Paper stocks – Forum Della Magia Mon, 07 Jun 2021 05:52:16 +0000 en-US hourly 1 Paper stocks – Forum Della Magia 32 32 A guide for the crypto-curious Sun, 06 Jun 2021 12:00:09 +0000

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Personal finances can be confusing and investing in stocks can be intimidating for the uninitiated. Trying to understand buy points, average dollar costs, cut and grip patterns of stock prices, and other elements of stock marketing investing – not to mention the various clues that reveal trends in the stock market. market – often requires a lot of study or expert advice.

See: How does cryptocurrency work – and is it safe?
Find: Breaking the Basics: Cryptocurrency

And then, investing in cryptocurrency bursts onto the scene with language of its own, largely driven by retail equity investors, millennials, and social media. Some of the jargon also applies to stocks, as it was borrowed from memes stock investors and was cordially traded on the Reddit / WallStreetBets sub-thread during the GameStop stock market frenzy.

Here’s your guide to crypto lingo, so whether you choose to invest or not, you know what Elon Musk means when he throws his fist to the sky on “Saturday Night Live” and says, “To the moon! “

Diamond needles – When a crypto or stock investor has “diamond hands”, it means that he will keep his coins or stocks even if the value goes down. On March 19, as Bitcoin fell from over $ 45,500 per coin to under $ 40,000, Tesla TechnoKing Elon Musk tweeted “Tesla a” with emoji for “diamond” and “hands.” He attributed the statement to Tesla’s “Master of Coin”.

Paper hands – On the other hand, someone with paper hands can sell stocks or coins too early, thus losing unrealized profits. The analogy comes from poker, where someone can “fold” or quit the game if they think they are not going to win.

HODL – Pronounced Ha-dill (rhymes with pattern), HODL means someone who has no intention of selling their crypto or stock. The term originated in a Bitcoin forum in 2013 when someone misspelled the word “hold”, stating “I AM HODLING”. The word also applies to memes stocks.

Whale – A whale describes someone who owns a large percentage of a specific crypto. Investopedia writes that the top 20% of bitcoin holders own more than 80% of bitcoins. When these companies choose to sell coins, it can affect the market more than the single stocks of most investors. Surprisingly, Tesla is on the verge of being considered a whale, and the electric vehicle maker doesn’t even own the most shares of a state-owned company, according to Fortune. It seems only Musk’s tweets are shifting the crypto value.

See: 4 best places to buy and sell cryptocurrency
Find: 10 cheap cryptocurrencies to discover

To the moon – It is difficult to trace the origins of the expression “to the moon”, but the meaning is self-explanatory. Just like the landing of astronauts on the moon in 1969 (and even today …) was a questionable proposition with high stakes for success, a stock or crypto that goes “to the moon” simply means that its price will rise to make untold profits for investors.

When Lambo – Similar to “To the Moon”, Lambo (short for luxury car Lambhorghini) appears when investors ask when a cryptocurrency will be highly profitable for investors, allowing them to cash it in for the car of their dreams.

Moon – When a stock or crypto is declared “mooning”, experts believe it has reached its peak. Sure, those who HODL could get caught losing money if they decide to sell in the future, but those who sell at the highest level could “land a Lambo on the moon.”

Bag holder – If crypto or a meme stock goes in the opposite direction, however, anyone who remains in possession after the point of sale is considered a “bag holder,” likely to lose money if they sell their own. active.

See: Elon Musk asks: Should Tesla accept Dogecoin? How much would you need?
Find: How to invest in cryptocurrency: what you need to know before investing

Pump and empty – Pump and Dump refers to investors who attempt to illegally increase the value of a stock or crypto only to sell when it peaks. Previously relegated to small-cap, easy-to-manipulate stocks, investors have also started to do so with crypto.

Buy the dip – When a stock that is expected to rise in price suddenly drops, some investors advise people to “buy down”. Wednesday’s crypto crash led to a flurry of “buy the down” memes.

The musk effect – This newly coined phrase describes the billionaire Elon Musk’s ability to shake the market with just one tweet, as it did on Wednesday, hinting that Tesla would not sell its stake in Bitcoin, which helped the cryptocurrency regain some earlier losses.

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This article originally appeared on Cryptocurrency Jargon: A Guide for the Crypto-Curious

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Leaf Mobile (TSE: LEAF) posts healthy gains, but not all good news Sat, 29 May 2021 14:27:32 +0000

Although Leaf Mobile Inc (TSE: LEAF) recently posted strong earnings, the stock has not reacted significantly. We decided to take a closer look and think investors might be concerned about several of the factors of concern that we have discovered.

Check out our latest review for Leaf Mobile

TSX: LEAF Profits and Revenue History May 29, 2021

A closer look at Leaf Mobile’s revenue

Many investors haven’t heard of cash flow adjustment ratio, but it’s actually a useful measure of the extent to which a company’s profit is supported by Free Cash Flow (FCF) over a given period. The accrual ratio subtracts the FCF from the profit for a given period and divides the profit by the company’s average operating assets over that period. You might think of the Cash Flow Regulating Ratio as the “Profit Ratio without FCF”.

This means that a negative accrual ratio is a good thing, because it shows that the company is generating more free cash flow than its profits suggest. While a regularization ratio greater than zero is of little concern, we think it’s worth noting when a company has a relatively high regularization ratio. To quote an article published in 2014 by Lewellen and Resutek, “Companies with higher accrued liabilities tend to be less profitable in the future.”

Leaf Mobile has an accruals ratio of 0.81 for the year through March 2021. Ergo, its free cash flow is significantly lower than its profit. Typically, this bodes poorly for future profitability. Namely, it produced free cash flow of C $ 8.1 million during the period, well below its reported profit of C $ 18.0 million. We note, however, that Leaf Mobile has increased its free cash flow over the past year. However, that is not all to consider. The accruals ratio reflects, at least in part, the impact of unusual items on the statutory result.

To note: we always recommend that investors check the strength of their balance sheets. Click here to access our analysis of Leaf Mobile’s balance sheet.

The impact of unusual items on profit

Considering the build-up ratio, it’s not too surprising that Leaf Mobile’s earnings have been boosted by unusual items worth C $ 13 million over the past twelve months. While it’s always nice to have higher profits, a large contribution of unusual items sometimes dampens our enthusiasm. When we analyzed the numbers of thousands of publicly traded companies, we found that an increase in unusual items in any given year is often do not repeated the following year. And that’s as you might expect, given that these improvements are described as “unusual”. We can see that Leaf Mobile’s positive unusual items were quite large compared to its profit for the year through March 2021. As a result, we can assume that the unusual items make its statutory profit much higher than it is. would not be otherwise.

Our take on Leaf Mobile’s profit performance

In summary, Leaf Mobile received a good boost to take advantage of unusual items, but could not match its paper profit with free cash flow. For all the reasons discussed above, we believe that at a glance, Leaf Mobile’s statutory earnings could be considered low quality, as they are likely to give investors an overly positive impression of the company. . So while the quality of income is important, it is just as important to consider the risks Leaf Mobile faces at this point. When we did our research we found 2 warning signs for Leaf Mobile (1 is a bit rude!) Which in our opinion deserves your full attention.

Our review of Leaf Mobile focused on some factors that can make its earnings better than they are. And, on that basis, we are somewhat skeptical. But there is always more to be discovered if you are able to focus your mind on the minutiae. For example, many people see a high return on equity as an indication of a favorable business economy, while others like to “follow the money” and look for stocks that insiders are buying. Then you might want to see this free collection of companies offering a high return on equity, or that list of stocks bought by insiders.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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Booming Stock Market Provides Budget Surplus in California Wed, 28 Apr 2021 21:56:01 +0000

In the early days of the pandemic, no one would have turned to the stock market for their escape. From February to the end of March last year, the S&P 500 suffered one of its most severe crashes on record, dropping nearly 34%. But once the federal government started pumping money into the markets and the economy through bond buying programs and stimulus packages, the market started to rebound.

And professional fund managers have continued to buy stocks. Amateur investors, stuck at home, piled up in the market and pushed up stock prices further. After hitting a low in March 2020, the S&P 500 is up nearly 90%, creating nearly $ 17 trillion in gains on paper.

Much of this value has been created by Californian companies. The market value of Apple, based in Cupertino, Calif., Has grown by more than $ 1 trillion in the past year. Alphabet and Facebook’s earnings, combined, created another $ 1 trillion in value. Tesla, based in Palo Alto, Calif., Added more than $ 500 billion.

The surge in market value has created tremendous wealth for executives and workers, including in the tech sector. Executives of large companies usually have pre-set stock sales programs that consistently convert some of their stocks to cash. As they have sold in a rising market over the past year, these gains have been particularly large; in August, Apple chief executive Tim Cook sold more than $ 130 million of its stock.

“When the stock market is doing well, it does very well,” said David Hitchcock, senior analyst on California for bond rating firm S&P Global, of the state’s Wealthy Residents. “And in fact, it’s not just the stock market, but the initial public offerings. Because with Silicon Valley, when entrepreneurs get grants of shares that they exercise or stock options, California does very well. “

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Stocks to Buy: Look for Deep Counterbets in Finance: Ashwini Agarwal Fri, 23 Apr 2021 03:10:00 +0000

Ashwini Agarwal, Co-founder, Ashmore Investment says value investing is never fun, it’s very painful. There are companies in retail, entertainment, travel and tourism, hospitality that will survive and come out stronger because the competition will be weaker. These are the times when you buy those stocks.

What do you think of the recent wave of IPOs that have hit the markets? A number of unconventional names have entered the market playing the global game of digitization. Is there anything in particular that catches your eye?
There are two issues embedded here and let me separate them; one is the demand and supply of paper. Typically, when markets are very strong, the supply of paper increases, and usually market highs are accompanied by a withdrawal of buyers and an increase in substandard quality issues. This is a typical development at the top of the market. This time around, most of the issues are unique. Some of them are in areas that were not open or available in the public investment space. A lot of them are very good companies, very well run with high rates of return, with responsible management in place and so on.

The quality of the issues floated on the stock exchange was very strong and investors exercised judgment. There have been attempts or IPOs that were unsuccessful because investors pulled out because the asking price was too high or the business outlook was unclear.

So yes, the supply of paper has increased and the demand has decreased. At the same time, you have to be a little careful if the IPO price is aggressive and there is no money on the table. But on the other hand, if there are some unique companies with unique opportunities, they can still offer an advantage, but you have to be careful about the prices because I don’t think this is the time to be very cavalier. on ratings. I don’t think we can throw it to the winds.

Like many issues that have happened in the recent past, we have certainly been involved in some of them and I hope these companies will be very successful as they go along. A good quality problem always raises the bar and raises the level of play for other listed companies. It is always a welcome thing in my opinion.

Some of the Covids have hit businesses; airlines, multiplexes and restaurants will not close. Indian hotels, IndiGo are backed by strong groups with strong cash flow. But the markets feel that this is the end of the franchise value and the terminal value and this is how inventory drops. What is your opinion?
It really is a value investing and value investing is never fun, it is very painful. There are companies in retail, entertainment, travel and tourism, hospitality that will survive and come out stronger because the competition will be weaker. These are the times when you buy those stocks. You buy them now knowing that you could see an additional 20% drop before the stock falls and you may have to wait a year to make money. This is the patience that comes with value investing.

Unfortunately, what happens in the short term, the immediate returns or the prospect of immediate losses outweighs the upside potential in the long term and people say what’s the rush? Let the data points emerge and we’ll look at them next. So it’s a very different ball game, it’s very difficult to look past the immediate problems, the immediate risks at hand and focus on the long term. But the crisis is always a good time to buy a good business.

Whenever a strong, solid business goes through a crisis, history tells us that now has been a great time to make a long-term commitment to that investment, but be prepared to see some red ink and be prepared to keep it. . That’s what I would say to investors. It is not something that you should try to negotiate for sure.

What is this pocket of contra value according to you? Nifty is at 14,000. What’s the deep counter bet where the drop could be 15-20%, but three years from now, a rise is coming?
In the financial basket. All of these stocks trade at their book value. Let us leave aside the first three four banks. We will come back to this later. Otherwise, all of the loan space trades at book value to book value. There is a large part of the credit world that will not be able to participate in growth because it does not have the capital. I’m talking about PSU banks banning

and maybe the Bank of Baroda. The growth opportunity is phenomenal for all of these lenders. All of them have climbed the technology curve, most of them have climbed the technology curve, most have the capital to grow. It is an absolutely simple investable place for someone looking for value.

Now the problem is that Bank Nifty or bank stocks as a basket is the preferred playground for short-term speculation and has a high beta. So if you are negative about India you are saying that well India is seeing these Covid cases and foreign investors are going to be scared and the rupee will go down. So, let me find something too short. Here’s a place where there’s liquidity, there’s high beta, and you’re selling it. And that’s what we see.

But from a medium-term perspective, these stocks are very well positioned for growth. Is the only long-term risk that technology can completely disrupt these businesses? We will see how it goes. We will have to see how this plays out as India is also heavily regulated and it is not easy for many fintechs to do exactly what they want.

That risk is there in the back of my mind, and we’re watching it very carefully, but I don’t think it’s a big enough disruption that we’re moving away from the area entirely. Since you said that what is a place you would like to highlight, this is a place.

If you’re a market leader in, say, airlines or a hotel company or even retail chains that are financially strong, you can make long-term commitments to these names in environments like this. This and you will come out on top because now is the time to commit and expect a 30-40% return over the next year, a year and a half and that’s not a bad turnaround. But yes, be prepared for a potential 10-15% loss and be prepared to hold on during that time.

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Basic materials shares gain | Business Standard News Thu, 22 Apr 2021 04:30:00 +0000

Commodities stocks traded in the positive zone, with the S&P BSE Basic Materials Index advancing 42.85 points or 0.97% to 4479.12 at 9:49 am IST.

Among the components of the S&P BSE Basic Materials index, Tata Steel BSL Ltd (+ 5.03%), Tata Steel Ltd (+ 3.94%), Vinati Organics Ltd (+ 3.66%), Steel Authority of India Ltd (+ 3.6%), Hindustan Zinc Ltd (+ 3.3%), were the first winners. Other winners include Shree Digvijay Cement Co. Ltd (+ 3.19%), West Coast Paper Mills Ltd (+ 3%), Visaka Industries Ltd (+ 2.81%), Prakash Industries Ltd (+ 2.81% ) and DCW Ltd (up 2.58%).

In contrast, Shree Cement Ltd (down 2.96%), Grauer & Weil (India) Ltd (down 2.23%) and Century Plyboards (India) Ltd (down 1.88%) fell .

At 9:49 am IST, the S&P BSE Sensex was down 226.55 or 0.47% to 47,479.25.

The Nifty 50 index was down 44.65 points or 0.31% to 14,251.75.

The S&P BSE Small-Cap Index rose 49.37 points or 0.24% to 20,824.87.

The S&P BSE 150 Midcap Index fell 2.03 points or 0.03% to 6,788.38.

Regarding BSE, 1179 shares were trading in green, 1003 were trading in red and 110 were unchanged.

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(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

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MARKET LIVE: parent gain benchmarks; mid caps outperform; Decrease in IT and FMCG stocks Tue, 20 Apr 2021 07:08:12 +0000

LIVE market updates: Indian benchmarks soared above initial highs but still trading in the green, Indian government decision to vaccinate all people over 18 against Covid-19 from May 1, sentiment investors.

The S&P BSE Sensex traded around 48,050 levels, up 100 points, and the Nifty50 index hovered around 14,400. Bajaj Finance, Dr Reddy’s, Mahindra & Mahindra and Bajaj Finserv gained 3% each and were the top Sensex winners.

All Nifty sector indices traded in the green, led by the Nifty PSU Bank index, which rose 1.7%.

In larger markets, the S&P BSE MidCap and SmallCap indices each rose 1.7%.

A total of nine companies, including Nestlé India, Tata Steel Long Products and Welspun Investments and Commercials, are expected to release their quarterly results today.

Increased home consumption, better demand from rural and urban India, sustainable growth of Maggi noodles and new product launches are some of the factors that analysts say will drive the growth of FMCG maker Nestle India. in January – Quarter of March 2021. READ MORE

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Would shareholders who bought the Hansol Paper stock (KRX: 213500) for five years be happy with the stock price today? Tue, 20 Apr 2021 05:27:37 +0000

While not a mind-blowing gesture, it’s good to see that the Hansol Paper Co., Ltd. (KRX: 213500) The stock price has gained 13% in the past three months. But over the past half-decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has fallen 39% in that half-decade.

Discover our latest analysis for Hansol Paper

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are overly reactive dynamic systems and investors are not always rational. By comparing earnings per share (EPS) and changes in stock prices over time, we can get an idea of ​​how investor attitudes towards a company have evolved over time.

While the share price has fallen over five years, Hansol Paper has in fact managed to increase Average EPS of 7.6% per year. Given the reaction of the share price, one might suspect that EPS is not a good indicator of the performance of the company during the period (possibly due to a loss or a one-time gain). On the other hand, growth expectations may have been unreasonable in the past.

Due to the lack of correlation between the growth of EPS and the decline in the stock price, it is worth looking at other metrics to try to understand the movement of the stock price.

Turnover is in fact up 3.8% over the period. It therefore seems that we need to take a closer look at the fundamentals to understand why the stock price is languishing. After all, there may be an opportunity.

The company’s revenue and profits (over time) are shown in the image below (click to see exact numbers).

KOSE: A213500 Profit and Revenue Growth April 20, 2021

This free Hansol Paper’s interactive balance sheet strength report is a great place to start if you’re looking to dig deeper into the stock.

What about dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any discounted demerger or capital increase, as well as any dividend, based on the assumption that dividends are reinvested. It’s fair to say that the TSR gives a more complete picture of dividend paying stocks. We note that for Hansol Paper the TSR over the past 5 years was -23% which is better than the share price return mentioned above. The dividends paid by the company thus boosted the total back to shareholders.

A different perspective

Hansol Paper has provided an 18% TSR over the past twelve months. Unfortunately, this does not match the performance of the market. But at least it’s still a gain! Over five years, the TSR has been a reduction of 4% per year, over five years. The business may well stabilize. I find it very interesting to look at the stock price over the long term as an indicator of the performance of the company. But to really understand better, we have to take other information into account as well. Even so, be aware that Hansol Paper shows 2 warning signs in our investment analysis , and 1 of these cannot be ignored …

Of course Hansol paper might not be the best stock to buy. Then you might want to see this free collection of growth stocks.

Please note that the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on the KR stock exchanges.

When trading Hansol paper or any other investment, use the platform seen by many as the trader’s gateway to the world market, Interactive brokers. You benefit from the lowest * trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By Annual Online Review 2020

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stocks to buy today: go for cement, not real estate; copper could be a big bet: Gautam Trivedi Tue, 20 Apr 2021 03:17:00 +0000

Electric vehicles might be a bigger reality in five years, but in the next 12-24 months I don’t think it’s really a big deal, says Gautam Trivedi, Co-founder and managing partner, Nepean capital.

Is it a good time to buy a Sobha or a Godrej or Indiabulls Real Estate this fall or the classic name like?
Companies that focus in residential real estate like Godrej or Oberoi for the most part, would be interesting and given the work of the domestic environment, especially vis-à-vis technology companies. These are the first adapters in video technology and so on. But if this persists after Covid, businesses that focus on residential real estate will do extremely well. But you actually have to look at cement stocks because it is a great proxy for playing real estate in India.

Praj has done very well. There is a trend for the blending of ethanol in fuel to increase, which means that ethanol manufacturers, ethanol machine suppliers, and ethanol blenders will increase. It’s a small but powerful theme. EVs and the whole migration to clean fuel contribute to this theme: is there something EV space or clean fuel space on your radar?
I’m glad you raised this because I was reading this weekend an interesting report from a major investment bank that said copper is the new oil and it took me by surprise. The report says it is a game about renewables and alternative energies like solar, wind and geothermal. They say copper apparently has the physical properties necessary to transform and transmit these forms of energy to the end consumer. Over the past 12 months, the price of copper has increased by 80%. This report indicates that the demand for copper will increase by 600% by 2030 and that this could be an interesting way to play. I can think of

. I’m not sure if there are any other companies related to the copper cycle, but it’s definitely worth exploring.

There is this proposal that EV will lead to the disruption of the existing combustion engine. But whenever this disruption occurs, do you think it will always be dominated by existing players like in the IT space? When EV takes over and the combustion engine or ICE slows down, will the Marutis, Mahindra & Mahindras and Tata Motors be the winners?
Yes, many Indian companies and of course global companies will dominate. I was looking at the latest Mercedes-Benz. It’s very high end, but they released an S-class car which is very expensive, but now it can go 770 kilometers on a single charge, which is a lot more than Tesla can do.

So the point is that the technology will continue to improve and Indian companies are smart enough to invest and focus on this area. Mahindra & Mahindra have publicly stated that this is going to be an extra priority for them. But it’s still a long way off. I don’t see it becoming mainstream yet. Let’s take a look at the number of cars sold worldwide in the EV space. It is tiny at less than 2%. So it might be a bigger reality in five years, but in the next 12-24 months, I don’t think it’s really a big deal. There are very few ways to play this today. So if you’re positive about the auto business, you can still buy a Maruti – whether it’s EV or not – today.

What is the outlook for fourth quarter results? How do you see the impact of the Covid wave on overall income? Are you going to lower your income estimates?
Yes we would. What looked like a fantastic quarterback was cut short. We had a very good fourth quarter based on what I heard from the channel checks for Q4 FY21. This quarter was looking good until the new epidemic and it seems to be getting worse day by day. We have to see how the government – both central government and individual states – reacts, but there will be at least a quarter if not more of an impact on revenues and therefore on GDP and a whole host of other downstream parameters. . This is a concern, yes and this is where the Indian market would offer the opportunity to buy in the event of a dip. We remain largely positive for the next 12 to 15 months.

And do you like what you have seen and heard regarding policy initiatives on the investment cycle, on the PLI system, the infrastructure and capital goods sectors? Is that enough to offset the kind of pressure they have been subjected to as a result of the government-induced lockdowns?
The answer is definitely yes. I think the government has clearly bent back to launch the PLI program and it has gone sector after sector and announced a series of initiatives. This is all very well. We just need to see some evidence of this panning. On paper this obviously means that huge capx are coming and it will obviously benefit everything below, be it demand for steel, cement or capital goods. .

There is massive fiscal stimulus as well as infrastructure spending by a multitude of countries around the world, including India. This is all great, but my biggest concern is how is the government going to pay for it? I appreciate that the FM and PM are very focused on infrastructure spending, but this needs to be supported by revenue and although tax revenue has improved dramatically when it comes to GST a huge part of the population, which should pay income tax, does not pay taxes. Second, of course, the privatization and monetization of assets. There was a lot of talk about this, but let’s be realistic about what we ended up doing in FY21. We have reached just over 10% of the target. Targets have been lowered to Rs 1.75,000 crore. We don’t have a figure on asset monetization yet.

If the government takes this seriously and starts selling assets, there is a huge amount of private capital waiting to get some of those assets back. I think the government has a pretty good chance of hitting some of these investment numbers when it comes to infrastructure, but it will have to start working overnight to sell assets. This is really going to be the key to how fast they evolve, as we keep hearing about the formation of committees and the political actions taken, but now let’s see what action needs to be taken.

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Tobacco stocks drop following report Biden plans to limit nicotine in cigarettes Mon, 19 Apr 2021 21:40:33 +0000

Marlboro cigarettes, a product of Philip Morris International

Daniel Acker | Bloomberg | Getty Images

Tobacco stocks fell on Monday on a report that the Biden administration plans to cap nicotine levels in cigarettes.

The report, which cited people close to the subject, was published in the the Wall Street newspaper. The newspaper said the discussion took place as officials approached a deadline to say whether or not they plan to push for a ban on menthol cigarettes.

The Biden administration is trying to determine whether it should reduce nicotine levels in conjunction with a menthol ban or as a separate policy, people told the Journal.

Nicotine doesn’t cause cancer, but it makes smoking more addictive. The goal of reducing nicotine levels would be to make cigarettes less addictive, in the hopes of getting smokers to quit or switch to other products considered safer.

The Food and Drug Administration, which exercises regulatory oversight over tobacco, declined to comment on the report.

“Any action taken by the FDA must be based on science and evidence and must take into account the real consequences of such actions, including the growth of an illicit market and the impact on hundreds of thousands of jobs,” from farm to local stores across the country, ”Altria spokesperson George Parman told CNBC.

Altria stock closed more than 6% lower on the report. In extended trading on Monday, stocks fell a further 2%.

Shares of British American Tobacco closed down 2% on Monday, while shares of Philip Morris International ended the day down more than 1%. Both stocks were also down after the market closed.

Philip Morris International declined to comment on this issue. The tobacco company does not sell or market cigarettes in the United States, but its stock still fell on the news.

British American Tobacco did not immediately respond to a request for comment. The company owns Reynolds American, the maker of Camel cigarettes.

“Many consumers mistakenly believe that a very low nicotine cigarette is less risky than traditional cigarettes, a misconception that poses a major obstacle in determining the proposed regulations for low nicotine cigarettes”, Reynolds US spokesperson Kaelan Hollon said in an email.

Read the full story of the Wall Street Journal here.

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The billionaire scientist behind the Pfizer vaccine hasn’t sold a single slice of its booming stock Mon, 19 Apr 2021 14:34:50 +0000

As the pandemic began to rage a year ago, the biopharmaceutical industry responded in an unprecedented way. Life science companies rushed to find a solution to the nightmare virus, and promising vaccination efforts quickly sprung up. The stocks of companies with the best vaccine candidates have skyrocketed, and many of their executives have rushed to sell stocks with a fury that has drawn close scrutiny.

There was a huge exception. Uğur Şahin, the CEO and scientist behind the first approved Covid-19 vaccine in the United States, did not sell a single share of his company’s booming shares during the pandemic, according to Securities and Exchange Commission.

Şahin’s decision not to sell any of its BioNTech shares stands in stark contrast to the significant share sales of some of the most prominent scientists and entrepreneurs whose biotech companies have developed vaccines against the virus, in particular Moderna Therapeutics. It also reflects the general approach to Şahin life and business. He is a CEO who lives in a modest apartment in the German city of Mainz, he rides his bike to work and does not own a car. He describes himself on his LinkedIn Page first and foremost as a professor of translational oncology at University Medical Center Mainz. Şahin accepts the financial edifice that surrounds biotech innovation – fundraising, IPOs and mergers. He would have learned the business aspects of biotechnology from online videos and reading a Business plans for dummies delivered. But at the end of the day, inahin is there for the science and the patients.

In a time when he needed it most, Şahin emerged from relative obscurity to provide the world with a revolutionary vaccine that could save lives and tame the pandemic. As early as January 2020, Şahin was convinced that Covid-19 would become a deadly pandemic and pivoted BioNTech to create a messenger RNA vaccine to combat it. He then partnered with the American pharmaceutical giant Pfizer

develop and deliver 3 billion doses of the vaccine to the world by the end of 2021.

The Pfizer-BioNTech vaccine drastically changed Wall Street’s perception of BioNTech. In the months leading up to the pandemic, Şahin had come to New York to sell investors on BioNTech shares as the company launched its initial public offering by listing on the Nasdaq.

. At the time, BioNTech was a ten-year-old company that had yet to develop a single approved product from its mRNA and immunotherapy technologies. Şahin received a cold reception on the stock market, which initially valued BioNTech at $ 3.4 billion. However, with the development of the vaccine, BioNTech’s stock has increased 900% since its IPO in 2019 and today the company is valued at $ 37 billion. BioNTech now expects to generate $ 11.5 billion in revenue from agreements for the vaccine that have already been reached. On paper, Şahin’s stake in BioNTech is worth $ 6.1 billion.

Filings filed with the Securities & Exchange Commission in February and March show that Şahin controls 41.66 million BioNTech shares, a 17% stake, through Medine GmbH, a limited liability company of which he is the exclusive owner. Medine holds a relatively small number of shares for “a former colleague” and transferred 27,540 shares held for other colleagues to their beneficiaries under trust agreements at the end of last year. But in the midst of this transfer of shares, a securities deposit in February made sure to point out that “Neither Medine GbmH nor Professor Ugur Sahin, MD have sold common shares since February 13, 2020”, on the eve of the pandemic. Such drafted disclosures are not common in securities filings. Şahin, who declined to comment, appears to have wanted people to understand that he was not selling any BioNTech shares.

Last year, the officers and directors of companies like Moderna, Pfizer and Novavax

made stock market gains linked to investor enthusiasm for vaccines by selling nearly $ 500 million in shares, the the Wall Street newspaper reported. The sale continued this year. Moderna CEO Stéphane Bancel has sold more than $ 150 million in Moderna shares since the start of the pandemic. He still owns just under 8% of Moderna. Tal Zaks has sold over $ 100 million in Moderna shares, almost all of the shares he had accumulated since becoming Moderna’s chief medical officer in 2015.

Moderna has consistently explained that all sales of executive stocks are made through pre-defined trading plans established under Securities Regulation 10b5-1, which legally allows insiders to periodically sell a pre-determined number of ‘actions, often linked to the achievement of certain course objectives.

In November, the CEO of Pfizer Albert Bourla sold around 60% of his shares in the company for around $ 5.6 million under a pre-defined 10b5-1 plan. The sale took place the same day Pfizer announced key clinical results showing its Covid-19 vaccine to be over 90% effective. The sale of Bourla shares was authorized in February 2020 and updated in August. A few days later, Jay Clayton, then chairman of the SEC, suggested company executives do not trade their company’s shares immediately after pre-defined trading plans are established. During a Senate hearing, Clayton called for a “cooling off” period, but did not specify how long such an interval would be. “Whether it’s four months to cover a full shift, or six months, I can argue either way,” Clayton said. There were also concerns that sales of shares of Moderna and Pfizer could undermine public perception of their vaccines as essential public health instruments.

For its part, Şahin has not sold any BioNTech shares during the past 18 months. The post-IPO blockade of his BioNTech shares expired near the start of the pandemic, according to the securities filings, and he was free to sell. As a result of hanging on to all stocks, ironically, it is so far much richer – at least on paper – given the continued surge in BioNTech’s share price. He certainly believes that the company’s advanced technology will lead to the development of therapies and vaccines for other diseases.

“The way we develop our technologies is not based on the idea of ​​a one-ride pony,” Şahin told investors during a phone call to Wall Street in March. “Rather, our goal from the start was to build a new industrial approach to precision pharmaceuticals that can meet medical needs in multiple disease areas.”

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