Finance News
Justin Paget/DigitalVision via Getty Images In our January earnings review from Two Harbors Investment Corp. (NYSE:TWO) we rated it a Hold, despite the earnings leaving something to be desired. In Q4, interest rates stabilizing were seen as a benefit for the company, vs. rates that were falling and moving rapidly. The yield curve had been…
Isaac Lee/iStock Editorial via Getty Images Investment Thesis U-Haul’s (NYSE:UHAL) substantial rise due to the pandemic has stalled and reversed, but the company has continued the extraordinary spending in CapEx, resulting in a historical low of its free cash flow. With a weaker demand picture emerging and less room for other strategic spending, the company…
bluecinema/E+ via Getty Images Elevator Pitch I have a Buy rating for Sonic Automotive (NYSE:SAH) stock. I previously wrote about the company’s near-term prospects and capital allocation in my Nov. 14, 2023 update. This article evaluates the growth runway for SAH’s pre-owned vehicle business (EchoPark) and the expectations for its future share buybacks. My decision…
Dragon Claws/iStock via Getty Images TLT, inflation and fiscal sustainability The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) provides investors with exposure to Treasury bonds with extended duration. As pointed out by the TLT ETF’s description (the emphases were added by me), it “seeks to track the investment results of an index composed of U.S….
Vernon Wiley/DigitalVision via Getty Images As explained in Prof. Robert Jarrow’s book, cited below, forward rates contain a risk premium above and beyond the market’s expectations for the 3-month forward rate. We document the size of that risk premium in this graph, which shows the zero-coupon yield curve implied by current Treasury prices compared with…
HNI Corporation (NYSE:HNI) Q1 2024 Earnings Call Transcript April 29, 2024 11:00 AM ET Thompson Research Group Matt McCall – VP, IR and Corporate DevelopmentJeff Lorenger – Chairman, President and CEOMarshall Bridges – SVP and CFO Conference Call Participants Reuben Garner – The Benchmark CompanyGreg Burns – Sidoti & CompanyBudd Bugatch – Water Tower ResearchKathryn…
PT GoTo Gojek Tokopedia Tbk (OTCPK:GTOFF) Q1 2024 Earnings Conference Call April 29, 2024 8:00 AM ET Company Participants Reggy Susanto – Head of Investor RelationsPatrick Walujo – President, Director & Chief Executive OfficerWei-Jye Jacky Lo – Chief Financial OfficerMelissa Siska Juminto – President of E-commerceThomas Husted – Chief Operating OfficerCatherine Hindra Sutjahyo – President…
vzphotos Shares of AbbVie Inc. (NYSE:ABBV) closed nearly 5% lower after the first quarter earnings announcement last week, despite the company beating revenue and EPS expectations. Apparently, investors are worried about the erosion of Humira and the most recent move by Cigna which will offer a biosimilar version of Humira with no out-of-pocket cost to…
Kapook2981/iStock via Getty Images Southeast Asian stocks have, perhaps rightly, been repriced lower following a series of ‘sticky’ inflation reports out of the US and globally. The rationale being that this not only raises the risk of delayed rate cuts by the Fed but, by virtue of the Fed-dependent reaction functions of Asian central banks,…
Samuel Corum The FOMC meeting in May may prove to be a pivot point yet again for a Fed that has struggled to find its way over the last few months and, for a time, appeared to lose control of the market and its battle against inflation. However, with three hot CPI prints in a…
sierrarat/iStock Unreleased via Getty Images Textron (NYSE:TXT) recently provided its first quarter earnings, and TXT stock dropped to a three-month low in response. In this report, I will analyze the results to detect whether the stock price drop was warranted and determine whether I need to revise my buy rating. Textron Outperformed Until Its Q1…
View of Frenchman Mountain and Las Vegas neighbourhood simonkr Red Rock Resorts, Inc. (NASDAQ:RRR) earnings release: May 7th. EPSE: $0.29 We expect a beat ~$0.7 due to ramp of new Durango if early numbers are delivered The Las Vegas local market’s strength has been overlooked by many investors in the gaming sector, who see its…
Adam Gault All eleven sectors of the S&P 500 (SP500) finished higher last week to end a three-week losing streak for the index that was instigated by fears of stalled progress on inflation and a “higher-for-longer” interest rate policy from the Federal Reserve. Reigniting investor enthusiasm were earnings reports from some of our largest technology…
POSCO Holdings Inc. (NYSE:PKX) Q1 2024 Earnings Call Transcript April 25, 2024 2:00 AM ET Company Participants Ki-Seop Jeong – CSOLee Kyung-seop – Chief of LiB Materials BusinessHan Young-ah – Head of FinanceKim Sang-hoon – Managing Director Conference Call Participants Park Hyun-Wook – Hyundai SecuritiesKim Yoon Sang – HI Investment SecuritiesEugene Lee – Eugene Securities…
ChristianChan SPHB strategy Invesco S&P 500 High Beta ETF (NYSEARCA:SPHB) started investing operations on 05/05/2011 and tracks the S&P 500 High Beta Index. It has 99 holdings, an expense ratio of 0.25% and a 30-day SEC yield of 1.19%. Distributions are paid quarterly. As described by Invesco in the prospectus, the fund selects… approximately 100…
PM Images The PIMCO High Income Fund (NYSE:PHK) is a closed-end fund that income-focused investors can employ as a means of achieving their goals. This seems only logical given that the name of the fund strongly implies that its intent is to provide its shareholders with a very high level of current income. The fund…
Hathairat Dokbunnark/iStock via Getty Images Introduction I have been following Ardagh Metal Packaging (NYSE:AMBP) since the company went public through a spinoff from the Ardagh Group, which remains the company’s majority shareholder. Shareholders from day one in AMBP haven’t had a lot of reasons to be too happy yet. Yes, the company pays a handsome…
wolv Thesis CNX Resources Corporation (NYSE:CNX) has a unique strategy, one that emphasizes free cash flow, or FCF. The natural gas producer then allocates much of that FCF to share buybacks and reducing its debt. It’s been a successful strategy, one that has produced Energy sector-leading returns on equity, total capital, and assets, as well…
filadendron Co-authored by Treading Softly In sports, it is important to have a solid defense, but a common phrase goes, “The best defense is a good offense.” The concept behind this phrase is that aggressively scoring points puts pressure on the opposing team to keep up. This gives you two ways to win – either…
luismmolina Shares of European T-Cell receptor therapy concern Immatics N.V. (NASDAQ:IMTX) have traded predominantly below their initial trade on the NASDAQ in 2020 due to a dearth of clinical data. That drought will end in 2024 with readouts anticipated on all four clinical candidates, as well as the expected initiation of a pivotal trial for…
eyesfoto Investment Thesis Frontier Group Holdings (NASDAQ:ULCC) runs its operations through Frontier Airlines, offering an ultra-low-cost air transportation service. The strong point of this company is its unique business model. I believe this company has potential for growth in the future due to several reasons. Firstly, Frontier places a strong emphasis on customer experience. They…
Luis Alvarez Investment summary My recommendation for O’Reilly Automotive (NASDAQ:ORLY) is a hold rating. While I like the competitive advantages and how the business is well positioned to benefit from the current rate environment, my model suggests a limited upside to the ORLY share price. As such, I am initiating a hold rating until the…
Survey Monday The latest FOMC meeting is up later this week, and most market participants have mixed views on when rate cuts could start. Will investors see any cuts in 2024? · Yes· No Take the survey here and don’t forget to share your thoughts in the WSB comments section. Self-driving push Tesla (TSLA) is…
slobo Listen below or on the go on Apple Podcasts and Spotify Philips (PHG) to pay $1.1B to settle U.S. litigation over recalled sleep apnea devices. (00:26) Turkey in talks with Exxon (XOM) over multibillion dollar LNG supply deal – FT. (01:53) Skydance makes ‘best and final’ offer for Paramount Global (PARA) – Bloomberg. (02:54)…
P_Wei It’s been six months since I last covered California land holding and development company Tejon Ranch (NYSE:TRC). At the time, I had grown somewhat less pessimistic about the firm’s prospects, raising my rating from “sell” to “hold”. Given the persistently higher levels of inflation, some investors are starting to look for inflation hedge securities…
mysondanube Thesis In A Nutshell Starbucks (NASDAQ:SBUX) is set to report earnings for the company’s Q2 2024 quarter on April, 30th, after the market closes; and similar to the Q1 2024, the world’s leading coffee chain is likely to disappoint against consensus estimates. In my opinion, Starbucks has faced a challenging Q1 in 2024, as…
Bosca78 While I never let my personal feelings get in the way of my investment decisions, I do have emotional ties with certain companies. One of those firms happens to be The Timken Company (NYSE:TKR), a business that’s focused on the production and sale of products like engineered bearings and power transmission products. This is…
batuhan toker The ProShares Ultra Bloomberg Natural Gas ETF (NYSEARCA:BOIL) is a leveraged ETF designed to produce twice the daily return of the Bloomberg Natural Gas Subindex. I’ve written about the ProShares Ultra Bloomberg Natural Gas ETF twice in the past year, rating it a Strong Sell late last July in “BOIL: A Deeply Flawed…
Ryan Fletcher/iStock Editorial via Getty Images Textron Inc. (NYSE:TXT) is a conglomerate, leading in defense, aviation, industrial products and more. This company owns several well-known brands such as Bell, and Cessna, which can be seen below. Textron makes everything from planes to golf carts, to helicopters to snowmobiles. I have followed this company off and…
Kobus Louw By Kristin Cejda With a growing deal pipeline, opportunities in investment grade credit are growing. Mergers and acquisitions have been a key theme for investment grade credit thus far in 2024. Companies have mandates to grow, cash to invest, attractive equity valuations to use as currency, and strong balance sheets to use—setting up…
PM Images Overview In an environment of higher interest rates, I believe that Business Development Companies are the right place to be! BDCs are a great way to offset the higher rates with a higher level of dividend income, since they direct profit from debt investments. Higher rates translate to higher interest you can collect…
ismagilov Shares of Loar Holdings (NYSE:LOAR) have been a huge success as the company went public. After shares doubled from the preliminary offering range, already demanding valuations have become outrageously high as investors seem to hope that Loar is becoming a second TransDigm in the making. I am very cautious to get involved here, on…
This article was written by Follow Michael A. Gayed is portfolio manager, and author of five award-winning research papers on market anomalies and investing. He has a BS with a double major in Finance & Management from NYU Stern School of Business, and is a CFA Charterholder. Michael runs the investing group The Lead-Lag Report,…
Stewart Sutton Danaos (NYSE:DAC) is a Greek shipping company with 68 owned and/or operated containerships, mostly transiting goods to Europe, Asia and Australia. I wrote two bullish articles on the company last year (June) (October), starting at a share price of $60. Over the last 10 months, DAC has performed well for shareholders with a…
sommart/iStock via Getty Images Introduction I recently read a blurb in an AAII Journal article that referenced research that Lump Sum (LS) investing is better than Dollar Cost Averaging (DCA). I believe I eventually found the referenced piece published by Vanguard. In the research, the authors state, “Lump-sum investment strategies beat common cost averaging investment…
LD Magnificent 7, is now the Super 6, and on the way to the Fantastic 5, then there were 4 We’ve had a sideways price action for the S&P 500 for months, and the first few weeks of April we slid into a mini-correction. More specifically, according to Gabriella Santos, JPM Asset Management CIO, on…
PeopleImages Introduction One of my most successful investments in recent years is Carlisle Companies (NYSE:CSL), a stock I bought at $211 in May of last year. Since then, shares have appreciated 90%. Including dividends, CSL shares have returned 117% over the past three years, beating the S&P 500 by roughly 90 points. Data by YCharts…
bankerwin Welcome to another installment of our Preferreds Market Weekly Review, where we discuss preferred stock and baby bond market activity from both the bottom-up, highlighting individual news and events, as well as top-down, providing an overview of the broader market. We also try to add some historical context as well as relevant themes that…
tum3123 Stocks peaked about a month ago. Since late March, the S&P 500 has been down about 3%. Nothing to write home about in terms of a market correction, but it’s generally red across the board. One area that has been a quiet outperformer lately, though, is emerging markets. In a plot twist, EM has…
Tippapatt Introduction & Investment Thesis Doximity (NYSE:DOCS) is a cloud platform for US medical professionals that has severely underperformed the S&P 500 and Nasdaq 100 YTD. I initiated a “hold” rating on the stock on January 16, and it predicated on my belief that the company was seeing its revenue growth slow, despite displaying financial…
CHUNYIP WONG/iStock via Getty Images Introduction After discussing Warehouses De Pauw (OTCPK:WDPSF) here on Seeking Alpha, I wanted to have a closer look at other European REITs that are flying under the radar. Montea Comm. VA (OTCPK:MONSF) also is a Belgian REIT focusing on warehouse and logistics properties, which are predominantly located in Belgium and…
zhnger iShares MSCI France ETF (NYSEARCA:EWQ) is a popular way for investors to own some of the leading companies in France and get diversification and liquidity at the same time. This ETF has about $638 million in assets, and it has an expense ratio of 0.50%. It holds about 63 positions and has an SEC…
Userba011d64_201 In September 2023, I circulated an article on the Global X Russell 2000 Covered Call ETF (NYSEARCA:RYLD), which applies a covered call strategy against Russell 2000 Index by going long Vanguard Russell 2000 ETF (VTWO) and writing covered calls against the index – VTWO. The thesis was simple and bearish, as the underlying exposure…
pidjoe Thesis The iron boot of the Fed has dropped on dividend-paying companies, with interest rates hitting REITs and mREITs especially hard. Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) has been beaten down especially hard and now yields above 6%. However, the dividend is secure and growing steadily, supported by growing cash flows and operational resilience,…
sankai By Brian Angerame, Jeffrey Bailin, CFA, Aram Green & Matthew Lilling, CFA SMID Playing Catch Up in Growth Rally Market Overview Equity markets rallied in the first quarter as resilient corporate earnings, continued enthusiasm over artificial intelligence (‘AI’) and the prospect of interest rate cuts spurred performance that surprised even the most optimistic investors….
Galeanu Mihai Meta Platforms (NASDAQ:META) slumped following a Q1’24 earnings report where the company projected a new round of spending on AI. The stock rebounded off the 2022 lows below $100 due in part to controlling spending and ushering in a year of efficiency. My investment thesis is Bullish on the stock following this dip,…
FeelPic By Grace Su & Jean Yu, CFA, PhD Improvers Outpace Broader Value Gains Market Overview Global markets generated positive returns in the first quarter driven by optimism over an economic soft landing, improving economic data, the prospect of rate cuts in the U.S. and Europe and structural economic and corporate reforms in Japan. The…
Tsuji On our last coverage of Altria Group, Inc. (NYSE:MO) we pointed out the bull case was being undermined by a bunch of quitters. Investors were too drunk on the dividend hike to care, and the stock glided higher. Seeking Alpha Q1-2024 results came out and gave everyone another opportunity to focus on the facts….
Justin Sullivan They say in thirty years, a burger and fries could cost $16, a vacation $12,400, and a basic car $65,000… No problem. You’ll eat in. You won’t drive. And you won’t go anywhere. TIAA-CREF advertisement (placed in The New Yorker in 1994). Since the Fed began raising interest rates in 2022, traders have…
monsitj Investment Thesis Fortive Corporation (NYSE:FTV) should continue to deliver good revenue and margin growth moving forward. The company’s revenue growth should benefit from continued strength in its Intelligent Operating Solutions and Advanced Healthcare Solutions segments. While the Precision Technologies segment has seen some weakness over the last few quarters, some green shoots like stabilizing…