Forex and Stock Market News - Page 16 of 50

23rd October 201724th October 2017

McDonald’s misses earnings forecast but beats revenue expectations

In many ways McDonald’s is a barometer of economic activity in many areas of the world. It is intrinsically linked to local economies and economic activity so the latest quarterly figures were much anticipated. The third quarter saw earnings per share slightly less than expectations at $1.76 against a forecast $1.77. However, revenues beat estimates of $5.7 billion coming in at $5.8 billion and same store sales growth in the US hit 4.1% against expectations of 3.6%.

Long-term rebranding

There is no doubt that McDonald’s is in the midst of a long-term rebranding programme away from fast foods, although they will always play a major role, towards more healthy options and promotions. We know from accompanying comments with the third quarter results that promotions were behind the increase in same-store sales and this is likely to continue for some time to come. Continue reading “McDonald’s misses earnings forecast but beats revenue expectations”

22nd October 2017

Company executives should work with markets

We recently published an article regarding an outburst by National Beverage Corporation CEO Nick Caporella in which he criticised the workings of the stock market, in particular short-term trading. In reality many of the points he made were valid although if company executives are not willing to work within stock market trading parameters then is the stock market really for them?

Working together

What private investors see in public is not always the full picture which can take some time to emerge behind-the-scenes. As stock market regulations ensure that only information which is a cast-iron certainty can be placed into the public domain this does often leave an information vacuum. If analysts, institutional investors and company executives can work closely together then the lifespan of this “information vacuum” can be reduced to a minimum. However, if there are conflicts, friction and incompatibility between these parties then we can be looking at a “false market” – which can last for many days, weeks or even months – where information moving share prices is not available to everyone, insider trading by another name. Continue reading “Company executives should work with markets”

21st October 201722nd October 2017

National Beverage Corporation CEO attacks speculators

Nick Caporella, the CEO of National Beverage Corporation, has hit the press this week with an extremely aggressive outburst against stock speculators. Despite the fact that shares in his company National Beverage Corporation have increased by 90% this year he is complaining about a 20% drop during the month of October so far. While many of his arguments stand up fairly well to scrutiny, is he biting the hand that feeds him or simply exposing an undercurrent on worldwide stock markets which is dominated by gamblers?

Speculative movements

Many would highlight the fact that Nick Caporella was not so disparaging of stock market practices while his shares were rising 90% prior to the recent fall. Nor was he criticising analysts who highlighted a growing interest in fruit flavoured fizzy water amongst the so-called millennials. So, why has Nick Caporella chosen now to criticise stock market practices? Continue reading “National Beverage Corporation CEO attacks speculators”

20th October 2017

SoftBank looking at $880 billion investment in technology

The CEO of SoftBank, Masayoshi Son, has been very provocative over the years with regards to his investment intentions. In a personal capacity he is Japan’s wealthiest man and this is not the first time he has discussed his investment plans. However, a potential $880 billion investment in technology companies over the “coming years” would be a massive shift in technology funding.

Vision Fund

The company has set up the Vision Fund which is already committed to investing $88 billion in the short to medium term. Masayoshi Son is expected to authorise Vision Fund 2, 3 and 4 with new investment vehicles set to be created every 2 to 3 years. There is no doubt that a potential $880 billion investment in technology companies is enormous but in the years ahead technology will become even more important. Continue reading “SoftBank looking at $880 billion investment in technology”

19th October 2017

Wearable devices coming-of-age

Even though wearable devices such as smart watches have been around for sometime they have never really made a major splash in the market. They have been seen as novelty items despite the fact they are packed with the latest technology and extremely useful. However, it looks as though analysts are now starting to look at wearable devices in their own right and things may be changing behind-the-scenes.

Verizon mentions wearables in results conference

While Verizon is quite rightly seen as a US telecoms company, today’s quarterly figures were packed with an array of information which has been broken down like never before. We know that the company took on 603,000 new telecom accounts and we still have the new Apple and Google phones to follow – which many believe will increase upgrade numbers. However, the term “other connected devices” has caused a flurry of interest from analysts. Continue reading “Wearable devices coming-of-age”

18th October 2017

Donald Trump takes a $600 million hit on his wealth

The updated Forbes Rich List does not make good reading for president Donald Trump with his net wealth estimated to have fallen from $3.7 billion 12 months ago down to $3.1 billion. This takes him from number 156 on the list to number 248 in the rankings of the richest people in America. So, why has Donald Trump’s wealth taken such a hit?

New York City real estate

The New York City real estate market is proving to be particularly difficult just now hence an estimated $400 million reduction in Donald Trump’s New York City real estate assets. There are concerns that the market is “topping out” and could start to fall in the short to medium term. This has prompted several prominent real estate investors to sit on the side lines and monitor the situation for the moment. It is also interesting to see a lack of so-called trophy real estate asset sales which is often an indicator that the top end of the market is stalling.

Golf assets

It will be particularly disappointing for Donald Trump to see a reduction in his golf assets which cover Miami, Ireland and Scotland. While his reputation, and his confrontations of late, will have no bearing on the value of his real estate assets in New York City, the same cannot be said of his golf real estate. The press has highlighted a significant backlash in recent times with golfers concerned about his various policies and many are boycotting his golf clubs. If the clubs are not as busy, income will be down, profits will be slashed and the value of the real estate assets will be impacted. Continue reading “Donald Trump takes a $600 million hit on his wealth”

17th October 2017

Dow Jones index edging towards the 23,000 level

Buoyed by figures from Goldman Sachs, UnitedHealth and Johnson & Johnson the Dow Jones industrial average index is within touching distance of the 23,000 level. An additional 16 point rise on the bell took the market to a record intraday high although many believe the 23,000 level is only hours away. When you bear in mind the market first closed above the 22,000 level on 2 August 2017, this rise has been brutal and seems to be never-ending.

UnitedHealth

Figures from UnitedHealth were stronger than expected nudging the company and analysts to raise full-year forecasts. Interestingly there has been growth across the whole array of UnitedHealth business operations and the shares were up 5.1% in early trade. What is becoming blatantly obvious is that general improvements in trading are spread right across the US business spectrum which is giving investors more confidence going forward. Continue reading “Dow Jones index edging towards the 23,000 level”

16th October 201717th October 2017

Too late to buy Amazon – think again?

Why delivery charges will become the norm for e-commerce

A report by research company FTI Consulting has cast a strong light onto the US online sales market which is expected to grow significantly over the next few years. Compound annual growth of 12% is expected through to 2020 after which it will be a more modest 9% over the following decade. However, there seems to be a massive change in consumer spending habits occurring not only in the US but around the world.

Hitting the $1 trillion goal

US online sales for 2017 are expected to come in at around $445 billion and reach $1 trillion by 2027. This is a phenomenal change in consumer spending habits and one which will change the face of the US retail sector. We have already seen massive changes with the likes of Amazon taking the lead but with sales expected to increase spectacularly in years to come we can only guess what will happen to physical retail outlets.

Amazon set to take the lion’s share

It is ironic that companies such as Amazon were ridiculed and mocked by analysts when they came to the market but look at them today. Online retail sales for 2016 show that Amazon had a 34% share of this market although this is expected to increase to 53% by 2027. This would equate to online sale of more than $500 billion a year! Continue reading “Too late to buy Amazon – think again?”

15th October 2017

Reasons to maintain exposure in a rising stock market

Over the last decade or so we have seen some monumental volatility in stock markets around the world. Interest rates and inflation are relatively low which has seen more people switch to stock market investments than ever before. Holding your money in savings accounts is no longer an option but why should you maintain exposure to rising stock markets?

Long-term investment

For many people stock market exposure will be just one asset class into which they have invested their long-term funds. They may have a percentage of their funds in bonds and near cash investments as a means of introducing a steady backbone. However, in the current market, cash investments (such as savings accounts) are actually losing their value in real terms when you take into account inflation. Bonds will also become a little more volatile as interest rates rise because there is a direct inverse relationship between interest rates and bond prices. As interest rates rise, bond prices will fall, and vice versa. So, for many people stock market investment is their only real growth prospect in the longer term. Continue reading “Reasons to maintain exposure in a rising stock market”

14th October 2017

Asset-backed companies can attract predators

Are there viable options other than investing on the stock market?

For many people an asset-backed company is one which offers a degree of safety but unless those assets are working for the better of the company it may be time to reconsider the structure. If we put aside real estate companies from this argument, because they are quite literally valued on their assets, it does open a very interesting debate.

Sale and lease back

It is no surprise that we have seen many large retailers around the world selling and leasing back their stores to release capital. Over the years they will have built up a significant property portfolio but in reality, if you sit back and think of it in more detail, there are millions of dollars tied up in buildings. Could these funds be better used to build and grow the business?

Cash flow is king in any business and while it is good to have a degree of asset backing there needs to be a balance between assets and cash flow. If a company is not expanding but it has a significant property portfolio this could make it susceptible to a takeover bid to literally asset strip the business. In this instance, you would likely see a hostile takeover which if successful would lead to a sale and lease back of the property assets or even an outright sale. In some case we have seen property assets and business assets separated into two different groups with the sum of the parts often greater than the value of the combined group. Continue reading “Asset-backed companies can attract predators”