MELBOURNE (Reuters) -Australian lithium miner Orocobre Ltd is buying smaller domestic peer Galaxy Resources for $1.4 billion to create the world's fifth most valuable producer of the key raw material for electric vehicle batteries. The all-stock deal for A$1.78 billion ($1.38 billion)announced on Monday, which will also establish Australia's most valuable lithium miner with a A$4 billion market capitalisation, comes as demand for the material is booming amid a jump in global sales of electric vehicles. The new entity will have hard rock, brine, and chemicals assets across Australia, Argentina, Canada and Japan, and will be able to accelerate development and sell into global markets.
On the heels of blockbuster earnings from major U.S. banks, investors are focused on whether an upcoming batch of earnings from major technology-related companies can sustain the season's early momentum. Estimated year-over-year first-quarter earnings growth for S&P 500 companies rose to 31% from 25% in the past week, based on Refinitiv data, driven by last week's stronger-than-expected results from Wells Fargo & Co, Goldman Sachs Group Inc and other banks. Tuesday brings results from stay-at-home winner Netflix Inc, which is part of the FAANG group of high-profile tech-related names.
(Bloomberg) -- Toshiba Corp. said a potential acquisition offer from CVC Capital Partners has stalled after the firm submitted a new proposal that lacks sufficient information for evaluation.Toshiba revealed a preliminary approach from CVC in early April, which sent its shares soaring. Just days later, the company’s board urged caution over the discussions, warning the proposal may not lead to a transaction.In the latest chapter of the convoluted drama, Toshiba revealed it had received a letter from CVC on Monday, but it included “no specific and detailed information capable of detailed evaluation.”“It merely stated that CVC would step aside to await our guidance as to whether a privatization of Toshiba would suit management’s and the Board of Directors’ strategic objectives,” the statement said.“As this preliminary proposal lacks the required information the Board has concluded it is not possible to evaluate it,” it said.The disclosure is yet another setback for any potential buyout of the Japanese company, which also saw the resignation of its chief executive officer earlier this month. Nobuaki Kurumatani, who had previously worked at CVC, stepped down after he suffered a sharp drop in support from Toshiba employees and executives.It’s not clear whether other reported bidders will proceed after CVC. After the firm’s initial approach, private equity firm KKR & Co. and Canadian investment giant Brookfield Asset Management Inc. began exploring potential offers, Bloomberg News reported.Satoshi Tsunakawa, who took over as CEO this month, offered reassurances that Toshiba would remain a strong Japanese company and invest in research and development. His comments appeared aimed at reassuring employees and business partners in the wake of the CVC offer.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.
A mortgage slump is showing signs of a turnaround thanks to the lowest rates since March.
(Bloomberg) -- PT Archi Indonesia has postponed its planned initial public offering of as much as $500 million because of weak gold prices and falling stocks, according to people with knowledge of the matter.The gold miner, a unit of Indonesian conglomerate Rajawali Group, made the decision after gauging demand for the Jakarta IPO last month, said the people, who asked not to be named because the information is private. The deal could be revived if the markets improve, said one of the people.At $500 million, the offering would have been Indonesia’s biggest IPO since airline PT Garuda Indonesia raised $524 million in 2011, according to data compiled by Bloomberg.Gold has fallen 14% from a record high in August amid optimism that coronavirus vaccines will fuel a global economic recovery. The benchmark Jakarta Stock Exchange Composite Index, has declined 7% from a nearly three-year high in January.Other companies in the region have also seen their listing plans put on hold because of the market turmoil. Thai Beverage Pcl said on Friday it would defer the potential spinoff and listing of its brewery unit in Singapore, citing the uncertainty of market conditions and the worsening Covid-19 pandemic. PT Kalbe Farma, Indonesia’s biggest drugmaker by market value, postponed the IPO of its nutritional food unit PT Sanghiang Perkasa due to valuation concerns, Bloomberg News reported in March.Archi’s advisers restarted preparations last year for a potential first-time share sale in Jakarta, Bloomberg News reported.The company operates a gold and silver mine in North Sulawesi known as Toka Tindung, according to Rajawali’s website. The mine had about 3.5 million gold equivalent ounces in mineral resources and 2 million in ore reserves as of June 2016.Representatives for Rajawali and Archi did not immediately respond to requests for comment.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) -- Carry traders blindsided by bouts of dollar strength are looking beyond the currency to fund their bets -- even if it means giving up some returns.Borrowing dollars to buy assets in higher-yielding currencies, a usually profitable strategy in emerging markets, proved loss-making in the first quarter as U.S. yields surged. That pushed money managers including Fidelity International and AMP Capital to cut dollar-short positions and fund their arbitrage with euro or yen, given the low interest rates in those currencies.While that helped traders protect their carry returns, it also underscored the need to have a broad basket of funding currencies to tide over dollar volatility. Now, even as the dollar weakens again and Treasury yields moderate, they continue to finance part of their emerging-market investments with other currencies.“Having a diversified basket of funding currencies against emerging-market long carry positions has the advantages of lower risk and an overall better Sharpe ratio on the trade versus one that’s funded solely out of the U.S. dollar,” said Nader Naeimi, the head of dynamic markets at AMP in Sydney. “I am happy to stick with a diversified basket.”Returns DichotomyA Bloomberg index of carry-trade returns from eight developing-nation currencies, funded by short positions in the greenback, fell 3.1% in the first quarter, the first decline in a year.Meanwhile, a strategy that involves borrowing the lowest-yielding currencies to invest in higher-yielding assets jumped 3.4% in the first three months of the year.At the core of this divergence was the dollar’s resurgence. A near-consensus call at the end of last year for a weaker U.S. currency came undone as the prospects for a sharp recovery in the world’s largest economy drove 10-year Treasury yields up by the most since 2016. With an accelerated vaccine rollout and unprecedented fiscal stimulus, the rebound is set to outpace its developed peers.While the Federal Reserve has been reluctant to push back against higher yields, the European Central Bank has ramped up bond-buying and the Bank of Japan has pledged to keep the yield curve stable and low.Beyond DollarWhile the start of the second quarter has flipped that trade -- dollar-funded carry trades are outperforming again with a 2.2% return this month -- traders still bet on volatility in the U.S. currency. So last quarter’s tactical dash into the euro and yen as funding currencies is now morphing into a strategic choice to reduce dollar dependency.Fidelity International, which sees carry opportunities in Brazilian real and Ghanaian cedi, prefers “to diversify the funding of these positions away from exclusively using the U.S. dollar,” said Paul Greer, a money manager in London at the firm, which oversees about $700 billion.“In the near term, we think the dollar will appreciate against G10 peers as the U.S. continues to demonstrate global leadership on growth recovery,” he said. “Looking further ahead, we expect the dollar to resume its medium term trend of depreciation, which should be supportive of the EM carry trade.”The U.S. currency has strengthened against 17 of 22 emerging-market currencies this year. In comparison, the euro has dropped against nine of the same group and the yen is weaker against 18 of those currencies.Investors looking for interest-rate arbitrage in emerging markets need not necessarily go to Japan or Europe to raise funds. There are plenty of low-rate currencies within the developing world that can do the job.Greer of Fidelity uses the Polish zloty and Hungarian forint as carry-funding currencies. Alessio de Longis, the New York-based head of tactical asset-allocation solutions at Invesco Ltd., drives his wagers with short positions in the currencies of South Korea, Taiwan, Chile and the Czech Republic. His basket is gaining this year, even though his long positions included some of the world’s worst-performing currencies such as the Brazilian real and Turkish lira.World’s Worst Currencies Pay Off for Debt Veteran at Invesco Even those who continue to fund their carry trades mostly with the dollar are turning wary of that strategy.”It’s been pretty painful,” said Edwin Gutierrez, head of emerging-market sovereign debt at Aberdeen Standard Investments in London. “The second quarter could be more of the same.”(Updates carry return funded by short-dollar positions in ninth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Venmo, the peer-to-peer payment service owned by PayPal Holdings Inc, said on Tuesday it has started allowing users to buy, hold and sell cryptocurrencies on its app, a step that could inspire more mainstream adoption of the asset class. Venmo users will be able to buy bitcoin, ethereum, litecoin and bitcoin cash for as little as $1 and publish transactions on the app's feed, the company said. With more than 70 million customers, Venmo is one of the most popular payment apps in the United States, especially among younger consumers who use it to pay friends and family.
Despite a surge at reopened stores in England and Wales, the chain lost £1.1bn in sales under lockdown.
Ratings and research firm Morningstar Inc has asked a New York judge to dismiss a lawsuit filed by the top U.S. securities regulator over ratings of commercial mortgage-backed securities, according to a court document. The U.S. Securities and Exchange Commission (SEC) sued Morningstar's former ratings business in February, saying the firm violated disclosure and internal controls requirements in 30 commercial mortgage-backed securities transactions from 2015 to 2016 when the agency allowed analysts to make undisclosed adjustments to key stresses in its modeling. The SEC "does not like that (the firm's) former methodology included these adjustments" but Morningstar's analytical independence is protected by Congress, lawyers for the company said in the filing, which was filed on Monday.
Dogecoin briefly replaced XRP as the fourth-largest coin early Monday.
EUR/USD settled above the resistance at 1.2040 and is testing the next resistance level at 1.2060.
(Bloomberg) -- U.S. stocks were on pace for their first back-to-back drop since late March as investors sifted through a batch of corporate results.Energy and financial shares led declines in the S&P 500. United Airlines Holdings Inc. paced a selloff in travel shares on a bigger-than-expected loss. International Business Machines Corp. climbed after reporting its largest revenue growth in 11 quarters. Netflix Inc.’s results later Tuesday may show whether the streaming giant can manage expectations as Wall Street projects a steep slide in its most closely watched metric.Other corporate highlights:Johnson & Johnson posted stronger-than-expected sales, while Travelers Cos.’s earnings beat estimates and Philip Morris International Inc. raised its outlookProcter & Gamble Co. is boosting the prices of some consumer products as the household-goods behemoth grapples with higher commodity costsWith American stocks still trading near all-time highs, traders are focused on what’s forecast to be the best earnings season in two years. One of the biggest concerns among investors is whether companies are equipped to handle mounting inflation pressures as the economic recovery gains momentum.“Earnings season is ramping up, and there’s this concern about how the multinationals will give their guidance in view of the fact that we haven’t drawn a line under Covid yet,” said Fiona Cincotta, senior financial markets analyst at City Index. “That is just starting to unnerve investors. Demand for riskier assets has come off.”For David Donabedian, chief investment officer at CIBC Private Wealth Management, the stock market has been just taking a breather after a big rally, but there are still reasons to be bullish.“The economic recovery has taken hold, the earnings recovery has taken hold, everything we’ve seen from first-quarter earnings so far has been that it’s going to be a blowout quarter,” he said.Here are some key events to watch this week:EIA crude oil inventory report on Wednesday.European Central Bank rate decision and President Christine Lagarde briefing on Thursday.U.S. releases new home sales data Friday.These are some of the main moves in markets:StocksThe S&P 500 fell 0.3% as of 10:26 a.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average fell 0.4%The Stoxx Europe 600 fell 1.4%The MSCI World index fell 0.4%CurrenciesThe Bloomberg Dollar Spot Index was unchangedThe euro rose 0.1% to 1.2050The British pound fell 0.1% to 1.3967The Japanese yen was little changed at 108.22 per dollarBondsThe yield on 10-year Treasuries fell two basis points to 1.584%Germany’s 10-year yield was little changed at 0.241%Britain’s 10-year yield was little changed at 0.751%CommoditiesWest Texas Intermediate crude was unchanged at $63 a barrelGold futures rose 0.4% to $1,778 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.
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.
The government says an estimated 8,800 bondholders of the collapsed scheme will receive a share of the money.
Rebates required under Obamacare could put hundreds of dollars back in your pocket.
(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.
Semiconductors are one of the modern world’s essential industries, making possible so much of what we rely on or take for granted: internet access, high-speed computers with high-speed memory, even the thermostats that control our air conditioning – there isn’t much, tech-wise, that doesn’t use semiconductor chips. The global semiconductor chip market was valued at over $513 billion in 2019, and despite the worst the pandemic could do, the chip sector rose to $726 billion in 2020. It’s a market based on a near-limitless customer base; it’s estimated that 2.5 billion people own at least one smartphone. That’s 1 in 3 of the total world population, enough to ensure that demand for semiconductor chips will never slacken. And with that background, Raymond James analyst Chris Caso sees two chip giant poised to make gains this year – but one that investors should avoid. Let's take a closer look. Advanced Micro Devices (AMD) The first chip stock we’ll look at, AMD, is consistently ranked among the top 20 largest chip makers – by sales – globally. The company held the fifteenth spot last year, with $9.76 billion in total revenues. That top line was up 45% from 2019, when AMD was ranked eighteenth. AMD’s position in the industry is based on its high-quality products, including microprocessors, motherboard chipsets, and graphics processors. AMD’s Ryzen Mobile 4000 chip was the first 7nm x86 processor on the market. The chip company showed a solid second half in 2020, with revenues in Q3 and Q4 rapidly recovering the 1H20 dip and rising above 2019 level. Earnings in Q4 skyrocketed, growing from Q3’s 32 cents per share to an impressive $1.45 per share. For all of 2020, earnings came in at $2.06, compared to 30 cents for 2019. The strong second half pushed the full-year revenue to a company record, on the strength of expanding demand in the PC, gaming, and data center markets. AMD’s prospects have attracted Raymond James’ Chris Caso, who compares the company favorably to competitor Intel. “We are using the pullback since the start of the year to get involved with AMD, which we expect to be a secular winner due to what we believe to be a durable technical advantage vs. Intel. We think the stock’s pullback has been driven by improved sentiment that Intel will solve their manufacturing challenges, which will reverse AMD’s successes. We’re taking the other side of that view," the 5-star analyst noted. Caso continued, "Nowthat Intel has committed to internal manufacturing, we think it’s unlikely that Intel ever regains a transistor advantage vs. AMD, and the current roadmaps ensure an advantage for AMD/TSMC through at least 2024. In the meantime, we think Street numbers are too low for both server and consoles, putting our base case 2022 EPS estimate of $2.81 12% ahead of the Street, with an upside case to about $3.00." In line with this outlook, Caso initiated coverage of AMD with an Outperform (i.e. Buy) rating, and $100 price target to suggest a 23% one-year upside potential. (To watch Caso’s track record, click here) The Raymond James view is no bullish outlier; AMD has 13 positive reviews on record. These are partly balanced by 5 Holds and 1 Sell, making the analyst consensus rating a Moderate Buy. The share are selling for $81.11, and their $104.44 average price target implies an upside of ~29% for the next 12 months. (See AMD stock analysis on TipRanks) Nvidia Corporation (NVDA) Next up, Nvidia, is another of the chip industry’s giants. Like AMD, Nvidia is slowly rising in the rankings; going by total sales, the company was rated number 10 in 2019 – and number 8 in 2020. Nvidia’s sales last year totaled more than $16 billion, a gain of 53% year-over-year. Nvidia rode to its success on the combination of memory chips – which have a strong market in the data center segment – and graphics processors – which are popular among both hardcore gamers and professional graphic designers. For the most recent quarter, Q4 of fiscal 2021, ending on December 31, Nvidia reported $5 billion in revenue, a company record, and a 61% gain from the year before. EPS rose from $1.53 in the prior Q4 to $2.31 in the current print, a gain of 51%. Full year numbers were strong; the $16.68 billion at the top line was a record, and the EPS, at $6.90, was 53% higher than the previous year. Company management noted the strength of the data center segment, but also pointed out that Nvidia has a growing AI business. The company makes between 5% and 10% of its total sales in the automotive market, and more than half of that is AI-related, in the autonomous vehicle niche. Raymond James’ Chris Caso notes this, too, in his report upgrading his stance on NVDA. “Our call is not really new, as we’ve been positive on NVDA for some time. Our call rather is meant to express our conviction in both the short and long term. In the short term, we think NVDA results will be more dependent on supply than demand given widespread shortages – and we do expect incremental supply as the year progresses…. Our longer term conviction is driven by the fact that NVDA has more shots on goal than anyone else in our coverage, and their success in AI has earned them a permanent seat at the table in both hyperscale and enterprise compute,” Caso opined. Caso bumps his stance up from Outperform to Strong Buy, and sets a price target of $750. At current levels, this indicates room for a 17% one-year upside. NVDA’s strong share appreciation over the past 12 months (115%) has pushed the stock price close to the average price target. Shares are selling for $614.47, with an average target of $670.20 suggesting room for 9% growth. Nonetheless, the stock holds a Strong Buy consensus rating based on 22 Buys and 4 Hold given in recent weeks. (See NVDA stock analysis on TipRanks) Intel Corporation (INTC) The third stock we’re looking at, Intel, is the one that Raymond James says to avoid. This may seem counterintuitive; Intel is, by sales, the world’s largest semiconductor chip maker, with more than $77 billion in annual revenue last year and a leading position in a $720+ billion market. So why does Caso advise caution here? “Intel’s stock has risen of late due to optimism that new leadership from their very capable new CEO will allow them to turn around their manufacturing issues and return to their former dominance. Our Underperform rating reflects not just the risk that Intel won’t reach that goal, but also the pain they will likely endure in pursuit of that goal in terms of capex, lost market share, and a shifting landscape in datacenter that will make the industry less dependent on Intel," Caso explained. The analyst added, "In addition, we’re concerned that demand in the PC market, on which Intel remains highly dependent, has been significantly pulled forward due to the pandemic, and expect an eventual mean reversion – which may unfortunately occur just as Intel needs to ramp investment.” Caso, as noted, rates INTC an Underperform (i.e. Sell), and does not put a price target on it. All in all, the market’s current view on INTC is a mixed bag, indicating uncertainty as to its prospects. The stock has a Hold analyst consensus rating based on 12 Buys, 10 Holds, and 8 Sells. Meanwhile, the $67.68 price target suggests a modest upside potential of nearly 6%. (See INTC stock analysis on TipRanks) To find good chip 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.
The Shanghai Stock Exchange will embark on a project that could see the inaugural sale of global depositary receipts (GDRs) in Switzerland by Chinese companies, according to a senior bourse official, amid growing US-China tensions. "We are preparing to make important efforts in Switzerland going forward and we believe that the first batch of the trial will succeed this year," Cai Jianchun, general manager of the Shanghai exchange, said in a panel discussion at the Boao Forum in Hainan. Cai did not elaborate on his statement. The deputy chiefs of the Chinese regulators overseeing the stock market and foreign exchange were in attendance. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. The comment, however, is widely interpreted as a follow-up to a memorandum of understanding between the Shanghai and Swiss exchanges in 2019. The two sides had agreed to study the feasibility of allowing the listing of securities including GDRs on each other's market. Other possible areas of cooperation included digitalisation. Britain's Chancellor Philip Hammond claps during a ceremony for the London-Shanghai Connect project launch in London in June 2019: Photo LSE Group handout alt=Britain's Chancellor Philip Hammond claps during a ceremony for the London-Shanghai Connect project launch in London in June 2019: Photo LSE Group handout> A link-up with the Swiss exchange would be the third cross-border plan by the Shanghai exchange, which is the biggest in Asia based on the 46 trillion yuan (US$7.1 trillion) of stock capitalisation. It is seen as China's continuing effort to open up its markets to foreign investors. The local exchange currently has "stock connect" programmes with Hong Kong and London. The Shanghai-Hong Kong linkage has become a pivotal conduit for two-way flow of capital in and out of mainland China since its inception in 2014. A Shanghai-London connection, however, has progressed more slowly, partly because of diplomatic rows with Britain over Hong Kong, the Covid-19 pandemic and other issues. Companies including Huatai Securities and China Pacific Insurance have sold about US$6 billion worth of GDRs through the link since 2019. Diversifying sources of overseas financing for Chinese companies is critical for Beijing at a time when the US is heightening the scrutiny of auditing results that could lead to the delisting of the nation's biggest technology companies from American exchanges. Many US-traded Chinese companies are hedging the risk by making secondary stock offerings in Hong Kong. The latest is travel and ticketing firm Trip.com, which joins a list that includes Alibaba Group Holding, JD.com and Baidu. Serving technology innovation has been at the top of the agenda of the Shanghai exchange, Cai added during the Boao panel discussion. Since its inception in 2019, 262 companies had raised a combined 340 billion yuan on its Science and Technology Innovation Board, known as the Star Market, through March this year. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
The exercise equipment maker says a regulatory warning about its treadmills was inaccurate. Wall Street analysts remain positive about the outlook.