Global $150+ Million Automotive Driving Simulator Market Trajectory & Analytics to 2027

Reuters
Analysis: Global bond rout turns up the heat on central banks
Central banks in Asia struggled to smother a selloff in global bonds on Friday, piling pressure on their bigger peers to do more, as spooked investors sold assets to cover deepening losses and rushed out of crowded positions in stocks. The erratic trade evoked memories of last March and comes as the pandemic recovery enters a delicate phase, with financial markets moving swiftly to price in an end to the cheap money that had lit a fire under world stocks for a year. Australia's central bank launched a surprise bond buying operation to try and staunch the bleeding, calming cash markets but barely taming the fear, evident in more liquid futures trade.
13h ago
Bloomberg
BlackRock Prefers Developed Markets Amid Climate-Change Fight
(Bloomberg) -- BlackRock Inc. is ramping up its preference for developed markets because of efforts to combat climate change, and touting the risk for developing nations and their more carbon-intensive economies.Technology and health-care stocks will prove more resilient to the shift, and those industries make up a comparatively bigger slice of advanced markets, according to Jean Boivin, head of BlackRock Investment Institute, the research arm of the world’s largest asset manager. The energy and utilities sectors, meanwhile, may face structural challenges as investors become more climate aware -- weighing on high-yield debt returns as well as some developing-nation bonds, he added.“The climate transition will be a persistent driver of these returns going forward, so it needs to be reflected in our expectations,” Boivin said during a webinar Thursday. “The greener sectors that are at the forefront will have a significant edge.”BlackRock Chief Executive Officer Larry Fink has amped up his focus on climate change and efforts to ameliorate it. Earlier this month, the company -- whose trillions of dollars of investment money make it the world’s biggest shareholder -- told companies how it wants them to address climate risk.The money manager is challenging the notion that tackling climate change could drag on global economic growth, betting that a transition to a net-zero economy can lead to a cumulative output gain of nearly 25% over the next 20 years when compared to a scenario in which no changes are made to prevent climate change.“Sustainability creates both risk and opportunities,” Simona Paravani-Mellinghoff, BlackRock’s global chief investment officer of solutions within multi-asset strategies, said during the webinar. “I cannot emphasize enough how critical a step this is. We should monitor ESG exposure as we do with every other driver of portfolio performance.”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.
1d ago
Bloomberg
Tech Leads U.S. Stock Rout as Bond Yields Soar: Markets Wrap
(Bloomberg) -- Tech shares led a rout in U.S. stocks while the selloff in global bonds deepened, with the benchmark Treasury yield spiking to a one-year high and debt from the U.K. to Australia coming under pressure.The Nasdaq 100 tumbled 3.6%, the most since October, as investors rotated away from pandemic-era winners toward companies poised to benefit from an end to lockdowns. About 10 stocks fell for every one that gained on the S&P 500. Cathie Wood’s ARK Innovation ETF extended its decline, leaving it 15% lower for the week. Stocks popular with the day-trader crowd surged once again, with GameStop Corp. doubling at one point before ending 19% higher.Earnings that came after the close were mixed. Airbnb Inc. rose about 4% in late trading after reporting sales that beat estimates, while DoorDash Inc. fell about 14% after losses more than doubled from a year earlier. Beyond Meat Inc. added about 7% after announcing a partnership with McDonald’s.Ten-year Treasury yields spiked after tepid demand at an auction for government bonds, surging as much as 23 basis points to 1.6%, the highest since last February. The increase forced a crucial group of investors such as holders of mortgage securities to sell Treasuries, which in turn led to further increases in yields.Across markets, investors are betting on a sunnier outlook for the global economy, with U.S. jobless claims data the latest to support that idea. But some traders worry that resurgent growth is already priced into stocks, and they’re staring down the risk that accelerating inflation is just around the corner, a development that would dent the appeal of equities.“It’s all about interest rates,” said Randy Frederick, vice president of trading and derivatives for Schwab Center for Financial Research. Tech “has been a relative outperformer. As it led on the way up, it will likely lead on the way down too.”In remarks this week, Federal Reserve Chairman Jerome Powell offered reassurance that policy would continue to be supportive and look beyond a temporary pick-up in inflation, especially from a low base.That’s given the bond market enough reason to keep driving yields higher. The 10-year U.S. yield adjusted for inflation rose to its highest level since June, a warning sign for riskier assets that have benefited from exceptionally loose financial conditions amid the pandemic.Read more: Soaring U.S. Yields Send Risk Assets Warning as Real Rates RiseElsewhere in markets, Asian bourses closed broadly higher. Bitcoin traded just below $50,000.Some key events to watch this week:Finance ministers and central bankers from the Group of 20 will meet virtually Friday. U.S. Treasury Secretary Janet Yellen will be among the attendees.These are some of the main moves in markets:StocksThe S&P 500 Index fell 2.5% as of 4 p.m. New York time.The Stoxx Europe 600 Index fell 0.4%.The MSCI Asia Pacific Index surged 0.8%.The MSCI Emerging Market Index added 0.2%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.6%.The euro climbed 0.1% to $1.2173.The British pound fell 0.8% to $1.4024.The Japanese yen weakened 0.3% to 106.22 per dollar.BondsThe yield on 10-year Treasuries increased 15 basis points to 1.52%.Germany’s 10-year yield jumped seven basis points to -0.23%.Britain’s 10-year yield increased five basis points to 0.78%.CommoditiesWest Texas Intermediate crude rose 0.4% to $63.45 a barrel.Gold weakened 1.8% to $1,773.03 an ounce.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.
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Reuters
U.S. SEC suspends trading in 15 securities due to 'questionable' social media activity
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Bloomberg
Cathie Wood’s Main ETF Rebounds After $4.9 Billion Asset Plunge
(Bloomberg) -- Ark Investment Management’s miserable week showed signs of easing on Friday, with its flagship exchange-traded fund halting a four-day slide.The ARK Innovation ETF (ticker ARKK) closed higher, after swinging between gains and losses throughout the session. It still dropped 15% this week amid a technology selloff that was triggered by rising Treasury yields, putting pressure on high-flying stocks. One of those shares is electric-car maker Tesla Inc., which remains as the ETF’s biggest holding and has faced intense volatility.The last time Ark founder Cathie Wood suffered a weekly run this bad was almost a year ago, during the worst of the Covid-fueled mayhem. Her main fund is now 11 times larger than it was then. It got close to erasing its gains for 2021 this week after soaring as much as 26% since the end of December.Assets in the ETF have slumped by $4.9 billion this week to $23.3 billion, according to data compiled by Bloomberg. The figure doesn’t include flows from Thursday, when ARKK dropped 6.4% for its worst day in almost six months. Investors pulled about $200 million from the fund in Wednesday trading. That brings total weekly outflows to $638 million, on pace to be the worst on record.“Money that is ‘easy come’ tends to be money that is ‘easy go’,” said Ben Johnson, Morningstar’s global director of ETF research. “You’re going to see similar, if not potentially greater, market impact on the way down, especially given that this is an actively managed ETF and a fully transparent one. The market is hanging on their every move, they’re watching their every move.”Bearish bets against the ETF continue to grow, with short interest now accounting for more than 4% of available shares, according to data from IHS Markit Ltd.Michael Purves, chief executive officer at Tallbacken Capital Advisors, said in a note Thursday that his firm is taking profits on ARKK puts, but “will look to re-enter a second bearish trade on a bounce.”Ark Investment slipped to the eighth place among the largest exchange-traded fund issuers in the $5.9 trillion industry, after becoming the seventh biggest earlier this month. Total ETF assets for the company are now just shy of $53 billion, down from more than $60 billion at the prior peak.Wood’s $10.6 billion ARK Genomic Revolution ETF (ARKG) lost $154 million on Wednesday, for its third straight day of outflows. At the same time, traders pulled another $48 million from ARK Next Generation Internet ETF (ARKW).“If one were still in agreement with Ark on their long-term investment thesis, a meaningful market correction might provide an opportunity to participate more,” Linda Zhang, founder of Purview Investments.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.
3h ago
Bloomberg
Biggest Bitcoin Fund Sinks to Record Discount as Mania Cools
(Bloomberg) -- The world’s largest Bitcoin fund is selling off faster than the cryptocurrency itself as investors rush to the exits.The $31.6 billion Grayscale Bitcoin Trust (ticker GBTC) plunged 22% this week, outpacing a 17% decline in the world’s largest cryptocurrency. That’s evaporated GBTC’s once-massive premium to the Bitcoin it holds, with the price of GBTC closing 3.8% below the value of its underlying holdings on Thursday -- a record discount, according to data compiled by Bloomberg.It’s an unusual situation for GBTC, which has persistently traded at a premium to its net asset value since the fund’s launch in 2013. That figure soared to 40% in late 2020, with investors willing to pay a markup for exposure to Bitcoin‘s dizzying rally. That avalanche of inflows swelled the number of GBTC shares outstanding to a record 692 million. However, GBTC doesn’t allow redemptions -- meaning that shares can only be created, but not destroyed. With Bitcoin’s climb now stalling, that’s created a supply and demand imbalance as participants in the trust seek to find buyers in the secondary market.“It’s more indicative of the fact that there are so many shares are available, and it indicates demand for Bitcoin at these prices is falling off,” said Bloomberg Intelligence analyst James Seyffart.Bitcoin surged to a record of over $58,000 last weekend, but has stumbled since. The cryptocurrency slipped another 0.2% on Friday, on track for its worst weekly pullback in a year. The wider Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and three other cryptocurrencies, is down 19.7% this week.Bitcoin’s lurch lower is part of a broader risk asset stumble, as spiking Treasury yields rattle the market’s more speculative fringes. High-flying tech stocks have been hammered as investors reassess lofty valuations, with the Nasdaq 100 on track for its worst week since March.Among those hit the hardest is Cathie Wood’s lineup of Ark Investment Management ETFs. The flagship ARK Innovation ETF is on track for a fifth consecutive day of declines, and is poised to erase its year-to-date gains after a nearly 150% surge in 2020. Ark Investment is the fourth-largest holder in GBTC.Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of GBTC’s premium disappearing while speaking in a panel for the Bloomberg Crypto Summit on Thursday.“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.A host of new entrants could also be challenging GBTC’s command of the competitive landscape. The Bitwise 10 Crypto Index Fund, the Osprey Bitcoin Trust and the SkyBridge Bitcoin Fund LP have all launched within the past three months. Meanwhile, two Bitcoin ETFs -- a structure yet to be approved by U.S. regulators -- began trading this month in Canada.“Since the beginning of the year, we’ve seen the launch of multiple competing products,” said Nate Geraci, president of the ETF Store, an advisory firm. “The unpleasant truth for GBTC investors is that competition erodes demand for the product, which can lead to a collapsing premium or even a discount.”(Updates prices throughout.)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.
8h ago
USA TODAY
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Tax refunds are flowing into pocketbooks — and the overall economy — much slower this season after a late start.
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Yahoo Finance
Warren Buffett gave me a single piece of advice I'll 'treasure forever': Billionaire Thomas Tull
Billionaire Thomas Tull — who runs a holding company Tulco modeled in part after Buffett's — described a piece of advice from Buffett that 'impacted' his decision-making.
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Bloomberg
GameStop Options Bet That the Stock Will Reach $800 on Friday
(Bloomberg) -- Shares of GameStop Corp. doubled yesterday and jumped another 19% today. Options traders think the stock can do much better than that.The most-active option traded on the stock Thursday was a contract betting that GameStop shares would spike to $800 on Friday. Some 52,000 contracts changed hands during the session betting on this one-day gain of 636%For other options traders, it was a question of when GameStop would hit the $800 mark, not if. The seventh and eighth most-active contracts were call options wagering that the stock would reach $800 by next Friday or in three weeks. It’s hard to say whether the contracts were mainly bought or sold, two traders said.“It’s speculation gone wild, pure and simple,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “It is Exhibit A in the nuttiness that is associated with GameStop.”GameStop’s Reddit-driven roller-coaster ride that roiled markets last month is continuing this week, with shares more than doubling in the final 90 minutes of trading on Wednesday and rising as much as 101% on an intraday level on Tuesday. The rally came as popular tech names from Tesla Inc. to Zoom Video Communications Inc. were battered after U.S. 10-year Treasury yields spiked to 1.6%.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.
1d ago
Bloomberg
Paul Singer Warns of Trouble, and Is Eager to Say ‘Told You So’
(Bloomberg) -- To crypto true-believers, meme traders, and Elon Musk fans, hedge fund titan Paul Singer can’t wait to say, “I told you so.”Offering a curmudgeonly riposte to today’s raucous financial markets, the 76-year-old billionaire said in a letter to clients of his $42 billion Elliott Management Corp. that a “flamboyant line-up” of excesses will come back to haunt investors. To Singer, who has long warned of an ugly end to the Federal Reserve’s easy-money policies, it’s all just a bit too much.“We believe that hindsight will show the champion of head-smacking craziness in the American stock market to be the period playing out right now,” Singer wrote in the Jan. 28 letter.In his view, the Fed’s current iteration of quantitative easing paired with trillions of dollars of stimulus to counter the pandemic are setting things up for a fall. Rampant inflation will shock policy makers, stock pickers and bond investors, alike.“‘Trouble ahead’ is signaled by a rare combination of low-quality securities, staggering valuation metrics, overleveraged capital structures, a scarcity of honest profits, a desperate dearth of understanding evinced by the most active traders, and economic macro prospects that are not as thrilling as the mobs braying ‘Buy! Buy!’ seem to think,” he wrote.Singer Says Long-Term Bonds Are a ‘Senseless’ Speculative TradeMarkets have begun to show cracks in recent days. Benchmark 10-year Treasury yields catapulted to their highest in more than a year, equities tumbled, and traders yanked forward their opinion of how soon the Fed will tighten monetary policy.While pledging to stick to the basics at his multistrategy operation -- which has lost money in just two years since its 1977 inception -- Singer exuded frustration at what he sees as the hysteria driving everything from Bitcoin to government debt -- a “return-free risk,” as his letter put it.Elliott made money every month in 2020, even in the March rout, gaining 12.7% for the year, thanks to “a combination of portfolio-protection trades related to interest rates and gold, together with our core activities” including distressed debt, equity activism, and private equity.The firm has registered annualized gains of about 13% in its 44 years, beating the S&P 500 Index.For a “reality check” on U.S. stocks, he pointed to Musk’s Tesla Inc., which trades at about 1,000 times earnings while “every other major carmaker in the world is rolling out electric vehicles in the near future.” Addressing its shareholders, “good luck ‘you few, you happy few, you band of brothers’ and sisters,” he wrote.But nothing has exercised the Republican donor like the boom in cryptocurrencies, which he has long called a fraud. Bitcoin has soared almost 70% this year alone and reached a record $57,350 on Feb. 21. Watching the digital currency rocket on the back of stumulus measures had the fund manager grasping for coping mechanisms.“Pulling out your hair is an option, though only if you have hair to spare,” the mostly bald Singer wrote. “Hiding under the bed to avoid people who gloat about being long Bitcoin can get…tiring. Deep breathing exercises can work, but only for short periods. We continue to press on for the day when we can say, ‘We told you so.’”And even as the world begins to recover from the pandemic, Singer urged keeping expectations in check. Certain industries and activities, like commercial real estate, movie theaters, retail, restaurants and business travel, will continue to be significantly challenged -- in some cases permanently, he said.In the meantime, he wrote, the recovery will be stymied by virus variants and policies “that sometimes seem governed by short-term political pressures rather than what is best for society, short and long term.”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.
6h ago
Quartz
The Fed is on a collision course with the $20 trillion Treasury market
The $20 trillion Treasury bond market is getting jittery. The question is what is the Federal Reserve going to do about it? The US Treasury’s auctions of five- and seven-year securities were poorly received by investors.
9h ago
Benzinga
GameStop Can Justify Its Valuation By Turning Into A '5,000-Store Introduction To Crypto,' Says Cramer
CNBC host Jim Cramer said Thursday that GameStop Corporation (NYSE: GME) could justify its share price by turning into a cryptocurrency play. What Happened: The “Mad Money” host made references to other companies like Paypal Holdings Inc (NASDAQ: PYPL) and Nvidia Corporation (NASDAQ: NVDA), both of which are linked in some way or the other to cryptocurrency at the present. “If GameStop were to turn itself into a 5,000-store introduction to crypto, make it so that they sell $1 billion worth of stock ... and buy crypto with it, and then make it so it’s an international gaming place where you win bitcoin, I think you can justify the stock price,” theorized Cramer. “I have not been able to come up with anything else, but this works. And it doesn’t have to be bitcoin. We can make it crypto.” See also: How‌ ‌to‌ ‌Buy‌ ‌GameStop‌ ‌(GME)‌ ‌Stock‌ Cramer said if GameStop turns itself into a “crypto information place” and has worldwide games with no latency it would add to the credibility of GameStop investor and Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen. The former hedge fund manager also pointed to the upcoming resignation of GameStop CFO Jim Bell and said, “CFOs, they tend not to have bitcoin on their balance sheet. Perhaps Jim Bell, that’s what he didn’t want.” Cramer called Cohen a “big thinker” and said “I have a feeling that this is the way to get this stock higher. I can’t come up with another way.” Why It Matters: GameStop, AMC Entertainment Holdings Inc (NYSE: AMC), BlackBerry Ltd (NYSE: BB), and Nokia Oyj (NYSE: NOK) shares were buoyed in a short squeeze carried out by Reddit forum r/WallStreetBets. A notable poster on the forum — “Deep F---ing Value” — who has been credited by forum members for pointing out the short squeeze opportunity told U.S. lawmakers that he likes GameStop stock. “As far as I can tell, the market remains oblivious to GameStop’s unique opportunity within the gaming industry,” said the poster whose real name is Keith Partick Gill. On Wednesday, Cramer called the over 103% rise in the shares of GameStop “a mockery,” and questioned, “Where is the government?” Alma Angotti, a former Securities and Exchange Commission enforcement attorney said that heightened interest from regulatory bodies could be expected. “I think both Congress and the SEC will be studying that balance between orderly markets and letting people invest what they want to invest for whatever reasons they want to invest even if it doesn’t make sense to us,” CNBC reported. Price Action: GameStop shares closed nearly 18.6% higher at $108.73 on Thursday and fell 2.51% to $106 in the after-hours session. For news coverage in Italian or Spanish, check out Benzinga Italia and Benzinga España. Photo courtesy: EPIC via Wikimedia See more from BenzingaClick here for options trades from BenzingaTesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: BarclaysWhy AMC Shares Spiked 20% Today© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
19h ago
Bloomberg
The Short Selling Environment Has Never Been Worse
(Bloomberg) -- Short bets are a tough sell.The Reddit-inspired short squeeze in GameStop Corp. and other stocks has spurred billions of dollars in losses for short sellers in recent weeks, prompting a rethink of the practice among some investors. Last Friday, Ken Griffin of hedge-fund Citadel declared after Congressional hearings the turmoil will diminish short selling for the foreseeable future.But the environment for short selling was already among the worst in decades even before the GameStop blowup. Even with this week’s sharp selloff, broad gains in equities in the past year have made it difficult to bet against almost any one stock.The most-shorted stocks have gained 112% since last March while the least-shorted names rose 40%, according to a Scotiabank analysis. In January, when GameStop gyrations gripped markets, a record was reached between the most- and least-expensive stocks to borrow with the most expensive outperforming the least by 29%, according to IHS Markit.“I think it would be fair to characterize the time from the late-March 2020 until now as being the worst period on record for short interest factors,” said Sam Pierson, director of Securities Finance at IHS Markit.It’s not unusual for the most-shorted stocks to outperform gains in the least-shorted companies when coming out of a bear market. But what is surprising this time is the extent of the current outperformance and the pain it has caused, even before the start of 2021, Scotiabank analyst Jean-Michel Gauthier said.“Typically when you see the high-profile shorts throw in the towel, it is a good time to be hunting. But in this environment it still seems too early,” said Adam Eagleston, chief investment officer of Formidable Asset Management, which manages over $600 million in assets.To be sure, short selling positions haven’t completely disappeared.Small caps are one example of where short bets by hedge funds have widened, according to net contracts data last week from the Commodity Futures Trading Commission. But short interest as a percentage of float for the Russell 3000 has continued to plunge, according to financial analytics firm S3 Partners.Russell 3000 short interest stands at 5.6%, which is the lowest in at least two years as funds continue to trim their positions. That’s down from at least a two-year high of 7.5% a month ago.Read more: Hedge Funds Reverse Course to Go Short Small Caps: Taking StockFor 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.
5h ago
TipRanks
2 ‘Strong Buy’ Stocks With 7% Dividend Yield
You can get whiplash, trying to follow the market fluctuations these days. Volatility rules for now, as investors are pulling out of Big Tech – a move that is pushing the general markets down. The bearish sentiment comes as new COVID case numbers are falling, along with the weekly unemployment claims. Both are positive news bites for the economy, and will help to justify increased economic opening. At the same time, a Congressional COVID relief package working its way through the legislative process promises a booster shot for consumer spending – and combined with a recent rise in oil prices, this has market watchers thinking about inflation. The result: the US Treasury’s 10-year bond has hit a yield of 1.48%, a one-year high. So investor money is pulling out of stocks, and heading over to bonds. Overall, it’s a situation tailor made for defensive stocks. High-yield dividend plays are getting lots of love from Wall Street’s stock analysts, and are showing high upside potential as investors move toward them. These are the stocks that pad a portfolio, providing an income stream capable of compensating for low share appreciation. Using TipRanks database, we’ve found two dividend plays that are yielding just above 7%. If that’s not enough, all three received enough support from Wall Street analysts to earn a “Strong Buy” consensus rating. Sixth Street Specialty Lending (TSLX) The financial sector is frequently a source of high-yielding dividend stocks, so it makes sense to look there. Sixth Street Specialty Lending is, as its name suggests, a player in the credit industry, where it is a provider of capital and credit financing for small- to mid-market companies. These small and medium enterprises are the traditional engine of America’s business sector, providing a majority of all jobs created, and specialty finance companies like Sixth Street are essential to their success. Over the past year, two trends have been clear in Sixth Street’s performance. First, the company showed a steep drop earnings when corona hit, followed by a strong rebound in 2Q20, with the EPS figure falling since then back into line with historical norms. And second, the stock’s share price has regained value slowly but steadily since hitting bottom late last March. A quick look at the numbers bears this out. TSLX showed an earnings loss in Q1 last year, but the 79 cents per share reported in Q4, while down 34% sequentially, was still up 41% year-over-year. The stock has also regained share price, rising 112% from its ‘covid panic’ trough. Sixth Street’s stock saw a momentary spike earlier this month, when it announced the Q4 results, along with the latest dividend declaration. The company’s earnings and revenue met expectations, and management declared a 41-cent per common share base dividend, along with a $1.25 special dividend. Sixth Street has a history of using special dividends to supplement the base payment. At the current base rate, the dividend yields a robust 7.5%. Raymond James analyst Robert Dodd is impressed with Sixth Street’s overall performance, but especially likes the dividend potential here. He writes, “With its recurring supplementals, a large special, and over-earning of the base dividend, we believe TSLX is aptly positioned to perform in a market where it is increasingly difficult to find yield…” Dodd rates TSLX an Outperform (i.e. Buy), and his $23.50 price target suggests room for 8% share growth in the coming year. (To watch Dodd’s track record, click here) Overall, it’s clear that Wall Street agrees with Dodd on Sixth Street’s quality – the stock has 5 recent reviews on record and all are to Buy, making the Strong Buy consensus rating unanimous. Share are priced at $21.67, and their recent appreciation has left room for just 6% upside under the average price target of $23. (See TSLX stock analysis on TipRanks) Barings BDC, Inc. (BBDC) Next up is Barings BDC, a business development corporation. Like Sixth Street, Barings provides financial services to middle-market companies. Barings’ services include capital access as well as asset management, and the company invests in debt, equity, and fixed income assets. The company boasted an investment portfolio worth $1.12 billion at the end of 3Q20, the last quarter reported. That last reported quarter also saw Barings beat expectations on earnings. The 17-cent EPS was up 21% sequentially. The net assets from operations increased to 90 cents per share, an enormous gain from the 10 cents reported in the same metric one year prior. The company also showed $7.1 million cash on hand at the end of Q3. Along with its secure financial situation, Barings has seen its share regain the value lost when the coronavirus first struck. The stock hit its lowest point on March 18 of last year; since then, the shares have rebounded 91%. That was all Q3. In Q4, Barings completed a merger with MVC Capital. The stock deal will leave Barings’ shareholders owning 73.4% of the combined entity (which will use the Barings name), while MVC shareholders will own the remaining 26.6%. The enlarged Barings is expected to show $1.5 billion in assets under management; the 4Q20 report, due in March, will give the details. Barings’ dividend reflects the company’s steady growth. In the past two years, management has kept the quarterly dividend payment growing, from 3 cents per share to the 19 cents declared earlier this month for payment in March. At 19 cents per common share, the dividend gives a yield of 7.8%. In his note on the stock for Compass Point, analyst Casey Alexander showed his clear approval of the dividend announcement: “BBDC preannounced expected 4Q20 NII of $0.19 per share versus our estimate of $0.16 and consensus estimates of $0.17. This was clearly driven by improved earnings power on the Barings platform…” In addition, Alexander sees the company making steady business gains, even without accounting for the MVC merger, writing, “Aside from the assets acquired from MVC Capital, BBDC originated $528M new investment commitments during the quarter. These commitments were spread across 24 new borrowers and 17 existing borrowers…” Alexander’s upbeat comments are complimented with a Buy rating on the stock, and his $10.25 price target implies an upside of 5% for the next 12 months. (To watch Alexander’s track record, click here) This is another stock with a Strong Buy analyst consensus rating based on a unanimous view; all three recent reviews are Buy-side. BBDC’s shares are selling for $9.66, and the average price target of $11 suggests a one-year upside of 13%. (See BBDC 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.
7h ago
USA TODAY
How will a surge in bond yields affect your mortgage, car loans and 401(k)?
Higher bond yields have arrived. Now investors have to consider what, if any, changes to make to their portfolios.
2h ago
Bloomberg
Bukalapak.com CEO on Pandemic, Growth Plans, IPO
Feb.25 -- Rachmat Kaimuddin, chief executive officer at Bukalapak.com, an e-commerce company in Indonesia, discusses how his e-commerce company has benefitted from the covid-19 pandemic, growth plans and the possibility of an IPO. He speaks exclusively on “Bloomberg Markets: Asia.”
2d ago

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Global $150+ Million Automotive Driving Simulator Market Trajectory & Analytics to 2027 - ResearchAndMarkets.com

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