54.00 -0.10 (-0.18%)
Pre-Market: 7:18AM EDT
|Bid||53.92 x 2900|
|Ask||54.17 x 2900|
|Day's Range||53.85 - 54.41|
|52 Week Range||44.25 - 54.82|
|Beta (3Y Monthly)||0.34|
|PE Ratio (TTM)||32.99|
|Forward Dividend & Yield||1.60 (2.96%)|
|1y Target Est||N/A|
Fulton County's Charlie Brown Field has its eyes set on a series of major expansions that would add nearly a dozen new hangars, a restaurant, an office park and retail over the next 20 years.
(Bloomberg Opinion) -- The 2.7 billion pound ($3.3 billion) offer for the British pub chain Greene King Plc from an investment group backed by billionaire Li Ka-Shing has put the spotlight on other unloved businesses in the U.K. leisure sector.One stands out: Whitbread Plc. Since the hotel and restaurant operator returned 2.5 billion pounds to shareholders from the 3.9 billion pound sale of its Costa coffee stores, its stock has been in the doldrums. But it owns lots of property, which is just the thing that drew Li to Greene King. Some 65% of Whitbread’s estate is freehold, and international buyers might be attracted by the prospect of using the dirt-cheap pound to grab themselves some British property assets.The central business isn’t without its attractions either. Hotels suffer more than pubs during recessions; while Brits will always eat and drink, they may be less inclined to take a mini-break. Yet Whitbread is the country’s leading hotel chain, with a focus on the value sector, so it should be able to weather a downturn. While bookings fell during the last downswing, it outperformed its rivals thanks to cost controls and winning more custom among cost-conscious holidaymakers and business travelers trading down to cheaper digs. Premier Inn, Whitbread’s main budget hotel brand, has long been seen as a potential target for a bigger chain.With the value of Whitbread’s debt and equity not much higher than the value of its real estate portfolio, there’s certainly cause for interest.Of course, the company could try to better exploit the value of that property itself. Earlier this year the Sunday Telegraph reported that the activist hedge fund Elliott Management Corp., which owns a stake in Whitbread, was agitating for change on the property holdings.Greg Johnson, an analyst at Shore Capital, estimates that 3.7 billion pounds might be realized from selling the real estate, while Whitbread estimates the value of its property at between 4.9 billion pounds and 5.8 billion pounds.On Shore’s estimates, the operating company could be worth another 3.6 billion pounds. Adding in 300 million pounds for Whitbread’s German business, and assuming net debt of 500 million pounds, would take the equity value to about 7.1 billion pounds. That’s well above the current market capitalization of 5.7 billion pounds. No wonder Elliott is sharpening its knives.Superficially there’s appeal in Whitbread doing this by itself. But sale-and-leaseback deals (when companies sell off freehold sites and rent them back) are risky. Look at the retail sector, where chains such as Debenhams Plc were tied to ruinous long-term leases after following this path, hampering their financial flexibility when times got bad – as they do inevitably in consumer businesses.With the current political and economic uncertainty, Whitbread would be wise to resist any big moves to sell off its property. Activist investors were right to urge it to offload Costa to capitalize on piping hot valuations in the coffee market. Their case on real estate is less compelling.The dilemma for Whitbread’s chief executive Alison Brittain is that by leaving the freehold estate largely intact, she encourages a buyer to come in and exploit that value instead. That risk is heightened by a slump in the share price. Brittain should prepare the defenses. Shareholders should take some heart, however. She managed to wring a very good price from the Coca-Cola Company for Costa. If a property-hungry bidder came knocking for Premier Inn she might just do the same.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- For 47 years, the Business Roundtable has lobbied on behalf of corporate America. Much of that time, it maintained a fiction(1) -- that the sole purpose of a corporation was to maximize profits on behalf of shareholders. This philosophy has been under assault for several years now, and this week the Business Roundtable announced it wants to put it to rest.In a widely circulated memo, the 200-member organization reversed itself, writing that "shareholder primacy” is no longer the sole purpose of a corporation. Instead, corporations must include a commitment to “all stakeholders,” which includes customers, employees, suppliers and local communities.Some kudos are in order for JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, and chairman of the Business Roundtable, for driving these changes. He has been discussing the need for a more inclusive form of capitalism, both in public speeches and in his letters to shareholders, for some time.But turning this aircraft carrier around won’t be easy, in large part because of the group's own history. Indeed, the Roundtable has spent most of the past four decades advocating against the interests of those exact stakeholders. To cite some of the more notable examples:\-- It fought the rise of labor unions and pro-union legislation;\-- Helped to defeat antitrust bills;\-- Prevented the formation of the Consumer Protection Agency;\-- Opposed corporate governance changes to make boards of directors and CEOs more accountable to stockholders;\-- Fought proper accounting of stock options given as compensation to executives and insiders;\-- Opposed increases in the national minimum wage (it now favors increases);\-- Lobbied to prevent restrictions on executive compensation;\-- Fought legislation that would create cleaner energy and address climate change;\-- Pushed for corporate income-tax cuts;\-- Supported anti-consumer Supreme Court decisions, including the fiction that corporations are legal people, and that campaign donations equal speech. The Roundtable might respond that this is all in the past. Let’s hope so. But the organization has an even greater challenge: Scan the list of 181 signatories to the recent memo and it's a Who’s Who of corporate behavior that has burdened and disadvantaged the very stakeholders they will now champion.Consider a few of the signatories:\-- Amazon.com Inc. and Apple Inc.: Two of the most valuable companies in the world are famously effective at using various tax dodges to avoid paying their fair share. I can recall when the Internal Revenue Service went after maneuvers that serve no valid business purpose other than tax avoidance. Consider that what isn't paid in tax by those who avoid them must be made up for by those who do -- mostly average Americans who also happen to be customers of these companies.The share of federal tax revenue paid by corporations has dropped by two-thirds in the past seven decades -- from 32% in 1952 to 10% in 2013; and corporate income tax as a share of gross domestic product has fallen from about 6% in 1946 to about 1.5% today.\-- Visa Inc., Mastercard Inc. and American Express Co.: Show good faith -- working with card-issuing banks as needed -- by simplifying the incomprehensible small print in the cardholder agreement and spell out in clear language the terms and penalties for late payment. Second, do the same for mandatory arbitration clauses that take away the right of customers to seek redress in public courts.\-- Ameriprise Financial Inc., Morgan Stanley and Principal Financial Group Inc: The brokers and insurers on the list have been zealous opponents of the fiduciary rule. Instead, they prefer a less stringent rule that allows them to sell products that are better for them than for their customers. Until those firms -- and Citigroup Inc. and JPMorgan are in this group -- embrace a higher duty of care, their gestures toward stakeholders are hollow. Oh, and they should drop the requirement that customers agree to mandatory arbitration clauses as one of the conditions for opening a brokerage account.\-- Coca Cola Co. and PepsiCo Inc.: For years these companies have been helping the American public achieve record levels of diabetes and obesity by selling health-damaging sugary drinks. They should acknowledge and warn customers of the consequences of consuming too much of their products, and accept the same kinds of taxes and health warnings now affixed to cigarettes.\-- Deere & Co.: The maker of farm machinery has led the fight against customers, insisting that they not make repairs to the equipment they own, and denying them access to parts and instructions. Repairs can only be made by Deere service technicians in what has come to be known as a “repair monopoly.” Apple, by the way, does the same thing.\-- Walmart Inc. and McDonald's Corp.: Both were steadfast opponents of increases in minimum wages for years. Although both now offer higher minimum pay, it was only after a tightening labor market forced them to increase wages. But this wasn't a case of corporate altruism -- their stores were messy and employees were sullen, and pay increases were part of plans to keep ill-treated customers from defecting. (McDonald's is not a signatory to the Roundtable memo).For the Roundtable commitment to be meaningful, the signatories are going to have to alter their behavior in ways large and small, and maybe even in ways that aren't always optimal for maximizing short-term profits. Still, we should be encouraged. But the proof will be in the follow through and the actual actions of the Roundtable members.(Corrects to clarify section on credit-card companies to indicate the role of banks in setting terms for customers. )(1) In “The Shareholder Value Myth,” Lynn Stout explained how the entire theory is based on a misreading of a 1919 court case -- Dodge vs. Ford – at the time, both privately held, non-public companies.To contact the author of this story: Barry Ritholtz at firstname.lastname@example.orgTo contact the editor responsible for this story: James Greiff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Are you having a hard time finding stocks to buy in this difficult economic environment? After a recent 800-point drop in the Dow Jones Industrial Average, I'm sure you are. One solution to bridge the gap between capital preservation, capital appreciation and income generation is to invest in dividend-paying mid-cap stocks. These are stocks with market caps between $2 billion and $10 billion. The great thing about mid-cap stocks is that they tend to be companies that are growing but that have a focus on the domestic economy. That keeps them somewhat insulated from the effects of a U.S.-China trade war.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Dividend Stocks for Investors to Buy Right Now With dividend stocks, especially dividend aristocrats, which have increased dividends for 25 years straight, investors can find an even better solution. These stocks generate income in good times and bad, providing a decent return even when there's little upside potential.If you're looking for the best of both worlds, here are 10 mid-cap dividend stocks to buy now. Mid-Cap Dividend Stocks to Buy: Olin (OLN)Source: IgorGolovniov / Shutterstock.com Olin (NYSE:OLN) is a vertically-integrated global manufacturer of chemicals that include chlorine, caustic soda, bleach and many more. It's also known for Winchester, a large manufacturer of ammunition. Olin has three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. In the most recent quarter which ended June 30, all three segments saw a decrease in revenues. While it still makes money on an adjusted EBITDA basis -- $205 million in Q2 2019 vs. $325 million in Q2 2018 -- the company's long-term debt of $3.2 billion is 119% of its current market cap. As for dividends, it currently yields nearly 4.8% which is very attractive. OLN has plenty of free cash flow to continue paying it out to shareholders. Currently trading at 15 times its forward earnings, Olin is a good mid-cap value play. Embotelladora Andina (AKO.B)Source: Shutterstock Embotelladora Andina (NYSE:AKO.B), otherwise known as Coca-Cola Andina, has been producing Coca-Cola (NYSE:KO) products in Chile since 1946\. It also has operations in Argentina, Brazil and Paraguay. The company's American depository receipt currently yields 2.6%. Over the past five years, its payout ratio has varied from a low of 69% in 2017 to a high of 88% in 2018. Five Chilean families each own 20% of the holding company that controls Coca-Cola Andina through a 44.4% ownership stake. Coca-Cola owns 7.3% of the beverage company. In terms of market share, Coca-Cola has 63% of the Chilean soft drink market and 45% of the Chilean juice market. Within the four markets that it competes, it has a 65% market share of soft drinks, 31% of water and 42% of juices. Looking at its balance sheet, it has $850 million in net debt, which is a reasonable 29% of its market cap. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates You're not going to get capital appreciation like Amazon (NASDAQ:AMZN) but you will do well long-term buying AKO.B stock under $20. Tapestry (TPR)Source: Hi-Point / Shutterstock.com Tapestry (NYSE:TPR) is the parent company of both Coach and Kate Spade. It was already a beaten-down stock before it announced fourth-quarter 2019 results Aug. 15. Tapestry stock fell 22% on the news and is now down almost 42% on the year. Although its Coach brand delivered same-store sales growth of 2% in the second quarter, Kate Spade saw comparable store sales drop 6%. Since TPR acquired Kate Spade in September 2017, the brand has not generated a quarter with positive comps.It is not clear when Kate Spade's business will recover. In addition, the company said that due to Kate Spade, its profits for the year will be flat compared to last year.Like a lot of names on this list, Tapestry has to be considered a deep value play at the moment. In 2019, Tapestry still managed to generate $814 million in operating income from $6.03 billion in sales, despite a severe underperformance from Kate Spade. Equally important is the fact that Kate Spade's operating income was $187 million in 2019, just $10 million less than the previous year on a 7% decline in same-store sales.Down 42% on the year, I like its chances (unless there's a recession) of rebounding in 2020. Whirlpool (WHR)Source: Grzegorz Czapski / Shutterstock.com The U.S.-China trade war has not been kind to Whirlpool (NYSE:WHR), which has seen its volumes fall off a cliff due to a 12% increase in washing machine prices as a result of the tariffs on Chinese imports. President Donald Trump wants Whirlpool to create U.S. jobs, but knocking $500 million off its quarterly revenue as a result of these tariffs is not the way to go about it. According to the National Interest, Whirlpool and other foreign manufacturers have created 1,800 jobs since the tariffs went into effect at a cost of $800,000 per job. Despite the sales and profit declines due to the tariffs, Whirlpool's stock is actually up almost 26% year-to-date through Aug. 19. * 10 Cyclical Stocks to Buy (or Sell) Now A recent survey of appliance repair technicians found that Whirlpool has the most reliable washers, dryers and refrigerators as well as the second-most reliable stoves, ranges and dishwashers. Yielding 3.6% despite a big rebound in 2019, Whirlpool will pay you to wait out the tariff war. Vail Resorts (MTN)Source: Rosemary Woller / Shutterstock.com Just fitting in under the $10-billion ceiling for mid-cap stocks, Vail Resorts (NYSE:MTN) is up over 13% year-to-date through Aug. 19. The operator of ski resorts in the U.S. and Canada has an exemplary performance over the past 15 years -- it's delivered an annualized total return of almost 20% to its shareholders. It seems people can't get enough skiing. And Vail can't make enough acquisitions. In July, the company announced that it would buy 100% of Peak Resorts, the owners of 17 different ski areas in the northwest U.S. including Mount Snow in Vermont and Wildcat in New Hampshire. Vail paid $264 million for the 17 hills. That's nothing compared to the $1.4 billion CAD it paid for Whistler Blackcomb in 2016. As long as interest rates remain low, you can be sure MTN will continue to gobble up ski resorts around the world, creating a tremendous amount of cash flow in the process. Toro (TTC)Source: Ken Wolter / Shutterstock.com If you're a golfer, you've likely seen Toro's (NYSE:TTC) turf maintenance machines out on the golf course. Toro is the world leader in turf maintenance products. A few years ago, it got into the winter business buying Boss Snow Plows for $227 million. Toro is one of those companies that delivers for shareholders, yet tends to fly under the radar. Up 30% year-to-date through Aug. 19 including dividends, TTC stock has a 15-year annualized total return of 16.5%, which is almost double the U.S. total market over the same period. Recently, Toro announced a new strategy for its underground construction business which would see it combine its Ditch Witch, American Augers and Trencor businesses under one operating unit. By combining the three businesses, Toro will improve its marketing, sales and service while lowering the overall cost of providing these services. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What The company expects to generate $3.2 billion in revenue in fiscal 2019 with earnings per share of $2.90-$3.00 or 20 times its forward earnings. FactSet Research Systems (FDS)Source: Shutterstock Although FactSet Research Systems (NYSE:FDS) has a market cap of $10.7 billion, above the high-end for mid-cap stocks, most mutual funds and exchange-traded funds will still buy FDS because the $10-billion ceiling is more of a guideline than a hard-and-fast rule. FactSet, for those unfamiliar with the company, provides financial data and portfolio analytics to the investment community. Approximately 83% of its annual subscription revenue comes from buy-side clients including mutual funds and pensions. FactSet's having a strong year so far in 2019. It's stock is up 39% year-to-date. Over the past 15 years, it's averaged an annualized total return of 16.7%, far superior to the total market. In fiscal 2019, FactSet expects revenues of $1.43 billion with adjusted earnings of $9.85 per share. Both of these numbers are higher than its original guidance at the beginning of the fiscal year. In the latest quarter, FactSet's adjusted operating income jumped 16% to $105.7 million on a 7% increase in revenues. At 26 times its forward earnings, FDS stock isn't cheap, but in the long term, you're going to be happy you own it. Aqua America (WTR)Source: Elena Larina / Shutterstock.com Aqua America (NYSE:WTR) is a water utility providing services to more than three million people in eight states. Despite missing both its revenue and earnings estimates for the second quarter, Aqua America's stock has kept moving higher since its Aug. 6 report. Up 31% year-to-date, WTR stock yields a reasonable 2.1% while providing attractive capital appreciation. Over the past 15 years, it's achieved an annualized total return of 10.3%.Last October, Aqua America announced that it would pay $4.3 billion to buy Peoples Natural Gas, a Pittsburgh-based natural gas distribution company providing service to more than 740,000 customers in Pennsylvania, West Virginia and Kentucky. Once completed, the company will operate regulated utilities in 10 states serving more than five million people. * 7 Stocks Under $7 to Invest in Now With a second platform for growth, investors can expect double-digit returns over the next 3-5 years. Polaris (PII)Source: melissamn / Shutterstock.com At the end of July, Polaris (NYSE:PII) launched its 2020 lineup of side-by-side and ATV offerings, just in time for the company's 65th anniversary. In 2019, Polaris' bottom line has been hit by Chinese tariffs. Nonetheless, it still expects to generate at least $6.10 a share in earnings in the fiscal year, despite an increase in the Section 301 tariffs from 10% to 25%. On the top line, it expects sales to grow by at least 12% with its off-road vehicles leading the charge. In addition, the company's 2018 acquisition of Boat Holdings for $807 million has already added $367 million in sales through the first six months of the year against zero sales in the previous year before it entered the boat business. Polaris participates in a very cyclical business. While I like the company's overall portfolio of products and fully expect it to deliver for investors in the long term, you do have to have a buy-and-hold view in order to profit from PII stock. There will continue to be large peaks and valleys in its stock price. MSC Industrial Direct (MSM)Source: Casimiro PT / Shutterstock.com MSC Industrial Direct (NYSE:MSM) is an industrial distributor that provides more than 1.6 million products from over 100 branches and 12 fulfillment centers to customers in the U.S., Canada, Mexico and the U.K. In 2018, it had $3.2 billion in revenue, 10.7% higher than a year earlier. The company reported its Q3 2019 results July 10. It missed on both the top- and bottom-line sending its stock 7% lower in the month since reporting earnings. It's down 9% year-to-date. Overall, however, the company's results for the first six months of the year aren't horrible with revenues of $2.52 billion, 6.6% higher than a year earlier, on operating income of $309.5 million, 1% lower than in the first six months of fiscal 2018.MSM stock is instituting a three-part plan to improve sales, lower costs and increase profitability. Trading at 12 times its forward earnings, a much lower multiple than its historical average, MSM stock is a nice value play at the moment. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 10 Mid-Cap Dividend Stocks to Buy Now appeared first on InvestorPlace.
When folks think of the Berkshire Hathaway (BRK.B) portfolio and its collection of holdings, most of which were selected by Chairman and CEO Warren Buffett, the companies that most readily come to mind are probably American Express (AXP), Coca-Cola (KO) and, more recently, Apple (AAPL).But a deep dive into Berkshire Hathaway's equity holdings reveals a more complicated picture.Berkshire Hathaway held positions in 47 separate stocks as of June 30, according to the most recent regulatory filing (Aug. 14) with the Securities and Exchange Commission - down from 48 in the first quarter of this year, as he dumped USG Corp. (USG). But the portfolio of "Buffett stocks" isn't as diversified as the number might suggest. In some cases, BRK.B holds more than one share class in the same company. Some holdings are so small as to be immaterial leftovers from earlier bets the Oracle of Omaha has yet to completely exit.And perhaps most importantly, Berkshire Hathaway's equity portfolio is actually pretty concentrated. The top six holdings account for almost 70% of the portfolio's total value. The top 10 positions comprise 80%. Banks and airlines, to cite a couple of sectors, carry quite a load in this portfolio. Then there's the fact that several Buffett stocks actually were picked by portfolio managers Todd Combs and Ted Weschler.Here, we examine each and every holding to give investors a better understanding of the entire Berkshire Hathaway portfolio. SEE ALSO: 50 Top Stocks That Billionaires Love
Beverage giants like Coca-Cola (KO) and Pepsico (PEP) continue to invest in their water brands Dasani and Aquafina, however with a new focus in mind — the environment.
Does stock market volatility have you ready to toss in the towel? My advice is use it to your advantage with IPO stocks Pinterest (NYSE:PINS), Beyond Meat (NASDAQ:BYND) and Luckin Coffee (NASDAQ:LK), where growth has quickly met up with value on the price chart. Let me explain.It's hard to keep up with the broader market's day-to-day gyrations. Wall Street swings from triumphant cheers to worrisome jeers and vice versa. From weak global economic data spooking investors to applause for the delay on levying tariffs on certain Chinese goods, it's hard to keep up with the headlines. * 10 Cheap Dividend Stocks to Load Up On More importantly, please don't forget the names Pinterest, Beyond Meat and Luckin Coffee. One of these stocks could be the next Facebook (NASDAQ:FB), Coca-Cola (NYSE:KO) or even Starbuck's (NASDAQ:SBUX). Bottom line, in today's wild trading environment these three recent IPO stocks are providing investors the opportunity to buy into big-time growth potential at advantageous prices.InvestorPlace - Stock Market News, Stock Advice & Trading Tips IPO Stock to Buy No. 1: Pinterest (PINS)PINS stock is the first of our recent IPO stocks to buy. The super popular web-based visual discovery platform blasted past earnings views and collectively caught investors' eyes as shares exploded higher by nearly 19% in early August.Technically, just over two weeks after reporting and with lots of market turbulence in between, PINS stock has pulled back approximately by 10% from a classic cup-with-handle pattern breakout attempt. This came after scoring fresh all-time highs.It's easy to blame overall market action for the first failure in this IPO stock. Ultimately, it hasn't been a great environment for buying breakouts. But with PINS stock still holding its own technically, there's reason to believe a second attempt will pay investors handsomely. PINS Stock TradeThe recommendation for PINS stock is to put shares on the radar for buying on a breakout above $35.30. That's only likely to occur if the major averages can rally for more than a day and begin to show more convincing signs of bottoming.A second approach for this IPO stock is to buy shares on weakness. I'd recommend looking for a daily chart pivot low to form. Then buy PINS stock on confirmation of a bottom. In order to keep this purchase technically constructive, I'd also make sure the PINS stock price consolidation continues to hold near $31 a share. IPO Stock to Buy No. 2: Beyond Meat (BYND)Beyond Meat is the second of our recent IPO stocks to watch. The alternative, plant-based meats company served up a sizzling, but not "meaty" enough, earnings report a couple weeks ago and word of a below-the-market secondary priced at $160 a share. The combination of reports didn't sit well with Wall Street.Technically, investors immediately punished shares, quickly dismantling BYND stock's uptrend line in free-fall-style price action. Subsequent pressure now has this first-to-market innovator testing its 50% Fibonacci level for support. BYND Stock TradeWhen will the selling pressure in this IPO stock abate? It's hard to know. But given that BYND stock is now well beneath the secondary pricing and testing a key retracement level, this deep pullback is worth monitoring for a bottom to emerge. * 10 Stocks Under $5 to Buy for Fall My advice is for investors to wait for a weekly reversal candlestick to be confirmed before entering into a long position. With this strategy, bulls will give up some immediate profit in this highly volatile IPO stock. More importantly, the approach should allow investors to buy growth at a discount and avoid being grilled for entering too quickly. IPO Stock to Buy No. 3: Luckin (LK)Luckin Coffee is the last of our IPO stocks that's setting up to buy. I'll credit InvestorPlace's Luke Lango for alerting me to this China-based upstart and its promising path to substantial longer-term returns for investors.It's true, Luckin Coffee does have its work cut out for it. The company is competing against the aforementioned coffee powerhouse Starbucks, which has already successfully penetrated this massive overseas market. But still, the opportunity is there. And as Luke notes, with a solid technology-based focus and an eye-popping sales growth runway that's affirming this IPO stock's toehold is working, LK stock is one to pick up on weakness. LK Stock TradeLK stock is testing its 50% and 62% Fibonacci levels and its lower Bollinger Band. Shares are also oversold based on the position of its stochastics indicator. However, this week's earnings-driven breakdown of trend support shouldn't be entirely dismissed. It could be a slippery path to retest this IPO stock's all-time-low near $14 a share. Anything is possible.My recommendation on LK stock is to wait for a daily chart bottoming candle to be confirmed if shares can maintain a bid above $18.75. This allows for a modest bit of wiggle room beneath the 62% level. That also respects exiting the position on a more convincing failure of this key technical support in anticipation of a more durable purchase at deeper and well-chilled levels of investor anxiety.Investment accounts under Christopher Tyler's management currently own positions in Pinterest (PINS) and its derivatives, but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Recent IPO Stock Pullbacks Worth Watching appeared first on InvestorPlace.
It could have been worse. At one point on Thursday, the S&P 500 was down as much as 0.5% before rallying back to end the session up a quarter of a percent. Investors entertained doubts about the idea that the recent yield curve inversion has to lead to a recession.Source: Shutterstock Walmart (NYSE:WMT) gets the bulk of the credit for yesterday's gain. Shares of the retailer jumped more than 60% after the company delivered second-quarter numbers that exceeded expectations. E-commerce revenue remains particularly impressive for the world's biggest retailer.Yet, though the broad market made gains, the number of advancers was only slightly higher than the number of decliners, and bearish volume was actually greater than buying volume.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWeighing stocks back more than any other name was General Electric (NYSE:GE), down more than 11% on accusations that it has been doctoring its accounting statements in a way that covers up a great number of liabilities that will cost the company billions. Cisco Systems (NASDAQ:CSCO) plunged nearly 9% after serving up lackluster guidance stemming from the tariff war underway with China. * 10 Cheap Dividend Stocks to Load Up On As the last trading day of the week kicks off, however, it's the stock charts of Freeport-McMoRan (NYSE:FCX), Microsoft (NASDAQ:MSFT) and Coca-Cola (NYSE:KO) that merit the closest looks. Here's why. Freeport-McMoRan (FCX)Although most stocks bounced back from recent weakness on Thursday, it's not surprising that Freeport-McMoRan didn't. Shares have been trapped in a downtrend for years, and that selloff was renewed at the beginning of last year when a rising support line was snapped.It's possible, however, yesterday's 4% tumble may have also served as a capitulation that ends up becoming the low point of the current bearish swing. That dip pulled the stock back to an established floor, forcing the bulls and the bears -- if not both -- to finally make a commitment. * Click to EnlargeAlthough you have to go back to 2017 to see the initial low that serves as the first node of a falling support line, plotted in blue on both stock charts, it's clear that FCX has been getting pushed toward the tip of a converging wedge pattern. * The weekly chart also indicates Freeport-McMoRan shares broke below what had been a technical floor at $9.50, marked in yellow on the weekly chart that also plots the rising support line, in red, that snapped in the middle of last year to let a new pullback take shape. * Although technically weak and suffering from bearish momentum, Thursday's kiss of the lower boundary of a descending wedge pattern opens the door to the possibility FCX could attempt to rebound from here. The upper boundary of the wedge, in white, remains intact though. Microsoft (MSFT)Giving credit where it's due, Microsoft shares have impressively stood up to marketwide weakness that started to seriously undermine other stocks late last month. Since peaking in July, MSFT shares have only fallen less than 6%. The S&P 500 is also still decidedly below most of its key moving average lines, while Microsoft is still above its key lines, or only modestly below the ones it's under.Microsoft shares are slowly slipping into a funk, however, putting pressure on key support levels, and failing to find support at others. One, perhaps two, more bearish days could push MSFT over the proverbial cliff and pull the rug out from underneath this name that has rallied about as far as it can feasibly go for the time being. * 15 Growth Stocks to Buy for the Long Haul * Click to EnlargeThe key floor now under attack is the straight-line span connecting February's, June's and now this month's low, plotted as a light blue line on the daily chart. * Zooming out to the weekly chart of Microsoft it becomes clear that this year's rally has pushed MSFT stock to the upper edge of a rising bullish channel, where it has started to fade. Notice the weekly chart's MACD line is now below zero, after several weeks of lower lows. * Assuming history will repeat itself, MSFT shares are now positioned to slide back to the lower edge of that range plotted with a yellow line on the weekly chart. It now stands at $111.70, but is rising quickly. Coca-Cola (KO)Finally, Coca-Cola shares have been on a rampage since March, rallying more than 20% for the five-month stretch. More than that though, the advance has pushed KO stock out of a long-term trading range and into uncharted waters. Although overbought, shares even confirmed the strength of this breakout thrust by pulling back, finding support at a key line in the sand and then bouncing back above a long-term technical ceiling.While the momentum is undeniable, the scope of the rally thus far is unnerving. The risk of a wave of profit-taking is abnormally high. The good news is, the make-or-break line in the sand has already been identified and verified. * Click to EnlargeThe support level in question is the 50-day moving average line, plotted in purple on the daily chart. That line prompted the reversal that materialized two weeks ago, and is highlighted on the daily chart. * Backing out to a weekly chart, the basis of the worry becomes clear. Just in the past few weeks, KO stock has broken above a technical ceiling that has kept shares in check since 2013. It's plotted in white. * Although there's plenty of risk of a pullback that would bring Coca-Cola stock back to the trading range's floor near $46, marked in yellow, there has been an impressive amount of buying volume persistently through this unparalleled advance.At the time of this writing, James Brumley did not hold a position in any of the aforementioned securities. To learn more about James, visit his site at jamesbrumley.com, or follow him in twitter at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Big Stock Charts for Friday: Freeport-McMoRan, Microsoft and Coca-Cola appeared first on InvestorPlace.
The two beverage giants have earned their places among the so-called dividend aristocrats, the stocks that keep the payouts to investors coming year after year.
DOW UPDATE Buoyed by positive gains for shares of Walmart and Coca-Cola, the Dow Jones Industrial Average is climbing Thursday morning. Shares of Walmart (WMT) and Coca-Cola (KO) have contributed to the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 69 points (0.
FEMSA (FMX) gains from initiatives like expanding store base, diversifying the business portfolio and focusing on core business. But soft margin trend and increased costs are deterrents.
It was a wicked Wednesday as stocks tumbled amid mounting concerns that some major global economies, including the U.S., are flirting with recessions. Adding to the recession concerns, there was another instance of yield curve inversion today.For those not familiar with the vernacular, yield curve inversion is an instance of 10-year Treasury yields dipping below those on 2-year notes. This has happened several times this year. Over the course of history, such inversions have proven to be reliable harbingers of looming economic contraction.Speaking of contracting, that's exactly what Germany's economy, the Eurozone's largest, is doing which adds to risk-off pall cast over global equity markets.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Growth Stocks to Buy for the Long Haul "Germany's economy shrank 0.1 percent from April through June and has been treading water for the last year, the government's official statistics agency said. Analysts at Deutsche Bank predicted that the economy will shrink during the current quarter as well, meeting the technical definition of a recession," reports The New York Times.Here in the U.S., the Nasdaq Composite plunged 3.02% while the S&P 500 sank nearly 3%. The Dow Jones Industrial Average slid 3.05%.In the category of "what a difference a day makes," yesterday I had the privilege of saying that all 30 Dow stocks traded higher. Today, I'm sad to report that in late trading, all 30 Dow components were in the red. Dow Winners In Short SupplyToday was one of those days when it's more about highlighting the best of the worst Dow stocks, not the biggest winners, because there weren't any winners to speak of. In late trading, just five Dow members were sporting losses of less than 1%.One of those names was Walmart (NYSE:WMT). The nation's largest retailer reports earnings tomorrow and in what could prove to be some much-needed good news, analysts are speculating that if Walmart beats, it could boost guidance."E-commerce sales performance in the U.S. will be closely watched. Telsey Advisory estimates a 37% year-over-year gain, which would match the first-quarter growth. Bank of America is looking for a 35% advance, and Tesley predicts a rise of at least 30%," according to Bloomberg. "In addition, analysts may have lingering questions around tariffs, even as the Trump administration said Tuesday it will delay until mid-December the 10% tariff on some Chinese products."I recently explored the long-term potential of Walmart's e-commerce efforts here. Consumer Staples Hold UpAs for the other members of today's least-bad group, a couple of those were consumer staples names, Coca-Cola (NYSE:KO) and Procter & Gamble (NYSE:PG). Given the risk-off tenor to the day, it wasn't surprising to see these stocks hold up, relatively speaking.However, there may another force at play. Historical data suggest that after yield curve inversion, the best-performing sectors are utilities and consumer staples. However, those historical anecdotes are not always all-encompassing. Just look at Walgreens (NASDAQ:WBA), shares of which slid 5.01% today. Dow Warning SignsCisco Systems (NASDAQ:CSCO) reports earnings after the bell today, but some investors departed the name in advance of that report as highlighted by the stock's 4% tumble today. Laboring around the $50-$51 area, this report is critical for Cisco's near-term fortunes. A move to the mid-$40s seems almost as likely as jump to the mid-$50s.There is also growing sentiment that McDonald's (NYSE:MCD), the Dow's best stock in August and one of the index's top performers this year, could be ready to decline, but that seems to be a technical bet, not a commentary on the stock's underlying fundamentals. DJIA Bottom LineI cannot confirm that a recession is imminent and it should be noted that the yield curve inversion, while reliable, is not 100% accurate. Nor am I glossing over the weakness in stocks, but historical data also confirm that the third quarter (August in particular) is usually unkind to equities.Perhaps the best strategy for the rest of this month and into September is to keep some cash on the sidelines and wait for more attractive opportunities to come available, particularly if the best defensive sectors can do is decline less than their high beta counterparts.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Dow Jones Today: The Return of Unpleasantness appeared first on InvestorPlace.
(Bloomberg Opinion) -- In a free-market economy everyone is supposed to have the chance to get rich. The dream of making it big motivates people to take risks, start businesses, stay in school and work hard. Unfortunately, in the U.S., that dream seems to be dying.There are still plenty of rich people in the U.S., and their wealth is increasing. But people outside that top echelon are having a tougher time breaking in. A 2017 study by the Federal Reserve Bank of Cleveland found that the probability that a household outside the top 10% made it into the highest tier within 10 years was twice as high during 1984-1994 as it was during 2003-2013.There surely are many reasons for this trend, but one of them probably is the winner-take-all structure of the U.S. economy, where a few people get fabulously lucky with their hedge fund or tech startup, while most people fail.The traditional way to get rich in America is to start a business. For those of modest means, perhaps this would be a corner store or a restaurant; for the more ambitious, a technology startup. Many Americans still do this, but the number is dropping as business formation dries up:Much of the decline is due to efficient national retail chains muscling out small local businesses. But high-growth startups are on the wane as well, and the dominance of a few giant tech companies may be making it harder for upstarts to reach the loftiest heights of success.If you don’t start your own business, you can always invest in someone else’s. Investors who put their money into winning stocks like Coca-Cola Co. or Amazon.com Inc. made fortunes. But turning a small amount of money into a large amount in the market requires making big -- and remarkably lucky -- bets on individual stocks. Most people who try to do this end up failing. For the average American, the market is a bewildering game, full of high-frequency traders and savvy hedge funds waiting to take their money; decades of painful experience have taught individual investors that day trading is a losing bet. Most simply turn over their money to institutions, accepting the more modest but less risky returns they offer.Middle-class Americans tend to have most of their wealth in houses. For the average person, real estate is a comprehensible game, where assets are tangible and visible, and market transactions often are done face-to-face. From the 1980s through the early 2000s, many Americans tried to get rich by buying and selling second and third homes. But the housing bubble, which largely was driven by this sort of activity, crushed the real estate dream for many. Others who bought only one home saw it plunge in value in the crash; those that were forced to sell their houses, usually to better-heeled buyers, were unable to recoup their losses when prices eventually recovered.After the recession, lending standards tightened, making it harder for people of modest means to get in on the real-estate market and start building wealth. House flipping has returned, but homeownership rates have fallen, suggesting that one of the main paths to accumulating assets is no longer readily available to those of lesser means. For the middle rungs of the distribution, wealth -- most of which is in housing -- has barely recovered from the devastation of the late 2000s:Even if one doesn’t win big in the housing or stock markets, it is possible to get moderately wealthy by working one’s way up the corporate ladder. And companies are still throwing big salaries at data scientists with doctorates, as well as executives and top managers. But hopping on the bottom rungs of the ladder usually requires an elite and very costly education. Sometimes this even means an advanced degree. That kind of credential can only be attained by way of not just talent, but increasingly a privileged background. Stories like that of former Salomon Brothers Vice Chairman Lewis Ranieri, who started off working in the mail room and ended up as the inventor of mortgage-backed bonds, are probably getting rarer.Plenty of Americans are still starting successful businesses, picking winning stocks, flipping houses for handsome profits and polishing their resumes for top employers. But those paths to wealth have gotten narrower, more difficult and less certain. With the rise of big companies, institutional investors, tight lending standards and degree requirements, an American’s chances of making a fortune without either being a genius or having wealthy parents look slimmer than ever. It’s small wonder that so many have flocked to the world of cryptocurrency, where outsiders and people with less formal education still have a chance to strike it rich. Even there, though, institutional investors are slowly taking over.If the free-wheeling, free-market system of the 20th century really has hardened into an oligarchy in the 21st, it could foreshadow collapsing trust in institutions -- some of which we've already seen -- and political instability. Without the promise that bold risk-taking and/or hard work can make them rich, what will young Americans do with their restless ambition? Many will keep working hard and be willing to accept the paltry returns, but an increasing number will turn against the system itself. Don’t be surprised if socialism, or other anti-capitalist ideologies, becomes the next hot growth industry.To contact the author of this story: Noah Smith at firstname.lastname@example.orgTo contact the editor responsible for this story: James Greiff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Noah Smith is a Bloomberg Opinion columnist. He was an assistant professor of finance at Stony Brook University, and he blogs at Noahpinion.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Coca-Cola's Dasani brand is the latest company pitching bottled water to gothe aluminum can route
Coca Cola's Dasani recently launched canned water, as part of its World Without Waste strategy, in addition to a hybrid bottle made partially from renewable resources. “It’s really a significant investment on the brand to get through these kinds of innovations," Lauren King, Dasani Brand Director tells Yahoo Finance's YFi AM, "we started last year on the innovation, so it really takes investment to find the recycled PET and figure out how to put it into our bottles."