Fox News’ Jonathan Serrie gives an update on the Georgia Senate races.
Fox News’ Jonathan Serrie gives an update on the Georgia Senate races.
GameStop (GME) shares closed 51% higher at $65.01 each on Friday after an apparent crush on short-sellers.
Be wise with how you allocate your money, $730 million Powerball winner.
(Bloomberg) -- Thanks to vagaries of the accounting world, Donald Trump’s administration had a chance in the final weeks of the presidential race to cancel more than $200 billion of student loans with no immediate hit to the Department of Education’s massive portfolio. Yet it didn’t do it.Now, perhaps Joe Biden will.For years, bean counters at the department have been writing down the value of its $1.4 trillion portfolio of student debt as they adopted ever-more-pessimistic views of how much borrowers will repay. In September, the analysts made their biggest adjustment yet, valuing loans at just 82 cents on every dollar owed, down from 104 cents in 2015, records show. The debt is now worth $258 billion less than the amount outstanding.Had officials under Education Secretary Betsy DeVos decided to identify some of the borrowers least likely to repay, and then forgiven those debts, it wouldn’t have put a major dent in the remaining portfolio’s value. Such losses were, theoretically, already reflected anyway.By Wall Street standards, the government’s loan writedowns are gigantic, amounting to $98 billion in September alone. While they have gone virtually unnoticed in the political realm so far, they are almost sure to attract attention now, as consumer advocates urge Biden’s new administration to ease the burden on young professionals and jump-start the pandemic-stricken economy.Some are starting to ask: If the government doesn’t expect to collect hundreds of billions of dollars from borrowers, why not try to erase it now?“Betsy DeVos has already decided that a bunch of this debt is not going to be paid back,” said Mike Pierce, director of policy at the nonprofit Student Borrower Protection Center and a former official at the federal Consumer Financial Protection Bureau. “That makes it much easier for the Biden administration to justify canceling.”The Education Department didn’t respond to messages seeking comment both before and after the change in administration.Loans or RentShortly after his inauguration as U.S. president on Wednesday, Biden asked the department to extend his predecessor’s pandemic policy of waiving interest and to continue letting borrowers skip monthly payments on government-owned student loans until at least the end of September. About 24 million borrowers have stopped payments, department data show.Biden has expressed sympathy for borrowers but suggested he’s reluctant to wipe away debt without an act of Congress. In November, he said student-loan burdens are “holding people up. They’re in real trouble. They’re having to make choices between paying their student loan and paying their rent.”While Wall Street often values its debt holdings based on the prices they would fetch in the market, the government’s markdowns mainly reflect “amounts not expected to be recovered.” From a valuation perspective, that means there wouldn’t be much immediate difference between forgiving doomed loans and waiting for borrowers to turn out their empty pockets.Still, there’s the issue of moral hazard: If authorities offer relief to struggling borrowers, it could create an incentive for others to stop repaying too, causing more of the portfolio to sour.Rush for ReliefMuch of the gap between what is owed and what the government reckons will be repaid stems from loan programs that cap monthly payments relative to borrowers’ incomes. Income-based repayment plans promise the possibility of loan forgiveness after two decades of steady payment, or one decade for public-service workers. As annual borrower defaults climbed past 1 million, Barack Obama’s administration made the repayment plans increasingly generous. Enrollment has tripled since 2014.The anticipated cost of income-based plans has risen, too. The Education Department recently realized borrowers in the plans were earning “substantially” less than it had forecast. So the government cut its projections of borrowers’ future income by 35%, boosting the estimated tab to be forgiven in later years.“There already is significant loan forgiveness,” said Constantine Yannelis, who researches student debt and teaches finance at the University of Chicago’s Booth School of Business. “We’re just talking about moving it up or giving it to borrowers who wouldn’t qualify for it under current rules.”Yannelis said he recently found that debt owed by lower-income borrowers had a lower present value to the federal government than debt owed by high-income borrowers.Rising OddsAcross-the-board loan cancellations make little sense, but the government has all the information it needs to target forgiveness, said Adam Looney, a finance professor at the University of Utah whose research on student loans dates to his time as a tax official at the U.S. Treasury Department. In fact, he said, the Education Department’s own valuation reflects a belief the government will eventually cancel large amounts owed by people earning little or at least too little relative to their debts.Forgiving loans could encourage future students to over-borrow on the hope that their debts will be wiped away, advisers to the federal consumer bureau warned in a report this month. And that could, in turn, remove some of the pressure on colleges to lower their costs.But there is a growing expectation in the public anyway that relief is coming. In a December survey by the Federal Reserve Bank of New York, respondents estimated there is a 39% chance -- more than ever in five years of polling -- that the federal government will cancel some amount of student loans over the next year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The financial expert and radio host says these money blunders can be costly.
In an interview with Bloomberg TV's “Front Row,” the storied investor, Jeremy Grantham, who is often credited with several prescient market calls over the past two decades, insists that a steady rise in stocks, fostered by free money from the Federal Reserve and the government can't continue without consequences.
The country's leader in the wholesale mortgage market is now a public company. Here's what the company's CEO Mat Ishbia told Yahoo Finance.
With the Biden Administration likely to pump trillions into green energy infrastructure in the coming years, renewable stocks should outperform the market
(Bloomberg) -- AT&T Inc. is holding exclusive talks to sell a significant stake in DirecTV to private equity firm TPG, the latest stage of a monthslong push to unload at least part of the struggling pay-TV business, according to a person familiar with the matter.A potential deal is weeks away, and the talks could still fall apart, said the person, who asked not to be identified because the deliberations are private. The agreement being discussed is highly structured and would include preferred stock, according to the person.It isn’t clear what valuation would be assigned to DirecTV, but previous discussions have centered on roughly $15 billion -- a fraction of the $48.5 billion AT&T agreed to pay for it in 2014. The price tag including debt then was $67.1 billion. Since then, the business has hemorrhaged customers, hit hard by the cord cutting that has rocked the pay-TV industry.Representatives for AT&T and TPG declined to comment.Chief Executive Officer John Stankey has been trying to clean house at AT&T, selling underperforming assets and using the proceeds to pay down its mountain of debt. If AT&T can unload a major stake in the satellite business, it could let the telecom giant remove DirecTV from its books while maintaining access to some of its cash flow. In 2019, activist investor Elliott Management urged AT&T to explore a divestiture of DirecTV.A blank-check company backed by former Citigroup Inc. rainmaker Michael Klein previously expressed interest in a deal, Bloomberg reported last year, but those talks stalled. Apollo Global Management Inc. also has held discussions about a transaction.DirecTV had been open to a merger with rival Dish Network Corp., people familiar with the matter said in 2019. But such a deal would raise antitrust questions. A proposed combination of the two satellite services was shot down by the Federal Communications Commission and the Justice Department in 2002.As part of its belt-tightening efforts, AT&T agreed last month to sell its anime video unit Crunchyroll to Sony Corp.’s Funimation Global Group for $1.18 billion.Reuters previously reported on AT&T’s exclusive talks with TPG.(Updates with responses from companies in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The president will order the Treasury to do more to help those who've been waiting months.
Q: When the inheritor of a Roth IRA receives the funds, is it true that the distributions would not be taxed? It would be unusual for any taxes to be due on an RMD from an inherited Roth IRA. The only portion of an inherited IRA that could be subject to tax is earnings.
Snowflake, Palantir and C3.ai marked three of last year's biggest IPOs. All three software growth stocks corrected in late 2020. But Palantir stock has clawed back and boasts high ratings.
EVgo, the wholly owned subsidiary of LS Power that owns and operates public fast chargers for electric vehicles, has reached a deal to become a publicly traded company through a merger with special-purpose acquisition company Climate Change Crisis Real Impact I Acquisition Corporation. The combined company, which will be listed under the new ticker symbol "EVGO" will have a market valuation of $2.6 billion. LS Power and EVgo management, which today own 100% of the company will be rolling all of its equity into the transaction.
Joe Biden has been inaugurated as the 46th President, just two weeks after the Democrats locked down control of the Senate with wins in both Georgia Senatorial runoff elections. These events give the Dems control of both Houses of Congress and the White House. While their Congressional margins are narrow – the narrowest possible in the Senate, where new Vice President Kamala Harris will have to cast tie-breaking votes in a 50-50 chamber – the Democrats do have the votes needed to push through their legislative agenda. And part of that agenda is Federal cannabis legislation. Don’t expect it to happen right away, as Congress and President Biden will have plenty of other priorities to handle first. But Governor Andrew Cuomo of New York, a leading politician of the Democrats’ progressive wing, promised state-level legalization in his State of the State address – and like California, New York tends to be a trendsetter. In addition, Biden has tapped Federal judge Merrick Garland as his choice to head the Department of Justice; Garland is generally seen as centrist, but he has a judicial record from the Federal bench of respecting state-level cannabis legalization regimes. “[With] room for equity valuations to continue moving higher, we remain bullish on US cannabis and believe 2021 will be a pivotal year for the industry… We think investors will increasingly benefit from better visibility into company-specific growth rates and operational metrics through 2021... We also look for a continuation of state-led legalization initiatives,” Cormark Securities' Jesse Pytlak noted. Bearing this in mind, we used TipRanks’ database to take a closer look at two cannabis stocks backed by top cannabis analysts. These names received enough support from the analyst community to earn a “Strong Buy” consensus rating. Aphria, Inc. (APHA) Headquartered in Leamington, Ontario, Aphria is one of the giants of Canada’s legal cannabis sector. The company boasts a market cap exceeding CA$4 billion, and reported over CA$160.5 million in its last fiscal quarter, a year-over-year gain of 33%. That figure was a company record. The company announced in December an agreement for merger and acquisition with competing firm Tilray, a move that will create the world’s largest cannabis company, with a market value of CA$5 billion. The agreement will see all Aphria shareholders receive 0.8381 shares of Tilray. The merged entity will operate under the TLRY stock ticker when the move is completed. In the meantime, investors can take comfort in Aphria’s share growth. The stock is up 124% over the past 52 weeks. A significant portion of that gain has come in the 5 weeks since announcing the Tilray deal; APHA shares have appreciated 58% in that time. Aphria has caught the eye of 5-star Cantor analyst Pablo Zunaic, who believes that the company’s prospects are “[all] about what APHA + TLRY can do in a fast-deregulating cannabis world.” Zunaic added, “The leading Canadian company (16% APHA rec share plus TLRY 4% share), with a budding international unit (exporting to Israel, Germany Poland, Malta; production in Germany/Portugal; owned German distribution), plus ancillary assets that may be useful depending on the shape of future deregulation, should deserve a premium…” In line with these comments, the analyst rates APHA an Overweight (i.e. Buy), and his CA$26 price target implies a 59% upside potential from current levels. (To watch Zunaic’s track record, click here) Zunaic isn’t the only analyst bullish on Aphria. The company has 10 recent reviews, and their breakdown is 8 Buys against 2 Holds, making the analyst consensus view a Strong Buy. However, the recent share appreciation has pushed the trading price above the CA$15.09 average price target; APHA shares are now priced at CA$16.32. (See APHA stock analysis on TipRanks) Trulieve Cannabis (TCNNF) Trulieve is a $5.23 billion medical cannabis company, operating in California, Connecticut, Florida, Massachusetts, Pennsylvania, and West Virginia. The company’s headquarters are in Florida, the nation’s third-largest state by population, where it commands a 51% market share in the medical cannabis sector. The rapid growth of medical cannabis has fueled a tremendous growth in Trulieve’s share price over the past year. Trulieve shares have gained a truly impressive 296% over the past 12 months. Medical cannabis is a profitable and growing market, and Trulieve’s revenues reflect that. The company has reported a steadily increasing top line for the past two year, with the most recent quarterly report, 3Q20, showing $136.3 million, a company record and a 13% gain quarter-over-quarter. Matt McGinley, 5-star analyst from Needham, sums up a bullish case on Trulieve, noting: “While our fundamental outlook for the industry and this company have not materially changed into '21, prospects for federal reforms have improved as have prospects for funding that growth based on recent capital markets activity. As such, we believe multiples will re-rate higher to more appropriately reflect the high rate of growth of the industry.” Unsurprisingly, the analyst rates TCNNF an Outperform (i.e. Buy), and sets a price target of $60.50, suggesting that the stock will grow ~38% over the next 12 months. (To watch McGinley’s track record, click here) The Strong Buy analyst consensus rating on this stock shows that Wall Street agrees on the value of Trulieve. The rating is based on 6 unanimous Buy reviews. The average price target of $49.49 suggests an upside of ~13% from the current trading price of $43.93. (See Trulieve stock analysis on TipRanks) To find good ideas for cannabis 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.
(GME) stock rocketed above its 2007 peak Friday in a move that one short selling expert thinks could possibly kill investor interest in shorting the videogame retailer. Pointing to an earlier squeeze where a moderate amount of older short sellers covered their positions as the stock surged in recent weeks, S3 Partners’ Ihor Dusaniwsky told Barron’s he thinks today’s action has piled up mark-to-market losses for even newer short sellers betting on a price decline.
The taxes you owe on your 401(k) distributions at retirement depend in large part on whether your funds are in a traditional 401(k) or a Roth 401(k).
What is a dividend and which companies have the best-yielding dividends? Read on for a primer on how best to approach this method of investing.
(Bloomberg) -- A recently refinanced mortgage for a building in Manhattan may show how Donald Trump is able to deal with his upcoming debt maturities, albeit at a higher cost.Investors Bank agreed to extend the mortgage on Trump Park Avenue, a condo building at the corner of 59th Street, by a year to 2021, according to his latest financial disclosure, released hours after he left office.The interest rate increased 25 basis points to 3.5%. It’s at least the second time the due date has been pushed out since the $23 million loan was originated in 2010, records show. It’s now estimated to be less than $10 million.Michael Cohen, Trump’s former attorney and fixer, owns a unit there, and other owners have included former baseball star Alex Rodriguez. When Ivanka Trump and Jared Kushner lived in the building, Rupert Murdoch and his then-wife Wendi Deng reportedly were among their neighbors, Deng said in 2010.It has since lost some of its cachet. Seven of eight units listed for sale last year on StreetEasy failed to sell. Most were then listed for rent. A one-bedroom condo on the ninth floor that was listed for $2.1 million in 2019 could be rented for $3,600 a month as of last week. The Trump Organization developed the building and still owns more than a dozen of the units, which form collateral for the mortgage.Brian Doran, general counsel at Investors Bank’s parent company, declined to comment.Doral ResortThe Trump Organization has almost $600 million of estimated debt coming due within the next four years. These include loans tied to Trump Tower in New York and the Doral Golf Resort outside Miami, where revenues dropped to $44 million last year from $77 million a year earlier.With longtime lender Deutsche Bank AG refusing to work with the former president, and corporations distancing themselves from the family business, that has raised questions over how easily the debt can be refinanced.Trump’s business would be far from alone in changing loan terms during the pandemic. There’s been a significant increase over the past year in commercial mortgage modifications, particularly in New York City, as Covid-19 wrecked property valuations, halted foreclosures and evictions, and allowed millions of people to temporarily stop paying rent.More than 10% of all commercial mortgages that have been bundled into securities have requested some kind of relief from creditors during the pandemic, said Manus Clancy, a senior managing director at data provider Trepp LLC. Most of those debtors were hotels and retail businesses, he said. Residential property owners have yet to face similar levels of distress.Representatives of the Trump Organization didn’t respond to a request for comment.The mortgage on his Park Avenue building was one of a few loans that came due during Trump’s first term. Three mortgages were paid off in 2017, while the due date on a loan for his Seven Springs estate in Mount Kisco, New York, was extended to 2029 from 2019. The rate on that mortgage increased to 4.5% from 4%.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.
Even a pandemic can't stop Apple Inc. from hitting new records. The smartphone giant is likely to post its first-ever quarter with revenue above $100 billion Wednesday.
Big Tech has been in the news lately, and not necessarily for the right reasons. Accusations of corporate censorship have hit the headlines in recent weeks. While serious, this may have a salutary effect – the public discussion of Big Tech’s role in our digital lives is long overdue. And that discussion will get underway just as the Q4 and full-year 2020 financial numbers start coming in. Of the FAANG stocks, Netflix has already reported; the other four will release results in the next two weeks. So, the upcoming earnings will garner well-deserved attention, and Wall Street’s best analysts are already publishing their views on some of the market’s most important components. Using TipRanks’ database, we pulled up the details on two members of the FAANG club to find out how the Street thinks each will fare when they publish their fourth quarter numbers. According to the platform, both have received plenty of love from the analysts, earning a “Strong Buy” consensus rating. Facebook (FB) Let’s start with Facebook, the social media giant that has redefined our online interactions. Along with Google, Facebook has also brought us targeted digital marketing and advertising, and the mass monetization of the internet. It’s been a profitable strategy for the company. Facebook’s market cap is up to $786 billion, and in the third quarter of 2020, the company reported $21.5 billion at the top line. Looking ahead to the Q4 report, due out on January 27, analysts are forecasting revenues at or near $26.2 billion. This would be in-line with the company’s pattern, of rising quarterly performance from Q1 to Q4. At the predicted sum, revenues would rise 24% year-over-year, roughly congruent with the 22% yoy gain already seen in Q3. The key metric to watch out for will be the growth in daily active users; this metric slipped slightly from Q2 to Q3, and further decline will be taken as an ominous sign for the company’s future. As it stands now, Facebook’s daily average user number is 1.82 billion. Ahead of the print, Oppenheimer analyst Jason Helfstein boosted his price target to $345 (from $300), while reiterating an Outperform (i.e. Buy) rating. Investors stand to pocket ~26% gain should the analyst's thesis play out. (To watch Helfstein’s track record, click here) The 5-star analyst commented, "[We] anticipate 4Q advertising revenue will handily top Street estimates. We now forecast 4Q advertising revenue +30% y/y vs. Street's +25% estimate based on a regression of US Standard Media Index Data (r-squared 0.95) and accelerating global CPM data from Gupta Media (4Q +35% y/y vs. 3Q's -12%). Additionally, we are very bullish on FB's eCommerce opportunity following conversations with our checks and our initial work conservatively estimating Shops is a $25–50B opportunity vs. current $85B revs. We believe shares currently trading at 7.1x EV/NTM sales offers the most favorable risk/ reward in internet large cap." Overall, the social media empire remains a Wall Street darling, as TipRanks analytics showcasing FB as a Strong Buy. This is based on 34 recent reviews, which break down to 30 Buy ratings, 3 Holds, and 1 Sell. Shares are priced at $276.10 and the average price target of $327.42 suggests a one-year upside of ~19%. (See FB stock analysis on TipRanks) Amazon (AMZN) Turning to e-commerce, we can’t avoid Amazon. The retail giant has a market cap of $1.65 trillion, making it one of just four publicly traded companies valued over the trillion-dollar mark. The company’s famously price is famously high, and has grown 74% since this time last year, far outpacing the broader markets. Amazon’s growth has been supported by increased online sales activity during the ‘corona year.’ Globally, online retail has grew 27% in 2020, while total retail slipped 3%. Amazon, which dominates the online retail sector, is projected to end 2020 with $380 billion in total revenue, or 34% year-over-year growth, outpacing the global e-commerce gains. Cowen analyst John Blackledge, rating 5-stars by TipRanks, covers Amazon and is bullish on the company’s prospects ahead of the earnings release. Blackledge rates the stock Outperform (i.e. Buy), and his price target, at $4,350, indicates confidence in a 31% upside on the one-year time horizon. (To watch Blackledge’s track record, click here) “We forecast 4Q20 reported revenue of $120.8BN, +38.2% y/y vs. +37.4% y/y in 3Q20 led by AWS, advertising, subscription and 3P sales [..] We estimate US Prime sub growth accelerated in 4Q20 (reaching 76MM subs in Dec '20 and ~74MM on avg in 4Q20), helped by pandemic demand, Prime Day in Oct, & elongated shopping period, as well as 1 Day delivery [...] In '21, we expect strong top-line growth to continue driven by eCommerce (helped by COVID pull forward in Grocery), adv., AWS & sub businesses," Blackledge opined. That Wall Street generally is bullish on Amazon is no secret; the company has 33 reviews on record, and 32 of them are Buys, versus 1 Hold. Shares are priced at $3,301.26 and the average price target of $3,826 implies that it will grow another 16% this year. (See AMZN stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
(Bloomberg) -- Corporate insiders unloaded shares of BlackBerry Ltd. amid a frenzy of buying that turned it one of the hottest stocks of the new year.BlackBerry shares rallied about 5% on Friday to extend a seven-day advance to 80%, its biggest such percentage increase since February 2000. Thus far this year, the stock has more than doubled, making it the top performer in the S&P/Toronto Stock Exchange Composite Index. The shares closed at their highest price since March 2018 on Thursday.At least two BlackBerry executives sold shares amid the advance, according to filings with the U.S. Securities & Exchange Commission. Chief Marketing Officer Mark Wilson on Jan. 20 sold more than $990,000 of BlackBerry stock, reducing his directly owned shares by nearly 60%. Chief Financial Officer Steve Rai also sold nearly $430,000 of the stock on the same day, liquidating all directly owned shares.“The executives traded during an open trading window as permitted under company policy, and all of our executives continue to have strong equity-based incentives through our long-term equity program,” BlackBerry said in a statement to Bloomberg.The insider sales are not a sign that the stock will collapse, according to Jonathan Moreland, an analyst at Insiderinsights.com.“What it suggests is that these very knowledgeable corporate insiders think this is a pretty good price,” he said. “So if you’re a holder, you might consider lightening up a bit.”Much of the stock’s recent advance came after it settled a dispute with Facebook over patent royalties.The terms of the settlement weren’t disclosed, but “may not yield a royalty payment as significant as BlackBerry had originally hoped,” wrote John Butler, an analyst with Bloomberg Intelligence. He speculated that the final accord may possibly “take the form of a cross-licensing agreement, with minimal royalties exchanging hands.”Earlier this month, the Globe and Mail reported that BlackBerry had sold 90 patents to China’s Huawei. In December, the company signed an agreement with Amazon Web Services for an “Intelligent Vehicle Data Platform.”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.