID.1 unveiled VW’s Cupra Born Volkswagen unveils $7.1B commitment to boost product line-up, R&D, mfg in N. America Audi e-tron Audi e-tron Sportback Audi E-tron GT Audi Q4 e-tron Audi Q6 e-tron confirmed for 2022 launch 2022 Audi A6 e-tron set to take on Tesla Audi will expand EV lineup with electric A6 wagon Audi TT to be axed in 2023 for 'emotional', electric replacement Hyundai Ioniq 5 Hyundai Ioniq 6 Hyundai Kona Electric Genesis reveals their first EV on the E-GMP platform, the electric GV60 crossover Genesis Electrified GV70 Revealed With 483 Horsepower And AWD Kia Niro Electric: 239-mile range & $39,000 before subsidies Kia EV6: Charging towards the future Kia EV9 to land in US in 2023 with 300-miles range, $50,000 price Kia EV4 on course to grow electric SUV range Jaguar’s All-Electric i-Pace Jaguar to become all-electric brand; Land Rover to Get 6 electric models Daimler will invest more than $47B in EVs and be all-electric ready by 2030 Mercedes EQS: the first electric vehicle in the luxury class 2023 Mercedes EQS SUV Is a Seven-Seat EV Flagship with up to 536 HP 2023 Mercedes EQE Electric Sedan Mercedes EQE SUV to rival BMW iX and Tesla Model X Mercedes EQC electric SUV available now in Europe & China Mercedes-Benz Launches the EQV, its First Fully-Electric Passenger Van Mercedes-Benz EQB Makes Its European Debut, US Sales Confirmed Mercedes-Benz unveils EQA electric SUV with 265 miles of range and ~$46,000 price Ford Mustang Mach-E Ford F-150 Lightning Ford set to launch ‘mini Mustang Mach-E’ electric SUV in 2023 Ford to launch 7 EVs in Europe in big electric push Ford unveils Lincoln Star electric SUV concept as it readies to add four new EVs by 2026 Polestar 2 sedan Polestar 3 SUV With 372-Mile Range Coming Late 2022 Volvo XC40 Recharge Volvo C40 Recharge Chevrolet Blazer EV Chevrolet Equinox EV Chevrolet Bolt sedan, 259-mile range starting at $31,000 Chevrolet Bolt EUV electric crossover Cadillac All-Electric Lyriq GMC Electric Hummer Pick-Up and SUV GM electric Silverado pickup truck GM Launches BrightDrop to Electrify the Delivery of Goods and Services GM & Honda Will Codevelop Affordable EVs Targeting Most Popular Vehicle Segments Two Jeep EVs to make U.S. debuts in 2024 Honda pours $40 billion into electrification, targets 2 million EV production by 2030 Honda and Sony finalize 50-50 joint venture to build EVs in 2025 BMW leads off EV offensive with iX3 BMW expands EV offerings with iX tech flagship and i4 sedan BMW i7 EV, with 600 hp, will be most powerful variant of new 7 Series flagship BMW iX1 Revealed With 313 HP, 272 Miles WLTP Range Renault-Nissan alliance plows $26B into EV blitz- will jointly launch 35 new EVs Nissan vows to hop back on EV podium with Ariya Nissan LEAF e+ with 226-mile range is available now Nissan Unveils $18 Billion Electric-Vehicle Strategy Renault upgrades Zoe electric car as competition intensifies Renault Dacia Spring Electric SUV Renault to boost low-volume Alpine brand with 3 EVs Renault's electric Megane will debut new digital cockpit Stellantis promises 'heart-of-the-market SUV' from new, 8-vehicle EV platform Chrysler to go all-EV by 2028 Alfa Romeo's First Electric Car Will Arrive in 2024 Peugeot e-208 PEUGEOT E-2008: THE ELECTRIC AND VERSATILE SUV Peugeot 308 will get full-electric version Subaru shows off its first electric vehicle, the Solterra SUV Citroen compact EV challenges VW ID3 on price Rivian R1T Is the Most Remarkable Pickup We’ve Ever Driven Maserati going fully electric by 2030 -all vehicles will offer a BEV version by 2025 Mini Cooper SE Electric Toyota’s Electric bZ4X Goes On Sale in Spring 2022 Toyota will have lineup of 30 full EVs by 2030; Lexus will be all-electric brand Honda and Sony to build, sell EVs by 2025 Opel sees electric Corsa as key EV entry 2021 Vauxhall Mokka revealed as EV with sharp looks, massive changes Skoda Enyaq iV electric SUV offers range of power, battery sizes Electric Skoda Enyaq coupe to muscle-in on Tesla Model 3 Skoda plans small EV, cheaper variants to take on French, Korean rivals BYD presents three BEVs for European market Nio expands into Europe and beyond The Lucid Air Achieves an Estimated EPA Range of 517 Miles on a Single Charge Bentley will start output of first full EV in 2025 All-electric Rolls-Royce Spectre to launch in 2023 – firm to be EV-only by 2030 Aston Martin will build electric vehicles in UK from 2025 Meet the Canoo, a Subscription-Only EV Pod Coming in 2021 Two new electric cars from Mahindra in India; Global Tesla rival e-car soon Former Saab factory gets new life building solar-powered Sono Sion electric cars Foxconn aims for 10% of electric car platform market by 2025 And In China, Where Tesla’s EV Market Share Is Now Declining... BYD is #1 in Chinese EVs, selling FAR more than Tesla Volkswagen to boost Chinese EV capacity to 1m by 2023 Audi-FAW's $3.3 billion electric vehicle venture Nio Xpeng Motors Hozon/Neta Li Auto GAC Aion Leap Motors GM launches Ultium EV production platform in China Ford Mustang Mach-E Rolls Off Assembly Line in China Cheaper than Tesla: Honda takes aim at China's middle class BMW i3 Debuts As All-Electric 3 Series Only For China Hongqi Geely Zeekr Premium EVs by Geely Baidu and Geely put nearly $400 million more into their electric car venture China-made Mercedes-Benz EQE hits market BAIC Hyundai, BAIC Motor to inject $942 mn in China JV for EVs Toyota partners with BYD to build affordable $30,000 electric car Lexus RZ 450e Steers For China Dongfeng SAIC Renault launches sales of first EV in China Nissan expects 40% of sales in China to be electrified by 2026 Changan forms subsidiary Avatar Technology to develop smart EVs with Huawei, CATL WM Motors/Weimar Chery Seres Enovate Singulato JAC Motors Iconiq Motors Aiways Skyworth Auto Youxia Human Horizons Xiaomi announces plans for four electric vehicle models Here’s Tesla’s Competition In Autonomous Driving; The Independents All Have Deals With Major OEMs... Waymo ranked top & Tesla last in Guidehouse leaderboard on automated driving systems Tesla has a self-driving strategy other companies abandoned years ago Waymo operates robotaxis NOW GM’s Cruise operates robotaxis NOW Argo AI (owned by Ford & VW) Begins Driverless Vehicle Operations in Miami & Austin Mobileye operates driverless test fleets in Europe and the U.S. Cadillac Super Cruise Sets the Standard for Hands-Free Highway Driving Ford’s hands-free “Blue Cruise” Mercedes Launches SAE Level 3 Drive Pilot System Honda Legend Sedan with Level 3 Autonomy Now Available in Japan Hyundai + Motional Bringing IONIQ 5 robotaxis to the streets from 2023 Amazon’s Zoox will test its autonomous vehicles on Seattle’s rainy streets Baidu Apollo starts fully autonomous test in Shanghai Driverless Demo Zone Alibaba-backed AutoX unveils first driverless RoboTaxi production line in China Pony.ai approved for public driverless robotaxi service in Beijing Here’s Where Tesla’s Competition Will Get Its Battery Cells... Panasonic (making deals with multiple automakers) LG Samsung SK Innovation Toshiba CATL BYD Northvolt Volkswagen to Build Six Electric-Vehicle Battery Factories in Europe GM’s Ultium GM to develop lithium-metal batteries with SolidEnergy Systems SK On and Ford form BlueOval SK, an EV battery joint venture BMW & Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles Stellantis affirms commitment to build battery factory in Italy with Mercedes, TotalEnergies Stellantis and Samsung SDI to Invest Over $2.5B in Battery Production Plant in United States Stellantis and LG to Invest Over $5 Billion CAD in Joint Venture for Li-Ion Battery Plant in Canada Stellantis and Factorial Energy to Jointly Develop Solid-State Batteries for Electric Vehicles Mercedes-Benz to build 8 battery factories in push to become electric-only automaker Mercedes-Benz and Sila achieve breakthrough with high silicon automotive battery Toyota to invest $5.3bn to make EV batteries in U.S. and Japan Toyota Outlines Solid-State Battery Tech, $13.6 Billion Investment Honda Motor, LG Energy to build $4.4 bln U.S. EV battery plant Daimler joins Stellantis as partner in European battery cell venture ACC Renault signs EV battery deals with Envision, Verkor for French plants Nissan to build $1.4bn EV battery plant in UK with Chinese partner Nissan Announces Proprietary Solid-State Batteries UK companies AMTE Power and Britishvolt plan $4.9 billion investment in battery plants Foxconn breaks ground on first EV battery plant Envision EVE Freyr Verkor Farasis Microvast Akasol Cenat Wanxiang Eve Energy Svolt Romeo Power ProLogium Hyundai Motor developing solid-state EV batteries Morrow Here's Tesla's Competition In Charging Networks... Infrastructure Bill: $7.5 billion Towards Nationwide Network of 500,000 EV Chargers Electrify America EVgo Chargepoint Ionity Europe Shell 51 U.S. electric companies commit to build nationwide EV fast charging network by end of 2023 GM, EVgo, and Pilot will install 2,000 fast chargers at travel centers GM to Expand Access to EV Charging with More than 40,000 Charging Stations Volkswagen powers up the grid to take on Tesla Volkswagen-backed CAMS eyes deployment of 17,000 charging points in China by 2025 Circle K begins North American EV fast charger rollout, plans 200-site network by 2024 Porsche to build out its own network of EV charging stations Petro-Canada Coast-to-Coast Canadian Charging Network Volta E.On BP Volkswagen and BP partner to deploy up to 8,000 EV chargers across EU/UK Smatric Allego Podpoint Instavolt Fastned Total Nio Battery Swap Stations BMW to Build 360,000 Charging Points in China to Juice Electric Car Sales Evie And Here's Tesla's Competition In Storage Batteries... Panasonic Samsung LG Energy Solutions CATL BYD AES + Siemens (Fluence) GE Hitachi ABB Toshiba Saft Johnson Contols EnerSys SOLARWATT Sonnen Generac Canadian Solar Kokam Eaton Tesvolt Leclanche Lockheed Martin Honeywell EOS Energy Storage ESS Electriq Power Redflow Primus Power Simpliphi Power Invinity Murata Bollore Adara Blue Planet Aggreko Orison Powin Energy Nidec Powervault Kore Power Shanghai Electric LithiumWerks Natron Energy Energy Vault Ambri Voltstorage Cadenza Innovation Morrow Gridtential Villara Elestor SolarEdge Q-Cells Huawei Toyota ADS-TEC Form Energy Enphase Sumitomo Electric Stryten Energy Freyr Growatt Polarium Alfen Thanks, Mark Spiegel.....»»

Category: blogSource: valuewalkOct 4th, 2022

4 Healthcare Mutual Funds to Buy As We Look Beyond the Pandemic

FBIOX, PCHSX, SWHFX and VGHCX are four healthcare mutual funds that can solidify one's portfolio today and provide big returns in the foreseeable future. Healthcare is usually a sought-after sector for investors looking to safeguard their investments in a volatile market. This is primarily because the demand for healthcare services is not directly linked with the upside or downside of a market, and on the contrary, provides protection against market volatility. Also, many pharmaceutical companies regularly offer dividends, which highlights their financial stability and ability to generate stable cash flows irrespective of the market condition.Currently, the global spend in the healthcare sector is about $8.3 trillion, of which almost half is spent in the United States. Health spending in the United States is projected to grow at an average annual rate of 5.4% for 2019-2028 and reach $6.2 trillion by 2028. With the sector growing significantly faster than the overall global economy, these numbers may compound even higher by the end of the decade. So for investors trying to look beyond the current goings on in the market, the health sector presents itself as a bankable option.Healthcare mutual funds are, thus, great options for investors seeking to hold a diversified portfolio and look toward the future. The major upsides seen by the sector since the start of the COVID-19 pandemic maybe over, but it is slated to do well in the years to come.Hence, astute investors should invest in healthcare mutual funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).We have thus selected four such healthcare mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.Fidelity Select Biotechnology Portfolio FBIOX primarily invests in common stocks of companies principally engaged in the research, development, manufacture, and distribution of various biotechnological products, services and processes. To select their investments, FBIOX advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.Rajiv Kaul has been the lead manager of FBIOX since Oct 11, 2005. The fund has 11.8% of its portfolio invested in Abbvie, 6.4% in Vertex Pharmaceuticals and 3.5% in Alnylam Pharmaceuticals.FBIOX’s 3-year and 5-year annualized returns are 6.1% and 3.3%, respectively. Its net expense ratio is 0.69% compared to the category average of 1.03%. FBIOX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.Putnam Global Health Care Fund PCHSX primarily invests in common stocks of large and mid-cap healthcare companies. PCHSX invests in companies that its advisors believes have favorable investment potential.Michael Maguire has been the lead manager of PCHSX since Nov 15, 2016. The fund has 9% of its portfolio invested in UnitedHealth Group, 6.3% in Astrazeneca and 6.2% in Merck.PCHSX’s 3-year and 5-year annualized returns are 11.4% and 8.4%, respectively. Its net expense ratio is 0.89% compared to the category average of 1.03%. PCHSX has a Zacks Mutual Fund Rank #2.Schwab Health Care Fund SWHFX primarily invests in equity securities issued by companies in the healthcare sector, which includes pharmaceutical and biotechnology companies, healthcare facilities operations, medical product manufacturers and suppliers, medical providers and medical services firms.Wei Li has been the lead manager of SWHFX since Jun 13, 2013. The fund has 6.7% of its portfolio invested in UnitedHealth Group, 5.7% in Johnson & Johnson and 5.1% in Pfizer.SWHFX’s 3-year and 5-year annualized returns are 10.6% and 8.2%, respectively. Its net expense ratio is 0.80% compared to the category average of 1.03%. SWHFX has a Zacks Mutual Fund Rank #1.Vanguard Health Care Fund VGHCX primarily invests in the stocks of companies principally engaged in the development, production, or distribution of products and services in the health care industry. VGHCX may invest up to 50% of its assets in foreign stocks.Jean M Hynes has been the lead manager of VGHCX since May 28, 2008. The fund has 7.4% of its portfolio invested in UnitedHealth Group, 5.9% in Astrazeneca and 5.9% in Eli Lilly.VGHCX’s 3-year and 5-year annualized returns are 10.6% and 8%, respectively. Its net expense ratio is 0.30% compared to the category average of 1.03%. VGHCX has a Zacks Mutual Fund Rank #1.Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the  $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.>>Show me how I could profit from the metaverse!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 Get Your Free (VGHCX): Fund Analysis Report Get Your Free (SWHFX): Fund Analysis Report Get Your Free (FBIOX): Fund Analysis Report Get Your Free (PCHSX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research 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.....»»

Category: topSource: zacksSep 22nd, 2022

The Tesla “Hypergrowth” Story Is Over – Shortseller

Stanphyl Capital letter to investors for the month ended August 31, 2022, discussing their short thesis for Tesla Inc (NASDAQ:TSLA). It’s becoming increasingly obvious that the Tesla “hypergrowth” story is over. Here are the company’s most recent quarterly deliveries: Q4 ‘21: 309,000 Q1 ‘22: 310,000 Q2 ‘22 & Q3’s estimate averaged to account for pent-up […] Stanphyl Capital letter to investors for the month ended August 31, 2022, discussing their short thesis for Tesla Inc (NASDAQ:TSLA). It’s becoming increasingly obvious that the Tesla “hypergrowth” story is over. Here are the company’s most recent quarterly deliveries: Q4 ‘21: 309,000 Q1 ‘22: 310,000 Q2 ‘22 & Q3’s estimate averaged to account for pent-up Q3 demand from Q2’s China factory closing: 312,000. 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); Q2 2022 hedge fund letters, conferences and more   Tesla's Production Capacity Is Outstripping Incoming Orders  Tesla delivery wait times worldwide are now declining substantially, which by definition means that its newly expanded production capacity is outstripping its rate of incoming orders despite the new German and Texas factories producing at only around 20% of capacity! This means one thing and one thing only: big, margin-slashing Tesla price cuts are needed to resume meaningful unit delivery growth, and in fact in late August the first such cut happened, with Tesla introducing in Europe a new rear-wheel drive Model Y that sells for as much as $20,000 less than the cheapest model (an all-wheel drive version) available here in the U.S. Sure, if Tesla slashes prices enough it will undoubtedly be able to use its excess capacity, but so can any other car company. Welcome to the auto business, which currently sells for around 5x earnings! Meanwhile, Elon Musk remains the most vile person ever to head a large-cap U.S. public company, and we remain short Tesla, the biggest bubble-stock in modern market history, because: It has a sliding share of the world’s EV market and a share of the overall auto market that’s only around 1.5%, yet a market cap greater than the next 13 largest automakers (by market cap) combined despite selling only around 2% of the cars they do. It has no “moat” of any kind; i.e., nothing meaningfully proprietary in terms of its electric car technology (which has now been equaled or surpassed by numerous competitors) and its previously proprietary Superchargers are being opened to everyone), while existing automakers—unlike Tesla­—have a decades-long “experience moat” of knowing how to mass-produce, distribute and service high-quality cars consistently and profitably. Excluding working capital benefits and sunsetting emission credit sales Tesla generates only minimal free cash flow. Growth in sequential demand for Tesla’s cars is at a crawl relative to expectations. Elon Musk is a pathological liar. In July Tesla reported a terrible Q2, with deliveries down 26% from Q1 (which itself showed no growth over Q4). However, Q2’s sales decrease was due to a monthlong COVID-related closing of Tesla’s Shanghai factory, and thus that month of pent-up demand will undoubtedly make Q3’s figure significantly better than it otherwise would be (which is why I averaged the two figures a few paragraphs above). In Q2 Tesla generated only $621 million in stated free cash flow, yet that included a sequential increase in payables (and decrease in receivables) despite a $1.8 billion decrease in revenue! (In other words, Tesla didn’t pay some of its bills!) Additionally, there was a $106M operating cash flow benefit from a Bitcoin sale, so adjusting for the working capital and Bitcoin benefits Tesla was barely free cash flow-positive. Meanwhile, earnings were just $0.65/share (adjusted for August’s 3:1 split) including roughly .10/share of emission credit sales which will disappear some time next year when competitors have enough EV capacity of their own. If we add back the one-time .03/share loss for the aforementioned Bitcoin sale and deduct the sunsetting credit sales, we get annualized adjusted run-rate earnings of just $2.32, giving Tesla an annualized run-rate PE ratio (as of the end of August) of 119 in an industry with an average current multiple of only around 5! And even to make that lousy earnings number Tesla (an alleged “technology growth company”) had to slash R&D spending sequentially by almost $200 million while simultaneously claiming a mysterious reduction in SG&A despite opening two brand new factories in the quarter that Musk called “gigantic money furnaces.” Loss Of Product Edge Meanwhile, Tesla has objectively lost its “product edge,” with many competing cars now offering comparable or better real-world range, better interiors, similar or faster charging speeds and much better quality. (Tesla ranks second-to-last in Consumer Reports’ reliability survey while British consumer organization Which? found it to be one of the least reliable cars in existence.) Thus, due to competitors’ temporary production constraints, waiting times are now longer for many of Tesla’s direct EV competitors than they are for a Tesla. (Here’s one example, and here’s another.) In fact, Tesla is likely now the second, third or fourth choice for many EV buyers, and only maintains its volume lead though a short-lived edge in production capacity that will disappear over the next 12 to 36 months as competitors rapidly increase the ability to produce their superior EVs. Tesla’s poorly-built Model Y faces current (or imminent) competition from the much better made (and often just better) electric Hyundai Ioniq 5, Kia EV6, Ford Mustang Mach E, Cadillac Lyriq, Nissan Ariya, Audi Q4 e-tron, BMW iX3, Mercedes EQB, Volvo XC40 Recharge, Chevrolet Blazer EV and Polestar 3. And Tesla’s Model 3 now has terrific direct “sedan competition” from Volvo’s beautiful Polestar 2, the great new BMW i4, the upcoming Hyundai Ioniq 6 and Volkswagen Aero, and multiple local competitors in China—here, from Snowbull Capital’s @TaylorOgan, is just one example of that Chinese competition: And in the high-end electric car segment worldwide the Porsche Taycan (the base model of which is now considerably less expensive than Tesla’s Model S) outsells the Model S, while the spectacular Mercedes EQS, Audi e-Tron GT and Lucid Air make it look like a fast Yugo, and the extremely well reviewed new BMW iX and Mercedes EQS SUV do the same to the Model X. Tesla Is Netflix Indeed, for years I’ve said “Tesla is Blackberry”—the maker of a first-generation version of a product that—once the market was proven—would be supplanted into niche obscurity by newer, better versions; now I can provide a much more recent analogy: Tesla is Netflix. For years Netflix had an absurd valuation based on its pioneering position in streaming media, but once it proved that such a market existed myriad competitors swarmed all over it, and this year the stock collapsed when we learned that not only is Netflix no longer in “hypergrowth” mode but for the first time since 2011 (when it transitioned from physical DVDs) it actually lost subscribers. I believe Musk knows that Tesla is “the next Netflix” (hence his recent “Twitter buying distraction”), with VW, Hyundai/Kia, Ford, GM, BMW, Mercedes, BYD & other Chinese competitors and, in a few years, Toyota & Honda, being the Disney, HBO Max, Amazon Prime, Peacock, Hulu, Paramount +, etc., of the electric car market, stealing Tesla’s share and eventually pounding its stock price down 90% or so from today’s, into the valuation of “just another car company.” Despite this obvious “writing on the wall,” many Tesla bulls sincerely believe that ten years from now the company will be twice the size of Volkswagen or Toyota, thereby selling around 20 million cars a year (up from the current run-rate of around 1.3 million); in fact in May Musk himself even raised this as a possibility. Setting aside the absurdity of selling that many cars at Tesla’s high price points, to illustrate the “logistical absurdity” of this, going from 1.3 million cars a year today to 20 million in ten years means that in addition to 2 million cars a year of sold-out existing claimed production capacity (once the German and Texas factories are fully operational), Tesla would have to add 36 more brand new 500,000 car/year factories with sold out production; i.e., a new factory nearly every single quarter for the next ten years! Meanwhile, in July the head of Tesla’s “self-driving” program quit, while in June the NHTSA announced that its investigation of Tesla’s deadly Autopilot has expanded into “an engineering analysis,” the last required step before (finally!) demanding a full recall. The refund liability potential for Tesla for this is in the billions of dollars, and possibly even the tens of billions if a class action lawsuit proves that the cars involved were purchased solely due to the (fallacious) promise of “full self-driving.” And, of course, there will be a massive “valuation reappraisal” for Tesla’s stock as the world wakes up to the fact that Tesla’s so-called “autonomy technology” is just trailing-edge garbage. As of July the NHTA was investigating 48 crashes involving autonomous driving systems, 39 of which—and all the deaths but one—involve Tesla. (For all Tesla deaths cited in the media—which is likely only a small fraction of those that have occurred—see TeslaDeaths.com.) And Tesla has sold this trashy software for almost six years now: …and still promotes it on its website via a completely fraudulent video! Nothing Proprietary Another favorite Tesla hype story has been built around so-called “proprietary battery technology.” In fact though, Tesla has nothing proprietary there—it doesn’t make them, it buys them from Panasonic, CATL and LG, and it’s the biggest liar in the industry regarding the real-world range of its cars. And if new-format 4680 cells enter the market some time in 2024 (as is now expected), even if Tesla makes some of its own, other manufacturers will gladly sell them to anyone, and BMW has already announced it will buy them from CATL and EVE. And oh, the joke of a “pickup truck” Tesla previewed in 2019 (and still hasn’t shown in production-ready form) won’t be much of “growth engine” either, as it will enter a dogfight of a market; in fact, Ford’s terrific 2022 all-electric F-150 Lightning now has over 200,000 retail reservations (plus many more fleet reservations), GM has introduced its fantastic 2023 electric Silverado which already has nearly 200,000 reservations and Rivian’s pick-up has gotten excellent early reviews. Regarding safety, as noted earlier in this letter, Tesla continues to deceptively sell its hugely dangerous so-called “Autopilot” system, which Consumer Reports has completely eviscerated; God only knows how many more people this monstrosity unleashed on public roads will kill despite the NTSB condemning it. Elsewhere in safety, the Chinese government forced the recall of tens of thousands of Teslas for a dangerous suspension defect the company spent years trying to cover up, and now Tesla has been hit by a class-action lawsuit in the U.S. for the same defect. Tesla also knowingly sold cars that it knew were a fire hazard and did the same with solar systems, and after initially refusing to do so voluntarily, it was forced to recall a dangerously defective touchscreen. In other words, when it comes to the safety of customers and innocent bystanders, Tesla is truly one of the most vile companies on Earth. Meanwhile the massive number of lawsuits of all types against the company continues to escalate. So Here Is Tesla’s Competition In Cars... (note: these links are regularly updated) Porsche Taycan Porsche Taycan Cross Turismo Porsche Macan Electric SUV Officially Coming in 2023 Volkswagen ID.3 Volkswagen ID.4 Electric SUV Volkswagen unveils ID.6 SUV EV in China Volkswagen ID.Buzz Electric Van Volkswagen unveils the ID. AERO sedan with 385 miles of range New sketch of 2025 Volkswagen ID.1 unveiled VW’s Cupra Born Volkswagen unveils $7.1B commitment to boost product line-up, R&D, mfg in N. America Audi e-tron Audi e-tron Sportback Audi E-tron GT Audi Q4 e-tron Audi Q6 e-tron confirmed for 2022 launch 2022 Audi A6 e-tron set to take on Tesla Audi will expand EV lineup with electric A6 wagon Audi TT to be axed in 2023 for 'emotional', electric replacement Hyundai Ioniq 5 Hyundai Ioniq 6 Hyundai Kona Electric Genesis reveals their first EV on the E-GMP platform, the electric GV60 crossover Genesis Electrified GV70 Revealed With 483 Horsepower And AWD Kia Niro Electric: 239-mile range & $39,000 before subsidies Kia EV6: Charging towards the future Kia EV9 to land in US in 2023 with 300-miles range, $50,000 price Kia EV4 on course to grow electric SUV range Jaguar’s All-Electric i-Pace Jaguar to become all-electric brand; Land Rover to Get 6 electric models Daimler will invest more than $47B in EVs and be all-electric ready by 2030 Mercedes EQS: the first electric vehicle in the luxury class 2023 Mercedes EQS SUV Is a Seven-Seat EV Flagship with up to 536 HP 2023 Mercedes EQE Electric Sedan Mercedes EQE SUV to rival BMW iX and Tesla Model X Mercedes EQC electric SUV available now in Europe & China Mercedes-Benz Launches the EQV, its First Fully-Electric Passenger Van Mercedes-Benz EQB Makes Its European Debut, US Sales Confirmed Mercedes-Benz unveils EQA electric SUV with 265 miles of range and ~$46,000 price Ford Mustang Mach-E Available Now Ford F-150 Lightning electric pick-up available 2022 Ford set to launch ‘mini Mustang Mach-E’ electric SUV in 2023 Ford to launch 7 EVs in Europe in big electric push Ford unveils Lincoln Star electric SUV concept as it readies to add four new EVs by 2026 Polestar 2 sedan Polestar 3 SUV With 372-Mile Range Coming Late 2022 Volvo XC40 Recharge Volvo C40 Recharge Chevrolet Blazer EV Chevrolet Bolt sedan, 259-mile range starting at $31,000 Chevrolet Bolt EUV electric crossover Cadillac All-Electric Lyriq GMC Electric Hummer Pick-Up and SUV GM electric Silverado pickup truck GM Launches BrightDrop to Electrify the Delivery of Goods and Services GM & Honda Will Codevelop Affordable EVs Targeting Most Popular Vehicle Segments Honda pours $40 billion into electrification, targets 2 million EV production by 2030 Honda and Sony finalize 50-50 joint venture to build EVs in 2025 BMW leads off EV offensive with iX3 BMW expands EV offerings with iX tech flagship and i4 sedan BMW i7 EV, with 600 hp, will be most powerful variant of new 7 Series flagship BMW iX1 Revealed With 313 HP, 272 Miles WLTP Range Renault-Nissan alliance plows $26B into EV blitz- will jointly launch 35 new EVs Nissan vows to hop back on EV podium with Ariya Nissan LEAF e+ with 226-mile range is available now Nissan Unveils $18 Billion Electric-Vehicle Strategy Renault upgrades Zoe electric car as competition intensifies Renault Dacia Spring Electric SUV Renault to boost low-volume Alpine brand with 3 EVs Renault's electric Megane will debut new digital cockpit Stellantis promises 'heart-of-the-market SUV' from new, 8-vehicle EV platform Chrysler to go all-EV by 2028 Alfa Romeo's First Electric Car Will Arrive in 2024 Peugeote-208 PEUGEOT E-2008: THE ELECTRIC AND VERSATILE SUV Peugeot 308 will get full-electric version Subaru shows off its first electric vehicle, the Solterra SUV Citroen compact EV challenges VW ID3 on price Rivian R1T Is the Most Remarkable Pickup We’ve Ever Driven Maserati going fully electric by 2030 -all vehicles will offer a BEV version by 2025 Mini Cooper SE Electric Toyota’s Electric bZ4X Goes On Sale in Spring 2022 Toyota will have lineup of 30 full EVs by 2030; Lexus will be all-electric brand Honda and Sony to build, sell EVs by 2025 Opel sees electric Corsa as key EV entry 2021 Vauxhall Mokka revealed as EV with sharp looks, massive changes Skoda Enyaq iV electric SUV offers range of power, battery sizes Electric Skoda Enyaq coupe to muscle-in on Tesla Model 3 Skoda plans small EV, cheaper variants to take on French, Korean rivals Nio to launch in five more European countries after Norway BYD will launch electric SUV in Europe The Lucid Air Achieves an Estimated EPA Range of 517 Miles on a Single Charge Bentley will start output of first full EV in 2025 All-electric Rolls-Royce Spectre to launch in 2023 – firm to be EV-only by 2030 Aston Martin will build electric vehicles in UK from 2025 Meet the Canoo, a Subscription-Only EV Pod Coming in 2021 Two new electric cars from Mahindra in India; Global Tesla rival e-car soon Former Saab factory gets new life building solar-powered Sono Sion electric cars Foxconn aims for 10% of electric car platform market by 2025 And In China, Where Tesla’s EV Market Share Is Now Declining... BYD is #1 in Chinese EVs, selling FAR more than Tesla Volkswagen to boost Chinese EV capacity to 1m by 2023 Audi-FAW's $3.3 billion electric vehicle venture Nio Xpeng Motors Hozon/Neta Li Auto GAC Aion Leap Motors GM launches Ultium EV production platform in China Ford Mustang Mach-E Rolls Off Assembly Line in China Cheaper than Tesla: Honda takes aim at China's middle class BMW i3 Debuts As All-Electric 3 Series Only For China Hongqi Geely Zeekr Premium EVs by Geely Baidu and Geely put nearly $400 million more into their electric car venture China-made Mercedes-Benz EQE hits market BAIC Hyundai, BAIC Motor to inject $942 mn in China JV for EVs Toyota partners with BYD to build affordable $30,000 electric car Lexus RZ 450e Steers For China Dongfeng SAIC Renault launches sales of first EV in China Nissan expects 40% of sales in China to be electrified by 2026 Changan forms subsidiary Avatar Technology to develop smart EVs with Huawei, CATL WM Motors/Weimar Chery Seres Enovate Singulato JAC Motors Iconiq Motors Aiways Skyworth Auto Youxia Human Horizons Xiaomi announces plans for four electric vehicle models Here’s Tesla’s Competition In Autonomous Driving; The Independents All Have Deals With Major OEMs... Waymo ranked top & Tesla last in Guidehouse leaderboard on automated driving systems Tesla has a self-driving strategy other companies abandoned years ago Waymo operates robotaxis NOW GM’s Cruise operates robotaxis NOW Argo AI (owned by Ford & VW) Begins Driverless Vehicle Operations in Miami & Austin Mobileye operates driverless test fleets in Europe and the U.S. Cadillac Super Cruise Sets the Standard for Hands-Free Highway Driving Ford’s hands-free “Blue Cruise” Mercedes Launches SAE Level 3 Drive Pilot System Honda Legend Sedan with Level 3 Autonomy Now Available in Japan Hyundai + Motional Bringing IONIQ 5 robotaxis to the streets from 2023 Amazon’s Zoox will test its autonomous vehicles on Seattle’s rainy streets Baidu greenlighted for China's first-ever commercial driverless Robotaxi service Alibaba-backed AutoX unveils first driverless RoboTaxi production line in China Pony.ai approved for public driverless robotaxi service in Beijing Here’s Where Tesla’s Competition Will Get Its Battery Cells... Panasonic (making deals with multiple automakers) LG Samsung SK Innovation Toshiba CATL BYD Northvolt Volkswagen to Build Six Electric-Vehicle Battery Factories in Europe GM’s Ultium GM to develop lithium-metal batteries with SolidEnergy Systems SK On and Ford form BlueOval SK, an EV battery joint venture BMW & Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles Stellantis affirms commitment to build battery factory in Italy with Mercedes, TotalEnergies Stellantis and Samsung SDI to Invest Over $2.5B in Battery Production Plant in United States Stellantis and LG to Invest Over $5 Billion CAD in Joint Venture for Li-Ion Battery Plant in Canada Stellantis and Factorial Energy to Jointly Develop Solid-State Batteries for Electric Vehicles Mercedes-Benz to build 8 battery factories in push to become electric-only automaker Mercedes-Benz and Sila achieve breakthrough with high silicon automotive battery Toyota to invest $5.3bn to make EV batteries in U.S. and Japan Toyota Outlines Solid-State Battery Tech, $13.6 Billion Investment Honda Motor, LG Energy to build $4.4 bln U.S. EV battery plant Daimler joins Stellantis as partner in European battery cell venture ACC Renault signs EV battery deals with Envision, Verkor for French plants Nissan to build $1.4bn EV battery plant in UK with Chinese partner Nissan Announces Proprietary Solid-State Batteries UK companies AMTE Power and Britishvolt plan $4.9 billion investment in battery plants Foxconn breaks ground on first EV battery plant Envision EVE Freyr Verkor Farasis Microvast Akasol Cenat Wanxiang Eve Energy Svolt Romeo Power ProLogium Hyundai Motor developing solid-state EV batteries Morrow Here’s Tesla’s Competition In Charging Networks... Infrastructure Bill: $7.5 billion Towards Nationwide Network of 500,000 EV Chargers Electrify America EVgo Chargepoint Ionity Europe Shell 51 U.S. electric companies commit to build nationwide EV fast charging network by end of 2023 GM, EVgo, and Pilot will install 2,000 fast chargers at travel centers GM to Expand Access to EV Charging with More than 40,000 Charging Stations Volkswagen powers up the grid to take on Tesla Volkswagen-backed CAMS eyes deployment of 17,000 charging points in China by 2025 Circle K begins North American EV fast charger rollout, plans 200-site network by 2024 Porsche to build out its own network of EV charging stations Petro-Canada Coast-to-Coast Canadian Charging Network Volta E.On BP Volkswagen and BP partner to deploy up to 8,000 EV chargers across EU/UK Smatric Allego Podpoint Instavolt Fastned Total Nio Battery Swap Stations BMW to Build 360,000 Charging Points in China to Juice Electric Car Sales Evie And Here’s Tesla’s Competition In Storage Batteries... Panasonic Samsung LG Energy Solutions CATL BYD AES + Siemens (Fluence) GE Hitachi ABB Toshiba Saft Johnson Contols EnerSys SOLARWATT Sonnen Generac Kokam Eaton Tesvolt Leclanche Lockheed Martin Honeywell EOS Energy Storage ESS Electriq Power Redflow Primus Power Simpliphi Power Invinity Murata Bollore Adara Blue Planet Aggreko Orison Powin Energy Nidec Powervault Kore Power Shanghai Electric LithiumWerks Natron Energy Energy Vault Ambri Voltstorage Cadenza Innovation Morrow Gridtential Villara Elestor SolarEdge Q-Cells Huawei Toyota ADS-TEC Form Energy Enphase Sumitomo Electric Stryten Energy Freyr Growatt Polarium Thanks, Mark Spiegel Stanphyl Capital.....»»

Category: blogSource: valuewalkSep 1st, 2022

Brii Biosciences Provides Corporate Update and Reports 2022 Interim Results

Additions to executive team strengthen global leadership and position Company for strategic long-term growth First-ever product launch of long-acting amubarvimab/romlusevimab combination therapy for COVID-19 in China advances Brii Bio from clinical development to commercial stage biotechnology company On track to advance clinical programs in HBV, CNS, HIV and MDR/XDR, and deliver key data read-outs in 2022 Ample funds to support operations through 2025 Company to host conference call today at 8:30 PM HKT / 8:30 AM ET DURHAM, N.C. and BEIJING, Aug. 23, 2022 /PRNewswire/ -- Brii Biosciences Limited ("Brii Bio," "we," or the "Company", stock code: 2137.HK) a multi-national company developing innovative therapies for diseases with significant unmet medical needs and large public health burdens, today announced a corporate update and reported its interim results for the six months ended June 30, 2022. Zhi Hong, Ph.D., Chairman and Chief Executive Officer of Brii Bio stated: "The first half of 2022 marked an important time for Brii Bio as we achieved a number of significant corporate, clinical development and regulatory milestones. We further built up our leadership team with recent additions of a Chief Business Officer, Chief Technology Officer, Chief People Officer, and CNS Disease Therapy Area Head. We believe that our strong global executives and talented team will drive the Company's long-term growth. Recently we commercially launched our COVID-19 combination therapy in China, which also ushered the Company into an exciting new phase of growth as a commercial-stage organization. Moving forward, we have set clear strategic priorities for the organization of our R&D teams; in China, we will further strengthen our leadership position in developing HBV functional curative therapies, while in the U.S., our team will focus on advancing our highly differentiated anti-depression programs. We will continue to invest in and accelerate our pipeline for China and global markets through internal discovery and strategic partnerships." Brii Bio's pipeline spans all phases of clinical development. As of the date of this announcement, the Company has over 10 innovative product candidates undergoing clinical development. Brii Bio and its partners' current programs are designed to address HBV, COVID-19, HIV, MDR/XDR gram-negative and NTM infections, as well as PPD/MDD or other anxiety and depressive disorders. 2022 Interim and Recent Corporate Developments We recently expanded our diverse global executive team with the additions of Dr. Susannah Cantrell as Chief Business Officer, Dr. Eleanor (Ellee) de Groot as our Chief Technology Officer, and Dr. Aleksandar Skuban as our CNS Disease Therapy Area Head. Also, Ms. Karen D. Neuendorff was appointed as Chief People Officer early this year. Each of these accomplished industry executives boasts a strong track record of success leading international teams. In July, we announced our plan to exercise the option to acquire exclusive development and commercialization rights for VIR-3434 in Greater China (Mainland China, Hong Kong, the Macau Special Administrative Region of the People's Republic of China and Taiwan) as part of our broader collaboration with Vir Biotechnology, Inc. ((", Vir", , NASDAQ:VIR). VIR-3434 grows the Company's leading clinical pipeline of therapeutic candidates for hepatitis B virus (HBV) and expands its set of potential combination treatment options to explore as part of its effort to develop a functional cure for HBV. Brii Bio was added to the MSCI China Small Cap Index in May 2022. The MSCI China Small Cap Index is an equity index compiled by MSCI Inc., a leading provider of critical decision support tools and services for the global investment community. The index is designed to measure the performance of the China market's small-cap segment and is widely recognized by the international financial community as a benchmark for global institutional investors seeking to optimize their investment portfolios. We sponsored the 20/20 Mom Annual Forum, Maternal Mental Health Now, 35th Annual Postpartum Support International Conference and the 2022 Black Maternal & Mental Health Summit. Our participation in these events help the Company foster relationships with patients, their caregivers, and the disease-specific nonprofit groups that support them. We believe this is an important step to ensure patient voices are understood across every function, from R&D to commercialization. 2022 Interim Pipeline Highlights and Upcoming Data Readouts Hepatitis B Virus (HBV) Functional Cure Program (China team core project) We are progressing multiple combination studies for the treatment of HBV led by our team in China and our partner Vir Biotechnology ((", Vir, ", NASDAQ:VIR). BRII-179 (VBI-2601) and BRII-835 (VIR-2218) (therapeutic vaccine and siRNA) Combination In February 2022, we completed the enrollment of 90 patients from the Asia-Pacific region in our Phase 2 multi-regional clinical trial (MRCT) combination study of BRII-179 (VBI-2601)/BRII-835 (VIR-2218). Patients are expected to complete treatment in the Phase 2 MRCT combination therapy study in the third quarter of 2022, with interim topline data expected by the end of 2022. If positive results are achieved in the combination study, we plan to initiate a pre- Investigational New Drug ("pre-IND") discussion with China's Center for Drug Evaluation ("CDE") in 2023 for a pivotal study with our combination BRII-179 (VBI-2601)/BRII-835 (VIR-2218) therapy. BRII-179 (VBI-2601) and PEG-IFN-α Combination A two-part Phase 2a/2b combination study with BRII-179 (VBI-2601) in HBV patients receiving pegylated interferon alfa ("PEG-IFN-α") and nucleotide/nucleoside reverse transcriptase inhibitors (NRTI) treatment is currently recruiting patients in China. Patient enrollment for part one of the Phase 2 study (Phase 2a with approximately 120 patients) is expected to be complete in the fourth quarter of 2022 with interim topline results expected in the first half of 2023. BRII-835 (VIR-2218) In March 2022, we presented findings from the Phase 2 China study on the safety and antiviral activity of BRII-835 (VIR-2218) administered on top of nucleos(t)ide analog therapy at the 2022 Asian Pacific Association for the Study of the Liver (APASL) conference. The dose-dependent reduction in serum HBsAg observed in both HBeAg- and HBeAg+ Chinese chronic HBV patients in this trial after two doses of BRII-835 (VIR-2218) is consistent with previous findings demonstrated in other racial/ethnic groups. Our partner, Vir Biotechnology presented data at the International Liver Congress in June 2022, showing longer treatment duration of monthly BRII-835 (VIR-2218) results in deeper and more sustained reductions in hepatitis B surface antigen (HBsAg) in participants with chronic hepatitis B infection. Additional data from the Phase 2 study of BRII-835 (VIR-2218) in combination with PEG-IFN-α led by Vir is expected in 2022. BRII-877 (VIR-3434) (Study conducted by Vir) Data from a Phase 1 monotherapy study led by Vir were presented at the International Liver Congress in June 2022 demonstrating the dose-dependent durability of HBsAg reductions following administration of a single dose of BRII-877 (VIR-3434). In virally suppressed participants with HBsAg of less than 3,000 IU/mL, a single 6 mg to 75 mg dose of BRII-877 (VIR-3434) resulted in rapid HBsAg reductions of greater than 1 log10 IU/mL in most participants. Single doses of BRII-877 (VIR-3434) showed no clinically significant safety signals; all adverse events (AEs) were Grade 1 or 2. These data support the potential for BRII-877 (VIR-3434) to provide a meaningful role in the functional cure of chronic HBV infection. In July 2022, we announced that the Company exercised its option to in-license BRII-877 (VIR-3434) for exclusive development and commercialization rights in Greater China as part of its broader collaboration with Vir. We plan to request a pre-IND meeting with China's CDE for a Phase 1 study of BRII-877 (VIR-3434) by the end of 2022. BRII-835 (VIR-2218) and BRII-877 (VIR-3434) (siRNA and antibody combination conducted by Vir) Our partner, Vir, shared encouraging data from Part A of its Phase 2 MARCH study in April 2022, which suggests that BRII-835 (VIR-2218) and BRII-877 (VIR-3434) are additive in reducing HBsAg, with no ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaAug 23rd, 2022

Twilio (TWLO) Posts Narrower-Than-Expected Q2 Loss, Solid Sales

Twilio's (TWLO) Q2 performance reflects the benefits of the constant expansion of its international business and the continuous acceleration of digital transformation projects across several industries. Twilio TWLO reported better-than-expected results in the second quarter of 2022. The company reported a non-GAAP loss of 11 cents per share for the second quarter, while the Zacks Consensus Estimate was pegged at a loss of 20 cents per share.The bottom line was flat with the year-ago quarter. Increased investments in research & development and sales & marketing initiatives to drive future growth continued to weigh on the bottom line, which more than offset the benefits of higher revenues.Revenue DetailsThe cloud-based communications platform-as-a-service provider reported revenues of $943.4 million, which improved by 41% year over year and surpassed the consensus mark of $917.7 million. The company’s newly acquired Zipwhip business contributed $34 million to total revenues.Twilio Inc. Price, Consensus and EPS Surprise Twilio Inc. price-consensus-eps-surprise-chart | Twilio Inc. QuoteTwilio has been benefiting from the constant expansion of its international business and the continuous acceleration of digital transformation projects across several industries. The top line was primarily driven by the enhancement of customer experiences across various product portfolios like Segment and Flex, which are its fastest-growing software-as-a-service products at present.Twilio’s dollar-based net expansion rate was 123% in the reported quarter, down from 127% in the previous quarter and 135% in the year-ago quarter.The company’s active customer accounts increased to 275,000 as of Jun 30, 2022 from 240,000 at the end of the first quarter of 2022 and 268,000 as of Mar 31, 2021.Operating ResultsThe non-GAAP gross profit climbed 33.4% year over year to $480 million. However, the non-GAAP gross margin contracted by 300 basis points to 51%.Twilio reported a second-quarter non-GAAP operating loss of $7 million, while it reported an operating income of $4 million in the year-ago quarter.General & administrative expenses on a non-GAAP basis increased 27% to $87.7 million and accounted for 9% of the quarterly revenues.Research & development expenses on a non-GAAP basis surged 41% year over year to $167.1 million and made up 18% of the quarterly revenues.Non-GAAP sales & marketing expenses surged 38% to $23.3 million and represented 25% of second-quarter revenues.Balance SheetThe company exited the January-March quarter with cash and cash equivalents and short-term marketable securities of $4.39 billion, down from $5.22 billion at the end of the first quarter of 2022. As of Jun 30, 2022, TWLO’s long-term debt was $986.6 million.GuidanceTwilio forecast a non-GAAP loss per share between 37 cents and 43 cents for the third quarter of 2022. The Zacks Consensus Estimate for the same is pegged at a loss of 16 cents per share.For the current quarter ending Sep 30, 2022, the company anticipates revenues between $965 million and $975 million, suggesting year-over-year growth of 30% to 32%. Management estimates the non-GAAP loss from operations in the range of $60 million- $70 million.Zacks Rank & Stocks to ConsiderTwilio currently carries a Zacks Rank #3 (Hold). Shares of TWLO have fallen 62.7% year to date (“YTD”).Some better-ranked stocks worth considering from the broader technology sector are Cadence Design Systems CDNS, Manhattan Associates MANH and 8x8, Inc. EGHT. Cadence Design Systems and Manhattan Associates each sport a Zacks Rank #1 (Strong Buy), while 8x8 carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Cadence Design Systems' third-quarter 2022 earnings has been revised upward by nine cents to 97 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 5.7% to $4.11 per share in the past 30 days.Cadence Design Systems' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.8%. Shares of CDNS have decreased 2.3% YTD.The Zacks Consensus Estimate for Manhattan Associates' third-quarter 2022 earnings has been revised upward by a penny to 57 cents per share in the past 30 days. For 2022, earnings estimates have moved south by 18 cents to $2.38 per share in the past 30 days.Manhattan Associates' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 30.3%. Shares of MANH have plunged 6.7% YTD.The Zacks Consensus Estimate for 8x8's second-quarter fiscal 2023 earnings has been revised upward by a penny to four cents per share over the past seven days. For fiscal 2023, the Zacks Consensus Estimate for 8x8's earnings has moved north by 13 cents to 26 cents per share in the past seven days.8x8's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same in one, the average surprise being 175%. Shares of EGHT have plunged 66.5% YTD. Free: Top Stocks for the $30 Trillion Metaverse Boom The metaverse is a quantum leap for the internet as we currently know it - and it will make some investors rich. Just like the internet, the metaverse is expected to transform how we live, work and play. Zacks has put together a new special report to help readers like you target big profits. The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks reveals specific stocks set to skyrocket as this emerging technology develops and expands.Download Zacks’ Metaverse Report 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 Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Manhattan Associates, Inc. (MANH): Free Stock Analysis Report 8x8 Inc (EGHT): Free Stock Analysis Report Twilio Inc. (TWLO): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksAug 5th, 2022

Globus Medical (GMED) Q2 Earnings Beat, Gross Margin Dips

Globus Medical's (GMED) Musculoskeletal Solutions products generate solid revenues on growth in spine and trauma implant portfolios. Globus Medical, Inc. GMED reported second-quarter 2022 adjusted earnings per share (EPS) of 56 cents, beating the Zacks Consensus Estimate by 3.7%. The metric however remained unchanged year over year.The adjusted EPS excludes certain non-recurring expenses like amortization of intangibles, and acquisition-related costs among others.Our projection of adjusted EPS was 55 cents.Without the adjustments, the company registered GAAP EPS of 53 cents per share, reflecting a 32.5% surge year over year.RevenuesSecond-quarter 2022 worldwide sales totaled $263.6 million, up 5% year over year and 6.5% at constant exchange rate or CER. The reported figure exceeded the Zacks Consensus Estimate by 1.9%.The second-quarter revenues compare favorably with our estimate of $261.6 million.Quarterly DetailsSales generated in the United States during the quarter under review improved 4.7% year over year to $225.3 million. Continued market share gain within U.S. Spine, higher sales of enabling technologies' robotic systems, new sales related to the rollout of the E3D imaging system, and continued growth within its trauma business contributed to this growth.We expected U.S. revenues to be $224.1 million in Q2.Internationally, revenues were $38.4 million, up 6.9% on a reported basis and 17.3% at CER, driven by the continued global expansion of the company’s robotics portfolio.Globus Medical, Inc. Price, Consensus and EPS Surprise Globus Medical, Inc. price-consensus-eps-surprise-chart | Globus Medical, Inc. QuoteInternational revenues per our model were projected to be $37.5 million in Q2.Musculoskeletal Solutions products generated revenues of $234.2 million, up 3.1% year over year at CER, driven by growth in spine and trauma implant portfolios, partially offset by constant currency impacts and lower sales in Japan.Our projection for the Musculoskeletal Solutions segment’s Q2 revenues was $242.1 million.Enabling Technologies product revenues of $29.4 million in the quarter reflected a 44.4% surge at CER from the prior-year figure, favorably impacted by the initial shipment and sales of the E3D imaging system.Per the Zacks Model, Enabling Technologies product segment’s Q2 revenues were estimated to be $19.5 million.MarginGross profit in the reported quarter increased 4.3% year over year to $195.2 million. The gross margin contracted 54 basis points (bps) to 74% due to a 7.2% rise in the cost of goods sold to $68.5 million.We projected a gross margin of 72.6% for Q2.Selling, general and administrative expenses fell 0.5% in the reported quarter to $106.7 million. Research and development expenses rose 11.9% to $17.4 million.Overall adjusted operating profit was $71.1 million, reflecting a 10.4% rise from the year-ago quarter. The adjusted operating margin expanded 131.1 bps in the quarter to 26.9%.Cash PositionGlobus Medical exited the second quarter of 2022 with cash and cash equivalents, and short-term marketable securities of $407.9 million compared with $473.3 million at the end of Q1.Cumulative net cash provided by operating activities at the end of the second quarter of 2022 was $81.6 million compared with the year-ago figure of $122.8 million.2022 GuidanceThe company has reaffirmed its 2022 guidance.Full-year net sales are projected to be $1.025 billion. The Zacks Consensus Estimate for the same is currently pegged at $1.02 billion.The company’s adjusted EPS guidance for 2022 is $2.10. The Zacks Consensus Estimate for the same is also pegged at $2.10 currently.Our TakeGlobus Medical exited the second quarter of 2022, with better-than-expected earnings and revenues. The company encouragingly noted that the Q2 surpassed a difficult 2021 comparable of 69% growth. The reported quarter also witnessed 14% sequential growth with stronger performance throughout the portfolio, setting a new monthly sales record in June, where the company exceeded $100 million in monthly sales for the first time.On the flip side, escalating costs are building pressure on the gross margin.Zacks Rank and Key PicksGlobus Medical currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated DGX, Humana Inc. HUM and Alkermes plc ALKS.Quest Diagnostics, carrying a Zacks Rank #2 (Buy), reported second-quarter 2022 adjusted EPS of $2.36, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $2.45 billion outpaced the consensus mark by 7.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quest Diagnostics has an earnings yield of 7% compared with the industry’s 3.2%. DGX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average being 12.1%.Humana, having a Zacks Rank #2, reported second-quarter 2022 adjusted EPS of $8.67, which beat the Zacks Consensus Estimate by 13%. Revenues of $23.7 billion outpaced the consensus mark by 1.2%.Humana has an estimated long-term growth rate of 13.5%. HUM’s earnings surpassed estimates in all the trailing four quarters, the average being 9.1%.Alkermes reported second-quarter 2022 adjusted EPS of 6 cents, which surpassed the Zacks Consensus Estimate by 50%. Second-quarter revenues of $276.2 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.Alkermes has an estimated long-term growth rate of 24.9%. ALKS’s earnings surpassed estimates in all the trailing four quarters, the average being 325.5%. Free: Top Stocks for the $30 Trillion Metaverse Boom The metaverse is a quantum leap for the internet as we currently know it - and it will make some investors rich. Just like the internet, the metaverse is expected to transform how we live, work and play. Zacks has put together a new special report to help readers like you target big profits. The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks reveals specific stocks set to skyrocket as this emerging technology develops and expands.Download Zacks’ Metaverse Report 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 Alkermes plc (ALKS): Free Stock Analysis Report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report Globus Medical, Inc. (GMED): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 5th, 2022

Upstart (UPST) to Report Q2 Earnings: What"s in the Offing?

Upstart's (UPST) second-quarter 2022 results are likely to reflect benefits from its strategy to operate as a multiproduct company and growing strength across its auto refinance product. Upstart Holdings UPST is slated to release second-quarter 2022 results on Aug 8.For the second quarter, the company expects revenues between $295 million and $305 million. The Zacks Consensus Estimate for the top line is currently pegged at $228.01 million, suggesting growth of 17.56% year over year.The consensus mark for the bottom line has remained unchanged at a loss of 5 cents per share over the past 30 days, suggesting a decline of 108.06%.The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 87.71%.Upstart Holdings, Inc. Price and EPS Surprise Upstart Holdings, Inc. price-eps-surprise | Upstart Holdings, Inc. QuoteFactors to NoteUpstart’s second-quarter performance is likely to have benefited from its strategy to operate as a multiproduct company. Strength across Upstart’s auto refinance and personal loan product portfolios might have favored the company’s performance in the to-be-reported quarter.The company is expected to have benefitted from its R&D initiatives, specifically in its auto refinance section. Upstart recently launched its first AI model for an auto refi that has been helping the company deploy accurate versions of its auto refi model, which is likely to have given the company a competitive advantage in the second quarter.Upstart’s strategic acquisition of Prodigy back in 2021 is likely to have reaped benefits for the company in the second quarter. Prodigy has helped Upstart rollout its new auto retail product. Due to its buyout of Prodigy, Upstart’s dealership partnership extended from 100 rooftops to 500 in the last reported quarter, which is expected to have increased in the to-be-reported quarter.The company may have gained from a growing partner base in the second quarter. In the first quarter of 2022, Upstart had 57 bank partners and credit unions and 150 institutional investors funding loans on the Upstart platform.In the quarter to be reported, Upstart may have benefited from the addition of five lenders who are ready to provide loans with no minimum fico score, which is likely to have attracted more diverse customers.However, the current macro-economic situation has created a very volatile market, specifically in the financial services industry. The rising inflation and the U.S. Federal Reserve's rapid interest rate hike to counter it is expected to have contributed to the market rotation out of the lending industry.This is expected to have increased loan pricing in the company’s platform and lowered approval rates for loan applicants, thus reducing transaction volume and impacting the top line negatively.What Our Model IndicatesOur proven model doesn’t conclusively predict an earnings beat for Upstart this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.UPST has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Blink Charging BLNK has a Zacks Rank #2 and an Earnings ESP of +4.23%. You can see the complete list of today’s Zacks #1 Rank stocks here.BLNK’s shares have fallen 16.8% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s decline of 15.5%.Intuit INTU has an Earnings ESP of +1.92% and a Zacks Rank #2.Intuit’s shares have slumped 27.6% in the year-to-date period compared with the Zacks Computer - Software industry’s decline of 18.4%.Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank #2.KEY’s shares have slipped 19.9% in the year-to-date period compared with the Zacks Electronics - Measuring Instruments industry’s decline of 21.8%. Free: Top Stocks for the $30 Trillion Metaverse Boom The metaverse is a quantum leap for the internet as we currently know it - and it will make some investors rich. Just like the internet, the metaverse is expected to transform how we live, work and play. Zacks has put together a new special report to help readers like you target big profits. The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks reveals specific stocks set to skyrocket as this emerging technology develops and expands.Download Zacks’ Metaverse Report 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 Intuit Inc. (INTU): Free Stock Analysis Report Keysight Technologies Inc. (KEYS): Free Stock Analysis Report Blink Charging Co. (BLNK): Free Stock Analysis Report Upstart Holdings, Inc. (UPST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 5th, 2022

Tesla Isn’t Paying Some Of Its Bills! – Shortseller

Stanphyl Capital’s commentary for the month ended July 31, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). Tesla, starting with Elon Musk’s continually spewing fountain of bullshit summarized in just two tweets, the first one last week… …and the second one from over seven years ago… What’s the matter, Elon? Are you running out […] Stanphyl Capital’s commentary for the month ended July 31, 2022, discussing their short position in Tesla Inc (NASDAQ:TSLA). Tesla, starting with Elon Musk’s continually spewing fountain of bullshit summarized in just two tweets, the first one last week… …and the second one from over seven years ago… What’s the matter, Elon? Are you running out of new bullshit? Meanwhile, here’s my take on Tesla’s disastrous service times: Elon Musk remains the most vile person ever to head a large-cap U.S. public company, and we remain short Tesla, the biggest bubble-stock in modern market history, because: .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2022 hedge fund letters, conferences and more   It has a sliding share of the world’s EV market and a share of the overall auto market that’s only around 1.5%, yet a market cap roughly equal to the next 16 largest automakers (by market cap) combined despite selling only around 2% of the cars they do. It has no “moat” of any kind; i.e., nothing meaningfully proprietary in terms of its electric car technology (which has now been equaled or surpassed by numerous competitors) and its previously proprietary Superchargers are being opened to everyone), while existing automakers—unlike Tesla­—have a decades-long “experience moat” of knowing how to mass-produce, distribute and service high-quality cars consistently and profitably. Excluding working capital benefits and sunsetting emission credit sales Tesla generates only minimal free cash flow. Growth in sequential demand for Tesla’s cars is at a crawl relative to expectations. Elon Musk is a pathological liar. One Good News Let’s start with the one potential piece of moderately good news for Tesla, because pretty much everything else that happened this month was bad. Late in July, Manchin announced he’d made a deal with Schumer to extend the $7500 EV tax credit which Tesla lost a couple of years ago. However, due to the new program’s price caps, only Tesla’s cheapest, short-range Model 3 qualifies, along with its Model Y which sneaks in as a “small SUV” (which have higher price caps), despite simply being a Model 3 with a bloated, guppy-like body stuck on it. But there are new income cutoffs restricting who can use these credits: $150,000 for an individual and $300,000 for a married couple, which will eliminate a number of potential Tesla buyers. If we then add in the fact that myriad great and less expensive Model Y competition has now arrived, with much more coming in 2023 when the credits begin, I see this government spending boondoggle adding perhaps 100,000 deliveries a year for Tesla; i.e., a rounding error for its market cap and volume projections. And now for the rest of the news… In July Tesla reported a terrible Q2, with deliveries down 26% from Q1 (which itself showed no growth over Q4). However, Q2’s sales decrease was primarily due to a monthlong COVID-related closing of Tesla’s Shanghai factory, and thus it might be a while before we can get a “clean” demand picture for the company. Unpaid Bills Regardless, in Q2 Tesla generated only $621 million in stated free cash flow, yet that included a sequential increase in payables (and decrease in receivables) despite a $1.8 billion decrease in revenue! (In other words, Tesla isn’t paying some of its bills!) Additionally, there was a $106M operating cash flow benefit from a Bitcoin sale, so adjusting for the working capital and Bitcoin benefits Tesla was barely free cash flow-positive. Meanwhile, earnings were just $1.95/share including roughly .30/share of emission credit sales which will disappear some time next year when competitors have enough EV capacity of their own. If we add back in the one-time .09/share loss for the aforementioned Bitcoin sale and deduct the sunsetting credit sales, we get annualized adjusted run-rate earnings of just $6.96, giving Tesla an annualized run-rate PE ratio (as of July’s end) of 128 in an industry with an average current multiple of only around 5! And even to make that lousy earnings number Tesla (an alleged “technology growth company”) had to slash R&D spending sequentially by almost $200 million while simultaneously claiming a mysterious reduction in SG&A despite opening two brand new factories in the quarter that Musk called “gigantic money furnaces.” Regardless of any Q2 sales shortfalls caused by the temporary factory closing, Tesla has objectively lost its “product edge,” with many competing cars now offering comparable or better real-world range, better interiors, similar or faster charging speeds and much better quality. (Tesla ranks second-to-last in Consumer Reports’ reliability survey while British consumer organization Which? found it to be one of the least reliable cars in existence.) Thus, due to competitors’ temporary production constraints, waiting times are now longer for many of Tesla’s direct EV competitors than they are for a Tesla. (Here’s one example, and here’s another.) In fact, Tesla is likely now the second, third or fourth choice for many EV buyers, and only maintains its volume lead though a short-lived edge in production capacity that will disappear over the next 12 to 36 months as competitors rapidly increase the ability to produce their superior EVs. Tesla’s poorly-built Model Y faces current (or imminent) competition from the much better made (and often just better) electric Hyundai Ioniq 5, Kia EV6, Ford Mustang Mach E, Cadillac Lyriq, Nissan Ariya, Audi Q4 e-tron, BMW iX3, Mercedes EQB, Volvo XC40 Recharge, Chevrolet Blazer EV and Polestar 3. And Tesla’s Model 3 now has terrific direct “sedan competition” from Volvo’s beautiful Polestar 2, the great new BMW i4, the upcoming Hyundai Ioniq 6 and Volkswagen Aero, and multiple local competitors in China—here, from Snowbull Capital’s @TaylorOgan, is just one example of that Chinese competition: And in the high-end electric car segment worldwide the Porsche Taycan (the base model of which is now considerably less expensive than Tesla’s Model S) outsells the Model S, while the spectacular new Mercedes EQS, Audi e-Tron GT and Lucid Air make it look like a fast Yugo, and the extremely well reviewed new BMW iX and Mercedes EQS SUV do the same to the Model X. The worst thing that can possibly happen to “the Tesla story” will be when its German and Texas plants are fully operational and the subsequent excess capacity stares the world right in the face, thereby ending its myth of “unlimited demand” (especially at current, drastically-raised prices, where the cheapest Model 3 now starts at $47,000 and the cheapest Model Y begins at $66,000); in fact, look for margin-destroying price cuts by late this year or early 2023. Tesla Is Netflix Indeed, for years I’ve said “Tesla is Blackberry”—the maker of a first-generation version of a product that—once the market was proven—would be supplanted into niche obscurity by newer, better versions; now I can provide a much more recent analogy: Tesla is Netflix. For years Netflix had an absurd valuation based on its pioneering position in streaming media, but once it proved that such a market existed myriad competitors swarmed all over it, and in April the stock collapsed when we learned that not only is Netflix no longer in “hypergrowth” mode but for the first time since 2011 (when it transitioned from physical DVDs) it actually lost subscribers. I believe Musk knows that Tesla is “the next Netflix” (hence his recent “Twitter buying distraction”), with VW, Hyundai/Kia, Ford, GM, BMW, Mercedes, BYD & other Chinese competitors and, in a few years, Toyota & Honda, being the Disney, HBO Max, Amazon Prime, Peacock, Hulu, Paramount +, etc., of the electric car market, stealing Tesla’s share and eventually pounding its stock price down 95% or so from today’s, into the valuation of “just another car company.” Despite this obvious “writing on the wall,” many Tesla bulls sincerely believe that ten years from now the company will be twice the size of Volkswagen or Toyota, thereby selling around 20 million cars a year (up from the current run-rate of around 1.3 million); in fact in March Musk himself even raised this as a possibility. Setting aside the absurdity of selling that many cars at Tesla’s high price points, to illustrate the “logistical absurdity” of this, going from 1.3 million cars a year today to 20 million in ten years means that in addition to two million cars a year of sold-out existing claimed production capacity (once the German and Texas factories are fully operational), Tesla would have to add 36 more brand new 500,000 car/year factories with sold out production; i.e., a new factory almost every single quarter for the next ten years! Meanwhile, in July the head of Tesla’s “self-driving” program quit, while in June the NHTSA announced that its investigation of Tesla’s deadly Autopilot has expanded into “an engineering analysis,” the last required step before (finally!) demanding a full recall. The refund liability potential for Tesla for this is in the billions of dollars, and possibly even the tens of billions if a class action lawsuit proves that the cars involved were purchased solely due to the (fallacious) promise of “full self-driving.” And, of course, there will be a massive “valuation reappraisal” for Tesla’s stock as the world wakes up to the fact that Tesla’s so-called “autonomy technology” is just trailing-edge garbage. As of July, the NHTA is investigating 48 crashes involving autonomous driving systems, 39 of which—and all the deaths but one—involve Tesla. (For all Tesla deaths cited in the media—which is likely only a small fraction of those that have occurred—see TeslaDeaths.com.) And Tesla has sold this trashy software for almost six years now: …and still promotes it on its website via a completely fraudulent video! Another favorite Tesla hype story has been built around so-called “proprietary battery technology.” In fact though, Tesla has nothing proprietary there—it doesn’t make them, it buys them from Panasonic, CATL and LG, and it’s the biggest liar in the industry regarding the real-world range of its cars. And if new-format 4680 cells enter the market some time in 2024 (as is now expected), even if Tesla makes some of its own,  other manufacturers will gladly sell them to anyone. And oh, the joke of a “pickup truck” Tesla previewed in 2019 (and still hasn’t shown in production-ready form) won’t be much of “growth engine” either, as it will enter a dogfight of a market; in fact, Ford’s terrific 2022 all-electric F-150 Lightning now has over 200,000 retail reservations (plus many more fleet reservations), GM has introduced its fantastic 2023 electric Silverado which already has nearly 200,000 reservations and Rivian’s pick-up has gotten excellent early reviews. Regarding safety, as noted earlier in this letter, Tesla continues to deceptively sell its hugely dangerous so-called “Autopilot” system, which Consumer Reports has completely eviscerated; God only knows how many more people this monstrosity unleashed on public roads will kill despite the NTSB condemning it. Elsewhere in safety, the Chinese government forced the recall of tens of thousands of Teslas for a dangerous suspension defect the company spent years trying to cover up, and now Tesla has been hit by a class-action lawsuit in the U.S. for the same defect. Tesla also knowingly sold cars that it knew were a fire hazard and did the same with solar systems, and after initially refusing to do so voluntarily, it was forced to recall a dangerously defective touchscreen. In other words, when it comes to the safety of customers and innocent bystanders, Tesla is truly one of the most vile companies on Earth. Meanwhile the massive number of lawsuits of all types against the company continues to escalate. So Here Is Tesla's Competition In Cars... (note: these links are regularly updated) Porsche Taycan Porsche Taycan Cross Turismo Porsche Macan Electric SUV Officially Coming in 2023 Volkswagen ID.3 Volkswagen ID.4 Electric SUV Volkswagen unveils ID.6 SUV EV in China Volkswagen ID.Buzz Electric Van Volkswagen unveils the ID. AERO sedan with 385 miles of range New sketch of 2025 Volkswagen ID.1 unveiled VW’s Cupra Born Volkswagen unveils $7.1B commitment to boost product line-up, R&D, mfg in N. America Audi e-tron Audi e-tron Sportback Audi E-tron GT Audi Q4 e-tron Audi Q6 e-tron confirmed for 2022 launch 2022 Audi A6 e-tron set to take on Tesla Audi will expand EV lineup with electric A6 wagon Audi TT to be axed in 2023 for 'emotional', electric replacement Hyundai Ioniq 5 Hyundai Ioniq 6 Hyundai Kona Electric Genesis reveals their first EV on the E-GMP platform, the electric GV60 crossover Genesis Electrified GV70 Revealed With 483 Horsepower And AWD Kia Niro Electric: 239-mile range & $39,000 before subsidies Kia EV6: Charging towards the future Kia EV9 to land in US in 2023 with 300-miles range, $50,000 price Kia EV4 on course to grow electric SUV range Jaguar’s All-Electric i-Pace Jaguar to become all-electric brand; Land Rover to Get 6 electric models Daimler will invest more than $47B in EVs and be all-electric ready by 2030 Mercedes EQS: the first electric vehicle in the luxury class 2023 Mercedes EQS SUV Is a Seven-Seat EV Flagship with up to 536 HP 2023 Mercedes EQE Electric Sedan Mercedes EQE SUV to rival BMW iX and Tesla Model X Mercedes EQC electric SUV available now in Europe & China Mercedes-Benz Launches the EQV, its First Fully-Electric Passenger Van Mercedes-Benz EQB Makes Its European Debut, US Sales Confirmed Mercedes-Benz unveils EQA electric SUV with 265 miles of range and ~$46,000 price Ford Mustang Mach-E Available Now Ford F-150 Lightning electric pick-up available 2022 Ford set to launch ‘mini Mustang Mach-E’ electric SUV in 2023 Ford to launch 7 EVs in Europe in big electric push Ford unveils Lincoln Star electric SUV concept as it readies to add four new EVs by 2026 Polestar 2 sedan Polestar 3 SUV With 372-Mile Range Coming Late 2022 Volvo XC40 Recharge Volvo C40 Recharge Chevrolet Blazer EV Chevrolet Bolt sedan, 259-mile range starting at $31,000 Chevrolet Bolt EUV electric crossover Cadillac All-Electric Lyriq GMC Electric Hummer Pick-Up and SUV GM electric Silverado pickup truck GM Launches BrightDrop to Electrify the Delivery of Goods and Services GM & Honda Will Codevelop Affordable EVs Targeting Most Popular Vehicle Segments Honda pours $40 billion into electrification, targets 2 million EV production by 2030 Honda and Sony finalize 50-50 joint venture to build EVs in 2025 BMW leads off EV offensive with iX3 BMW expands EV offerings with iX tech flagship and i4 sedan BMW i7 EV, with 600 hp, will be most powerful variant of new 7 Series flagship BMW iX1 Revealed With 313 HP, 272 Miles WLTP Range Renault-Nissan alliance plows $26B into EV blitz- will jointly launch 35 new EVs Nissan vows to hop back on EV podium with Ariya Nissan LEAF e+ with 226-mile range is available now Nissan Unveils $18 Billion Electric-Vehicle Strategy Renault upgrades Zoe electric car as competition intensifies Renault Dacia Spring Electric SUV Renault to boost low-volume Alpine brand with 3 EVs Renault's electric Megane will debut new digital cockpit Stellantis promises 'heart-of-the-market SUV' from new, 8-vehicle EV platform Chrysler to go all-EV by 2028 Alfa Romeo's First Electric Car Will Arrive in 2024 Peugeot e-208 PEUGEOT E-2008: THE ELECTRIC AND VERSATILE SUV Peugeot 308 will get full-electric version Subaru shows off its first electric vehicle, the Solterra SUV Citroen compact EV challenges VW ID3 on price Rivian R1T Is the Most Remarkable Pickup We’ve Ever Driven Maserati going fully electric by 2030 -all vehicles will offer a BEV version by 2025 Mini Cooper SE Electric Toyota’s Electric bZ4X Goes On Sale in Spring 2022 Toyota will have lineup of 30 full EVs by 2030; Lexus will be all-electric brand Honda and Sony to build, sell EVs by 2025 Opel sees electric Corsa as key EV entry 2021 Vauxhall Mokka revealed as EV with sharp looks, massive changes Skoda Enyaq iV electric SUV offers range of power, battery sizes Electric Skoda Enyaq coupe to muscle-in on Tesla Model 3 Skoda plans small EV, cheaper variants to take on French, Korean rivals Nio to launch in five more European countries after Norway BYD will launch electric SUV in Europe The Lucid Air Achieves an Estimated EPA Range of 517 Miles on a Single Charge Bentley will start output of first full EV in 2025 All-electric Rolls-Royce Spectre to launch in 2023 – firm to be EV-only by 2030 Aston Martin will build electric vehicles in UK from 2025 Meet the Canoo, a Subscription-Only EV Pod Coming in 2021 Two new electric cars from Mahindra in India; Global Tesla rival e-car soon Former Saab factory gets new life building solar-powered Sono Sion electric cars Foxconn aims for 10% of electric car platform market by 2025 And In China, Where Tesla’s EV Market Share Is Now Declining... BYD is #1 in Chinese EVs, selling FAR more than Tesla Volkswagen to boost Chinese EV capacity to 1m by 2023 Audi-FAW's $3.3 billion electric vehicle venture Nio Xpeng Motors Hozon/Neta Li Auto GAC Aion Leap Motors GM launches Ultium EV production platform in China Ford Mustang Mach-E Rolls Off Assembly Line in China Cheaper than Tesla: Honda takes aim at China's middle class BMW i3 Debuts As All-Electric 3 Series Only For China Hongqi Geely Zeekr Premium EVs by Geely Baidu and Geely put nearly $400 million more into their electric car venture Mercedes-Benz Said To Build EV In China From 2024 BAIC Hyundai, BAIC Motor to inject $942 mn in China JV for EVs Toyota partners with BYD to build affordable $30,000 electric car Lexus RZ 450e Steers For China Dongfeng SAIC Renault launches sales of first EV in China Nissan expects 40% of sales in China to be electrified by 2026 Changan forms subsidiary Avatar Technology to develop smart EVs with Huawei, CATL WM Motors/Weimar Chery Seres Enovate Singulato JAC Motors Iconiq Motors Aiways Skyworth Auto Youxia Human Horizons Xiaomi announces plans for four electric vehicle models Here's Tesla's Competition In Autonomous Driving; The Independents All Have Deals With Major OEMs... Waymo ranked top & Tesla last in Guidehouse leaderboard on automated driving systems Tesla has a self-driving strategy other companies abandoned years ago Waymo operates robotaxis NOW GM’s Cruise operates robotaxis NOW Argo AI (owned by Ford & VW) Begins Driverless Vehicle Operations in Miami & Austin Mobileye operates driverless test fleets in Europe and the U.S. Cadillac Super Cruise Sets the Standard for Hands-Free Highway Driving Ford’s hands-free “Blue Cruise” Mercedes Launches SAE Level 3 Drive Pilot System Honda Legend Sedan with Level 3 Autonomy Now Available in Japan Hyundai + Motional Bringing IONIQ 5 robotaxis to the streets from 2023 Amazon’s Zoox will test its autonomous vehicles on Seattle’s rainy streets Baidu Apollo’s autonomous driving service is now inclusive to all the megacities in China Alibaba-backed AutoX unveils first driverless RoboTaxi production line in China Pony.ai approved for public driverless robotaxi service in Beijing Here's Where Tesla's Competition Will Get Its Battery Cells... Panasonic (making deals with multiple automakers) LG Samsung SK Innovation Toshiba CATL BYD Northvolt Volkswagen to Build Six Electric-Vehicle Battery Factories in Europe GM’s Ultium GM to develop lithium-metal batteries with SolidEnergy Systems SK On and Ford form BlueOval SK, an EV battery joint venture BMW & Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles Stellantis affirms commitment to build battery factory in Italy with Mercedes, TotalEnergies Stellantis and Samsung SDI to Invest Over $2.5B in Battery Production Plant in United States Stellantis and LG to Invest Over $5 Billion CAD in Joint Venture for Li-Ion Battery Plant in Canada Stellantis and Factorial Energy to Jointly Develop Solid-State Batteries for Electric Vehicles Mercedes-Benz to build 8 battery factories in push to become electric-only automaker Mercedes-Benz and Sila achieve breakthrough with high silicon automotive battery Toyota to build plant in N.C. capable of making up to 1.2M batteries a year Toyota Outlines Solid-State Battery Tech, $13.6 Billion Investment Nissan Announces Proprietary Solid-State Batteries Daimler joins Stellantis as partner in European battery cell venture ACC Renault signs EV battery deals with Envision, Verkor for French plants Nissan to build $1.4bn EV battery plant in UK with Chinese partner UK companies AMTE Power and Britishvolt plan $4.9 billion investment in battery plants Foxconn breaks ground on first EV battery plant Envision Freyr Verkor Farasis Microvast Akasol Cenat Wanxiang Eve Energy Svolt Romeo Power ProLogium Hyundai Motor developing solid-state EV batteries Morrow Here's Tesla's Competition In Charging Networks... Infrastructure Bill: $7.5 billion Towards Nationwide Network of 500,000 EV Chargers Electrify America EVgo Chargepoint Ionity Europe Shell 51 U.S. electric companies commit to build nationwide EV fast charging network by end of 2023 GM, EVgo, and Pilot will install 2,000 fast chargers at travel centers GM to Expand Access to EV Charging with More than 40,000 Charging Stations Volkswagen powers up the grid to take on Tesla Volkswagen-backed CAMS eyes deployment of 17,000 charging points in China by 2025 Circle K begins North American EV fast charger rollout, plans 200-site network by 2024 Porsche to build out its own network of EV charging stations Petro-Canada Coast-to-Coast Canadian Charging Network Volta E.On BP Volkswagen and BP partner to deploy up to 8,000 EV chargers across EU/UK Smatric Allego Podpoint Instavolt Fastned Total Nio Battery Swap Stations BMW to Build 360,000 Charging Points in China to Juice Electric Car Sales Evie And Here's Tesla's Competition In Storage Batteries... Panasonic Samsung LG Energy Solutions CATL BYD AES + Siemens (Fluence) GE Hitachi ABB Toshiba Saft Johnson Contols EnerSys SOLARWATT Sonnen Generac Kokam Eaton Tesvolt Leclanche Lockheed Martin Honeywell EOS Energy Storage ESS Electriq Power Redflow Primus Power Simpliphi Power Invinity Murata Bollore Adara Blue Planet Aggreko Orison Powin Energy Nidec Powervault Kore Power Shanghai Electric LithiumWerks Natron Energy Energy Vault Ambri Voltstorage Cadenza Innovation Morrow Gridtential Villara Elestor SolarEdge Q-Cells Huawei Toyota ADS-TEC Form Energy Enphase Sumitomo Electric Stryten Energy Freyr Growatt Polarium Thanks, Mark Spiegel Updated on Aug 1, 2022, 10:28 am (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: valuewalkAug 1st, 2022

Bull of the Day: Illumina (ILMN)

Leader in genomic sequencing still growing sales over 15% as lifescience labs crunch more genetic data Illumina ILMN, is the $32 billion leader of genetic sequencing equipment for biotechnology companies and research labs around the world.San Diego based Illumina provides tools and integrated systems for analysis of genetic variation and function. Using its proprietary technologies, the company delivers innovative sequencing and array-based solutions for genotyping, copy number variation analysis, methylation studies, and gene expression profiling of DNA and RNA.Its customers include leading genomic research centers, academic institutions, government laboratories, hospitals and reference laboratories as well as pharmaceutical, biotechnology, agrigenomics, commercial molecular diagnostic and consumer genomics companies.Illumina generates revenue from two segments – Product and Service.Product revenues (87.7% of total revenues in 2021; up 45.1% from 2020) are primarily attributed to the partnerships and collaborations to develop distributable clinical in-vitro diagnostics (IVDs) for Illumina sequencers. Product revenues consist of sales proceeds from the Consumables and Instruments segment used in genetic analysis. This includes reagents, flow cells, and BeadChips based on the company's proprietary technologies.Service revenues (12.3%, up 10.7%) include genotyping and sequencing services as well as instrument maintenance contracts.Next-Generation Sequencing (NGS)Illumina’s portfolio of sequencing platforms represents a family of systems that are designed to meet the workflow, output, and accuracy demands of a full range of sequencing applications.The company's MiSeq sequencing system is a low-cost desktop sequencing system that provides individual researchers with rapid turnaround time, high accuracy and streamlined workflow.NextSeq 500 provides flexibility from whole genome sequencing to targeted panels in a desktop platform. The HiSeq 2500 sequencing system allows customers to sequence an entire human genome in approximately a day.How ILMN Rose Up in the Zacks RankIllumina exited first-quarter 2022 with better-than-expected earnings and revenues. The robust year-over-year improvement in Core Illumina businesses looks encouraging.Revenue contributions from the newly-formed GRAIL business, primarily from Galleri test fees, bode well. NovaSeq consumable and instrument shipments reached new highs during the quarter as the company witnessed robust demand for NextSeq 1000, 2000 from new customers.The company also saw significant growth in the installed base and a record backlog, instilling optimism. Orders for sequencing consumables surpassed $1 billion for the first time in the quarter, setting a new high for the company.While there was a significant year-over-year decline in adjusted earnings per share, analysts have been raising estimates for next year. So while this fiscal year will see a 30% drop in EPS, next year bounces right back with a 30% gain.And more encouraging is the steady topline with projected 15% growth this year to $5.2 billion and next year is forecast to cross $6 billion for a 16.5% advance.GRAIL Merger Controversy: It's ComplicatedFive years ago, Illumina spun-off its GRAIL cancer-detection unit. Last year, management decided it would be better to have the company folded back in.GRAIL's Galleri blood test detects 50 different cancers before they are symptomatic. Illumina's acquisition of GRAIL will accelerate access and adoption of this life-saving test worldwide.  Since the deal was announced last summer, it has been under tough scrutiny from the EU. This is unfortunate because as Illumina wrote last August...The Galleri test is available but costs $950 because it is not covered by insurance. Reuniting the two companies is the fastest way to make the test broadly available and affordable. Illumina's expertise in market development and access has resulted in coverage of genomic testing for over 1 billion people around the world already. This experience will help lead to coverage and reimbursement for the Galleri test.Late last week Reuters reported that Illumina's Grail deal was likely to be blocked by EU regulators. Illumina's proposed takeover of Grail will likely be blocked by EU antitrust regulators amid worries about concessions offered by the U.S. life sciences firm, Reuters' Foo Yun Chee reported, citing people familiar with the matter.There are doubts whether the concessions that Illumina offered last week to allay EU concerns about the transaction will increase competition, the author noted. The company has offered competitors royalty-free global licenses for some of its patents and a three-year patent truce with China's BGI in Europe in an attempt to address EU antitrust concerns.Bullish Analyst Reaction Regardless of MergerOn July 14, Canaccord analyst Kyle Mikson noted the EU court ruled the Illumina merger with GRAIL can continue but he said the ruling is not a reflection of the merits of the merger. The analyst remains positive on Illumina's outlook with or without GRAIL and believes investors underappreciate the company's strong core performance. Mikson reiterated his Buy rating and $520 price target on Illumina shares.On July 13, Piper Sandler analyst David Westenberg observed that the EU regulatory uncertainty increased the probability that Illumina would have to completely spin off the asset, which would be a "net positive for the stock if it happened." Westenberg, who views the EU ruling as a "head scratcher" since both companies are US-based, says the news delays a "clearing event" for Illumina. Nonetheless, he reiterates an Overweight rating on the shares, saying the company has the most complete sequencing product line in a 20% growth market.Reproductive and Genetic Health MarketsIllumina is currently keeping well with its goals to strengthen foothold in the multi-billion gene sequencing world-wide market with some highly competitive products in its existing portfolio and pipeline. This market is developing rapidly on a global scale which has allowed the company to witness a persistent growth in the number of non-invasive prenatal test (NIPT) samples.Here's how the company describes their position in this market...Based on past experience, when Illumina enters a market, the market expands. When Illumina entered the non-invasive prenatal testing space, prices dropped, reimbursement expanded, the number of providers increased, and more expectant parents had access to testing.I wholeheartedly agree with this view as I've been a frequent investor in Natera NTRA, a $4 billion diagnostics company which specializes in NIPS (non-invasive prenatal screening). This is a vital area that needs to be available to every woman and her baby regardless of cost.Bottom line on ILMN: Be a long-term buyer near $200. This genomics leader will be doing exciting science and medicine for the next few decades in the Century of Biology.Disclosure: I own shares of ILMN and NTRA for the Zacks Healthcare Innovators portfolio. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See 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 Illumina, Inc. (ILMN): Free Stock Analysis Report Natera, Inc. (NTRA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 1st, 2022