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Department stores haven't been immune to the retail apocalypse. Here's how they may be repurposed.
(Bloomberg) -- Brookfield Asset Management Inc. said it plans to raise $100 billion for its next round of flagship funds after it delivered first-quarter earnings buoyed by share sales and asset divestitures.The Toronto-based alternative asset manager sold $13 billion of assets during the quarter, resulting in $6.4 billion in profit for Brookfield and its clients, the company said Thursday. Brookfield’s share amounted to $1.8 billion. Chief Executive Officer Bruce Flatt called it an “exceptional” result.“In the current low interest-rate environment, demand for the type of assets we own is strong,” Flatt said in a letter to shareholders. “Many of our businesses are critical infrastructure assets that are underpinned by long-dated, contracted or regulated cash flows. With the capital markets being highly accommodative, we have been monetizing assets.”During the quarter, Brookfield took public its Shoals Technologies Group Inc. solar products business, sold a life-sciences real estate portfolio and completed two secondary offerings of shares in Graftech International Ltd. It also unloaded a portion of its holdings in Brookfield Renewable Corp. and West Fraser Timber Co., a Canadian firm that’s enjoying the benefit of soaring lumber prices.Flatt said the combination of strong markets and asset sales means there’s enough capital on hand for its planned $6.5 billion privatization of Brookfield Property Partners LP, and the repurchase of its own shares, to soak up some of the new equity being issued in the transaction.Brookfield said it had a record quarter, with its funds from operations reaching $2.8 billion and its distributable earnings hitting $2.5 billion. Total assets under management grew to $609 billion.The company has about $80 billion in capital available, Flatt said in the letter, including $18 billion on its own balance sheet. Brookfield has started raising money for its fourth flagship real estate fund and its new Global Transition Fund, which will focus on environmentally and socially responsible investments.It’s also in the midst of closing a new debt fund and aims to launch new infrastructure and private equity funds in the next 12 months as part of its plan to raise $100 billion across its flagship funds, Flatt said.“The sustained low interest-rate environment combined with institutions’ need to earn returns from alternatives has created a very constructive fundraising environment,” Flatt said.Brookfield remains confident that commercial real estate will rebound as Covid-19 vaccinations take hold. Flatt said he believes many people survived in the short term without an office, but in the long run most companies won’t prosper without the interaction that comes from people working in close proximity to one another.“The tone in the market for commercial property assets is very negative at the moment. Real estate stocks have been trading as though no company will ever occupy an office again, no person will ever set foot in a store and nobody will ever travel again, for either business or leisure,” Flatt wrote. “We do not believe that any of these will be the case, and so we are investing accordingly.”‘Outsized Gains’Andrew Kuske, an analyst with Credit Suisse, said he expects Brookfield’s transactional activity to accelerate in the back half of 2021 and into 2022.“On balance, the quarter is positive on continued growth in the underlying asset management business along with the validation of past investments with outsized gains being realized -- even with some operating weakness,” Kuske said in a note to clients.Flatt said he believes there’s an opportunity to pick up infrastructure assets because governments have borrowed heavily to launch stimulus programs to combat the pandemic. That could open an opportunity for government infrastructure assets to come to market to raise funds.Brookfield shares were up 1.2% to $45.28 at 11:59 a.m. in New York.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Reuters) -If you need cash in Myanmar, you have to get up early. The cash crisis is one of the most pressing problems for the people of Myanmar after the Feb. 1 military coup. The central bank, now run by a junta appointee, has not returned some of the reserves it holds for private banks, without giving any reason, leaving the banks short of cash.
Crypto adoption has been healthy in Argentina, with citizens seeking alternative ways of storing wealth amid the country’s economic woes.
(Bloomberg) -- U.S. equities rose and Treasury yields declined for a second consecutive day as more-tempered commodity prices helped allay concerns about inflation risks.Energy and technology shares led the S&P 500, which tumbled Wednesday by the most since February. The tech-heavy Nasdaq 100 outperformed the broader index, suggesting a market recovery is gaining momentum, after a bruising week that saw gathering price pressures hit equities. An advance in European stocks was led by cyclical industries. MSCI Inc.’s Asia-Pacific share gauge advanced more than 1%.”We have to look ahead six months -- we’re having an economy that’s reopening,” Citibank Private Bank Chief Investment Officer David Bailin said on Bloomberg TV. “What we’re seeing is an incredible pent-up demand for certain parts of the economy and basically anything that leaves your house.”Markets appear to be regaining their equilibrium at the end of their biggest retreat in 11 weeks, with the focus of the benefits of an economic rebound overriding worry about the negative side-effect of inflation, for now.The Federal Reserve’s policy is in a good place right now, said Cleveland Fed President Loretta Mester, while playing down signals from data that she warns will be volatile as the economy reopens.That may help to reinvigorate the reflation narrative of picking value shares tied to economic growth over pandemic stay-at-home favorites. Walt Disney Co. fell after results that showed a faltering in growth at streaming service Disney+.Treasuries remained higher after a report showed U.S. retail sales stalled in April following a sharp advance in the prior month. The dollar remained weaker against all of its Group of 10 peers.“The disappointing retail sales numbers shouldn’t really come as a huge surprise given that last month encompassed stimulus money hitting bank accounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “It probably supports the point of view that the dip we experienced this week is a buying opportunity as all sectors march toward full recovery.”Iron ore continued its fall from a record amid efforts by China to clamp down on surging prices, with the metal set for the biggest two-day plunge since 2019. Oil erased an earlier decline, paring its weekly loss.Bitcoin traded above $50,000, reversing some of its slump on Tesla Inc.’s decision to suspend purchases using the digital currency.The MLIV Question of the Day is: When Can Crypto Reach Mainstream Investing?These are some of the main moves in markets:StocksThe S&P 500 rose 1.4%, more than any closing gain since April 5 as of 1:18 p.m. New York timeThe Nasdaq 100 rose 1.9%, more than any closing gain since April 5The Dow Jones Industrial Average rose 1%The MSCI World index rose 1.5%, more than any closing gain since March 1CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%, more than any closing loss since May 7The euro rose 0.5% to $1.2136The British pound rose 0.3% to $1.4090The Japanese yen was little changed at 109.43 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.65%Germany’s 10-year yield declined one basis point, more than any closing loss since May 4Britain’s 10-year yield declined four basis points, more than any closing loss since May 4CommoditiesWest Texas Intermediate crude rose 2.2%, the most since May 4Gold futures rose 0.8% to $1,838 an ounceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Anyone with a stock account can now make a savvy, albeit risky, bet on GBTC pricing disparities that were previously exclusive to big players.
USA TODAY answers the most asked questions regarding the Colonial Pipeline cyber attack and what states are struggling to keep gas stations stocked.
(Bloomberg) -- A crack in a bridge over the Mississippi River has stranded more than 700 barges, cutting off the biggest route for U.S. agricultural exports when the critical waterway is at its busiest.The route is shut near Memphis while the Tennessee Department of Transportation inspects a large crack in a highway bridge spanning the river, according to the U.S. Coast Guard. A queue has expanded to 47 vessels and 771 barges, with 430 of those heading north and the rest going south, Petty Officer Carlos Galarza of the Coast Guard’s 8th District said Thursday afternoon by email.The Mississippi River is the main artery for U.S. crop exports, with covered barges full of grain and soy floating to terminals along the Gulf of Mexico, while crude oil as well as imported steel also travel through sections of the waterway. Any sustained outage would disrupt shipments out of the Gulf. Corn futures tumbled by the most allowed under CME Group rules partly on speculation that exports would back up.“The river is the jugular for the export market in the Midwest for both corn and beans,” said Colin Hulse, a senior risk management consultant at StoneX in Kansas City. “The length of the blockage is important. If they cannot quickly get movement, then it is a big deal. If it slows or restricts movement for a longer period it can be a big deal as well.”The stoppage along the Mississippi River is the latest calamity to upend the commodities world in recent weeks. Back in March, the Suez Canal was blocked by a giant container ship that got stuck sideways in the vital waterway for almost a week, paralyzing global shipping. And late last week, a cyberattack brought down the largest fuel pipeline in the U.S. for five days, leading to widespread gasoline shortages from Florida to Virginia.A lengthy halt on the Mississippi River could further roil crop markets, where soybeans and corn futures have hit multiyear highs amid adverse weather in Latin America and a buying spree from China. Corn futures fell Thursday by the exchange limit of 40 cents, or 5.6%, to $6.7475 a bushel in Chicago.As a workaround, traders could in theory also send some supplies on trains and divert to ports along the U.S. Pacific Northwest. Few grain and soy buyers were bidding for barges north of the river closure amid uncertainty on when vessel traffic would resume.The crack halting vehicle and waterway traffic is in the truss of the Interstate 40 Hernando DeSoto Bridge, which was found during a routine inspection, according to a Tuesday statement from the Tennessee Department of Transportation.“The timeline is still undetermined” for the waterway reopening, department spokeswoman Nichole Lawrence said Thursday morning by email.The Army Corp of Engineers could figure out a way to keep automotive traffic closed in order for water traffic to resume under the bridge, according to CRU Group analyst Josh Spoores. It may cause bottlenecks, but most consumers already used to waiting months for supplies to ship are probably fine with some added delays, he said.The New Orleans Port Region moved 47% of waterborne agricultural exports in 2017, according to the U.S. Department of Agriculture. The majority of these exports were bulk grains and bulk grain products, such as corn, soybeans, animal feed and rice. The region also supports a significant amount of edible oil exports, such as soybean and corn oils and even attracted 13% of U.S. waterborne frozen poultry exports in 2017.Some traders speculated that, based on past experience, the river might be partially opened for restricted movements while repairs are being done.“My sense is that it is not a big deal for river traffic as it will be a short-term disruption,” said Stephen Nicholson, a senior analyst for grains and oilseeds at Rabobank. “The good news is most of fertilizer has already come up river and soybean exports are at their low point. However, corn exports continue at a strong pace, so we may see a slight delay in corn barges reaching” New Orleans.It may be difficult for exporters to shift much volume to rail, as the capacity to unload trains outside of the New Orleans area is limited, according to Curt Strubhar, vice chairman and risk management consultant at Advance Trading Inc.“There aren’t many rail unloaders South of the issue,” he said, adding that New Orleans “port elevators aren’t equipped to handle a sharply higher share of rail unloads either.”Of agricultural supplies that floated on barges north of Memphis, about 84% was corn and about 13% was soybeans, according to Mike Steenhoek, executive director of the Soy Transportation Coalition, citing USDA data. Overall shipments of corn and soy during the week ended May 8 were 18% higher than a year ago.Agricultural co-operative Growmark’s St. Louis port, which sends corn and soybeans south to New Orleans for export mostly to China and receives fertilizers, will likely close Friday, according to Matt Lurkins, executive director of the firm’s grain division.“Freight was already tight,” Lurkins said in a phone interview. “Then this kind of sent us over the edge.”If the pause drags on, he said, Growmark could send more grain to processors rather than loading it on barges for export.Small volumes of crude and partly refined oil are shipped by barge on the river as well. In February, 2.85 million barrels moved from the Midwest to the Gulf Coast via barge and tanker, according to government data.Imported steel on barges will be delayed as long as traffic is halted. About 25% of imported steel travels through at least a section of the Mississippi River, according to Wood Mackenzie analyst Cicero Machado, though he said newly arriving foreign steel to ports in New Orleans or Mobile, Alabama can be diverted onto rail cars or trucks.The river also is a major artery for steel shipments within the U.S. and delays could become an issue for automakers in the South that depend on high-strength steels produced in the Midwest, he said.“At this stage the big question is: is this going to last?” Machado said. “The issue is not actually in the river, it’s in a bridge over the river -- so perhaps they’re going to find a way to manage the traffic there.”(Adds Coast Guard update in second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Shares of Plug Power Inc. surged Friday, after they hydrogen and fuel cell systems company completed its restatement, removing a "shroud of uncertainty" that has been weighing heavily on the stock the past couple months.
The Tesla CEO sent the price of Bitcoin and other cryptocurrencies plummeting. But he may be aiming to turn crypto-mining green in ways that benefit Tesla.
(Bloomberg) -- Stock sales are reaping a windfall for the world’s richest shareholders.Corporate insiders including Amazon.com’s Jeff Bezos and Google co-founder Sergey Brin have ramped up stock sales recently, cashing in on a 14-month long bull market that’s helped boost fortunes to the tune of trillions.U.S. public company insiders offloaded shares worth $24.4 billion this year through the first week of May, with about half sold through trading plans, according to data compiled by Bloomberg. That’s almost as much as the $30 billion total they disposed of in the second half of 2020.Large shareholders frequently sell stock in planned intervals, often through pre-arranged trading programs. Yet the prolonged rally in equities markets has made the value of these disposals, whether planned or opportunistic, strikingly high.There are multiple reasons an investor of any size might be motivated to sell. After the pandemic-defying rally, valuations are increasingly under pressure from rising inflation. Investors are wary the post-Covid recovery could prompt tightening measures from the Federal Reserve. And President Joe Biden’s proposed tax hikes -- including a near doubling of the capital gains rate -- have created uncertainty.Bezos, EllisonWhatever the reason, the sales are flooding the market with yet more liquidity, the consequences of which will ripple through philanthropy, the art market, real estate and other niches.Bezos has sold $6.7 billion worth of Amazon shares this year. While a relative pittance for the world’s richest person, it’s more than two-thirds the value of shares he sold in 2020. Larry Ellison unloaded 7 million Oracle shares in the past week for total proceeds of $552.3 million. Charles Schwab has sold $192 million worth of shares of his eponymous brokerage this year.Brin, who has signaled that he intends to sell as many as 250,000 Alphabet Inc. shares, has disposed of $163 million worth of stock in recent days, his first sales in more than four years, filings show.Mark Zuckerberg and his charitable foundation, the Chan Zuckerberg Initiative, meanwhile, accelerated their sales of Facebook stock in the fall. Zuckerberg or his charity has divested shares at a near-daily clip since November, for a cumulative total exceeding $1.87 billion.The surging markets have exacerbated the concentration risk of the single-stock-dominated fortunes typical of many tech billionaires, said Thorne Perkin, president of Papamarkou Wellner Asset Management.“From a portfolio-management perspective, it makes sense to spread it around,” he said.Covid EconomyAlso among the biggest sellers are some noteworthy beneficiaries of the Covid economy. Zoom Video Communications founder Eric Yuan and used-car retailer Carvana Co.’s Ernest Garcia II have together received more than $1.75 billion from stock sales since March 2020, according to the Bloomberg Billionaires Index. George Kurtz, chief executive officer of cybersecurity firm CrowdStrike, has sold shares worth at least $250 million over that period.Zoom founder Yuan -- the poster child, in many ways, for the coronavirus economy -- has stepped up his sales this year as the firm’s share price slumped. In 2020, he typically offloaded about 140,000 shares a month through a trading plan, which generated more than $350 million over the course of the year.Since March, he’s sold almost 200,000 shares a month on average, yielding him about $185 million. He also donated more than a third of his stake in the San Jose-based company as part of “typical estate planning practices,” according to a spokesman. Some of the cash from his share sales fund donations to unspecified “humanitarian causes.”(Updates with Charles Schwab’s sales 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.©2021 Bloomberg L.P.
(Bloomberg) -- Stocks exposed to cryptocurrencies slumped around the world after Elon Musk voiced concerns over Bitcoin’s energy usage, delivering a blow to the digital asset’s standing within global markets just a few months after the billionaire CEO of Tesla Inc. became one of its biggest supporters.Crypto shares from the U.S. to Asia slid as Bitcoin plunged as much as 15%, sinking to a low of $46,045 before trimming the decline. Musk said he was worried over the “rapidly increasing” use of fossil fuels for Bitcoin mining and transactions, and suspended Tesla purchases with the asset, indicating he might favor other cryptocurrencies that don’t use as much energy.Digital asset technology company Marathon Digital Holdings Inc. fell 14% to the lowest since Jan. 27, as peer Riot Blockchain Inc. tumbled 16%, while Microstrategy Inc., which has put billions of dollars into Bitcoin, sank 9.9% Thursday. Coinbase Global Inc., which runs the largest U.S. cryptocurrency exchange, dropped as much as 6.5% in late trading after quarterly results, adding to its largest ever decline on Thursday.A “shocker from Musk,” Daniel Ives, an analyst at Wedbush Securities, wrote in a note to clients. “The nature of Bitcoin mining has not changed in the last three months, which speaks to why backtracking on the crypto transaction three months later is a very surprising and confusing move to both Tesla and crypto investors.”Worries deepened after a Bloomberg News report that Binance Holdings Ltd. is under investigation by the Justice Department and Internal Revenue Service. Officials who probe money laundering and tax offenses have sought information from individuals with insight into Binance’s business, according to people with knowledge of the matterTesla announced in February that it had invested $1.5 billion in Bitcoin and signaled an intent to begin accepting the cryptocurrency as a form of payment.In Asia, Monex Group Inc., whose ownership of crypto exchange Coincheck Inc. had made it the second-best performing stock in Japan in 2021, dropped 11%. Nexon Co., which just last month became the first Japanese firm to make a significant bet with a $100 million purchase of the cryptocurrency, slumped 14%, the most since August 2019, though a poor growth outlook given at its earnings also weighed on sentiment.In Europe, crypto-miner Argo Blockchain Plc slid 6.9%, blockchain technology firm On-Line Blockchain Plc lost 9.8% and crypto infrastructure group Northern Data AG dropped 5.8% to its lowest level since Feb. 1.Tesla SlipsTesla’s own shares fell 3.1%, its eighth decline in nine days, adding to a roughly 30% slide since the company announced the Bitcoin investment in February. After last year’s huge rally, the stock has suffered from lofty trader expectations despite posting a record quarterly profit last month. It’s also been among the stocks hit by this week’s selling in tech equities, with concerns around rising inflation fueling fears of higher interest rates.“Not accepting Bitcoin does not change the thesis or growth trajectory for the electric vehicle story, however it does add to the noise and volatility around the name at a time in which risk assets are under enormous selling pressure,” added Wedbush’s Ives.Musk said in his post that Tesla wouldn’t be selling any Bitcoin and aimed to use it for transactions once mining shifted to a more sustainable energy. “We believe it has a promising future,” he wrote, “but this cannot come at great cost to the environment.”That puts Musk at odds with ARK Investment Management LLC’s Cathie Wood, who last month shared research that she said would “debunk the myth that Bitcoin mining” is bad for the environment. Wood’s Ark Innovation ETF, which has been having a miserable month and has Coinbase as its ninth-largest holding, rose 2.2% after closing at the lowest level since November on Wednesday.Bitcoin was down 10% to $48,903 at 4:09 p.m. in New York.(Updates shares with closing prices, Binance probe in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The IRS sent out COVID-19 relief checks to nearly 1 million more Americans in the ninth batch of payments made under Biden's American Rescue Plan.
In a further sign of "institutional DeFi" momentum, the regulated custodian is adding 1INCH, BNT, CRV, REN and SUSHI.
The Walt Disney Co. blew away earnings expectations with a Thursday report, but shares still fell in late trading as the pandemic-fueled growth of its streaming services slowed down.
Now that the IRS knows what you earned last year, you may be eligible for more support.
Recent market volatility is enough to make your head spin, and can cause plenty of confusion for retail investors seeking a solid market strategy. It’s tempting to look to the experts, but that raises another question: which experts are the best to follow? There are plenty to choose from. Wall Street’s corps of professional stock analysts provide frequent and relevant commentary on hundreds of publicly traded stocks, but some investors want to consult opinions that originate a bit closer to the stock in question. For them, following the insiders – corporate officers whose jobs put them in a position to know the inner workings of their companies – can provide valuable stock hints. To make that search easier, the TipRanks Insiders’ Hot Stocks tool gets the footwork started – identifying stocks that have seen informative moves by insiders, highlighting several common strategies used by the insiders, and collecting the data all in one place. Fresh from that database, here are the details on three Strong Buy stocks showing ‘informative buys’ in recent days. Energy Transfer (ET) We'll start with a midstream company in the energy sector. Midstreamers are the companies that move energy sources – crude oil and natural gas, their derivatives, and other fuels – from the wellheads to the refiners and transfer points. It’s a necessary network in the hydrocarbon industry, and Energy Transfer exists right in the middle of it. The company’s transport network spreads across 38 states, connecting the Appalachia, North Dakota, and Texas-Oklahoma-Louisiana regions. Energy Transfer controls pipelines, terminals, and tank farms for oil and gas products. In Q1, ET reported net income of $3.29 billion, up by more than $4 billion from the net loss in the year-ago quarter. Per share, earnings came to $1.21. The company’s cash flow also grew substantially. ET reported $3.91 billion in distributable cash flow, compared to the $1.42 billion in 1Q20, for a gain of 175%. Energy Transfer used that cash flow to fund its dividend, at 15.25 cents per common share and payable on May 19. At that rate, the payment annualizes to 61 cents per share, and gives a strong yield of 6.11%. On the insider front, Ray Washburne, of Energy Transfer’s Board of Directors, made several purchases of ET stock recently. Two of those purchases, totaling 200,000 shares and purchased for approximately $1.9 million. His total holding in the stock now exceeds $4.2 million. Covering this stock for Evercore ISI, analyst Todd Firestone takes note of the sound quarterly report, and believes the company is moving in the right direction. “ET ticks every major investment theme, massive, diversified portfolio, clear path to deleveraging, focus on returns vs. growth, protection from commodity and volume swings, and an unchallenging valuation, trading well behind peers. There are two key takeaways on which we think investors ultimately focus on from [the earnings] results, i) guidance improved independently from the storm with systems operating at or above pre-COVID levels, and ii) the extra earnings are already in the bank and were used to pay down $3.7 Bn in debt,” Firestone wrote. To this end, Firestone gives ET shares an Outperform (i.e. Buy) rating, along with a $14 price target that implies a 38% upside potential for the year ahead. (To watch Firestone’s track record, click here) It’s clear from the unanimous Strong Buy consensus rating that Wall Street agrees with Firestone’s take on this stock. ET has 9 positive reviews on file. The stock is selling for $10.17, and its $12.67 average price target suggests ~25% one-year upside. (See ET stock analysis on TipRanks) New Fortress Energy (NFE) Let’s stick with the energy industry, but shift gears a bit and take a look at the natural gas segment. New Fortress Energy provides funding, construction, and operational maintenance for fully integrated natural gas energy projects in underdeveloped areas around the world. The company defines its mission as bringing clean and affordable energy onto the global marketplace. New Fortress has operations in Jamaica and Puerto Rico, Mexico and Brazil, and Western Ireland. In its report on the first quarter of this year, Fortress showed $145.7 million in total revenues, up 95% year-over-year, although flat from the previous quarter. In other news, the company’s gas projects in Mexico, Nicaragua, and Brazil are all proceeding on schedule. Two previously announced acquisition deals, of Hygo Energy Transition and Golar LNG Partners, were closed during the quarter, at a combined value of $5.1 billion. The company also shored up its liquidity position during the quarter. It completed a private offering of senior secured notes, $1.5 billion in total, due in 2026, and closed a $200 million secured revolving credit facility. Turning to the inside trades, John Mack, COB and Board member of New Fortress, made a series of stock purchases recently, totaling 24,000 shares. At the average price paid of $39.88, these were worth more than $957,000. In a detailed note on New Fortress, Evercore analyst Sean Morgan sees the company developing a solid foundation and improved profitability. “NFE has expanded its regasification capacity at a very rapid rate and has had to acquire third-party LNG cargoes to meet demand at its facilities…. NFE is also working to develop two offshore FLNG projects... The net result of this supply chain integration is to self-provide gas at a fixed price of $3-4/mmbtu, with first gas expected in 2022," Morgan wrote. The analyst continued, "For the upcoming quarter, NFE will see the partial-quarter direct contribution of its newly acquired assets of GMLP and Hygo, as the transaction closed on April 15th. We expect the contribution of GMLP’s assets amid an improving LNG carrier spot rate market to improve the profitability of the company in 2Q21, as NFE also continues to ramp its growing regasification business (including Hygo) and FLNG export projects.” Based on the above, Morgan gives NFE shares an Outperform (i.e. Buy) rating. His price target of $64 implies a 12-month upside potential of 60%. (To watch Morgan’s track record, click here) Overall, of the 5 recent analyst reviews on file for New Fortress, 4 are to Buy and 1 is to Hold, giving the stock its Strong Buy consensus rating. The shares are trading for $40.02 and have an average price target of $53.20, giving them an upside potential of 33% for the coming year. (See NFE stock analysis on TipRanks) Green Brick Partners (GRBK) Last but not least is Green Brick, a Texas-based company in the land-development and home acquisition sector. This is a growth segment of the economy; real estate and home prices have been rising lately. Green Brick invests in land, which it then provides as plots for development projects. The company also provides financing for construction costs. Green Brick’s recent Q1 revenues came in at $234.5 million, up 9.9% year-over-year. On the negative side of the ledger, revenues have been slipping since 3Q20 – but the company typically shows short cycles of rising and falling quarterly revenues, and the overall trend in the past two years has been upwards. EPS has shown a similar patter, and the Q1 print, at 51 cents per share, was up 64% from the year-ago quarter. The strength of the residential real estate sector can be seen by the share performance. GRBK shares have appreciated an impressive 155% in the past 12 months. Turning to the insiders, we find that Harry Brandler, of the company Board, this week purchased 25,000 shares of stock, in a series of transactions totaling over $552,000. It was his second large stock buy this year; the earlier purchase, in March, was 20,000 shares for $428,000. Brandler’s stake in Green Brick now reaches $1.9 million. Analyst Aaron Hecht, in his coverage of Green Brick for JMP Securities, sees the company on firm footing, despite the sequential declines. “The delivery shortfall was not all that unexpected given the company’s massive increase in backlog. Management continues to leverage its exposure to the Dallas-Fort Worth and Atlanta markets and is capitalizing on Millennial home purchases and pandemic-related relocations from urban environments. We believe the current housing cycle has legs through 2022," Hecht noted. The analyst added, “Net new orders totaled 1,082 homes for 1Q21, up 71% yr/yr and a record number of homes for the company…. Sales in the entry-level and first move-up categories, often an indicator of Millennial, homebuyers totaled 36%, which is double the percentage just two years ago.” All in all, Hecht rates GRBK shares as Outperform (i.e. Buy), with a $30 price target to suggest room for a 30% one-year upside. (To watch Hecht’s track record, click here) The recent reviews on Green Brick break down 3 to 1 in favor of Buys versus Holds, and support the Strong Buy analyst consensus rating. The shares are currently priced at $23 and their $32 average price target implies ~40% upside from that level. (See GRBK 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.
Need more relief? The White House says that's up to Speaker Pelosi and company.
A metal coatings plant in China's manufacturing hub has been hit by price increases of up to 30% for raw materials including steel, aluminium, thinner and paint since the Chinese New Year in February. The firm has had no choice but to pass most of these higher costs on to its clients, including those in the United States, said King Lau, who helps run Dongguan-based Kam Pin Industrial Ltd, in Guangdong province. With their profit margins already tight, Chinese factories are passing on higher raw material and component costs to overseas clients, which will only reinforce the inflation loop.
(Bloomberg) -- Drivers encountering fuel shortages in parts of the U.S. East and South may find it takes weeks before supply levels return to normal.Now that Colonial Pipeline Co. has resumed deliveries that were halted for nearly a week by a cyberattack, the industry is facing a new logistics problem on top of the lack of available fuel: not enough truck drivers to transport gasoline and diesel from distribution hubs to retail outlets.As of Friday morning, about 87% of fuel stations in Washington, D.C., were out of gasoline, 42% in Maryland and 30% in Florida, according to retail-tracker GasBuddy. While outages dipped slightly in North Carolina and South Carolina, more than half of each state’s stations are still without gasoline.“Too many stations need fuel, not enough capacity at the rack, not enough truck drivers,” said Patrick DeHaan, head of petroleum analysis at GasBuddy, on Twitter. “Most of these states with outages have continued to see panicked buying, which is likely a contributing factor to the slowish recovery thus far. It will take a few weeks.”Colonial Pipeline Co. paid nearly $5 million to Eastern European hackers to end a ransomware attack that shut its network of pipelines that transport gasoline, diesel and jet fuel along the U.S. East Coast. The outage, which occurred just weeks before the kickoff of summer driving season, left some retail stations dry in more than 10 states and pushed the average national pump price above $3 a gallon for the first time in six years.One of North America’s biggest distributors said the shortages will drag on because of the lack of tanker trucks to haul supplies.“It’s really going to be probably seven to 10 days before the average consumer really notices a noticeable improvement” in local supplies, said Andy Milton, senior vice president of supply at Mansfield Energy Corp., whose closely held company handles more than 3 billion gallons of fuel a year across the U.S and Canada.Mansfield has brought trucks to areas affected by shortages from as far away as Minnesota and Texas. “The truck itself becomes the major, the major problem,” Milton said.Many truck drivers stopped hauling fuel during the pandemic when gasoline demand collapsed. Now, companies are rushing to hire them back. As recently as last week, Pilot Corp. was offering $5,000 hiring bonuses for tanker drivers to supply its stores and said it could hire 200 people before summer.The deadly winter storm that paralyzed Texas in February followed by Colonial’s shutdown have been back-to-back crises for Mansfield’s network.“I keep hoping there’s not a hurricane around the corner,” said Milton. “That might lead me to change my career at that point.”As of Thursday, the origin of Colonial’s system in the South was running at less than half of capacity, according to people familiar with the matter. Fuel traders have been paying each other extra to gain access to the pipeline, the first time that’s happened since before the pandemic.To help alleviate the crisis, the Biden administration granted two Jones Act waivers to companies including Valero Energy Corp. that allow foreign tankers to send fuel to the U.S. East Coast.Since Colonial resumed operations, a gasoline tanker hailing from France which had been diverted toward the U.S. Atlantic Coast has now changed course back toward the Gulf Coast. On Thursday, a European tanker that was en route to the Bahamas arrived in Savannah, Georgia to unload diesel.(Updates with latest fuel station outages in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
CEO Brian Armstrong said on the company's Q1 earnings call that Coinbase wants to be "first to list" new coins.