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Aug 2 (Reuters) - Scomi Group Bhd:
* SHAHZANIM BIN ZAIN RESIGNS AS CEO Source text for Eikon: Further company coverage:
Aug 2 (Reuters) - Scomi Group Bhd:
* SHAHZANIM BIN ZAIN RESIGNS AS CEO Source text for Eikon: Further company coverage:
(Bloomberg) -- Mainland China is third behind the Bahamas and Cambodia in a ranking of the maturity of central banks’ retail digital currency projects, according to a report from PwC.More than 60 central banks are now exploring digital currencies, with retail projects more active in emerging economies given the importance of financial inclusion, while interbank or wholesale applications tend to be more predominant in advanced economies, the report said.The Bahamas and Cambodia take top marks in retail because their projects are already live, while China is still in the test phase. Only 23% of retail projects have reached implementation stage, while nearly 70% of wholesale projects are running pilot programs, according to the report.“CBDCs will contribute significantly to the modernization of the international monetary landscape, hand-in-hand with reconfiguration in both payment and financial infrastructure,” PwC said. “They will generate numerous opportunities for further digitization in both corporates and financial institutions, as their integration in payment and financial infrastructure progresses.”Read More: Central Banks Edge Toward Money’s Next Frontier in Digital WorldCentral bank efforts at digital currencies accelerated first after Bitcoin became more popular and then once the Facebook Inc.-backed Libra project, now named Diem, was announced.With China in the testing phase on its digital yuan, other countries have accelerated their efforts. Jurisdictions like Sweden and the European Union are starting to make some headway. The Federal Reserve, though, has signaled it’s in little rush to get a digital dollar off the ground.Digital YuanChina’s efforts to create a digital yuan are aimed at domestic use and its goal for internationalizing its currency is not to replace the dollar, a senior official from its central bank said Sunday.As for interbank or wholesale projects, Thailand and Hong Kong SAR tied for the top ranking, according to the PwC report. They’re followed by Singapore, Canada and the U.K.The report also said more than 88% of CBDC projects at pilot or production phase use blockchain as the underlying technology. While it isn’t always necessary for such projects, it helps offer secure transfer of ownership, transparent audit trails and increasing interoperability with other digital assets, the report said.“The general public will be one of the biggest beneficiaries of CBDCs as it will give them access for the first time to a digital form of central bank money,” said Henri Arslanian, global crypto leader at PwC. “And that is a big milestone in the evolution of money.”(Updates headline.)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) -- Chinese delivery giant Meituan has raised $9.98 billion from a record top-up placement and a convertible bonds sale as it doubles down on efforts to fight the likes of Alibaba Group Holding Ltd. in newer areas such as online groceries.The nation’s third-largest internet company has sold 187 million shares in a top-up placement at HK$273.8 each, near the top end of its marketed range, and also raised $400 million from shareholder Tencent Holdings Ltd., according to terms of the deal obtained by Bloomberg News. The $7 billion new stock issuance is the largest-ever such sale by a Hong Kong-listed company, data compiled by Bloomberg show. Meituan has also sold $2.98 billion in zero-coupon convertible bonds.Meituan’s shares were volatile in the morning session in Hong Kong, trading up 1.5% as of 10:00 a.m. local time after falling as much as 1.8% earlier. The placement price represents a discount of 5.3% to the stock’s closing price Monday. The convertible bonds are divided in two tranches -- $1.48 billion six-year notes and $1.5 billion seven-year paper, the terms showed.The stock and bond sales come as Meituan grapples with the cost of competing against the likes of Alibaba and Pinduoduo Inc. in newer spheres such as community e-commerce and online groceries. The company has warned it will remain in the red for several more quarters despite record revenues as it spends heavily on new initiatives.“It makes sense to raise money to make more of a shift into autonomous delivery, seek to delve into more technology-focused areas especially under the backdrop of the anti-monopoly” drive, said Zhou Luyun, an analyst at Northeast Securities Co. in Shanghai. “The pricing shows that the market buys this blueprint.”Meituan intends to use the proceeds from the offerings for technology innovations, including the research and development of autonomous delivery vehicles, drones delivery, and other cutting-edge technology, and general corporate purposes, the terms showed.“After this placement, some short-term investors could sell the stock and shares could trade in a range of HK$250-HK$300 for a while,” said Paul Pong, managing director at Pegasus Fund Managers Ltd. “In the medium to longer term, online platform operators like Meituan and Tencent still have a solid growth outlook.”Community buying is one of Meituan’s chief expansion areas, where buyers in the same neighborhood enjoy bulk discounts on fresh produce. But the firm faces entrenched competition from other Internet giants.All three main ratings agencies lowered their outlook on Meituan after it reported earnings last month, with S&P Global Ratings and Moody’s Investors Service saying that its large investments in community e-commerce would come at a heavy cost, generate negative free cash flow and dampen earnings.Meituan’s focus on developing fast-growing new businesses comes as China’s economic recovery has helped the world’s largest meal-delivery service increase orders, while its hotels and travel businesses have benefited from a rebound in domestic travel when the country reined in the pandemic.The company has begun using self-driving vehicles for grocery delivery in the Chinese capital since the Covid-19 outbreak last year, with at least 15,000 orders being completed so far, Wang Xing, the company’s chief executive officer, told analysts during a conference call in March. Wang said Meituan is also experimenting with how to deliver food using drones in the southern Chinese city of Shenzhen.Tencent is delving deeper into Meituan at a time global investors are souring on the Chinese tech sector due to heightened regulatory scrutiny. Meituan had lost some $123 billion of its value from a Feb. 17 high through Monday, pummeled by fears that Beijing’s crackdown on Jack Ma’s Internet empire will expand beyond Alibaba and Ant Group Co. to engulf other sector leaders like Tencent and Meituan.“They are going into new areas including group purchases and those need a lot of capital and they need a war chest to compete,” said Kerry Goh, chief investment officer at Kamet Capital Partners Pte. “Valuations are still pretty decent compared to a year ago.”Bank of America Corp. and Goldman Sachs Group Inc. are joint global coordinators and joint bookrunners for both the bond and equity offerings. CLSA Ltd. and UBS Group AG are also joint bookrunners for the top-up placement.(Updates Meituan’s share move in the 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.
International Business Machines Corp recorded highest quarterly sales growth in more two years and beat Wall Street targets on Monday, boosted by its bets in the high-margin cloud computing business. Finance chief James Kavanaugh said cloud spending by clients in retail, manufacturing and travel industries in the United States was picking up after the initial pandemic-driven slump. Sales from its cloud computing services jumped 21% to $6.5 billion in the quarter.
(Bloomberg) -- Peloton Interactive Inc. shares closed down 7.3% Monday after U.S. regulators warned consumers to stop using the exercise equipment maker’s Tread+ machine if there are young children or pets at home.The advisory follows a series of accidents involving the treadmill. The U.S. Consumer Product Safety Commission (CPSC) said Saturday it is continuing to investigate incidents of injury or death related to the Tread+.Peloton said in a statement that it was “concerned” by the commission’s warning, which it termed “misleading and inaccurate.” There’s no reason to stop using the Tread+ as long as all warnings and safety instructions are followed, it said.JPMorgan Chase & Co. analyst Doug Anmuth reiterated his overweight rating on the stock and recommended buying during any pullback in the shares related to the CPSC’s warning.“Peloton emphasizes that the Tread+ is safe when its warnings and safety instructions are followed, and the company will neither stop selling nor recall the Tread+,” Anmuth said in a research note. He doesn’t expect the recent incidents or the CPSC’s warning to further delay Peloton’s launch of its new lower-priced Tread in the U.S., he added.The Tread+ warning doesn’t impact the long-term investment outlook for Peloton, according to Stifel analyst Scott Devitt. He expects the resolution for the Tread+ issue could be adding a protective guard to the end of the treadmill, or a similar remedy.The stock closed at $107.75 Monday, bringing its decline so far this year to 30%.What Bloomberg Intelligence Says:“The Tread+ warning may not significantly slow Peloton’s near-term growth prospects, given that sales of exercise bikes still represent over 90% of hardware revenue. However, it could keep some customers from buying new treadmills.”-- Amine Bensaid, BI media analystClick here to read the research.READ MORE: U.S. Regulators Warn Consumers About Peloton’s Tread+ (1)(Updates with closing share price)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) -- Emerging-market bulls who’ve benefited from moderating U.S. Treasury yields are bracing for a relapse as political risks pile up.MSCI Inc.’s developing-nation stock gauge extended a three-week winning streak on Friday, while a basket of currencies capped its biggest weekly advance since early February. The risk premium on emerging-market sovereign debt narrowed to 339 basis points over U.S. Treasuries, its lowest since February 2020, according to data compiled by JPMorgan Chase & Co. Investors continued to pour money into exchange-traded funds dedicated to emerging markets.Yet the rally is prompting some traders to reassess their bets. Russian shares, which led last week’s equity advance, may come under pressure as the Biden administration evaluates its options to escalate sanctions. South Africa’s rand, the top currency performer in the developing world, is particularly exposed to a potentially stronger dollar, Andres Jaime, a New York-based strategist at Morgan Stanley, wrote in a note. There’s also concern that Treasury yields, which have declined for two straight weeks, will revert back to their trend in the first quarter, when U.S. bonds suffered their worst rout since 1980.Goldman Sachs Group Inc. said it closed its trade recommendation on a basket of developing-nation currencies after the rapid rebound.“Some profit taking on rallies and re-engagement on market wobbles makes sense, even as we keep the faith on cyclical upside over the longer term,” Goldman strategists including Zach Pandl and Kamakshya Trivedi wrote in a note Friday. “The idiosyncratic risks that have weighed on EM FX in 2021 are likely to continue to generate volatility and create opportunities.”Listen: EM Weekly Podcast: Easing U.S. Yields; Russia, Indonesia RatesAside from Russia, political risks are gathering pace in Latin America and Asia. Peruvian stocks dropped to their lowest since January after an admirer of Fidel Castro and Hugo Chavez won the most votes in the first-round of the nation’s presidential election. In China, the credit stress engulfing one of the country’s largest distressed-debt managers is also weighing on shares and bonds.Investors will turn their attention this week to key rate decisions. Indonesia’s central bank may leave borrowing costs unchanged while their Russian counterparts hike. President Vladimir Putin will also make his annual address to the nation on Wednesday, potentially unveiling new measures to boost the economy through spending. He’s facing condemnation from Western officials over the deteriorating health of jailed opposition leader Alexey Navalny as well as the Kremlin’s hack attacks and actions toward Ukraine. The ruble has posted the third-biggest decline in emerging markets this past month.Central BanksIndonesian policy makers are expected to keep their key rate on hold Tuesday as the weakening rupiah deters further easingAt a briefing following the March meeting, Governor Perry Warjiyo said the central bank will guard the currency to keep it in line with its fundamentalsThe rupiah has dropped 3.4% this year, the second-worst decline in emerging AsiaPolicy makers last lowered the seven-day reverse repo rate in February, cutting to a record low of 3.5%“With the rupiah under pressure, BI’s desire to maintain external stability means rate cuts are off the cards,” Krystal Tan, an economist at Australia & New Zealand Banking Group Ltd. in Singapore, wrote in a noteRussia’s central bank may extend its new tightening cycle on FridayBloomberg Intelligence predicts a quarter-point hike, though U.S. sanctions “raise the risk of a bigger move”China’s central bank will announce one- and five-year loan prime rates on TuesdayPolicy makers last cut the benchmarks in April 2020 to support the economy from the pandemicThe yuan tops emerging Asia currency gains this year after the Taiwan dollarTrade DataThe Philippines will release balance-of-payments data for March after reporting a deficit in FebruaryThe peso has dropped 0.7% this year, beating most peersTaiwan will publish export orders for March on Tuesday and industrial-production data on FridaySouth Korea, a barometer of global commerce, releases trade data on the first 20 days of April on WednesdayThailand will publish customs-trade figures for March on ThursdayThe baht’s 4.0% drop leads emerging Asia losses in 2021What Else to WatchBrazil traders will monitor federal budget negotiations ahead of an April 22 deadline for President Jair Bolsonaro to decide on a vetoOn Monday, a reading of the nation’s February economic activity is expected to show a 10th straight monthly increase while slipping on a year-over-year basis, according to economists surveyed by BloombergThe country’s benchmark stock index extended on Friday its longest winning streak since last NovemberArgentina’s February economic activity may reflect a slide in industrial and construction activity, interrupting the nation’s recovery, according to Bloomberg EconomicsThe peso, which led declines among major currencies last year, is once again trailing all global peers to start 2021Colombian economic activity for February may reflect a recovery while lingering below pre-pandemic levelsThe nation’s benchmark equity gauge has posted the biggest slide in Latin America so far this yearMexico is set to post bi-weekly consumer price figures on Thursday, which may show the uptrend continuing in the first two weeks of April, according to Bloomberg EconomicsFebruary retail sales data on Friday, meantime, are expected to fall from a year earlier, reflecting the pandemic’s lingering impact, Bloomberg Economics saidThe peso has advanced 3.4% over the past month, the biggest gain in emerging markets during that spanSouth Africa will probably report on Tuesday that headline inflation accelerated in March amid higher fuel pricesThe rand has jumped 3.2% this year, beating all major global currenciesMalaysia posts March inflation data on Friday after reporting its first positive reading for the consumer price index in a year in February(Adds ETF line 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.
(Bloomberg) -- Tesla Inc.’s stock slid after a fiery fatal crash of a Model S car over the weekend added to a broader pessimism about electric vehicle stocks.Shares of Elon Musk’s automaker closed down 3.4% after the National Highway Transportation Safety Administration said it had launched a probe into the crash. Earlier in the session the stock dropped as much as 6.5%, its biggest intraday decline since March 18. While investigators are zeroing in on circumstances unique to the accident, industry watchers have been concerned that EV startups may soon lose their competitive edge, as mass-market rivals like Mercedes-Benz AG and Stellantis NV roll out their own models.Stellantis said last week it will accelerate its shift to EVs, and vowed that battery-driven cars will account for more than a third of its European sales by mid-decade. Italian supercar maker Ferrari NV plans to unveil its first entrant in 2025, and Mercedes-Benz has already debuted the EQS, the first all-electric car that the 94-year-old company will sell in the U.S.Those announcements followed closely on similar moves from General Motors Co., Ford Motor Co. and Volkswagen AG, which all outlined ambitious EV plans this year.Tesla’s lead in global battery-electric-vehicle sales slipped 1 percentage point to 24% in 2020 from 2019, according to an April 14 report from Bloomberg Intelligence analyst Kevin Tynan. Meanwhile, “the share of the VW Group rose to 9% from 4% in 2019, on track to overtake Tesla in 2023 and a sign that established automakers may quickly gain once committed to the drivetrain technology.”Amid this backdrop, shares of Elon Musk’s Tesla dropped to as low as $691.80 in New York before closing at $714.63. Smaller EV stocks were also down, including Nikola Corp., Workhorse Group Inc., Lordstown Motors Corp. and Fisker Inc.Tesla’s decline was spurred by the crash of a 2019 Model S late Saturday in Texas, which erupted into flames and killed the two passengers. Local authorities said “no one” appeared to be driving, with neither of the victims found in the driver’s seat. Tesla previously faced criticism from federal officials for fire risks related to the battery packs in its cars and for not doing enough to keep drivers from using its driver-assist function inappropriately.More recently, Tesla’s stock price has been rocked by mixed headlines on Wall Street. While one of Cathie Wood’s Ark Investment Management funds said last week it sold some shares, Goldman Sachs recommended buying the stock as it raised the forecast for EV sales penetration.The EV industry leader’s share price has been lackluster this year, with Tesla now little changed since the start of 2021, in stark comparison with 2020’s breathtaking rally. The company is scheduled to report first-quarter results on April 26.(Updates with NHTSA opening probe into Tesla crash in the 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.
Rebates required under Obamacare could put hundreds of dollars back in your pocket.
Dogecoin briefly replaced XRP as the fourth-largest coin early Monday.
Dogecoin (CRYPTO: DOGE) has been hard to ignore lately, as the meme-based cryptocurrency rose to become the sixth-largest with over $46 billion in market cap. What Happened: With 7,000% year-to-date returns and considerable outperformance against several top cryptocurrencies, DOGE’s appeal to retail investors has steadily been on the rise. However, several crypto influencers and traders have cautioned against going “all-in” on DOGE, citing concerns of a few large holders controlling the majority of its supply. See also: How to Buy DOGE Over 65% of Dogecoins are distributed among just 98 wallets across the world, while the single largest wallet holds 28% of all Dogecoins. In fact, just five wallets control 40% of the coin’s supply. Essentially, around 100 people control the entire $46 billion DOGE market. “The scam is simple - Hold on to Dogecoin till there is enough traction after it multiplies, dump all coins and cash out - Become instant billionaires,” said Akand Sitra of cryptocurrency risk management platform TRM Labs. Why It Matters: Sitra’s analysis of DOGE’s supply distribution was possible due to the nature of blockchain transactions, which are available for anyone to see on the open distributed ledger. Some on-chain analytics of the top DOGE holders led experts to believe that the cryptocurrency’s supply is concentrated among just a few holders. “The Dogecoin bubble will burst by the end of this year, easily,” said Sitra. Other traders in the space echoed this sentiment, calling it the reason why they will never be in DOGE “no matter the gains.” Why I'm not in $DOGE and will never be no matter the gains. https://t.co/jFVU2yQf03 — QuartzHands (@NFTiepie) April 19, 2021 At press time, DOGE was trading at $0.3976, up 32% overnight and 394% in the past seven days. DOGE holders were preparing for April 20, where a large group of retail traders has predicted the coin will touch $0.69. See Also: Dogecoin Creator Defends Meme Crypto's Supply: Doesn't 'Matter For Price' Image: Ivan Radic via Flickr See more from BenzingaClick here for options trades from BenzingaDeFi Blue Chip Season? Here's What Cryptos Coinbase Employees Are Buying Right NowInvestors In Disbelief As DOGE Becomes Top 5 Crypto With B Market Cap© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Coca-Cola Co.’s sales beat expectations in the first quarter as the soda maker said it saw early -- though uneven -- signs of recovery in demand, particularly in areas with stronger rates of vaccination against Covid-19.The company also said it plans to sell a portion of the Coca-Cola Beverages Africa bottling business via an initial public offering.Coke’s organic revenue, which excludes the impact of currency or acquisitions, climbed 6% in the quarter ended April 2, according to a statement Monday. That topped the estimated 0.5% growth analysts had been expecting, according to forecasts compiled by Bloomberg.The results hint at a potential rebound as consumers worldwide emerge from more than a year of isolation, a process that is happening at different rates in different countries. The company is “encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up,” Chief Executive Officer James Quincey said in the statement.The soda business is unlikely to see full recovery until people are back at restaurants and amusement parks worldwide, buying overpriced hot dogs and giant-sized soft drinks. The uneven reopening pace is showing up in the results: Recovery remains “asynchronous” around the world, the company said. Unit case volume was down 6% in North America, but up 9% in Asia Pacific. Globally, case unit volume was flat.Coke shares rose 1% to $54.20 at 9:52 a.m. in New York. The stock declined 2.1% this year through Friday.Bottling IPOThe company also announced plans to list Coca-Cola Beverages Africa as a publicly traded company within the next 18 months. “A standalone listing for CCBA will enable the bottler to build on its growth trajectory and access capital independently to meet the investment needs of the business, which is great for stakeholders across Africa,” said Jacques Vermeulen, CEO of CCBA.An IPO of Coke’s stake could value the African business at about $6 billion, Bloomberg News reported last month. The soft-drink giant, which owns 66.5% of the bottling company, didn’t specify how much of its stake it intends to sell.Earlier: Coca-Cola Is Said to Consider Options for $6 Billion Africa UnitCoke is grappling with the commodity inflation pressures that are affecting other manufacturers, Chief Financial Officer John Murphy said in an interview.While consumer prices may start to rise this quarter, the company is “well-hedged” to withstand much of the cost pressure in the near term, he said. “We think it’s manageable this year; it’s really a 2022 challenge.”Aluminum CostsMost relevant to the soda maker will be higher costs in plastic and aluminum, including can-supply challenges in the U.S., he said. That should abate in 2022, though, with more supply becoming available.Coke is also seeing increases in high-fructose corn syrup and coffee. The company plans to manage those higher costs with supply-chain productivity and pricing, Murphy said.“Pricing decisions and hedging decisions are actually local decisions,” he said. “We will be working closely with our bottling partners all around the world to come up with the optimal solutions that could happen starting in the second quarter.”Coke reaffirmed its forecast for organic sales percentage growth of high single digits in 2021 and comparable earnings-per-share expansion of high single digits to low double digits. The company slightly trimmed its expectations for the impact of currency benefits on net revenue and comparable earnings.(Updates with share trading in sixth paragraph, adds chart.)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) -Harley-Davidson Inc on Monday raised its full-year earnings forecast after smashing analysts' quarterly profit estimates, vindicating Chief Executive Jochen Zeitz's decision to focus on more-profitable touring bikes at the expense of cheaper entry-level models. The company, however, also received a setback in the European Union - its second-biggest market - where all of its products, regardless of origin, will be subjected to a 56% import tariff from June following a new EU ruling. The ruling revokes the credentials that currently allow Harley to ship certain motorcycles to the EU from its international manufacturing facilities at a 6% tariff.
These past 12 months have seen the S&P 500 return its best performance ever – an 80% gain as of the end of March. But are the good times wrapping up? Some historical data would suggest that the bulls will keep running. Since 1950, the market has seen 9 sustained, year-long runs with a rolling return of 30% or better on the S&P 500. These periods have seen an average one-year gain of 40% (the median has been 34%) – and none of these bull markets has ever ended in its second year. But investors should not expect the same sky-high returns in the coming 12 months as they have just seen in the last, according to Callie Cox, a senior investment strategist at Ally Invest. "[I]t's typical for the bull market to lose a little bit of steam going into year two... Expectations start rising and makes it harder for the market to… beat everybody's expectations. And that leaves a greater chance for disappointment. And to be clear, again, we're not calling for doom and gloom. We just think the market is due for a breather up in the next quarter or two," Cox opined. For investors focused on returns, the prospect of a lower sustained gain in share appreciation will naturally prompt a look at dividend stocks. Reliable, high-yield dividend payers offer a second income stream, to complement the share appreciation and ensure a solid return for investors. With this in mind, we used the TipRanks' database to pinpoint three stocks that meet a profile: a Strong Buy rating from Wall Street’s analysts and a dividend yield around 7%. Trinity Capital (TRIN) We’ll start with Trinity Capital, a venture debt company that makes capital available to start-ups. Trinity’s investment portfolio totals $494 million, spread over 96 companies. The company entered the public markets earlier this year, closing its IPO early in February. The opening saw 8.48 million shares become available for trading, and raised over $105 million after expenses. In its 4Q20 report – the company’s first quarterly report as a public entity, covering the last quarter as a private firm – Trinity showed net investment income of $5.3 million, with a per-share income of 29 cents. This was more than enough to fund the dividend, paid in December at 27 cents per share. Since then, Trinity has declared its 1Q21 dividend, raising the payment by a penny to 28 cents per common share. Trinity has a announced a policy of paying between 90% and 100% of taxable quarterly income in the dividend. At the current rate, the payment annualizes to $1.12 per share, and gives a yield of 7.6%. This is significantly higher than the average yield of 1.78% found among peers in the financial sector. In his note on the stock, Compass Point analyst Casey Alexander states his belief that Trinity has a clear path toward profitable returns. “TRIN operates within the attractive, growing venture debt ecosystem. As such we expect strong net portfolio growth followed by improved NII and increasing dividend distributions, with potential upside from equity/warrant investments,” Alexander noted. To this end, Alexander rates TRIN a Buy, and his $16.75 price target implies an upside of ~14% for the next 12 months. (To watch Alexander’s track record, click here) This newly public stock has already picked up 5 analyst reviews – and those break down to 4 Buys and 1 Hold, for a Strong Buy consensus rating. Trinity shares are selling for $14.74; their $16.46 average price target suggests the stock has ~12% upside potential. (See TRIN stock analysis on TipRanks) Energy Transfer LP (ET) With our second stock, Energy Transfer, we move into the energy midstream universe. Midstream is the necessary sector connecting hydrocarbon exploration and production with the end markets; midstreamers control the transport networks that move oil and gas products. ET has a network of assets in 38 states, which link three major oil and gas regions: North Dakota, Appalachia, and Texas-Oklahoma-Louisiana. The company’s assets include pipelines, terminals, and storage facilities for both crude oil and natural gas products. The big news for Energy Transfer, in recent weeks, comes from two sources. First, on April 9, reports came out that that the US Army Corps of Engineers is not likely to recommend shutting down the Dakota Access Pipeline (DAPL). This project, when complete, will move oil from Alberta’s oil sands region across the US to the Gulf Coast; the Biden Administration wants to shut it down for environmental reasons, but the industry is fighting to keep it. And second, two largest shareholders of Enable Midstream have approved a proposed merger, by which ET will acquire Enable. The merger is projected to be worth $7 billion. Earlier this year, Energy Transfer reported 4Q20 EPS of 19 cents per share, on income of $509 million. While down year-over-year from the 38 cent EPS reported in 4Q19, the recent result was a strong turnaround from the 29-cent net loss reported in Q3. The company’s income is supporting the current dividend of 15.25 cents per common share. This annualizes to 61 cents, and give a yield of 7.7%. The company has paid out a dividend every quarter since Q2 of 2006. Covering this stock for Credit Suisse, analyst Spiro Dounis writes: “We updated our model to reflect a mid-2021 completion of the Enable Midstream acquisition. We view the deal as accretive and see additional potential upside resulting from operational/commercial synergies. ET highlighted potential synergies around both ENBL’s natural gas and NGL assets, noting that gas synergies could be realized fairly quickly while NGL opportunities are more long-term as legacy contracts roll. Upwards of ~$100mm of NGL uplift over the next several years doesn’t appear unreasonable, in our view.” Dounis also notes that the main risk to the company arises from DAPL, which may still be shut down by the Biden Administration. Even so, he rates the stock an Outperform (i.e. Buy), with an $11 price target indicating a 39% one-year upside. (To watch Dounis’s track record, click here) Wall Street’s analysts can be a contentious lot – but when they agree on a stock, it’s a positive sign for investors to take note. That’s the case here, as all of the recent reviews on ET are Buys, making the consensus rating a unanimous Strong Buy. The analysts have given an average price target of $11.60, indicating ~47% upside from the current share price of $7.94. (See ET stock analysis on TipRanks) Oaktree Specialty Lending (OCSL) Last but not least is Oaktree Specialty Lending. This company is one of many specialty finance providers, making loans and credit available in the mid-market segment, to smaller firms that would otherwise have difficulty accessing capital. Last month, Oaktree Specialty Lending completed a merger with Oaktree Strategic Income Corporation (OCSI). The combined company, using OCSL’s name, has more than $2.2 billion in assets. Oaktree’s investment portfolio totals more than $1.7 billion, primarily in first and second liens, which make up 85% of the company’s investment allocations. Oaktree finished 2020 with its fiscal first quarter, ending December 31. In that quarter, the company increased its dividend payment by 9%, to 12 cents per share, or 48 cents per share annualized. At this rate, the dividend yields 7.25% -- and marks the third quarter in a row of a dividend increase. Oaktree has kept up reliable dividend payments for more than three years. Among the bulls is Kyle Joseph, a 5-star analyst with Jefferies, who puts a Buy rating and an $8 price target on this stock. His target implies room for 20% upside potential in the next 12 months. (To watch Joseph’s track record, click here) “OCSL's conservative strategy in recent years has ultimately paid off, as the BDC is deploying dry powder into higher-yielding investments. Credit performance remained solid through the MRQ, while fundamentals are encouraging… We believe the BDC has sufficient liquidity to support near-term opportunities and believe the company is positioned to take advantage of the recent economic volatility, which was particularly highlighted by the recent 9% increase in the quarterly distribution... In the longer term, we believe OCSL represents an attractive investment,” Joseph wrote. Overall, OCSL has received 3 recent Buy reviews, making the analyst consensus rating a Strong Buy. The stock is currently trading at $6.66 and its average price target of $7.33 indicates ~10% upside from that level. (See OCSL 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.
Who doesn’t want a little extra ‘free’ money in their retirement accounts? If you have an employer-sponsored retirement account, such as a 401(k) or 403(b), ask your company’s human resources department if there is a company match — then make sure you’re contributing at least as much as you need to take advantage of it. With an employer match, the company is contributing up to a percentage of what the employee puts into her employer-sponsored retirement plan.
(Bloomberg) -- Oil edged higher with help from a weakening dollar while a worsening demand picture in parts of the world continued to hold back prices from another breakout.Futures in New York rose 0.4% Monday after trading in a $1 range during the session. Total road fuel sales in France remained lower compared to the same time in 2019, while a key refiner in India is slashing oil processing rates as the virus rapidly spreads and lockdowns pummel fuel use in the country. The Bloomberg Dollar Spot Index headed for the lowest since late February, boosting the appeal of commodities priced in the currency.“Energy consumption in areas that are reopening faster than others is showing the increased demand for oil,” said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. “Other places will start to reopen one after another. It’s unclear when we’ll get to fully or more than 80% vaccinated, but that’s when crude oil can take off.”While rising momentum in the U.S. vaccination campaign is boosting optimism around a demand rebound there, the market is holding back from testing this year’s highs as it waits for other countries to narrow the gap. Oil’s forward curve is pointing toward growing confidence, with the widely watched spread between the nearest December contracts widening to its most bullish backwardation structure in roughly a month. “U.S. demand seems to be healthy, and that’s giving us support,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. However, “we still have questions around international virus outbreaks, and we’re seeing troubling numbers in India that are forcing them to shut down infrastructure.”In physical markets, U.S. sour crudes are signaling strength as nationwide refineries runs have increased to the highest in over a year in recent weeks. The premium for Southern Green Canyon against Nymex oil futures is near the highest since late February, while other sour grades like Mars and Poseidon have also strengthened in the past couple months.Traders are also following high-level talks between Iran, the U.S. and other nations aimed at ending a standoff over the nuclear deal abandoned by former President Trump. Washington described negotiations as “constructive,” while the Islamic Republic signaled it was ready to debate details to revive the accord. An agreement could see U.S. sanctions on Iranian oil exports lifted.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.
Stocks fell Monday, a trading day after a record Friday. Investors are pulling back from value stocks, which have rallied this year, and defensive stocks have proven resilient.
GameStop shares were on a tear early Monday, as Kieth "RoaringKitty" Gill announced he was doubling his stake in the firm and CEO George Sherman said he is stepping down.
More employers are actively recruiting job candidates, even for low- and middle-level white collar jobs as fewer answer ads during COVID crisis.
Investors had been waiting for Coinbase stock to be tested after its public market debut last week, and they didn’t have to wait long.
(Bloomberg) -- Russian President Vladimir Putin is likely to respond to the latest round of U.S. sanctions threats as he has to past ones: by speeding his drive to make Russia’s economy more self-sufficient.In the seven years since Russia’s annexation of Crimea, Putin’s government and central bank have stripped back the country’s exposure to dollars, shifted assets out of the U.S. and sold a smaller share of its debt to foreigners.“The Americans are saying: be careful or we could do more, but Russia is just going to continue down the path toward economic autarky,” said Elina Ribakova, deputy chief economist at the Institute of International Finance in Washington.The administration of U.S. President Joe Biden is keeping the threat of sanctions hanging over Russia even after a sweeping round of penalties imposed last week. On Sunday, the U.S. warned of “consequences” if jailed opposition activist Alexey Navalny dies in prison.These four charts show how Putin has responded to past rounds of sanctions by increasing Russia’s economic isolation.The share of gold in Russia’s $581 billion international reserves jumped above dollars for the first time on record last year following a multi-year drive to reduce exposure to U.S. assets. The precious metal made up 24% of the central bank’s stockpile as of the end of September 2020, the latest date for which the breakdown is available. The share of dollar assets was 22%, down from more than 40% in 2018.That trend also shows up in the share of Russia’s international reserves held in the U.S., which plummeted to just under 7% by the end of September, down from about 30% before the Crimea annexation. Most of the shift happened in the second quarter of 2018 just after sanctions on aluminum giant United Co. Rusal revealed how vulnerable Russia was to sanctions.What Our Economists Say...Russia’s resilience to successive waves of sanctions provides a false sense of security. With the U.S. running out of options, the next round could be more disruptive, and the measures already in place are holding back trade and investment.-- Scott Johnson, Bloomberg EconomicsOf course, there’s only so much that Russia can do without cutting itself off entirely from the global economy. But officials in Washington are also restrained by the fact that if they go too far (as they did with the Rusal sanctions that were later revoked), they risk sending tremors through global markets.Acting on a pledge by Putin to “de-dollarize” trade, Russia has been slowly cutting back on use of the greenback in its exports with the European Union, China and India. The euro has almost overtaken the dollar in Russia’s trade with the EU and has already surpassed it in exports to China. About two-thirds of Russia’s exports to India, meanwhile, are paid for in rubles.How Virus-Panicked Markets Showed Dollar’s Still King: QuickTakeLast week’s penalties included a ban on purchases of bonds on the primary market, so the next big targets could be secondary-market debt and Russian banks’ access to the financial messaging system used for most international money transfers. Russia is already looking for alternatives to the system, known as SWIFT, to make itself less vulnerable, though attempts so far haven’t led to much.One reason the Finance Ministry wasn’t too concerned about the latest sanctions measure on government debt is that Russia has mostly been selling to local banks at its weekly auctions anyway. Borrowing was ramped up during the pandemic even though foreign demand was weak, which increased the overall size of the market and pushed down the share of foreigners.U.S. banks can still buy new debt on the secondary market after the penalties come into force in mid-June. Russia is “well positioned” for a near term market disruption because it has a high cash buffer and demand from local banks is “robust,” Fitch Ratings said in a research note published late on Friday.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 commissioner now says the monthly payments to families will indeed start in July.