• Breaking News

    Sunday, October 20, 2019

    Home Unlabelled Facebook no longer among 10 most valuable global brands. Investing

    Facebook no longer among 10 most valuable global brands. Investing

    October 20, 2019

    Facebook no longer among 10 most valuable global brands. Investing

    Facebook no longer among 10 most valuable global brands.

    Posted: 19 Oct 2019 12:32 PM PDT

    Facebook no longer ranks among the world's 10 most valuable brands, according to branding consultancy Interbrand, a sign the repeated blows to the social media company's reputation in recent years is taking a toll.

    Facebook fell to No. 14 in Interbrand's annual ranking of "best global brands," released this week. Just two years ago, the company was No. 8 on the list and was singled out as a "rapidly appreciating" brand.

    Companies with a strong brand tend to enjoy greater consumer loyalty and are often able to charge more for their products and services than their competitors. That's one reason businesses work to protect their brands, and why the most valuable brands are often synonymous with the most valuable companies. This year's top three brands — Apple, Google and Amazon — have retained their top positions, with a few minor shifts, for years.

    Facebook's plan to launch a virtual currency, dubbed Libra, has also attracted scrutiny from Congress, the Treasury Department and Federal Reserve. The project's path forward appears uncertain after it lost eight of its initial backers, including high-profile payment processors PayPal, Visa and Mastercard.

    Facebook has also been accused of facilitating the spread of misinformation, most recently by allowing misleading political ads. Founder and CEO Mark Zuckerberg on Thursday defended the practice as a way of encouraging vigorous public debate.

    https://www.cbsnews.com/news/top-10-brands-facebook-falls-off-the-list-of-top-10-global-brands-ranked-by-interbrand/

    submitted by /u/worldnews_is_shit
    [link] [comments]

    Goldman Banker Arrested Over Insider Trading Allegations

    Posted: 19 Oct 2019 06:16 PM PDT

    https://www.bloomberg.com/news/articles/2019-10-19/goldman-banker-arrested-over-u-s-insider-trading-allegations

    Bryan Cohen, a vice president, leaked nonpublic information for almost three years in exchange for cash as part of an international insider trading scheme that led to $2.6 million in illicit gains, according to a separate complaint from the U.S. Securities and Exchange Commission that didn't identify his employer.

    The accusations are the third insider-trading allegations lodged by U.S. prosecutors against a Goldman banker in the past 18 months.

    The complaint offers a detailed view of how the alleged scheme unfolded. For example, shortly after Cohen moved to New York, Buffalo Wild Wings contacted Goldman to help as the Minneapolis-based casual dining chain was approached by Arby's Restaurant Group Inc. Cohen was made aware of the potential acquisition the same day, Oct. 17, 2017. Nikas purchased 22,000 Buffalo Wild Wings shares between Oct. 20 and Oct. 27 for $2.5 million, selling 9,000 of them by Nov. 1 for an initial profit of $79,074.

    submitted by /u/coolcomfort123
    [link] [comments]

    Which company is so evil you wouldn’t consider including it in your portfolio.

    Posted: 19 Oct 2019 05:07 PM PDT

    I'll compile and share the results, so cast your vote.

    submitted by /u/kickbax
    [link] [comments]

    Macy's: Why shouldn't I invest?

    Posted: 19 Oct 2019 12:22 PM PDT

    Macy's has been battered. The secular trend in favor of online retail is for real. I understand the pessimism. Obviously the risk of a value trap is here, but I'd appreciate others' *specific reasons why* this is a value trap. Macy's has been on my radar screen for a few years now and I have avoided it because of poor secular trends, overcapacity of department stores and other concerns. I am re-assessing Macy's at the moment so please consider the following thoughts.

    1. Macy's has a 9.57% dividend yield and their cash flows are good. Earnings are likely to decline due to secular trends out of favor for Macy's, but $1.5B in operational cash flows and $800MM in capex leaves $700MM for discretionary cash flow and this 9.57% dividend only requires $461MM. That is good cash flow coverage for a dividend that large.

    2. 7.6x forward P/E using $2 EPS. Macy's should trade at low valuations, but when excluding gains from asset sales, their comparable EPS has been the following: $4.23 FY 14, $3.36 FY15, $2.69 FY16, $2.64 FY17, $3.21 FY18. EPS will be lower than these levels in the future, but let's put them at $2.00 and that is a 7.6x forward P/E on the $15.12 share price Forward EV/EBITDA multiple is 4.0x.

    3. Market cap of $4.67B vs. book value of $6.32B. A good rule of thumb (Residual Income Model) is if a company cannot earn (ROE) its cost of equity, it should trade below book value. Macy's has a trailing ROE of 18% but it should decline to the 10-12% range in coming years. Depending on what you think their cost of equity should be (I'd argue around 10% compared to 8% for the S&P 500), they should be trading at a slight premium to book value. It's not like Macy's has a hollow balance sheet – they own a ton of real estate so there some reasons why they should be at least at book value. They often sell real estate for gains (excess of book value) so there is value here. I recognize they have $3.9B of goodwill on their balance sheet that could be written down which hurts this book value measure (though ROE would go a lot higher), but their real estate is carried at levels well below market value. Also, so what if they write-down their $3.9B of goodwill? It's a non-cash expense and would serve as a tax shield – Macy's has paid an average of $398MM in cash taxes the last three years. That is almost their entire dividend ($461MM), so this goodwill write-down would improve their free cash flow due to the tax shield. I don't like book value for valuation concerns but I normally consider this for when stocks are trading below book. Normally there are good reasons as to why (i.e. poor future ROE's of Japanese and European banks).

    4. Macy's has a lot of real estate that should be a valuation backstop. Their disclosures in their 10-K aren't good in terms of detailing their retail real estate they own, but they disclose info on the various logistics/distribution properties they own. This is 16.5 million sqf of various properties and based on recent acquisition transactions (ILPT, Gramercy, DCT Industrial), valuations are between $70/sqf to $110/sqf on industrial properties. Taking the low end (ILPT deals) of $70/sqf, it indicates $1.16B in value on these industrial properties alone. This is before you get to the actual retail buildings they own which is where most value is. The most valuable property is Herald Square in Midtown Manhattan and is estimated to be $3B based on different sources. They own many other properties across the country. It is hard to get to a value here and some online estimates of $21B aren't realistic in my opinion, but just a $10B valuation exceeds Macy's current Enterprise Value of $8.7B.

    5. You normally see distress in valuations (below book value, low P/E) when bankruptcy risk is high. Macy's is rated Baa3/BBB-, which is investment grade. I personally do not believe they are an investment grade quality credit and should be in the Ba2/BB area, but I don't think bankruptcy risk is high here. They've been using free cash flow after dividends to pay down debt and they have other levers they can pull to avoid bankruptcy (real estate sales or REIT spin-off).

    I think before you even get to the real estate stuff, the free cash flow and dividend yields are attractive enough along with the basic valuation metrics (7.6x forward P/E, 4.0x forward EV/EBITDA) to support investment. I don't cover the retail industry so I'm probably missing some items but as an outsider there are some compelling valuation arguments for this stock.

    submitted by /u/OhioBaseball
    [link] [comments]

    Alternatives to MSCI World?

    Posted: 20 Oct 2019 03:28 AM PDT

    The index has too big of a reliance on US, and an ETF by Blackrock has 9% of its stocks in Microsoft, which is risky. I know there exists at least one other world index that's similar to MSCI. What is it?

    submitted by /u/Hypetys
    [link] [comments]

    Your thoughts about balanced mutual fund for older folks

    Posted: 20 Oct 2019 03:16 AM PDT

    60% Total Stock Market ETF and 40% Total Bond Market Fund...or a Balanced Mutual Fund that is 60-40.

    submitted by /u/chargum
    [link] [comments]

    Can companies not disclose cost of revenue and gross profit ?

    Posted: 19 Oct 2019 07:43 PM PDT

    I am doing a fundamental analysis of the Royal Bank of Canada and in the income statement the above mentioned values are not specified... is that normal? I'm new and have done only one stock analysis before this

    submitted by /u/Spartan_Scorpion
    [link] [comments]

    Which expiration to sell covered calls

    Posted: 19 Oct 2019 09:13 PM PDT

    I own some stocks and have found selling calls against them when the stocks experience little decline a very successful strategy for some extra income on top of my long term stocks portfolio.

    For my fellow investors who also incorporate this strategy in their investment, which expiration date and strike price do you guys choose? I find that my sweet spot is slightly above ATM calls and 30 days to expiration. I am curious to see you guys' viewpoints.

    submitted by /u/kidze
    [link] [comments]

    Working for an asset management firm or an investment bank?

    Posted: 19 Oct 2019 03:06 PM PDT

    I am an economics student currently in 2 internship selections, one for an asset and another for an investment bank, I wanted to know which would be a better place to work in? What are the career prospects and earnings I can expect?

    The investment bank is the biggest in my country, with a partnership system where you can become partner in 10 to 15 years.

    The asset is relatively small, but is associated with one of the richest families in my country and has a well managed fund open for the public (and others that are not open) and has a partnership system in which everyone that works there is a partner.

    Both expect me to become an employee as soon as I graduate.

    Looking for insights into the matter, thanks!

    submitted by /u/LegioHU3
    [link] [comments]

    A best online trading course.

    Posted: 20 Oct 2019 02:58 AM PDT

    I have taken the Options Trading Education Course from David Jaffee and BestStockStrategy.com

    I believe that it's the only legitimate course and it's helped me make a lot of money and also become a consistently profitable trader.

    I am also enrolled in David Jaffee's options trading alerts and I've made 46% over the past 6 months.

    submitted by /u/meghinwarren
    [link] [comments]

    Should I invest in an international index fund because I already work in the US? (and am therefore overexposed)

    Posted: 19 Oct 2019 02:33 PM PDT

    Having recently taken a course on corporate finance (CAPM) I learned that by diversifying a portfolio it becomes possible to attain the same return with a lower risk. Since I work in the US technology industry I could in some overly capitalistic sense view myself as an "asset" that derives "dividends" i.e. wages from the US tech industry.

    In a downturn of the tech industry or the US economy I might lose out significantly on those returns (i.e. being fired), especially if my savings account is also heavily exposed to that industry.

    Now, I was wondering if it makes sense to expose myself mostly to international stocks and bonds (say 70%+), preferably not in the tech industry and then adjust for the risk profile I'm looking for by buying the appropriate amount of bonds (likely around 20%)?

    submitted by /u/apste
    [link] [comments]

    Roth IRA

    Posted: 19 Oct 2019 07:31 PM PDT

    What is the best setup (ETFs) for a Roth IRA? I am looking at VTI, but what else? I want to be as simple and hands off as possible. Thanks.

    submitted by /u/RandomQuestions02
    [link] [comments]

    EU Two-Fund Portfolio, but no bonds?

    Posted: 19 Oct 2019 03:23 PM PDT

    After quite some research I found that the following ETFs are quite widely used by investors from EU when opting for a two-fund portfolio:

    • 89-85% iShares Core MSCI World (ISIN IE00B4L5Y983) 0.20% TER
    • 11-15% iShares Core MSCI EM IMI (ISIN IE00BKM4GZ66) 0.18% TER

    As simple as it is, it ensures broad diversification very easily. But does it need bonds, especially when more and more people yell that a recession is on its way? Of course, the proportion (if any) of bonds usually depends on how much risk the person is willing to take with that portfolio, as more bonds decrease the volatility.

    So my questions are:

    1. Will bonds add any benefit to (let's say) a 85/15 mix between the above two ETFs?
    2. Will the bonds greatly reduce the performance while adding too little stability to be worth it?
    3. Have you invested in this portfolio? Are you satisfied with its performance?
    4. If you did invest in such a portfolio, what proportion did you choose and why? (AFAIK the worldwide proportion taken up by Emerging Markets is around 11%, so having a 89/11 split would mean replicating the performance of the international market)

    Thanks!

    submitted by /u/ConcentratedVoid
    [link] [comments]

    15, would like to start investing, know basics but am looking for a good starting point and advice/resources

    Posted: 19 Oct 2019 06:26 PM PDT

    I posted into the daily advice thread, although I didnt get any answers. I am 15, know a decent amount of the basics when it comes to investing. I am part of my schools investing club and am taking PFL next year. I watch a decent amount of finance youtubers and have been considering ways to make money, and investing seems to be at the top of my list, next to getting a job. As I highschooler I dont have the most time in the world, although it seems like investing and keeping track of stocks is more like a side job, unless your trying to make serious money.

    ​

    First things first, would a Mutual or Index fund account be better to create, and what companies have the best custodial accounts? And would using a mobile investing app be a better idea? I have heard they charge a decent amount for purchases and yearly fees and end up costing more than you earn from them, although they are easy to use and are good for gaining a basic understanding.

    ​

    My second question is, what good resources are available for someone in my age range? While I understand the basics, I know there is still a lot more to learn and I have a lot to go before I become "good at this". My parents are getting a financial adviser within the next few months, so I could talk to them about investing, although Im not too sure I would learn much from them.

    ​

    Lastly, as a highschooler, will I be able to earn a decent amount of money? I am not looking for mansion or Lambo money, but I am still interested to see how much I would be able to earn. I currently have ~$500 saved up and I am trying to get more. Its a bit less than what other people I know have, although I dont have a job yet and am trying to find ways to save up more money. I have big dreams for my future and would love to go to an expensive, high-end college, such as MIT or CalTech, and am hoping some of that investing money could go towards a college like that, as well as giving me a little boost when becoming an adult and graduating. Any help or advice would be appreciated!

    ​

    Edit: If I was able to setup a good base and a small, steady flow of income from an account, would it be possible to later turn that into a decent passive income, possibly while I am in college or highschool? I have heard of people getting $50K+ from passive income, and while I am in no means reaching for that in highschool, would something similar still be feasible in college or highschool?

    submitted by /u/kbc_31
    [link] [comments]

    Sector Funds

    Posted: 19 Oct 2019 02:31 PM PDT

    I love them. I have an equal weighted portfolios. A cyclical market timing portfolio.

    Do you use them and do you love them as much as me?

    submitted by /u/sirDANIELPLAINVIEW
    [link] [comments]

    Is it worth investing in index funds when my country has a '8 year deemed disposable tax rule'

    Posted: 19 Oct 2019 01:54 PM PDT

    I'm based in Ireland, and unfortunately, my country has a stupid tax rule. If you invest in foreign funds (such as the S&P 500, or the Nasdaq), after 8 years you have to pay a tax of 41% on any gain, even if you don't sell. This occurs every 8 years, so you can't just let it grows, and only pay tax when you sell.

    ​

    This is not the case with individual stocks though. When you own individual stocks, you only pay capital gains tax (a rate of 33%), when you sell the stock.

    ​

    In this case am I better off investing in funds, and sucking up the tax every 8 years? Or should I invest in individual stocks that are contained in the funds I intend to invest in?

    submitted by /u/Deviso
    [link] [comments]
    Read more
    at

    No comments:

    Post a Comment