Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out […]
Mon, 26 Oct 2020 12:07:08 -0400
(Bloomberg) -- With the final stretch of the election upon us, it’s still nearly impossible to guess how the stock market will react to next week’s vote. One estimate from JPMorgan Chase & Co.’s chief equity strategist puts U.S. stocks in for a double-digit advance if Donald Trump keeps his office.A victory for the Republican candidate could push the S&P 500 to as high as 3,900 at year-end under the most optimistic case laid out by Dubravko Lakos-Bujas, the bank’s chief U.S. equity strategist. The figure, some 300 points above his base-case target for year-end, implies a 12.5% advance from the gauge’s Friday close. While a number of traders have come to consider a Democratic sweep followed by a prompt fiscal deal among bullish scenarios for the equity market, Lakos-Bujas disagrees, seeing Trump’s victory as the most favorable outcome.“A ‘Blue Sweep’ scenario is expected to be mostly neutral in the short term,” JPMorgan’s strategists including Lakos-Bujas said in a report dated Friday. “It would likely be accompanied by some immediate positive catalysts (i.e. larger fiscal stimulus/infrastructure) but also negative catalysts (i.e. rising corporate taxes).”With days left until the election, traders are shrugging off the risk of a contested election -- at least judging by a flattening volatility curve -- corresponding with polls showing a widening lead for Joe Biden over the past month. Near-term uncertainty has remained elevated, with the Cboe Volatility Index stuck near a 30 level for weeks now, likely reflecting concern that sectors of the economy and markets that the candidates have referenced the most could see some wild swings post-election.A quick look at the top constituents of a Biden and Trump baskets of stocks created by JPMorgan, which bet on potential winners from either Democrats or Republicans taking control of Washington, shows the stakes are sky-high. Alternative energy and green-tech stocks in the Biden basket, for instance, have outperformed traditional energy and fossil fuel companies, among the top winners from Trump’s victory, by 84 percentage points since June, data compiled by JPMorgan show.Earlier: Barclays Sees VIX Plunging to Pre-Covid Level in Clear Biden WinFutures on the S&P 500 Index are trading 1% lower following losses in Europe’s Stoxx 600 Index and a dip in the Shanghai Composite Index on the first day Communist Party’s four-day meeting. News over the weekend confirmed a rising number of infections on both sides of the Atlantic, pushing Treasuries and the dollar higher as investors rushed into havens. Futures on the Nasdaq 100 Index are 0.9% lower after Europe’s application software giant SAP SE dropped as much as 21% after cutting its revenue forecast for the full year.Notes From the Sell Side:Apollo Global Management was upgraded to outperform at Evercore ISI, which wrote that recent share-price weakness related to Leon Black’s relationship with convicted sex offender Jeffrey Epstein was overdone. Shares down 14% from a peak hit earlier this month, but “this issue will ultimately have limited business impact to the company,” wrote analyst Glenn Schorr. “Plenty of LPs might rightfully put pressure on APO now, but [will] ultimately continue to invest with them.” The firm added that when considering APO as a stock, “investors & LPs should eventually separate the man from the company,” as the company “had no business dealings with the bad guy.”Winnebago Industries was upgraded to buy from neutral at Citi, which wrote that motor homes should continue to see strong demand throughout the pandemic. “A return to extensive travel (planes, cruise, hotels) is several years away, while we believe that the attractiveness of the RV lifestyle is here to stay,” wrote analyst Shawn Collins. The firm added that it was “encouraged” by WGO’s ability to grow its market share.First Solar and SunPower were both downgraded at Credit Suisse, which cited valuation following recent gains. Shares of SunPower are up more than 440% from an April low, and the valuation “already implies strong Ebitda recovery through 2022,” while First Solar is “approaching peak multiples,” Credit Suisse wrote. The firm added that solar manufacturing “will be a cyclical industry with limited tailwinds,” whereas for residential solar, “any multiple expansion/shrinking will rather be driven by supply/demand mismatch.”Sectors in Focus:Dunkin’ Brands shares are up 18% premarket after the Dunkin’ Donuts and Baskin-Robbins parent company confirmed Sunday afternoon that it has held preliminary discussions to be acquired by Inspire Brands.Cenovus Energy on Sunday agreed to buy Husky Energy in a C$3.8 billion all-stock deal that will combine two of the largest players in Canada’s beleaguered oil-sands industry. Watch HSE CN, CVE CN and companies like SU CN, IMO CN for a move.China said it will impose unspecified sanctions on defense contractors Lockheed Martin, a unit of Boeing Co. and Raytheon Technologies after the U.S. approved an arms sale to Taiwan last week, Chinese Foreign Ministry spokesman Zhao Lijian said Monday. Watch BA, LMT and RTX for a move.Watch KO after Barron’s says the beverage company is an under-appreciated post-pandemic reopening play.Your 64-Hour ICYMI:France set a record for new Covid cases, while Spain’s be Italy announced new restrictions. The U.S. reported record coronavirus infections for the second day in a row, adding 85,317 cases. U.S. Vice President Mike Pence’s chief of staff, Marc Short, and Marty Obst, a close adviser, tested positive for the virus.Alphabet, Facebook, Amazon, Apple, and Microsoft will emerge from the pandemic stronger than ever, despite intensifying antitrust scrutiny in Congress, Barron’s writes in its latest issue. “60 Minutes” finally aired the interview that Donald Trump cut short on Sunday night. Samsung’s billionaire chairman Lee Kun-hee, who made the South Korean company a global powerhouse, has died at 78. A San Francisco judge refused to pause her September order blocking Trump’s ban on Tencent Holdings Ltd.’s WeChat.Carlyle Group is nearing an agreement to acquire Siemens AG’s Flender mechanical drive unit for about $2.4 billion, according to people familiar. Airbnb is splitting its privately held shares ahead of a planned initial public offering, according to an internal email.The Los Angeles Dodgers defeated the Tampa Bay Rays on Sunday night to be just one win away from their first World Series title since 1988. UFC lightweight champion Khabib Nurmagomedov announces emotional retirement after latest victory, saying he doesn’t want to keep fighting again following the death of his father, who served as his coach, from the coronavirus.Tick-By-Tick to Today’s Actionable Events:6:30am-- HAS earnings8:30am-- Sept. Chicago Fed Nat Activity Index10am-- Sept. New Home Sales10:30am-- Oct. Dallas Fed Mfg Activity10:30am-- JCAP vote11am-- USDA weekly corn, soybean, wheat export inspections4:05pm-- FFIV, TBI earnings4:15pm-- TWLO earnings8pm-- NXPI earningsQuiet period expires: AVO, LUNG, YALA, OPRH, CD, BQPRCP/ATLKY - Prelim proxy filing deadlineFirst day of China’s Oct. 26 - Oct. 29 plenumFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mon, 26 Oct 2020 08:40:43 -0400
Harry Markopolos is the former derivatives professional turned independent financial fraud investigator who uncovered the $65 billion Bernie Madoff Ponzi scheme, only to be ignored by the SEC for over nine years. A vocal critic of the US regulator, Harry now has the audit world and insurance industry in his sights as the next big financial frauds yet to come to light.
Sun, 25 Oct 2020 01:00:00 -0400
Many prominent investors, including Warren Buffett, David Tepper and Stan Druckenmiller, have been cautious regarding the current bull market and missed out as the stock market reached another high in recent weeks. On the other hand, technology hedge funds weren’t timid and registered double digit market beating gains. Financials, energy and industrial stocks aren’t doing […]
Mon, 26 Oct 2020 11:13:51 -0400
Tesla Inc (NASDAQ: TSLA) operates in a capital-intensive industry, and the electric vehicle giant is stepping up investment to maintain its lead over the competition.What Happened: Tesla's capex for fiscal year 2020 will likely come in at the high end of its guidance range of $2.5 billion to $3.5 billion, the company revealed in a Monday 10-Q filing.The revision is due to the ramping of new products, the Model Y and Solar Roof; the construction of manufacturing facilities on three continents; and the development and manufacturing of new battery cell technologies.The hike in capex also takes into account the pipeline of announced projects under development and all other continuing infrastructure growth, Tesla said.More importantly, Tesla said it expects capex to increase to $4.5 billion to $6 billion in fiscal 2021 and 2022. Related Link: Tesla Has State Government Invite For Giga, R&D Hub In Bangalore The company expressed confidence in meeting the capital needs with its cash flow from operations.Better working capital management -- resulting in shorter days outstanding than days payable outstanding -- and sales growth are facilitating positive cash generation, the automaker said. "We expect our ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales," according to Tesla. Why It's Important: Chinese EV start-ups such as Nio Inc - ADR (NYSE: NIO), and Xpeng Inc - ADR (NYSE: XPEV) are going all out to innovate in order to give Tesla a run for its money.Traditional automakers have also joined the party.It becomes necessary for Tesla to invest in R&D and manufacturing to maintain technological superiority and over peers and to sustain its sales growth.TSLA Price Action: At last check, Tesla shares were slipping 2.17% to $411.49.Related Link: Tesla's Growth Will Lose Steam In Q4: Bear Analyst Gordon Johnson Photo courtesy of Tesla. See more from Benzinga * Click here for options trades from Benzinga * Tesla's Growth Will Lose Steam In Q4: Bear Analyst Gordon Johnson * Tesla Analyst Raises Price Target To 0 Ahead Of Q3 Print(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mon, 26 Oct 2020 13:51:18 -0400
(Bloomberg) -- Sheldon Adelson’s Las Vegas Sands Corp. is exploring the sale of its casinos in Las Vegas, according to people with knowledge of the matter, a move that would mark the mogul’s exit, for now, from the U.S. gambling industry.The world’s largest casino company, Sands is working with an adviser to solicit interest for the Venetian Resort Las Vegas, the Palazzo and the Sands Expo Convention Center, which together may fetch $6 billion or more, said the people, who asked to not be identified because the talks are private. The properties are all connected along the city’s famous strip.A representative for Las Vegas Sands confirmed it was in very early discussions about a sale and that nothing has been finalized.A sale would concentrate Sands’ casino portfolio entirely in Macau and Singapore, two larger casino markets for Adelson, who ranks as one of the world’s richest people, with a fortune estimated at $29.7 billion. The U.S. was already a small and shrinking part of his business, accounting for less than 15% of revenue last year.The money could allow the company fund other development opportunities. Sands dropped out of the competition to build a casino in Japan earlier this year due to terms executives described as unfavorable. Adelson, 87, has expressed interest in building in New York City, an opportunity that could arise next year.The stock rose as high as 12% in after-hours trading Monday after Bloomberg reported on the news of the deal. The shares had closed down 3.1% to $49.13.Makes SenseWith the global pandemic creating uncertainty in the Las Vegas convention business and an implied price for the properties of 12 times earnings before interest, taxes, depreciation and amortization, a deal could make sense, Ben Chaiken, a Credit Suisse analyst, wrote in a research note late Monday. He added the caveat that it’s not clear who would buy the casinos.Adelson is chairman, chief executive officer and the majority shareholder of Las Vegas Sands, which has a market value of $37.5 billion.Casinos in Macau, the world’s biggest gambling market, generated 63% of the company’s $13.7 billion in revenue last year, before the pandemic struck. Covid-19 has devastated the casino industry, as it has other businesses where people gather in large numbers, like movie theaters, concerts and restaurants. Singapore was second at 22%.Sands is expanding in both regions, with Macau alone earmarked for $2.2 billion in spending.(Updates revenue sources in ninth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mon, 26 Oct 2020 19:34:35 -0400
With markets showing volatile movements in recent sessions – down one day, up the next – some of Wall Street’s analysts are showing a renewed interest in high-yield dividends. Not that they have ever shied away from these steady income generators; rather, the market boom of this past summer led the Street to focus on share appreciation as the source of profits. Market fluctuations since early September have analysts and investors both taking a closer look at defensive plays.The research analysts at JMP Securities have been searching the markets for the ‘right’ buys, and their picks bear a closer look. They’ve been tapping reliable, high-yielding dividend payers as an investment play of choice. The TipRanks database sheds some additional light on three of JMP’s picks – stocks with dividends yielding 7% or better – and that the investment firm sees with 20% upside or better. Annaly Capital Management (NLY)The first name on the list from JMP is Annaly Capital Management. The company inhabits the mortgage-backed security niche, with $104 billion in total assets, primarily mortgage securities backed by Freddie Mac and Fannie Mae. Annaly is one of the market’s largest REITs.The corona crisis was hard on Annaly, as the economic crush of the first quarter made it difficult for loan holders to make payments. As the economy bounced back in Q2, however, Annaly’s fortunes reversed and the steep losses from Q1 turned into modest gains. Q2 revenues came in at $979 million, with EPS, at 27 cents, beating the 23-cent forecast. Looking ahead, the forecast is a 26-cent EPS for Q3. It’s important to note that Annaly has beaten the earnings forecast in each of the past three quarters.Turning to the dividend, Annaly has remained a reliable dividend payer over the past several years, with a history of adjusting the payment to keep it sustainable. The current dividend is 22 cents per common share, and was paid out at the end of September; at that rate, the yield is 12.27%. In an era of near-zero rates from the Fed, NLY’s dividend return is sky-high.JMP analyst Steven DeLaney is impressed with NLY. The 5-star analyst pointed out, “The combination of dividends paid during the [second] quarter and the sterling book value gain—the company’s best quarterly gain since the Great Recession of 2008-09 [...] We believe NLY shares should trade at a meaningful premium to peers based on the company’s size, scale, and, now, its internal management structure."DeLaney rates the stock an Outperform (i.e. Buy) along with an $8.50 price target. This figure suggests a 20% upside potential from current levels. (To watch DeLaney’s track record, click here)Overall, there have been 8 recent analyst reviews of NLY shares, breaking down to 5 Buys and 3 Holds, giving the stock an analyst consensus rating of Moderate Buy. The $8.04 average price target implies a 13% growth potential from the current trading price of $7.10. (See NLY stock analysis on TipRanks)StoneCastle Financial (BANX)Next up, StoneCastle, is a management investment company, with a portfolio that includes moves into alternative capital securities and community banks. The company focuses its investment activity on capital preservation and current income generation, committing to returning profits to shareholders. StoneCastle’s investment portfolio totals over $133 million, of which 32% is credit securitization, 26% is debt securities, and 15% is term loans.During the second quarter, BANX saw over $2.6 million in net investment income, coming out to 41 cents per share. The company’s net asset value rose to $20.27 per share at the close of the quarter; that figure was $20.93 by September 30.BANX paid out a 38-cent quarterly dividend in Q2, a payment which the company has held up reliably – with one blip upwards in December 2018 – for the past three years. At $1.52 annually, the dividend yields an impressive 8%.5-star analyst Devin Ryan covers this stock for JMP, and he likes what he sees. “The company invested a healthy $36M during the [second] quarter, which included some higher yielding and more attractive securities, which drove the sequential increase in net investment income… Given a strong quarter of investing, particularly into attractive yielding securities, net investment income stepped up solidly in 2Q20. Moving forward, given the strong 2H20 outlook for deployment, we believe it is likely that net investment income will continue to move higher… BANX continues to more than cover its current quarterly dividend of $0.38, and we believe this will continue to be the case in the coming quarters,” Ryan opined. Ryan’s is the only recent review on record for this stock, which is currently selling for $18.15. He rates BANX an Outperform (i.e. Buy), with a $22 price target that indicates a possible 21% upside for the next 12 months. (To watch Ryan’s track record, click here)BRT Realty Trust (BRT)Last but not least is BRT Realty Trust, a real estate investment trust focused on multifamily properties. The company acquires, owns, and manages apartment dwellings, and currently boasts a portfolio of 39 properties across 11 states, totaling over 11,000 individual apartments. The company has felt a serious hurt from the ongoing corona crisis, and reported a net loss of 25 cents per share for the calendar second quarter this year. At the same time, BRT did manage to collect 98% of rents in Q2, and saw average occupancy remain above 93%. This bodes well for the company, as it does not have to carry and maintain empty or non-paying units.Also on a positive note, BRT kept up its dividend payment. The company has been gradually raising the quarterly payout for the past three years, and the current dividend, of 22 cents per common share, annualizes to 88 cents and gives a yield of 7.1%. This is more than triple the average yield found among S&P-listed companies, and more than double BRT’s dividend-paying peers in the financial sector.JMP’s Aaron Hecht sees BRT holding a solid position in its niche, writing, “With a lower price point product spread across Sunbelt markets, the BRT portfolio is generating strong results compared to peers with high-density urban market exposure... Rent growth averaged 2.2% for renewals and 0.2% for new leases, while minimal concessions were given. Rate growth and occupancy were similar in July and August 2020 compared with 2Q20.”Hecht rates the stock an Outperform (i.e. Buy), with a $15 price target that implies a one-year upside of 20%. (To watch Hecht’s track record, click here.)Overall, BRT has a Moderate Buy rating from the analyst consensus, based on an even split between Buy and Hold reviews. The stock is selling for $12.56, and the average price target of $13.25 suggests a modest gain of 5%. (See BRT stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Mon, 26 Oct 2020 10:26:52 -0400
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback […]
Mon, 26 Oct 2020 11:13:32 -0400
Timothy P. Lynch’s Stonepine Capital is a life science-focused hedge fund that seeks to utilize its industry experience to uncover undervalued and under-the-radar health companies. The fund takes a long-term approach to its small number of investments, which are focused on companies that have successfully commercialized products and which are in a strong financial position. […]
Mon, 26 Oct 2020 08:09:26 -0400
(Bloomberg Opinion) -- If you’re trying to convince your customers to change how they spend 15 billion euros ($17 billion) a year and the pandemic-induced lockdown accelerates the process, that should be good news, right?Not in the case of SAP SE. The stock tumbled 20% on Monday after the German enterprise software giant said that increased demand for its cloud product, prompted in part by more people working from home, would prove detrimental to profitability. The 32 billion euros in lost market value meant SAP sacrificed its crown as Europe’s largest technology company. Chief Executive Officer Christian Klein is reaping the sour fruits of his predecessor’s missteps.It’s an unenviable position. Historically, SAP has made most of its revenue from selling licenses to its software, the cornerstone of which lets companies track how they spend money. The approach let SAP book the earnings upfront and then return a few years later to sell an updated version of the software, while earning some associated support revenue.In recent years, SAP has been shifting to a cloud-based subscription model. Rather than charging the customer a lump sum, the costs are spread over the duration of the contract — usually three years. That hits not just short-term revenue but also profitability, as installing the new setup costs money.To make matters worse, Klein is having to invest heavily to ensure that SAP’s gamut of products all work well together. His predecessor, Bill McDermott, spent $31 billion on acquisitions during his nine years at the helm but did little to integrate them. The upshot is that, in some instances, SAP customers have systems operating on 25 different software architectures. Fixing that costs money, and profitability suffers accordingly.SAP expects the investment to pay off eventually. For now, however, the company has not only revised down its full-year profit and revenue outlook, but it has also abandoned its 2023 goals in favor of new targets for 2025. It expects to have 22 billion euros in cloud revenue by then, up from 6.9 billion euros last year.This isn’t just a question of asking investors for more time — there are deeper concerns. The failure to adapt to the cloud quickly enough means that SAP may in fact be losing customers. While cloud revenue is increasing, the pace of that increase has slowed as the order backlog for the cloud has actually declined since the end of March. In other words, the bump in sales likely stems from deals signed in previous quarters and may not continue.It’s hard to fault Klein since much of this is not of his doing, but it does raise the urgency to fix it. The stock rout indicates that investors have already lost patience. His options to restore confidence are limited: Existing plans to sell a stake in the Qualtrics experience management business will release capital, which might allow another stock buyback to follow the 1.5 billion euros in repurchases earlier this year. While that would boost the share price, it would do little to fix the underlying operational issues.Klein has a steep mountain to climb.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mon, 26 Oct 2020 09:19:44 -0400
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback […]
Mon, 26 Oct 2020 11:12:02 -0400
President Donald Trump's trade war with China did not achieve the objective of boosting manufacturing in the U.S., the Wall Street Jornal reports.What Happened: Manufacturing activity in the U.S. has not reversed despite billions of dollars in tariffs to discourage importing Chinese manufactured goods.The trade deficit with China reduced in 2019. Still, the overall trade balance has soared to a record $84 billion in August as U.S. importers shifted to imports from Vietnam, Mexico, and other countries. Since the pandemic, China's trade deficit is back to where it was at the start of the Trump administration.The goal of reshoring factory production to the U.S. is unfulfilled as job growth in manufacturing slowed since July 2018, while the manufacturing activity peaked in December 2018.Why It Matters: Trump's trade advisers say that the tariffs of $370 billion on Chinese goods have succeeded in forcing China to agree to phase one trade deal in January and will end China's unfair practices over time. Industry analysis by the Federal Reserve shows that tariffs helped boost employment by 0.3% by protecting domestic industries exposed to cheaper Chinese imports.Those gains were more than offset by higher costs of Chinese imports due to tariffs, cutting manufacturing employment by 1.1% in the U.S. The retaliatory tariffs by China on the U.S. exports reduced domestic factory jobs by 0.7%.According to Peterson Institute for International Economics trade expert Chad Bown, President Trump is not the first to use tariffs to protect industries, but this is the biggest use of tariffs since the Great Depression.Image Courtesy: WikimediaSee more from Benzinga * Click here for options trades from Benzinga * European Markets Today: Indices Plunge On Fears Of New COVID-19 Restrictions Hurting Economy * AstraZeneca COVID-19 Vaccine Data Shows Promising Signs In Older Age Group: FT(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mon, 26 Oct 2020 06:46:53 -0400
Baidu (BIDU) is on the cusp of inking a deal to snap up JOYY’s (YY) China operations, reports Chinese digital media outlet Jiemian. JOYY is a global video-based social media platform with over 457 million global average mobile monthly active users.According to the report, the deal excludes JOYY’s international business, which would continue to operate as an independent unit.However Jiemian notes that the revenue from JOYY’s Bigo overseas broadcast business has now surpassed that of the company’s domestic business, which it says could suggest there is a limit to the growth potential of JOYY’s Chinese operations.Nonetheless, the deal could deliver a speedy boost for Baidu’s live broadcast offering.In its most recent earning results, JOYY revealed that average mobile MAUs (monthly active users) of global live streaming services increased by 20.4% to 102.3 million from 85 million in the corresponding period of 2019.This included 41.2 million from YY, which increased by 6.0% year over year; and 61.1 million from outside of China, including 29.4 million from Bigo Live, (up 41.3% Y/Y), and 31.7 million from HAGO, (up 25.3% Y/Y).Notably, the Bigo segment’s revenue grew by 148.8% year over year to RMB 3,062.7 million, mostly driven by live streaming revenue growth.Mr. David Xueling Li, CEO of JOYY, commented, “To help people cope with the difficulties of COVID-19, we leveraged Bigo Live and our extensive global coverage to launch a series of online charity events… As a result, during the quarter, Bigo Live’s mobile MAUs and paying users achieved very impressive growth, and live streaming revenues of Bigo segment contributed more than half of our total live streaming revenues for the first time ever.”Mr. Li added, “On the domestic front, we continued to strengthen our leadership in China’s entertainment live streaming industry by further diversifying YY Live’s live streaming content offerings through the introduction of new live streaming celebrity variety shows and more diverse live streaming channels.”Shares in Baidu are up 6% year-to-date, and the stock scores a cautiously optimistic Moderate Buy Street consensus. The average analyst price target suggests shares can advance 16% from current levels.Oppenheimer analyst Jason Helfstein recently reiterated his BIDU buy rating with a $155 price target following Baidu World 2020 on September 14. BIDU announced the launch of new products and shared its progress in AI initiatives including Apollo, DuerOS and AI Cloud.For instance, BIDU launched Apollo 6.0, with more powerful autonomous driving capabilities, with a 50% reduction in costs compared with the prior generation. “Overall, we feel BIDU presented a more cohesive strategy of monetizing Apollo, DuerOS, and AI cloud, but in our view, it will still take at least another year to see meaningful revenue contribution” the analyst commented. (See BIDU stock analysis on TipRanks).Related News: Autoliv’s 3Q Earnings Rise As Demand Picks Up; Street Says Hold Dunkin’ Brands In Takeover Talks With Inspire Brands Wells Fargo Mulls Sale Of Asset Management Arm – Report More recent articles from Smarter Analyst: * Carlyle To Snap Up Majority Stake In Funds Network Calastone; Analyst Says Buy * SolarWinds Snaps Up SentryOne To Enhance Database Management Capabilities * STMicroelectronics, Sanken Join Forces On High-Voltage Industrial, Auto Products * Blackstone In $1.2B Deal To Buy Simply Self Storage - Report
Mon, 26 Oct 2020 03:39:11 -0400
In this article we are going to use hedge fund sentiment as a tool and determine whether Chevron Corporation (NYSE:CVX) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert […]
Mon, 26 Oct 2020 13:23:45 -0400
(Bloomberg) -- Jack Ma, the former English teacher who co-founded Alibaba Group Holding Ltd. with $60,000, is poised to become the world’s 11th richest person after Ant Group Co. priced shares for a record initial public offering.Ma’s 8.8% stake is worth $27.4 billion based on the stock pricing in Hong Kong and Shanghai. That will take the 56-year-old’s fortune to $71.6 billion on the Bloomberg Billionaires Index, exceeding that of Oracle Corp.’s Larry Ellison, L’Oreal SA heiress Francoise Bettencourt Meyers and individual members of the Waltons, whose family own Walmart Inc. Ant’s mammoth listing is poised to boost the fortunes of a group of early investors and employees. The company has granted staff share-based awards since 2014 and at least 18 other people have become billionaires from the IPO. Lucy Peng, a director at the payments giant, is the biggest individual Ant owner after Ma, and has a $5.2 billion stake. Chairman Eric Jing’s holding is worth $3.1 billion.Ant is set to raise almost $35 billion, beating Saudi Aramco’s $29 billion sale last year. The Shanghai stock priced at 68.8 yuan ($10.27) apiece and its Hong Kong shares at HK$80 ($10.32) each. The company could raise another $5.2 billion if it exercises its green shoe options, taking its market value to about $320 billion. That would be more than JPMorgan Chase & Co. and four times bigger than Goldman Sachs Group Inc.The big winners of the listing own their stakes through two limited partnerships registered in Hangzhou that together hold about 40% of Ant. Alibaba, in turn, has a third of the fintech firm. Hong Kong’s Li Ka-shing, the family behind a French supermarket giant, the son of a Taiwanese real estate billionaire and Chinese retail tycoon Shen Guojun are among the other owners who have invested in the company over the year.Ant began when Alibaba launched the Alipay payments app in 2004 as an escrow service for buyers and sellers on Ma’s e-commerce website. In 2013, they were given the ability to save money and earn interest on the balances stored on their accounts. The firm then started offering credit to small businesses, branching out from its consumer-finance focus, and eventually expanded to services such as block chain, cloud computing and artificial intelligence.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mon, 26 Oct 2020 09:56:46 -0400
(Bloomberg) -- Tensions flared in bankruptcy court Monday over J.C. Penney Co.’s proposed sale to its lenders and landlords, with one lawyer alleging a dissenting creditor group is waging “economic terrorism” in search of a payout.Those creditors, led by Aurelius Capital Management, hold J.C. Penney term loans and other debt. They’ve submitted a competing proposal to buy the retailer’s real estate while still allowing mall owners Simon Property Group Inc. and Brookfield Property Partners take over the company’s operations. But the proposal isn’t feasible and is instead an attempt by those lenders to “extract a premium,” Andrew Leblanc of Milbank said in a bankruptcy hearing Monday.The sale agreement “is not plug-and-play -- you can’t swap out one piece of it,” said Leblanc, who represents the other lender group. “What stands in our way are people who appear to be looking for some kind of payout.”The Aurelius group has argued that the current sale proposal would deliver an unfair windfall to J.C. Penney’s bankruptcy lenders, which include H/2 Capital Partners.Lender Violence “It’s lender-on-lender violence, for the most part, is what we have here,” Phil Dublin of Akin Gump Strauss Hauer & Feld said on behalf of the the Aurelius group. “It’s greed.”Under the sale agreement that J.C. Penney has been rushing to close in recent weeks, bankruptcy lenders would forgive a large slice of debt in exchange for the retailer’s assets. The company would then sell its operations to Simon and Brookfield.But the dissenting creditor group has argued that the lenders’ so-called credit bid isn’t nearly high enough, alleging the deal would deliver bankruptcy lenders a 162.4% recovery.The disagreement boils down to a fight between creditors that can ultimately be settled, Josh Sussberg of Kirkland & Ellis said on behalf of J.C. Penney in the hearing. He said a competing bid would need to top $2.47 billion in cash in order to best the current proposal, something the Aurelius bid doesn’t do.The case is J.C. Penney Company Inc., 20-20182, U.S. Bankruptcy Court for the Southern District of Texas (Corpus Christi). To view the docket on Bloomberg Law, click here.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mon, 26 Oct 2020 18:18:10 -0400
Investors are always on the lookout for the best stock purchase, but the signs that indicate the ‘right’ stocks are an inconsistent lot. A high or rising share price, upside potential, or dividend payment have all been used – but all have their exceptions. Some investors say to keep away from low-cost stocks, as a price under $5 gets that low for good reason – but some ‘penny’ stocks are fundamentally sound and show the best upsides in the market. With this in mind, we used TipRanks’ database to find compelling stocks with bargain price tags. The platform steered us towards three tickers sporting share prices under $5 and Moderate or Strong Buy consensus ratings from the analyst community. Not to mention substantial upside potential is on the table.LiveXLive Media (LIVX)We’ll start in digital media, a tech niche that has gained from the various lockdown policies and the larger turn toward remote work and schooling. LiveXLive is a music and streaming company, offering platforms to deliver the digital music experience on live stream. The company also offers digital audio, music-on-demand, and a social music network.The stay-at-home policies helped LIVX in 1H20, as the stock saw strong gains and peaked in value in early July. Since then, however, the share price has fallen even as LiveXLive has reported a record-breaking first fiscal quarter, with the $10.5 million in revenue being its highest-ever quarterly result. Better yet, the quarter saw a 20% year-over-year increase in paid subscribers. Preliminary data for the calendar year third quarter (the company’s fiscal second) shows an additional 6% increase in subscriber numbers.Based on recent growth as well as the company’s $2 share price, Ladenburg analyst Jon Hickman thinks that now is the right time to pull the trigger.“With LIVX's dominant position as the industry leader in streaming live events, we believe the company continues to move rapidly to capture an increasing market share with its remote production/distribution platform for artists. We are pleasantly surprised by the early success of the Pay-pay-View initiative given the $1.35 million in ticket sales to date in 2020. Going forward, we note that the current revenue sources are now much more diversified and predictable and we are encouraged by the increasing number of well-known brands as sponsors and advertisers. In light of our expectation for positive adjusted EBITDA early in fiscal 2022 and a much-improved balance sheet, we continue to base our valuation on a 5x on expected revenues out to 2022.” Hickman wrote.To this end, Hickman rates LIVX shares a Buy, and his $6.50 price target implies a whopping 222% upside for the coming year. (To watch Hickman’s track record, click here)Other analysts also take a bullish approach. LIVX’s Strong Buy consensus rating breaks down into 4 Buys and zero Holds or Sells. Additionally, the $6 average price target puts the potential twelve-month gain at 197%. (See LIVX stock analysis on TipRanks)Rimini Street (RMNI)Software is big business in today’s digital world – but it doesn’t always work as advertised, making support a necessity. Rimini Street is a leader in third-party software support, offering customers support for some of the big names in business software.While Rimini offers an essential product, the company’s EPS is notoriously low despite strong revenue numbers. At the top line, Rimini has reported $77 million to $78 million for the past three quarters – but EPS has remained below 8 cents. The first quarter of this year saw a net loss of 1 cent per share.Subsequently, Rimini found itself on the losing end of a legal battle with Oracle over copyright infringement. As a result, RMNI shares are down over 40% since August highs.That was the bad news. Mark Schappel, 5-star analyst with Benchmark, summarizes the possible silver lining.“While we are not attorneys, and understanding complex legal matters is not one of our strengths, the stock’s reaction since the ruling — down about 20% — strikes us as a bit of an overreaction since RMNI’s business remains on track, the court ruling doesn’t create operational downside, and the shares currently trade at a ‘going out of business’ valuation,” Schappel wrote.Accordingly, Schappel rates the stock a Buy and gives it a $10 price target suggesting an impressive 222% growth potential. (To watch Schappel’s track record, click here)This is another stock with a unanimous Strong Buy analyst consensus rating, this time based on 3 recent reviews. Rimini Street’s share are selling for $3.10 after the recent price collapse, but Wall Street sees potential here. The average price target, $7.67, suggests a one-year upside potential of 147%. (See RMNI stock analysis on TipRanks)Energous (WATT)The proliferation of mobile devices, and improvements in battery technology, have brought a focus on charging technologies. Energous holds a leading position in the wireless power and charging niche. The company’s WattUp system supports fast, efficient charging using RF-based wireless tech. The system can be tailored for home or office use, based on the number and type of devices to be charged. It has found applications in the automotive, industrial, medical, and retail industries.In specific advantages, Energous has the world’s first FCC Part 18 certification for wireless charging technology, an important lead in the industry. The company also holds 215 patents, with more on the way. This past September, the company received regulatory approval for a 1-meter ranged wireless charging broadcast.Like many companies specializing in emerging technologies, Energous regularly posts quarterly net EPS losses – but for the past two years, the trend in the company’s net loss has been steadily improving. The EPS loss has fallen by more than half in that time, moving from 49 cents n 3Q18 to 20 cents in the most recently report, for 2Q20.Despite an improving fiscal situation, WATT shares are down 37% in the past two months. The low share price, however, opens up opportunities for investors, according to Roth Capital analyst Suji Desilva. The 5-star analyst rates the stock a Buy, and his $7 price target indicates a possible 182% in upside potential. (To watch Desilva’s track record, click here)Supporting his stance, Desilva notes, “We believe WATT is experiencing increasing new customer engagement activity. As an example, management indicated that four Tier-1 customers are evaluating use of WATT technology and that the company is making inroads into newer military engagement opportunities. We believe the recently launched WattUp PowerHub development kit is helping drive charging application interest across fitness bands, smartwatches, hearables, smart glasses and medical devices to benefit. Wecontinue to expect a volume ramp in 2H20.”Overall, the Moderate Buy analyst consensus on WATT shares is based on two recent Buy ratings. The stock has an average price target of $6, suggesting a 152% upside from the current share price of $2.38. (See WATT stock analysis on TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Mon, 26 Oct 2020 15:30:12 -0400
When COVID-19 started its relentless march across the globe in March, there was some concern that it would put the solar industry to a halt. This fear was derived from the fact that residential solar sales are usually sold door-to-door as well as plant closures and increasing pandemic-related costs. But this scenario did not play out. In fact, the construction industry has been booming this year.Innovation The pandemic has also brought about some innovations that were a long time coming for solar energy. Residential solar companies were forced to adapt their sales to a digital framework. SunPower Corporation (NASDAQ: SPWR) is one of the leaders in this digital-first approach, but Tesla Inc (NASDAQ: TSLA) has also caught this wave. Moreover, when it reported its earnings last week, the company revealed it is aiming for its solar business to be just as strong as its main star, the EV business. Elon Musk announced that Tesla's next 'killer product' is its Solar Roof and that everyone will see why next year. But even Sunrun Inc (NASDAQ: RUN) is adapting to a new normal with fewer physical touchpoints so competition will be intense.Improved Profitability At the end of the day, the reason solar stocks are up this year is the improved financial performance. Canadian Solar Inc. (NASDAQ: CSIQ), JinkoSolar Holding Co., Ltd (NYSE: JKS), Solaredge Technologies Inc (NASDAQ: SEDG), and Enphase Energy Inc (NASDAQ: ENPH), four of the biggest equipment suppliers in the industry have remained strong during the pandemic, with some companies also seeing margins increase.But this piece of good news is a result of the industry focusing more on specializing rather than vertically integrating. For example, SunPower has spun off its development business, inverter manufacturing, and its solar manufacturing arm which led it to better financial results and better margins almost across the board.Politics Considering that Joe Biden has taken a clear polling lead over Donald Trump, the boost of solar stocks is not a surprise. Biden's strategy is much more focused on clean energy than Trump's, despite not being supportive of the "Green New Deal." The overall perception is that Biden will be good for the industry.Affordability Solar power is already the cheapest source of electricity in some parts of the world, according to a new report released on October 13th by the International Energy Agency (IEA). This was greatly enabled by governmental policies in more than 130 countries that aim to encourage the rise of renewables by reducing the cost of building new solar installations. Outlook As solar technology continues to improve and innovation continues to drive those costs down, solar is on track to become "the new king of electricity supply." With global efforts to put climate change under control, the solar industry is expected to dominate over the next decade. The EU alone has set a goal to source 32 percent of its energy from renewables by 2030, therefore, the forecast for solar is sunny.This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases - If you are looking for full Press release distribution contact: firstname.lastname@example.org Contributors - IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: email@example.comThe post Solar Energy Is on Track To Become the New Energy King appeared first on IAM Newswire.Photo by Chelsea on UnsplashSee more from Benzinga * Click here for options trades from Benzinga * AT&T And Verizon Beat Estimates * Procter & Gamble Benefits From The Cleaning Boom(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mon, 26 Oct 2020 11:04:29 -0400
Bonsai Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 63.3% for the quarter (net of fees), outperforming their benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Bonsai Partners’ top 5 stock picks for […]
Mon, 26 Oct 2020 11:58:59 -0400
The properties included in the potential sale are Sands Expo Convention Center, the Venetian Resort Las Vegas and the Palazzo, the source added, asking not to be identified. Bloomberg reported earlier that Las Vegas Sands is working with an adviser to solicit interest from potential suitors. Chairman and chief executive of the group, Sheldon Adelson, said in the second quarter that a "recovery process from the COVID-19 pandemic in each of our markets is now under way."
Mon, 26 Oct 2020 20:18:02 -0400
Bonsai Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 63.3% for the quarter (net of fees), outperforming their benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Bonsai Partners’ top 5 stock picks for […]
Mon, 26 Oct 2020 12:01:59 -0400
In this article we are going to use hedge fund sentiment as a tool and determine whether Barrick Gold Corporation (NYSE:GOLD) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, […]
Mon, 26 Oct 2020 12:07:52 -0400
Gilead Sciences (GILD) notched a first last week, when its antiviral coronavirus treatment Veklury (remdesivir) received full FDA approval.The treatment had previously been granted emergency use authorization (EUA), but the complete go ahead from the regulatory body makes it the first treatment to make it across the finish line.However, ultimately, Raymond James analyst Steven Seedhouse does not expect the long-awaited approval to have the impact investors might hope for.“The formal FDA approval doesn't change our estimates or outlook for remdesivir, given it has already been branded standard-of-care prior to formal approval,“ Seedhouse said. “But the label and approval is pretty much a best case for GILD vs. what could have been post SOLIDARITY results. It remains unclear how frequently Veklury actually gets used going forward. Especially given the myriad post marketing requirements including requirement to more rigorously look at viral shedding and viral load in all samples collected and submit to FDA (which we suspect will show limited or no effect and thus offer no mechanistic support).”Gilead stock has been on a roller coaster ride in 2020. Shares rose dramatically following the pandemic’s onset, as hopes were pinned on remdesivir to play its part in the battle against COVID-19.However, questions about the drug’s commercial potential and contradicting clinical results, amongst other issues, have sent the share price on a downward trajectory since April’s yearly peak.Earlier this month, the World Health Organization’s (WHO) SOLIDARITY trial concluded the treatment does not reduce the risk of a COVID-19 related death or cut the length of patients’ time spent at the hospital.Interestingly, Seedhouse notes, the treatment’s label makes no mention of this or two RCTs (randomized controlled trials) from China. “In other words,” Seedhouse said, “The label excludes negative trials/data for remdesivir.”Neither does the label restrict certain hospitalized patients (according to oxygen support level or the gravity of the disease) from taking the drug. The label suggests a five-day treatment (and five extra days if not recovered) for patients not on invasive O2 support, while those requiring ventilation are recommended a 10-day course.Overall, there’s no change to Seedhouse’ rating which stays at Market Perform (i.e. Hold). (To watch Seedhouse’ track record, click here)Currently, the analyst consensus rates the stock a Moderate Buy based on 9 Buys, 10 Holds and 2 Sells. At $79.38, the average price target suggests shares will add 32% over the next 12 months. (See Gilead stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Mon, 26 Oct 2020 20:25:30 -0400
Oct.25 -- Anti-government protests are escalating in Thailand after Prime Minister Prayuth Chan-Ocha ignored demands to quit. Lawmakers are set to meet today to address some of the activists’ demands. Bloomberg’s Randy Thanthong-Knight reports on “Bloomberg Daybreak: Asia.”
Sun, 25 Oct 2020 21:38:47 -0400
Kenny Rogers sang, in “The Gambler,” “You got to know when to hold 'em, know when to fold 'em" -- a poker reference that has merged into popular culture. But how many know another line of the same song? "…Every hand’s a winner/And every hand’s a loser…"The meaning, of course, is clear: a player must understand the lay of the game, the intentions of his opponents, and the odds of improving his hand – only then can he decide whether to draw or bow out. And a skilled player can always find a path to win, no matter what cards he starts with.The stock markets – a field of endeavor far more complex than any poker table – offer investors a similar mix of risk, calculation, and opportunity. Most stocks can be a winning part of a portfolio, depending on the investor’s overall strategy. Whether the stock moves up or down is sometimes less important than the investment strategy behind the choice.This may all sound abstruse, so let’s bring it down to ground level. ‘Buy low and sell high’ is accepted as an aphorism. The trick is knowing how to tell where a stock’s bottom is.Two analysts in the TipRanks database have tapped two stocks that all fit a profile – a depressed share price and a high upside potential. Is this the combination that offers investors to buy low – and make every hand a winner? Let's take a closer look. Viper Energy Partners (VNOM)Operating in the Permian Basin of Texas, Viper Energy holds extensive exploration and drilling rights in the Midland Formation. The company doesn’t extract the oil directly; rather, Viper owns the properties and manages the operations, with drilling conducted by third parties. Viper’s holdings are both extensive and potentially lucrative – the company is estimated to control nearly 10 billion barrels of recoverable oil and equivalent products.The coronavirus crisis pushed down the price of oil on world markets, and that has impacted profits upstream. Through 1H20, Viper’s revenues and earnings have both been on a downward trend. The top line fell to $32.5 million in Q2, with EPS coming in at a net loss of 4 cents. It’s important to note, however, that VNOM’s EPS beat the forecasts in both Q1 and Q2.The share price has fallen along, too. The stock is down 70% year-to-date, and has been trading flat through September and October.Covering this stock for Scotiabank, analyst Philip Stuart sees a clear path forward Viper Energy. Citing the company’s solid Q3 production numbers, Stuart writes, “[VNOM] was able to grow oil production ~10% q/ q and beat consensus expectations for 3Q20 by ~8%. We are quite encouraged by the VNOM production update and think the outlook for 4Q20 should be higher than 3Q20 based on previous management commentary on the trajectory of production for 2H20. We would expect VNOM to outperform the peer group…”In line with this outlook, Stuart rates the stock an Outperform (i.e. Buy) and sets a $13 price target. His target implies a robust upside of 82% for the coming year.Overall, VNOM shares hold a Moderate Buy rating from the analyst consensus, based on 8 reviews breaking down to 5 Buys and 3 Holds. The stock is selling for $7.15 and the average price target of $12.71 is not far off Stuart’s, suggesting a 78% one-year upside. (See VNOM stock analysis on TipRanks)Arch Coal, Inc. (ARCH)Oil and gas may get the headlines, but they are not the only fossil fuels. Coal, which originally powered the industrial revolution, is found in huge abundance in the Appalachian and Rocky Mountain regions, where Arch Coal is a major producer. The company is diversified, producing mainly metallurgical products for the steel market, but remains a major supplier of metallurgical coal. Arch also produces coal for the power generation markets – coal is the still the major fuel for electrical plants in the US and globally – and has mines in four states.Arch saw drops in revenue and earnings before the coronavirus hit, and those drops were exacerbated by the crisis. By 1Q20, the company was reporting a $1.67 per share net loss, which worsened to $3.26 in Q2. The recent Q3 report showed the net operating loss per share ameliorating to $1.87, but that was worse than the forecasts had estimated. At the top line, quarterly revenues have fallen from $550 million at the end of 4Q19 to 3Q20’s $382 million.Headwinds here include reduced demand due to the economic shutdowns during the corona crisis, but also worries about the political situation. Democratic candidate Joe Biden leads in the Presidential polling – and his party’s policy includes reducing fossil fuel use and dependence, especially in the coal industry.With all of that, it should not come as a surprise that ARCH shares are down nearly 50% this year. Aside from a few brief peaks, the stock has remained below $40 per share since early March.Lucas Pipes, however, from B. Riley Financial, sees the company setting up a solid strategy for growth. “ARCH is finalizing a strategy that could lead to a 50% decrease in PRB production over the course of the next 2 to 3 years. This, as well as other cost-saving initiatives, aims to improve PRB margins and allow ARCH to expedite the paydown of its closure-related obligations [...] ARCH reported an impressive 2021 contract book, which we believe went underappreciated by investors.”Pipes rates the stock a Buy, and gives it a price target of $68. At current levels, that implies an upside of 87% for the coming 12 months. (To watch Pipes’ track record, click here)Overall, with 3 recent reviews, including 2 Buys and 1 Hold, Arch Coal gets a Moderate Buy rating from the analyst consensus. This company’s shares are selling for $36.44, while the average price target of $53 indicates it has room for a 45% upside. (See ARCH stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Mon, 26 Oct 2020 13:55:30 -0400
Former NBA superstar Shaquille O'Neal scored a new gig to add to his already long and impressive resume: staring and producing an animated children's show for Genius Brands International Inc (NASDAQ: GNUS).What Happened: Genius Brands is teaming up with Shaq to create a new animated comedy, action-adventure TV show for kids called "Shaq's Garage." As part of a new relationship, the four-time NBA champion will serve as executive producer and will become a Genius Brands shareholder.The animated show will "depict the secret adventures of Shaquille's extraordinary collection of animated cars, trucks, and automobiles," the company said.Why It's Important: Genius Brands faced controversy earlier this year after a short-seller report blasted the company's valuation and business outlook. A new partnership with an icon like Shaq could inject a much-needed boost to Genius Brands' business.Related Link: Genius Brands Inks New Deals With Archie Comics, 'Batman' Movie Producer"Ever since I was a kid I have been fascinated by cars," O'Neal said in the press release. "I'm so excited to bring this series to life with Genius Brands. We plan to showcase the most amazing, tricked out assortment of vehicles that can only be found in my garage."They will all have larger than life personalities, larger than life missions and of course, larger than life sound systems. One of our cars is a vehicle missing a wheel, but she is as strong, fast, and smart as any other vehicle. This will be a kid's show which will highlight inclusivity for all."What's Next: Shaq's new show will start in early 2022 on the new digital Kartoon Channel! and will be made available to more than 100 million U.S. television households.Genius Brands traded down about 7% to $1.44 at publication time.See more from Benzinga * Click here for options trades from Benzinga * 4 Asana Analysts Initiate On The Workplace Software Stock * Should Investors Continue Playing With Mattel's Stock?(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mon, 26 Oct 2020 13:04:45 -0400
Lee Kun-hee, who built Samsung Electronics into a global powerhouse in smartphones, semiconductors and televisions, died on Sunday after spending more than six years in hospital following a heart attack, the company said. Lee, who was 78, grew the Samsung Group into South Korea’s biggest conglomerate and became the country's richest person. "Lee is such a symbolic figure in South Korea's spectacular rise and how South Korea embraced globalisation, that his death will be remembered by so many Koreans," said Chung Sun-sup, chief executive of corporate researcher firm Chaebul.com.
Sat, 24 Oct 2020 22:24:56 -0400
(Bloomberg) -- Dire earnings results at SAP SE wiped out more than 35 billion euros ($41 billion) from the German software company’s market value in a matter of minutes, sending a warning to tech investors about the health of the business software industry.In a surprise release late Sunday, SAP, one of Europe’s largest tech companies, cut its revenue forecast for the full year and said it expected the fresh wave of Covid-19 lockdowns to hurt demand through the first half of 2021. The results caused shares to fall the most ever in a single day, according to data compiled by Bloomberg since 1989.SAP’s collapse caused the wider tech market to drop, with Europe’s Stoxx Technology index falling 7.6%, its biggest one-day loss since March. Shares of cloud-applications giant Salesforce.com Inc. fell 4.1% at 2:28 p.m. in New York. Oracle Corp. -- SAP’s main rival -- dropped 3.9%.“SAP is a bellwether stock for European technology and global software,” said Citigroup Global Markets analyst Amit Harchandani. “They have an insight into Fortune 500 companies and when SAP tells you they see headwinds, there will be some truth to the fact that some of the customers are challenged and don’t have the money to spend.”For some investors, SAP’s results have called into question the wider assumption that software companies will prosper during the pandemic, due to millions of employees working from home. Many of these companies, which deliver applications or services over the internet, have so far resisted the worst effects of a pandemic-fueled recession, and some have thrived while businesses operate remotely.Some major SAP clients may be reconsidering signing large contracts to update their software, as the pandemic continues to limit any global economic recovery. SAP has a wide range of products, many of which rely on winning and renewing major new deals for databases, as well as accounting, expenses or human resources software. Unsurprisingly, SAP said business travel had been particularly hard hit over the past quarter.Still, SAP has fared worse during the pandemic than many of its software peers. The company said in April that the virus had hindered new business, prompting worries that software vendors around the world might underperform. A few companies later weakened their forecasts, but most reported healthy growth. More recently, San Francisco-based Salesforce said in August that revenue climbed 29% to $5.15 billion in the previous quarter, and raised its revenue projection for the year.SAP’s poor results and weak outlook may suggest that a recovery for vendors of on-premise software -- based on a company’s own network rather than on the internet -- could take longer than anticipated, as clients continue to delay major IT upgrades, analysts at Citi wrote in a note Monday.Oracle, based in Redwood City, California, may be more affected than cloud-based providers since it offers database and financial-planning tools like SAP, and has a large base of customers who buy software for their own server farms. Last month, Oracle reported a return to sales growth in the previous quarter after years of largely stagnant revenue expansion, due to rising demand for its cloud-based products and falling interest in everything else. Oracle projected its sales would grow 1% to 3% in the current period.“The bigger surprise to us was the sharp deceleration in [SAP’s] cloud backlog numbers,” said Anurag Ranag, analyst at Bloomberg Intelligence. “Given that Workday and Salesforce.com had good quarters with healthy pipelines, it seems that could be losing share to pure-play cloud vendors, which would make it hard for them to attain any meaningful recovery in the near-term.”Investors now have an anxious wait before the major U.S. cloud software providers such as Salesforce, Workday Inc. and Oracle announce earnings in December.(Updates with additional details starting in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mon, 26 Oct 2020 14:54:22 -0400
(Bloomberg) -- The heirs of Samsung Electronics Co. Chairman Lee Kun-hee, who died Sunday, could face billions of dollars in inheritance taxes. But that doesn’t necessarily mean they’ll have to cede control over the group by selling shares.South Korea’s richest man had an estimated fortune of $20.7 billion, with the bulk of it comprised of his stakes in four Samsung units, according to the Bloomberg Billionaires Index. With the country’s levy of as much as 60% on inherited shares for large shareholders and 50% on real estate and other assets, Lee’s family could owe a tax bill of about $10 billion -- which could be Korea’s largest -- based on Friday’s closing prices.The heirs are unlikely to sell stock to finance the charge, according to Chung Sun-sup, chief executive officer of Seoul-based corporate-analysis firm Chaebul.com. On Monday, speculation that Samsung Group companies will increase dividends to help pay for it lifted their shares.“Share sales can cause trouble as they would reduce the family’s control over the group. No conglomerates would do so,” Chung said. “Instead, most of them opt to make the cash payment over five years. Cash can be prepared through means such as dividends or salaries.”That’s how Chairman Koo Kwang-mo, who took over the reins of LG Group in 2018 after his father’s death, is doing it: He and family members are paying their 921.5 billion won ($817 million) inheritance tax over five years.While Samsung Electronics declined to comment on how the family plans to pay and split the fortune, it said “all taxes related to the inheritance will be transparently paid as required by law.”Lee’s stakes included a 4% holding in the world’s biggest producer of smartphones, televisions and memory chips and 21% of Samsung Life Insurance Co., which owns the second-biggest chunk of Samsung Electronics.His only son, Jay Y. Lee, has been leading the conglomerate since a heart attack incapacitated his father in 2014. Should he inherit all of the late leader’s shares in Samsung Electronics and Samsung Life Insurance, he may use dividends and financing from family members to prepare for the tax payment, said Jongwoo Yoo, an analyst at Korea Investment & Securities.“It’s uncertain how much cash assets the family holds now, but dividend income won’t be enough to cover the tax charge,” he wrote in a note. “Therefore, it’s also highly possible that the family will rely on personal financing.”The younger Lee is mired in legal troubles linked to a controversial merger of two Samsung affiliates in 2015 that cemented his control of the group. While he holds less than 1% in Samsung Electronics, through the union he secured a 17% control in Samsung C&T Corp., which in turn directly owns 5% of the tech company.Lee is awaiting a final ruling on a bribery case that sent him to prison in 2017, and he’s facing a separate trial on financial-fraud charges including stock-price manipulation to facilitate his succession. While he has denied any wrongdoing, he made a personal apology for the recurring corruption scandals at Samsung and pledged not to hand down leadership to his children.“I give my word here today that from now on, there will be no more controversy regarding succession,” Lee said at a press conference in May. “There will absolutely be no infringement against the law.”Samsung is the latest among a growing number of powerful Korean family-run conglomerates transitioning to the next generation. Earlier this month, Hyundai Motor Group named Euisun Chung as chairman in a move that completed his takeover of all top titles from his father.The heirs will need to prove how they can bring changes as the so-called chaebols have often come under fire in recent years following a series of corruption scandals, according to Chaebul.com’s Chung.“So it’s important to see how the Samsung family will take care of the inheritance issue,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mon, 26 Oct 2020 04:12:29 -0400
Mark McMeans’ Brasada Capital Management is a Houston-based long/short equity hedge fund founded in 2008. The fund takes a conservative approach to its investments, including using hedging and risk management strategies to achieve its desired risk-adjusted returns. The fund’s assets under management more than doubled between early-2017 and early-2018, and topped $542 million in the […]
Mon, 26 Oct 2020 20:21:58 -0400