Feb.11 -- Ben van Beurden, chief executive officer at Royal Dutch Shell Plc., discusses transitioning the company away from oil and gas, his business strategy and his outlook for oil. He speaks on “Bloomberg Markets: European Open.”
Feb.11 -- Ben van Beurden, chief executive officer at Royal Dutch Shell Plc., discusses transitioning the company away from oil and gas, his business strategy and his outlook for oil. He speaks on “Bloomberg Markets: European Open.”
Charlie Munger to answer shareholder questions live on Yahoo Finance.
Exxon could also receive about $300 million in contingent payments based on an increase in commodity prices. Exxon said on Wednesday HitecVision, which bought Exxon's Norwegian North Sea assets for $4.5 billion in 2019, was making the purchase through its British unit Neo. Exxon's share of production from the fields, which was about 38,000 barrels of oil equivalent per day (boepd) in 2019, will more than double NEO's output to around 70,000 boepd, making it among the top five oil and gas producers in the UK.
(Bloomberg) -- One Japanese financial firm is riding the crypto wave like no other.Shares of Monex Group Inc. have been tracking the ups and downs of Bitcoin, and have more than tripled since the cryptocurrency’s rally gained momentum in October. The online brokerage owns crypto exchange Coincheck Inc., whose profit has soared as clients flock to digital assets.“People are starting to re-evaluate us” by realizing Monex isn’t just about stockbroking, said Chief Executive Officer Oki Matsumoto. “Our stock was underrated to begin with,” the former Goldman Sachs Group Inc. partner said in an interview on Feb. 18.Investors have been pushing up shares of firms closely linked to digital tokens around the world, from U.S. crypto miner Marathon Patent Group Inc. to the U.K.’s On-Line Blockchain Plc. Bitcoin’s fivefold jump in the past year has come amid a flood of money pumped into the global financial system during the coronavirus pandemic.Even after a pullback during a sell-off in Bitcoin in recent days, Monex is the most expensive stock on an index of Japanese securities companies, with a price of more than three times the book value of its assets.The stock fell 6.4% at 10:36 a.m. in Tokyo on Wednesday, paring this year’s gain to 136% -- still the second-best performance on the benchmark Topix.“There has been sharp growth in earnings at Coincheck,” SMBC Nikko analyst Takayuki Hara wrote in a Feb. 22 note, raising his target price for Monex shares. “The soaring price of Bitcoin has spurred trading activity and encouraged more individual investors to jump into the fray.”Monex has been diversifying into crypto as intensifying competition dims prospects of its mainstay stock brokerage business. It bought Coincheck in 2018, when the exchange was regrouping after a costly hack. It received a license two years ago.Crypto business, domestic brokerage services and U.S. trading operations now represent Monex’s “three main pillars” of growth, Matsumoto said.Its crypto asset segment earned 2.4 billion yen ($23 million) in pretax profit in the quarter ended Dec. 31, reversing year-earlier losses and accounting for half of total group income, according to filings.What Bloomberg Intelligence Says:Share gains by Monex and Remixpoint top those of SBI, GMO Financial and other Japan bitcoin stocks year-to-date partly due to strong performances by the Coincheck and BITPoint bourses. But competition is becoming fiercer: online broker SBI offers a broader range of crypto services, and more global exchanges may seek inroads into Japan.Francis Chan, senior BI analystWhile Matsumoto, 57, said it’s hard to assess the sustainability of Coincheck’s earnings growth, the unit is unlikely to post losses even in a calm market because of cost cuts and other steps taken in recent years.“If they become able to secure a good volume of orders from clients even when crypto trading becomes sluggish overall, we can see it as evidence of revenue diversification,” said Kengo Sakaguchi, an analyst at Japan Credit Rating Agency. He rates Monex as BBB, two levels above junk.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.
What Happened: The largest crypto exchange in Southeast Asia, Philippines-based PDAX, experienced a technical failure that led to Bitcoin trading at $6,000 – an 88% discount to its current price. Following the incident, PDAX asked its customers to return their Bitcoins, threatening legal action, a local news outlet Bitpinas has reported. According to the exchange’s CEO, the system error was not due to a hack but a technical “glitch” caused by a massive surge in trading activity. Why It Matters: The initial outage is said to have taken place on February 18; however, since then, reports have surfaced on social media of customers being locked out of their exchange accounts and being asked to “return their Bitcoin.” “After almost 24 hours, they sent me a demand letter and SMS, requesting me to transfer back the BTC, or they “may” be compelled to take legal actions against me.” said one trader who believed his purchase was well within his rights without violating any laws or regulations of the trading platform. Rafael Padilla, an attorney representing the affected users who are currently locked out of their accounts, commented on the issue on Facebook. “Our client’s trade transaction was legitimate under applicable laws, decided cases, and of course according to PDAX’s very own terms and conditions/user agreement.” According to Padilla, PDAX has opted to lock users out of their accounts because it cannot unilaterally reverse the transactions. An official statement from PDAX claims that 95% of accounts have been restored, but according to the report, many users are still locked out of their accounts. “It’s very understandable that a lot of users will feel upset they were able to buy what they thought an order was there for Bitcoin at very low prices. But unfortunately, the underlying Bitcoins were never in the possession of the exchange, so there’s never really anything there to be bought or sold, unfortunately.”, said PDAX CEO Nichel Gaba in a press conference earlier today. Image: vjkombajn via Pixabay See more from BenzingaClick here for options trades from BenzingaElon Musk's Tweet About Dogecoin Sends Price Up 10% In 30 Minutes AgainMicroStrategy Buys Additional .026B Worth Of Bitcoin, Surpasses Tesla's Bitcoin Holdings© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Warren Buffett’s business partner and vice chairman of Berkshire Hathaway, in a Wednesday interview with Yahoo Finance, said the GameStop chaos was encouraged by a gambling mentality on Wall Street.
The legislation, which goes to a vote on Friday, could put thousands back in your pocket.
Qoin itself seems unsure why its membership was terminated, according to comments provided to CoinDesk.
Chinese national banks and Australia's Macquarie Group are quietly filling some of the multi-billion-dollar hole in Asian oil financing after the withdrawal of traditional European lenders, hurt by a raft of defaults and fraud allegations. Established financiers still taking on oil transactions, such as France's BNP Paribas and Singapore's OCBC, have raised compliance standards and are shying away from higher-risk small traders and refiners, according to interviews with over a dozen trading and banking executives. Beijing-controlled Bank of China, ICBC Standard and Agricultural Bank of China are among the few institutions that are expanding credit in the sector, mostly as customers activate dormant lending facilities set up previously but left unused as they were viewed as too expensive or restrictive.
Here's what still has to happen, following the big vote scheduled for Friday.
(Bloomberg) -- Li Ka-shing, Hong Kong’s richest property tycoon, is planning to raise funds for dealmaking by listing a special purpose acquisition company in the U.S., people with knowledge of the matter said.A company backed by Li’s family is working with advisers on the potential SPAC initial public offering, according to the people, who asked not to be identified because the information is private. They are considering seeking around $400 million, though the exact terms haven’t been finalized, the people said.The blank-check company could file registration documents with the U.S. Securities and Exchange Commission as soon as this week, the people said.Li is lionized by the public in Hong Kong, where he’s been nicknamed “Superman” for his investing prowess. The 92-year-old businessman became famous for his well-timed bets on everything from real estate to social media as he built a corporate empire spanning 50 countries.His family controls CK Hutchison Holdings Ltd., a $29 billion conglomerate that owns one of the world’s biggest port operators and has telecommunications, retail and infrastructure operations across Asia and Europe. They also run CK Asset Holdings Ltd., which is one of Hong Kong’s largest developers and also has investments in hotels, utilities and aircraft leasing. Both companies are now led by Li’s elder son, Victor.Li’s younger son, Richard, has already raised about $900 million via two U.S.-listed SPACs with tech mogul Peter Thiel. Richard is considering setting up a third blank-check company, Bloomberg News reported last week.No final decisions have been made, and details of the transaction could change, the people said. Representatives for Li didn’t immediately respond to emailed queries.(Adds details about Richard Li’s SPAC plans in sixth 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.
Costco has a leg up on e-commerce behemoth Amazon (AMZN) on at least one measure, according to Charlie Munger, vice chairman of Berkshire Hathaway.
Borrowers are backing off, and mortgage demand is falling — but what if rates go higher?
(Bloomberg) -- A flurry of buying that saw GameStop Corp. shares almost quadruple from Tuesday’s close spread to a host of other meme stocks at the center of last month’s day trader-fueled boom and bust.GameStop jumped 104% in Wednesday’s cash session, spurred by a final-hour surge that brought its biggest advance since Jan. 29, the day Robinhood Markets restricted trading in it and 49 other stocks at the height of the frenzy. An equally weighted Bloomberg basket of those rose more than 5%, the most since late January. AMC Entertainment Inc. rallied 18% to push a three-day climb toward 59%. Express Inc. surged 41%, Naked Brand Group gained 31% and Koss Corp. jumped 55%.The activity inflated trading volumes in the meme stocks and caused an outage on Reddit’s WallStreetBets forum, the hub of the January volatility. The tumult continued in late trading, where GameStop rallied another 120% before paring the advance. At $135, the stock is up more than 200% from its close on Tuesday. Express jumped 30% while AMC was up 21%.“It seems like the Reddit crowd is still active and when you see a bit of news like that they’re pressing again,” Keith Gangl, portfolio manager at Gradient Investments, said in a phone interview. “Though I’m not sure how that’ll last,” he added.The sudden revival in left-for-dead stocks recalled an episode last month that captured the attention of Wall Street, regulators and eventually Congress, as members of Reddit’s WallStreetBets forum egged on retail hordes in an attempt to take on professional short sellers.Various explanations circulated as to what spurred the rallies. The GameStop frenzy came after Bloomberg News reported late Tuesday that the company’s chief financial officer Jim Bell was pushed out in a disagreement over strategy to make way for an executive more in line with the vision of activist investor and board member Ryan Cohen, the co-founder of online pet-food retailer Chewy.com. His addition to the board in early January underpinned the first flurry of moves in the stock after capturing the attention of WallStreetBets.The clearinghouse whose demands for increased margin collateral from Robinhood forced the brokerage to restrict trading last month published a white paper Wednesday that laid the grounds for speeding up the stock settlement process. It proposed cutting settlement to one day from two, prompting some chest puffing among the retail crowd on Reddit.The now infamous WallStreetBets forum, which boasts 9.2 million members, saw so much demand that the site would not load. When attempted, a page read “www.reddit.com is currently unable to handle this request” as of 4:43 p.m. in New York.(Updates late trading moves in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Home Depot has fared better than Macy’s during the pandemic as consumers have chosen home improvements over new clothes, but they say that could change if the health crisis eases.
We’re in a volatile period right now, as stocks slipping after starting the year on a strong note. Big Tech, which boomed during the pandemic lockdowns and the move to remote work, is leading the declines. Investors have taken the measure of the vaccination programs, and now, in fueled by both a belief and a hope that economies will soon return to a more normal footing, they are seeking out those stocks that will gain we revert to a ‘pre-corona’ market situation. There is also inflation to take into account. Oil prices are up this year, and that’s one commodity whose price fluctuations are certain to trickle down the supply chain. Along with rising consumer demand, there’s an expectation that prices are going to increase, at least in the near term. All in all, this is the moment to take the old market advice: buy low and sell high. With stock prices falling for now, and volatility up, the low is covered. The key is finding the stocks that are primed to gain when the bulls start running again. Wall Street’s analyst corps know this, and they are not shying away from recommending stocks that may have hit bottom. Using TipRanks database, we pinpointed two such stocks. Each is down significantly, but each also has enough upside potential to warrant a Buy rating. TechnipFMC Plc (FTI) We’ll start in the hydrocarbon sector, where TechnipFMC operates two divisions in the oil and gas business: subsea, and surface. The company’s projects, until recently, included oil and gas exploration and extraction, rig and platform operations, crude oil refining, petrochemical (ethylene, benzene, naphtha, hydrogen) production, and both on- and offshore liquified natural gas (LNG) plants. Earlier this month, the petrochemical and LNG operations were spun off as Technip Energy, a separate independently traded company. TechnipFMC retains the subsea and surface hydrocarbon activities, allowing the company to better focus its efforts. TechnipFMC may need that focus, as the company has had a difficult time gaining traction in the stock markets. Like most of its peers, TechnipFMC saw share value fall steeply last winter at the height of the coronavirus crisis, but since then the stock has only regained about half of the losses. Over the past 12 months, shares of FTI are down 53%. Q4 results are due out today, after market close, and should shed more light on the company’s full-year performance. The company has reported quarterly earnings in 2020 that are in-line with the previous year’s results. The second quarter showed a year-over-year loss; Q1 and Q3 both showed yoy gains. Covering FTI for JPMorgan, analyst Sean Meakim writes, “Since the spin-off of Technip Energies was placed back in motion on 1/7, after outperforming considerably in the first days, FTI shares are now down… With newfound visibility to an exit from “spin purgatory”, investors are giving FTI another look with some still taking a “wait and see” approach until post-spin... We view the completion of the spin as a re-rating opportunity… allowing for broader investor participation. Monetization of TechnipFMC’s stake in Technip Energies helps the balance sheet and provides optionality on capital allocation.” To this end, Meakim rates FTI an Overweight (i.e. Buy) and his $20 price target suggests the stock has room to more than double in the year ahead, with a 172% upside potential. (To watch Meakim’s track record, click here) Overall, there are 13 recent reviews on FTI, breaking down 8 to 5 in favor of Buy versus Hold. This makes the analyst consensus rating a Moderate Buy, and suggests that Wall Street generally sees opportunity here. Shares are priced at $7.35, and the $12.18 average price target implies a bullish upside of ~65% over the next 12 months. (See FTI stock analysis on TipRanks) CoreCivic, Inc. (CXW) Next up, CoreCivic, is a for-profit provider of detention facilities for law enforcement agencies, primarily the US government. The company owns and operates 65 prisons and detention centers with a total capacity of 90,000 inmates, located in 19 states plus DC. Effective on January 1 of this year, the company completed its switch from an REIT to a taxable C-corporation. The move was made without fanfare, and the company reported its Q4 and full-year 2020 results – which covers the preparation period for the switch – earlier this month. CXW showed a top line of $1.91 billion for the ‘corona year’ of 2020, a small drop (3%) from the $1.98 billion reported in 2019. Full-year earnings came in at 45 cents per share. During the fourth quarter, the company reported paying off some $125 million of its long-term debt; CoreCivic’s current long-term liabilities are listed as $2.3 billion. The company showed liquid assets on hand at the end of 2020 as $113 million in cash, plus $566 million in available credit. The heavy debt load may help explain the company’s share performance, even as revenues and earnings remain positive. The stock is down 50% in the past 12 months, having never really recovered from share price losses incurred in the corona panic last winter. 5-star analyst Joe Gomes, of Noble Capital, covers CoreCivic, and remains sanguine on the stock despite its apparent weaknesses. “We view the fourth quarter as continuation a trend, one across the last three quarters of 2020. In spite of COVID, the large reduction in detainees, the reduction in normal operations of the court system, and other impacts, CoreCivic posted relatively flat revenue and sequential adjusted EPS growth. We believe this illustrates the strength of the Company's operating model,” Gomes noted. In line with his optimistic approach, Gomes keeps his Outperform (i.e. Buy) rating and $15 price target as is. This target puts the upside potential at 97%. (To watch Gomes’ track record, click here) Some stocks fly under the radar, and CXW is one of those. Gomes' is the only recent analyst review of this company, and it is decidedly positive. (See CXW stock analysis on TipRanks) To find good ideas for beaten-down 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) -- Exxon Mobil Corp. erased almost every drop of oil-sands crude from its books in a sweeping revision of worldwide reserves to depths never before seen in the company’s modern history.Exxon counted the equivalent of 15.2 billion barrels of reserves as of Dec. 31, down from 22.44 billion a year earlier, according to a regulatory filing on Wednesday. The company’s reserves of the dense, heavy crude extracted from Western Canada’s sandy bogs dropped by 98%.In practical terms, the revision clipped Exxon’s future growth prospects until oil prices rise, costs slide or technological advances make it profitable to drill those fields. Exxon has enough reserves to sustain current production levels for 11 years, down from 15.5 years a year ago, based on Bloomberg calculations.The pandemic-driven price crash that rocked global energy markets was the main driver of Exxon’s reserve downgrade, along with internal budget cuts that took out a significant portion of its U.S. shale assets. The oil sands have historically been among the company’s higher-cost operations, making them more vulnerable to removal when oil prices foundered.Price SensitiveThe reserves accounting doesn’t mean Exxon is closing up shop or walking away from Canada because the company can bring them back onto its ledger as crude prices rise.“Among the factors that could result in portions of these amounts being recognized again as proved reserves at some point in the future are a recovery in the SEC price basis, cost reductions, operating efficiencies, and increases in planned capital spending,” Exxon said in the filing.The blow to future production potential comes just weeks after Exxon posted its first annual loss in at least four decades. Exxon shares were little changed at $56.85 in after-hours trading and have advanced 38% this year.The Wall Street Journal reported last month that Exxon was being investigated by the U.S. Securities and Exchange Commission for allegedly overvaluing a key asset in the Permian Basin. Exxon has said the allegations are demonstrably false.CEO’s PrioritiesExxon previously flagged that low prices could wipe as much as one-fifth of its oil and gas reserves from its books but steep cuts in drilling expenditures also imperil the assets its able to keep on the books.Chief Executive Officer Darren Woods has prioritized high-return projects such as offshore oil in Guyana, shale in the Permian Basin as well as chemical and gas operations along the Gulf Coast in order to defend the company’s dividend. This year’s rally in oil prices will help bolster Exxon’s cash generation, which in recent quarters has failed to cover both its capital spending and dividend, leading to an increase in debt to almost $70 billion.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) -- Novo Integrated Sciences Inc., a stock controlled by a family trust tied to its chief executive, surged as much as 276% on Wednesday, a day after it switched trading to the Nasdaq.“The uplist to the Nasdaq Capital Market creates the opportunity for the company to have more visibility from a much broader pool of investors and, in turn, increased liquidity,” Robert Mattacchione, the company’s CEO, said in a statement earlier this week.Mentions of the penny stock picked up steam on Twitter and more than 3 million shares traded hands in the first 15 minutes of trading. The stock had climbed as high as $42 in the premarket after closing at $3.99 on Tuesday. Novo’s largest holder, the Mattacchione family trust’s ALMC-ASAP Holdings, had a 54% stake as of Feb. 19, according to Bloomberg data.Novo was formed in 2017 by the merger of Turbine Truck Engines, an over-the-counter-traded clean energy technology company, and Canadian clinic operator Novo Healthnet Ltd. Stocks with a low amount of tradeable shares, in Novo’s case about 5.5 million, can be particularly volatile and are often the target of daytraders.Novo director Robert Oliva picked up more than 9,000 shares earlier this week at $4.31 to $4.45 each, according to a filing.(Updates share moves throughout, adds chart.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Robinhood Markets Chief Executive Officer Vlad Tenev went into his interview with Dave Portnoy looking forward to discussing Bulgarian pizza. Within the first few minutes of their chat, he was called a “rat” by the brash Barstool Sports founder.The insults continued throughout their 40-minute livestreamed discussion on Tuesday night. Portnoy played an edited video that depicted Tenev as a clown, told him that everyone watching “hates your guts” and branded the CEO’s hairstyle at a government hearing last week as “ridiculous.”The source of the acrimony was Robinhood’s decision to curb trading last month during the mania over “meme” stocks such as GameStop Corp. Portnoy, a cult figure for individual investors who follow the mantra that “stocks only go up,” has previously said that he lost about $700,000 after selling his “meme” stock holdings during the market slide that followed Robinhood’s clampdown.The brokerage’s move was a precautionary measure that was necessary, Tenev told Portnoy on Tuesday. “We very likely could have faced a liquidity issue in the future,” he said. “We had to act to protect the firm and our customers.”Portnoy pressed the CEO on why the company failed to allow customers to freely trade and communicate the issues it was facing more clearly. He also asked why Robinhood hadn’t provided more transparency on its liquidity situation.“The L word is a big thing in financial services,” Tenev said. “‘Liquidity issue’ means you can’t meet your capital requirements or your deposit requirements, and you’re essentially dead. That was not the case with Robinhood. We met our capital requirements, we met our deposit requirements.”Those explanations seemed to do little to assuage Portnoy, who has accused Tenev of siding with Wall Street and against individual investors.“You know everybody watching this hates your guts right,” Portnoy said Tuesday.“That’s what I hear,” Tenev responded.Portnoy told Tenev that the no-fee brokerage turned its back to its customers and “killed the little guy” by causing stocks to crater. When he pressed Tenev on why Robinhood didn’t also restrict the selling of shares to freeze the market, the executive responded it was to protect long positions.Tenev said the decision to restrict trading was to meet deposit requirements for clearinghouses and once again that there was no collusion between Robinhood and any hedge fund or market maker. He told Portnoy that until recently he hadn’t heard of Melvin Capital Management, which lost billions closing out its GameStop position and reducing other wagers.Still, the brokerage was witnessing “incredible growth” because of the hype. It was the first time that something going viral on social media transplanted over to the financial markets, and the structure of the system has to be improved to prevent any future scandals, Tenev said.By the end of the interview, the Robinhood CEO, who was wearing a hat that read “Taco Tuesday” on it, said he only wore the hat to cover his hair because Portnoy had made fun of it during the GameStop House Financial Services hearing last week.“Vlad, your hair, it looks normal here,” Portnoy said. “It looked like, your scalp, somebody took a wig and put it on, I mean it was a ridiculous look.”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.
Is the bull market about to take a long breather? Not according to Goldman Sachs. In fact, the firm believes the bull market has a long way to run yet; Chief global equity strategist Peter Oppenheimer recently noted that the market was moving from a “’Hope’ phase to a longer ‘Growth’ phase.” The firm’s economists are expecting the economy to sprout higher by 6.8% in 2021 and believe that by the end of the year the unemployment rate could drop to 4.1%. And there’s enough evidence to suggest the economy is on the mend. Although unemployment rates remain high, claims have dropped since early January and retail sales have bounced back strongly. The drop in Covid-19 cases and a growing vaccinated population are an additional boost. So is the massive federal stimulus. “We’re extremely likely to get a very high growth rate,” Goldman’s chief economist Jan Hatzius added. “Whether it’s a boom or not, I do think it’s a V-shaped recovery.” With this in mind, the firm’s analysts have pinpointed 3 stocks they think are primed to roar ahead. Using the TipRanks database, we can see what the rest of the Street makes of Goldman’s choices. As it happens, these names are all Buy-rated by the analyst consensus as well. Patria Investments (PAX) The first Goldman’s choice is Patria Investments. This Brazilian asset manager is one of the leading investment companies in Latin American, having raised more than $8.7 billion in investment capital since 2015. As of the end of 3Q20, the last for which data is available, the company had total assets under management of $12.7 billion, put into 16 active funds. The direct investment portfolio included more than 55 companies. Last month, Patria made its debut in the US equity markets, listing on the NASDAQ as PAX after its January 22 IPO. The plan had been to raise $400 million in new capital; in the event, the company brought in almost $512 million. The 30.1 million shares put on the market were 3.4 million more than had been called for, and adding to the success, they sold at $17, over the $14 to $16 range expected. After the IPO, Patria was valued at $2.3 billion and that market cap has now reached $2.77 billion. The company has caught the eye of Goldman analyst Tito Labarta, who wrote, “We think Patria is well positioned to benefit from the ongoing “equitization” trends in Brazil, given historically low interest rates as investors search for higher yields… We think Patria is well positioned to grow its AUM at a healthy pace of c.20% per year over the next three years… while distributable earnings (DE) can grow 42% per year, as the company realizes performance fees from closed-end funds over the next few years.” In line with that upbeat outlook, Labarta rates the stock a Buy, and his $28 price target indicates his confidence in 35% upside growth for the next year. (To watch Labarta’s track record, click here) Patria has attracted 5 reviews already in its short time as a publicly traded company, and they break down 3 to 2 in favor of Buy versus Hold. The shares are priced at $20.74 and their $26.60 average price target implies a 12-month upside of ~23%. (See PAX stock analysis on TipRanks) Constellation Brands (STZ) Some companies need an extensive introduction, some we are familiar with. Constellation Brands is in the latter category. The company is the largest beer importer in the US, measured by sales, and consistently among the top three when measured by market share. Constellation’s portfolio includes more than 100 brands of beer, wine, and spirits, and is best known as the US owner of Mexico’s Corona and Modelo beers. In its last reported quarter, 3Q20, STZ showed solid yearly gains. Specifically, the company posted $2.44 billion at the top line, for a 22% year-over-year gain. Non-GAAP EPS was up, too, at $3.09 per share, beating consensus estimates of $2.39. It was the fourth quarter in a row that STZ beat the expectations. The company has gotten into a small spot of trouble, however, around Corona (the beer, not the virus). A lawsuit was filed by Grupo Modelo, the Mexican branch of international beverage giant AB InBev against Constellation, alleging violation of an agreement over use of the Corona brand name. Constellation purchased the US rights to that name in 2013, when AB InBev acquired Grupo Modelo, maker of Corona beer. In 2020, STZ launched Corona Hard Seltzer, and ABI now alleges that STZ’s ownership of the name applies only to beer. Constellation has hit back with filings claiming that it owns all exclusive rights to the Corona brand in the US. Bonnie Herzog, Goldman’s beverage industry expert, notes that Constellation has already won an arbitration session on the Corona issue (after all, Corona Hard Seltzer was launched in February 2020). “While we take no view on the outcome of this litigation, we believe the selloff in STZ’s stock is overdone and has provided a nice entry point especially considering how small Corona Hard Seltzer is to STZ’s total portfolio today,” Herzog noted. "We continue to expect the stock to re-rate higher over the long term driven by faster & more profitable growth." Herzog continues to see STZ as a solid portfolio addition, and maintains her Buy rating and $275 price target. At current levels, this implies ~23% upside on the one-year time frame. (To watch Herzog’s track record, click here) Wall Street generally likes STZ, as shown by the 10 Buy-side reviews compared to just 5 Holds. This gives the stock a Moderate Buy analyst consensus rating. Shares are priced at $223.93, and their $253.20 average price target suggests room for 13% growth. (See STZ stock analysis on TipRanks) Kornit Digital (KRNT) Kornit Digital inhabits an interesting niche in the tech and manufacturing worlds, producing high-speed, industrial-grade, inkjet printers, along with pigmented ink and chemical products. The company’s business customer base comes from the apparel, garment, and textile industries. Textiles make up a huge segment of the world’s economy, finding use in a wide range of sectors and appearing pretty much everywhere we go – so Kornit has no lack of customers, and even the corona crisis could not derail its business for long. This was apparent from the company’s share performance and quarterly finances over the past year. The share price has appreciated 180% in the last 12 months, while revenues, after a dip in Q1:20, have shown sequential gains in every quarter since and year-over-year gains in Q3 and Q4. The fourth quarter results included $72.3 million at the top line, a 45% year-over-year gain. The company beat the estimates on the bottom-line with Non-GAAP EPS of $0.24 coming in $0.02 above the Street’s forecast. Goldman’s Rod Hall attributes Kornit’s strength to “broad-based demand outperformance as the company continues to see tailwinds from the shift to digital printing and e-commerce.” The analyst goes on to note unexpected effects of the COVID pandemic on Kornit’s business: “While we had originally believed that current growth might be unsustainable as we exit COVID we are increasingly convinced that COVID has actually accelerated adoption of personalized fashion enabling technology. We also believe COVID might have driven companies to adopt this technology to reduce physical inventory.” Everything that KRNT has going for it convinced Hall to upgrade the stock from Neutral to Buy. In addition to the call, the analyst boosted his price target from $83 to $135, suggesting 17% upside potential. (To watch Hall’s track record, click here) Kornit holds a unanimous Strong Buy rating from the analyst consensus, having received 6 Buy reviews recently. This stock has appreciated strongly in recent weeks, pushing the share price almost up to the average price target of $124. This leaves room for ~8% upside from the current trading price of $115. (See KRNT 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) -- JPMorgan Chase & Co. is shutting its private banking business in Mexico, according to people with knowledge of the matter, as wealthy clients in some of Latin America’s largest economies move their money to international financial capitals.The biggest U.S. bank signed an agreement to refer local business to BBVA Mexico, the local unit of Banco Bilbao Vizcaya Argentaria SA, said one of the people. Still, the New York-based firm will continue to serve clients from Mexico through its platform outside of the country, one of the people said.The decision to discontinue local wealth management services in Latin America’s second-biggest economy follows a similar move in Brazil last summer in which JPMorgan wound down its local private-banking business and referred Brazilian wealth clients to Banco Bradesco SA.Wealthy families across Latin America have been seeking out money managers in world capitals in recent years, bankers said. In Mexico, the populist policies of President Andres Manuel Lopez Obrador, including a tax crackdown, have pushed some families to transfer more wealth abroad. Offshore accounts represent the majority of JPMorgan’s private-banking business in Mexico, one of the people said.JPMorgan will continue to maintain other businesses in Mexico, including investment banking, trading and treasury services. A company spokesman declined to comment.JPMorgan is the biggest wholesale bank in Mexico among the global giants without retail operations, according to data from banking regulator CNBV. The firm’s other business lines have been growing, one of the people said, and last year the bank increased its capital by $8 billion pesos ($393 million) to 19.5 billion pesos, data show.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.