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Among companies that advertised during the big game, these generated the highest positive social media activity as measured by LikeFolio.
JAB Holding also owns Panera, Krispy Kreme, Dr. Pepper Snapple, and a number of other well-known brands.
General Motors (NYSE: GM) will boost production at several U.S. factories and reopen others, starting Monday, as it continues to restore production that was idled in March due to the outbreak of the novel coronavirus. GM said that it will resume round-the-clock production at three U.S. factories that build its highly profitable pickup trucks. Dealer supplies of pickup trucks have grown tight, as pickup sales remained relatively strong while factories were closed in April and early May.
Investors are always ready to buy into a good value, and in today’s markets – with their combination of bear cycle and bull rally – those value stocks are clearer than ever. Using TipRanks’ database, which features extensive market data collated in real time, we’ve pulled up the details on three great stock market values. All three of these stocks offer investors a solid package: a one-year upside potential of at least 10%, a dividend over 2%, and a history of long-term share appreciation. While all three are down in the current market cycle, Wall Street’s analyst corps sees each of them as a Strong Buy. Even the economic shutdowns, which forced so many companies into losses for Q1, couldn’t derail these three – each showed profits in the quarter, and beat the earnings forecasts. Let’s dive into the details, and find out what makes these three stocks so valuable. Procter & Gamble Company (PG) We’ll start with one of the blue-chip staples of the Dow Jones average. Procter & Gamble showed steady earnings growth through 2019, beating estimates in every quarter, before recording a sharp drop in Q1. That drop, however, needs to be put into context – the company’s calendar first quarter is historically its lowest of the year. Not to mention Q1 2020 reflected both a fifth consecutive earnings beat and a modest year-over-year gain of 4.4%, despite the economic shutdowns. In an odd way, the coronavirus crisis may have even helped PG – the company’s strong presence in the home & consumer health, personal care, and hygiene niches meant that demand for PG products remained strong, even as overall consumer activity declined. In the company’s Q1 earnings release (PG’s fiscal Q3), the company reported 4.2% year-over-year revenue growth. In addition to its solid position in the current environment, Procter & Gamble is also one of the market’s true dividend champs. The company has a 16-year history of steady dividend growth and reliable payments. The current payment is 79 cents, the company raised it by 4 cents in Q1, annualizing to $3.16 per quarter and giving a yield of 2.7%. While that is only slightly higher than the consumer goods sector average of 2.5%, Procter’s dividend is backed by that long history – and it has a payout ratio of 64%, indicating that the payment is easily sustainable with current income levels. Covering PG stock for Evercore ISI, Robert Ottenstein headlines his note “Better, More Resilient, Wiser.” As for forward prospects, Ottenstein writes, “We see Procter as a reliable 6-8% EPS grower, as underscored by the firm’s confidence to raise the dividend by 6% in the face of unprecedented challenges…” Ottenstein keeps his Buy rating on PG shares, and raises his price target from $130 to $140. This implies 21% upside potential for the stock in the coming 12 months. (To watch Ottenstein’s track record, click here) Overall, PG’s Strong Buy analyst consensus rating is based on 10 reviews, which include 9 Buys against a single Hold. Wall Street is slightly less aggressive here than Ottenstein, but the $133 average price target still suggests an upside potential of 15%. (See Procter & Gamble stock analysis on TipRanks) Linde PLC (LIN) Next up is Linde, an important player in the industrial gas industry. This is not a consumer utility; rather, Linde dominates the market for pure gasses such as oxygen, nitrogen, hydrogen, and argon, along with compound gasses such as carbon monoxide. All have important uses in industry, especially within the medical and HVAC sectors – which have been deemed essential even during the public health crisis. Like PG above, Linde has a secure niche and product line-up despite the recessionary pressures. The quality of Linde’s market position is demonstrated by the quarterly performance. Where most companies registered declines or even losses, Linde reported Q1 EPS level with Q4. At $1.89, the quarterly earnings beat the forecast by 3.2%, and was the fifth quarter in a row to top the estimates. In another similarity to PG, Linde’s continued profitability is directly related to its strong presence in the healthcare industry. Some 20% of company revenues come from sales in the medical field (oxygen, for example, is a vital item in treating respiratory ailments), and Linde has been able to successfully absorb losses in other segments. With revenues secure, Linde was not shy about declaring its dividend going forward. The company announced that it will pay out 96 cents per share in Q2. That annualizes to $3.85, and gives a yield almost exactly at the S&P average: 2%. Michael Sison, 5-star analyst with Well Fargo, makes the simple case for LIN shares, “[We] believe this stable cash flow business and strong balance sheet make LIN an attractive story in the current uncertain environment. We also view LIN as a growth story, with the $9.5B project backlog as the pipeline for future earnings growth. Finally, we continue to expect the company to deliver on additional merger cost and revenue synergies once the recovery starts to take shape, likely before 2021.” To this end, Sison puts a $235 price target on the stock, showing his confidence in a 16% one-year upside potential. With this positive outlook, Sison rates the stock a Buy. (To watch Sison’s track record, click here) LIN is another stock with a Strong Buy analyst consensus rating. The shares have 22 reviews on record, breaking down into 17 Buys and 5 Holds. The current trading price is $202.34, and the average price target of $216 implies room for 7% growth this year. (See Linde stock analysis on TipRanks) Raytheon Technologies (RTX) Last on our list is Raytheon, a staple in the aerospace and defense industries, as well as a major contractor for the Pentagon. Raytheon’s better-known products include radars for the Air Force’s front line fighter aircraft and many of the military’s front line air-to-air and air-to-surface guided missiles. No one ever went broke selling weapons, and Raytheon is a good example of that old saw. The company’s $1.78 Q1 EPS was 60% higher than the estimates. Even more impressive, it was the eighth quarter in a row that RTX beat the earnings estimates. The solid EPS was derived from $18.2 billion in revenues, a figure in-line with both the estimates and the year-ago figure. Raytheon management declared a 47.5 cent quarterly dividend, to be paid out in June. In deference to the difficult economic times, and the possibility of reduced defense contracts as budgets contract, this dividend was a sharp decline from the 74 cents paid out in Q4. The important point for investors, however, is that Raytheon remains committed to maintaining its dividend, with the yield at 2.8%, which is above the industrial goods sector average of 2%. In his note on RTX for Credit Suisse, 5-star analyst Robert Spingarn states, “[We] assume that RTX defense can sustain a 2019-2022 sales CAGR of 6%+ (consistent with its record backlog), and that improving trends for defense margins, working capital, and capex can offset pension headwinds, then RTX defense likely stands to generate ~$5.3 billion of FCF in 2022…” This solid outlook contributes to his Buy rating and $81 price target on the stock. At current prices, this target implies a 26% potential upside to RTX. (To watch Spingarn’s track record, click here) With a share price of $64.52, and an average price target of $75.25, RTX boasts a 17% upside potential for the next 12 months. The consensus on the Street here is a Strong Buy, with 11 Buy reviews and 3 Holds. (See Raytheon stock analysis on TipRanks)
The Zacks Analyst Blog Highlights: T-Mobile US, Citigroup, Blackstone Group, Regeneron Pharmaceuticals and Canadian National Railway
The last thing on the consumer's mind is buying an automobile. So the low likelihood of a demand rebound for such expensive, luxury items will slow the recovery in Ford (NYSE:F), which already isn't having a great year. F stock is trading at just a little more than half its price at the beginning of the year.Source: Proxima Studio / Shutterstock.com Besides, the stay-at-home order may have permanently changed the need to commute to work. And with lower demand for cars and the potential for excess supply as people sell them, why should investors even consider F stock?Ford said it would delay the launch of its redesigned F-150 pickup, the Mustang Mach-E, and the Bronco sport-utility vehicle. This is due to the idling of its plants for around two months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFortunately, Hau Thai-Tang, Ford's head of product development and purchasing, said that "we're not going to do any additional delay to these launches beyond the impact of Covid-19 as a mechanism to conserve cash." * 7 Penny Stocks To Buy with Massive Upside Potential As a forward-looking machine, markets will interpret the statement to mean that operations will resume when its plants open again. A Closer Look at F StockFord will lose around $5 billion in the quarter due to the shutdown and reduced demand. As operations resume, the company may continue the development of its new products. And by the time jobs return and the economy rebounds, consumer interest for Ford should improve.Ford, General Motors (NYSE:GM), and Fiat Chrysler all planned to reopen North American factories on May 18. Ford has two near-term objectives. First, it needs to confirm that the new safety protocols will prevent any Covid-19 infections.For example, this includes distancing among factory workers, face masks, and cleaning of work areas. Ford's second objective is to re-start its product refresh pathway that appeals to a wary, price-conscious consumer. Mainstream 2021 Mustang Electric VehicleDetails of Ford's 2021 Mustang Mach-E will give Tesla (NASDAQ:TSLA) fans something to think about.The Mach-E will charge from 10% to 80% in just 38 minutes. This is half as fast as Tesla and is 30% faster than Ford's preliminary estimates. But the electric crossover starts at $44,995 and is as high as over $60,000. By comparison, Tesla's Model Y will start at $46,690 and may cost more than $65,000.Getting 61 miles in range with a 10-minute charge improves the suitability of short, local commutes. Also, Ford grew its FordPass charging network by adding 1,000 stations. At each of those stations, it added 5,000 plugs.On the software side of the EV business, Ford must win its customer's confidence by building on quality and continued support. Long after the SUV leaves the dealership, Ford said all Mustang Mach-E models stay up-to-date. Using over-the-air updates, software updates will not take more than two minutes. Exciting Opportunity for FordFord's upcoming quarterly losses put a damper on the company's exciting EV launch ahead. But after finding support at the $3.96 bottom reached in late March, the automobile manufacturer is a worthwhile bet.Simplywall.st reports the forecasted annual earnings growth is ~110%. It will reach profitability over the next three years. Conversely, this growth forecast suggests the stock has limited upside ahead: F Industry S&P 500 Growth Score 57 58 74 Sales Growth Sales Growth Next Year 17.80% 12.90% 11.20% Sales 1‑Year Chg (%) -5.60% -9.00% 18.00% Sales 3‑Year Avg (%) -0.70% -4.40% 12.50% Sales 5‑Year Avg (%) 1.10% -3.00% 6.50% Data courtesy of Stock RoverTo the right, you can see Ford's value score compared to its competition. Click to EnlargeSource: Stock Rover Similarly, most of the 11 analysts rate the stock as a "hold." The average price target is around $5 (according to Tipranks).Ford may not reward investors in the next few weeks, but the stock is not for trading. It suits those who believe in the potential recovery in the automotive sector. But as its manufacturing plants re-open and the economy re-starts, the stock price should start pricing in the rebound potential ahead.The author owns shares of Ford. Ford is discussed often in the DIY Value investing marketplace. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post With New Vehicles on the Horizon, Ford Stock Is Back in Gear appeared first on InvestorPlace.
Warren Buffett considers one basic principle, elementary probability, the core of his investing philosophy, helping him to identify tremendous stock opportunities.
The oil sector is still rife with risk. Four experts offer up these stocks outside the oil patch that look like far more profitable investments.
L.A. City Atty. Mike Feuer says his office and other law-enforcement agencies are investigating car dealer Hooman Nissani.
Nissan (NSANY) reports net loss of 671.2 billion yen in fiscal 2019, mainly due to the COVID-19 pandemic, which hurt the company's production, sales and other business activities in all regions.
* AT&T (NYSE:T) * Altria Group (NYSE:MO) * RCI Hospitality (NASDAQ:RICK) * Molson Coors Beverage (NYSE:TAP) * Anheuser-Busch InBev (NYSE:BUD) * Yamana Gold (NYSE:AUY) * Simon Property Group (NYSE:SPG) * ViacomCBS (NASDAQ:VIAC) * Champignon Brands (OTCMKTS:SHRMF)Although it's natural to mourn the cessation of the bull market, from another perspective, the novel coronavirus has gifted patient investors with a once-in-a-lifetime opportunity. Previously, so many companies had fundamentally strong business, but were gutted once the pandemic struck. Now, these stalwarts can be reasonably considered cheap stocks to buy.Better yet, no matter what your thoughts are on the market's trajectory, investors should be looking to advantage these lows. For instance, if you still believe in a quick, V-shaped economic recovery, then acquiring cheap stocks now would see you earn a swift profit.However, if we take the opposite road and slog it out through years of frustration, this would still be a net positive -- unless you must cash out now for whatever reason. That's because a slow recovery allows you to build a robust portfolio of high-quality names. By the end of these trials, you'll thank yourself for thinking ahead.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, not all cheap stocks to buy are viable bets for the long haul. As the bankruptcies of once-iconic American companies have demonstrated, we are still in the midst of an unprecedented calamity. Therefore, even solid names will likely suffer volatility, especially if we have an extended recovery.For this list of discounted companies, I'm primarily looking at businesses that can ride out the present calamity; hence, my focus on the vice industry. As well, I'm considering investments that may not find favor now but should have long-term upside. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure As with any pick you're considering, you should already acknowledge that turbulence is a given. Implement common-sense risk mitigation and you'll likely do well with these cheap stocks. AT&T (T)Source: Roman Tiraspolsky / Shutterstock.com AT&T is not only regarded among many analysts as one of the best cheap stocks to buy during this crisis, it's also incredibly boring. But remember, in the new normal, boring typically means stable, and stability is a very good thing. Here, this translates to T stock sporting a nearly 7% dividend yield.Additionally, AT&T features a forward price-earnings ratio of 9.5. That's incredibly low compared to both the telecommunications industry and broader benchmarks. Still, there's a reason for the discount. Over the years, the company has become very bloated, with some high-dollar decisions not working out favorably.Still, it's possible that the market is focusing too much on the negatives of T stock and not enough on the positives. For instance, the 5G network rollout will provide years of support for AT&T. In addition, the company owns HBO, which gives AT&T's streaming service much more gravitas than the competition. Altria Group (MO)Source: Kristi Blokhin / Shutterstock.com Admittedly, in the pre-pandemic years, Altria Group was disappointing. As you know, smoking rates are on the decline. Even worse, a new competitor, vaporizers or e-cigarettes, began providing a cleaner alternative to combustible cigarettes.However, MO stock became interesting when Altria invested heavily in Juul. However, underage vaping controversies saw Juul hit with lawsuits and ugly public accusations. Invariably, Altria's stake in Juul turned into a debacle.So, with all that, does Altria really belong in this list of cheap stocks to buy? While the headlines look terrible for the tobacco giant, the coronavirus may provide a surprising catalyst. According to research in Canada, recessions have a positive impact on smoking and imbibing rates. * 7 Cheap Stocks to Buy With Great Potential If this translates stateside -- and there's no reason to believe it wouldn't -- smoking rates could rise. Also, growing tensions between the U.S. and China may restrict vaporizer sales, which would cynically benefit Altria. RCI Hospitality (RICK)Source: Shutterstock Due to its universally attractive -- though admittedly shady -- business, RCI Hospitality is usually a solid bet, irrespective of broader market conditions. While RICK stock has seen a significant rise in value since hitting a bottom in March, shares are still sharply discounted relative to their pre-pandemic highs.But can RCI make good as a recession-resistant investment under these trying times? I will concede that this is a riskier proposition compared to other cheap stocks. Certainly, new normal protocols such as social distancing don't help when you're in the gentlemen's business. Still, this industry did very well, relatively speaking, during the Great Recession. I wouldn't be surprised if RICK stock provides an encore performance.At the end of the day, RCI meets a human need for close companionship that no technology can replicate. Granted, it's a cheap, twisted take on said companionship, but the demand is there. Molson Coors Beverage (TAP)Source: JHVEPhoto / Shutterstock.com Another vice-related company, Molson Coors Beverage is more palatable for investors than RCI. I mean that figuratively and literally. As a provider of multiple beer brands, including low-cost, budget-friendly beers like Coors Light and Keystone Light, Molson Coors has distinct relevance during our troubles.For many of us, drinking booze is a way to help get the edge off. Obviously, with the quarantines and social isolation, along with mass uncertainty over the viability of our economy, many reasons exist to knock down a cold one. But so far, it's TAP stock that's the one getting knocked down.Currently, shares are trading at levels last seen in the early years of last decade. What gives? * 25 Stocks to Buy for the Reopening Rally Unfortunately, shuttered restaurants have had a huge impact on Molson Coors and several other beverage makers. But with most states reopening -- and some blatantly ignoring common sense -- it's possible that cheap beer will start flowing again. Therefore, you'll want to keep Molson on your list of cheap stocks to consider. Anheuser-Busch InBev (BUD)Source: legacy1995 / Shutterstock.com Similar to Molson Coors, Anheuser-Busch specializes in cheap beer. For many years, Anheuser's flagship brand, Bud Light, has been the most popular beer in America, followed by Coors Light. Personally, I like the taste of Coors Light as far as cheap light beer goes. But Bud Light? It's simply awful.However, the customer is always right. And for the long term, you don't want to fight the tape on BUD stock. Right now, though, shares are at a remarkable discount. With BUD, you have to go back to the Great Recession years to see prices this low.Understandably, that might raise concerns. Typically, cheap stocks are cheap for a reason. In this case, Anheuser-Busch got rattled by the mass restaurant closure. Also, all popular cheap beer brands suffered a massive revenue reduction due to the quarantining of sports.However, the eventual return of sports -- as NASCAR demonstrated -- augurs well for BUD stock. Sure, there many not be fans in the stands but that will change over the next few years. Additionally, sports events provide an incentive for increased grocery sales of cheap beer, which is a net positive for this industry. Yamana Gold (AUY)Source: Shutterstock Fundamentally, you wouldn't consider Yamana Gold cheap. Currently, shares sport a forward P/E ratio of 31.5, which is high compared to the metals and mining industry. But on a technical basis, it's still one of the cheap stocks that you can pick up below double-digit prices.I'll freely concede that such thinking alone is a terrible reason to buy equity in an organization. But AUY stock is riding on the enthusiasm of the gold market. And while the yellow metal has frustrated many investors over the years, this time is different.Yes, those may be the four most dangerous words in investing. However, when Federal Reserve Chair Jerome Powell states that the U.S. economy faces unprecedented risks, this phrase is justified. * 7 Excellent Penny Stocks Ready to Roar Further, the labor market continues to print an ugly picture. Over a nine-week period, 40 million Americans filed for initial jobless claims. This number will probably continue to rise uncomfortably, giving AUY stock a cynical edge. Simon Property Group (SPG)Source: Jonathan Weiss / Shutterstock.com Usually, being the biggest U.S. operator in an industry is cause for celebration. But for Simon Property Group, which specializes in shopping malls, this distinction suddenly became a liability. Obviously, with the onset of stay-at-home orders, social distancing protocols and a sense of fear over contracting Covid-19, very few people could -- or even wanted -- to leave their homes. Naturally, SPG stock tanked.However, shares might interest risk-tolerant contrarians. I must be clear: This is among the riskiest of risky cheap stocks. Therefore, I wouldn't recommend spending a dime more than what your dumb money allocation allows.That said, Simon Property will gradually open stores as states lift their restrictions. As out-of-state travel data revealed, pent-up demand caused many Americans to run to regions that first reopened their businesses. We could see a similar dynamic play out for SPG stock.Another reason to be optimistic is that the company owns a large portfolio of outlet malls. Although traditional department stores are out of favor, retailers offering discounts will never go out of style. ViacomCBS (VIAC)Source: Jer123 / Shutterstock.com At first glance, you'd expect the quarantines to help lift ViacomCBS. Although a traditional content and entertainment powerhouse, ViacomCBS offers mainstream programs that many viewers find compelling. Yet that didn't help VIAC stock on the technical front, with shares plummeting throughout much of February and March.To be fair, VIAC has found robust momentum since hitting its March bottom. Despite that, shares are still discounted relative to their beginning-of-year price. Thus, ViacomCBS qualifies as one of the cheap stocks to buy amid this pandemic.More importantly, VIAC stock has a credible upside pathway. Mainly, the underlying company probably slipped into the background as pure streaming plays like Netflix (NASDAQ:NFLX) stole its thunder. However, as we work through this crisis, ViacomCBS becomes more compelling. * 10 Lithium Stocks to Buy Despite the Market's Irrationality For one thing, ViacomCBS has trusted news brands, which is more crucial than ever before. Additionally, the return of sports -- even in a mitigated fashion -- is a net positive for VIAC due to its live broadcasts. Champignon Brands (SHRMF)Source: Shutterstock Technically the cheapest of the cheap stocks on this list, Champignon Brands can be had for less than two bucks. Admittedly, this announcement will cause many investors to turn away from this company, and that's a good thing. You don't want to touch SHRMF stock if you can't take the heat.But if you can stomach the volatility, Champignon could be one of the most exciting opportunities available. Levered toward the burgeoning psychedelic medicine industry, SHRMF stock may strike you as another vice name. Actually, it's much more than that. Psychedelics offer profoundly positive implications toward addressing mental health issues.Most notable of all, Champignon Brands operates in a market that features incredibly high barriers to entry. Unlike cannabis, which anyone with enough drive can engage, psychedelics are strictly controlled by the federal government. Thus, your money is going to medicinal research, not toward a shady retail market.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he is long AT&T, Altria, gold bullion and Champignon Brands. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post The 9 Best Cheap Stocks to Fill Up On Now appeared first on InvestorPlace.
(Bloomberg Opinion) -- The IPO market just got a shot of caffeine from JDE Peet’s BV. Don’t expect other consumer listings to get such a rush.The owner of Peet’s Coffee, Douwe Egberts, Kenco and Tassimo on Friday priced shares in its initial public offering at 31.50 euros, in the upper half of the offering range, valuing the company at 15.6 billion euros ($17.3 billion), and rose to about 35.50 in mid-morning trading.The biggest European IPO this year, pulled off in a swift 10 days, is a remarkable feat for a consumer business in the midst of a pandemic and a looming global recession. But JDE Peet’s has been uncannily well-placed to capitalize on changing consumer habits during lockdown, the prospects for reopening and a resurgence in equity markets. The Dutch company was floated by JAB Holding Co., the investment fund backed by Germany’s billionaire Reimann family. Cornerstone investors, including funds run by George Soros’s firm, had agreed to take up a third of the offering, setting the tone.In a world crowded with coffee chains, JDE Peet’s gets 80% of its sales from coffee that is drunk at home. That meant it benefited as corner cafes shuttered and people working from home were forced to become their own baristas. Now that they can start going out again, it’s ready to serve them their favorite hot beverage too at the Peet’s Coffee chain. And just as Nestle SA benefited from people looking to stock up on the Starbucks-branded coffee it sells in supermarkets, so JDE Peet’s may gain new customers at its cafes if they discovered its products in the grocery store during lockdown. As consumers navigate post-lockdown life, JDE Peet’s looks well insulated. That may explain why the valuation, as of mid-morning trading, is approaching that of Starbucks Corp. on a calendar 2019 enterprise-value-to-Ebitda basis. With consumers likely pulling in their purse strings, homemade coffee may be more popular than pricey takeaway lattes. Yet the valuation may also reflect optimism about reopening, and expectations that people will be eager to get out and about. Early indications from U.S. retailers, such as discount-chain owner TJX Cos Inc. and even department store Macy’s Inc., are that sales have been stronger than expected since Americans were able to shop in person once again.And let’s not forget about the IPO timing with stock markets gaining from their lows in March. That may be one reason why Peet’s was so keen on an accelerated book build: to avoid any sudden market turbulence.The fortunate confluence of factors may not come together for other consumer-facing groups looking to float or spin off a division. L Brands Inc.’s desire to eventually separate its Victoria’s Secret lingerie chain comes to mind. It was grappling with a tired image and too many stores even before the Covid-19 outbreak.As for Peet’s, the successful float leaves it with firepower for further acquisitions. It plans to use the proceeds to cut debt — it aims to reduce the leverage ratio from 3.6 times to below 3 times by the end of the first half of 2021 — but it gets an acquisition currency in the form of equity.Competition for coffee assets has been intense. There was a flurry of deals two years ago with JAB’s $2 billion purchase of Pret A Manger, which sells coffee as well as food to go; Coca-Cola Co.’s $5.1 billion swoop on Costa Coffee; and Nestle’s $7 billion deal for the rights to sell Starbucks coffee in supermarkets.But JDE Peet’s could get lucky here, too, particularly in the market for drinking coffee outside the home. With the lockdown-induced distress in malls and on main streets, it may be able to grab something to go for a better price.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Stocks were supposed to be mired in a bear market after they plunged in March as the coronavirus pandemic shuttered business and sent U.S. unemployment to its highest rate since the Great Depression.Even a 62% recovery by the S&P 500 Index by the middle of May failed to comfort experts like billionaire money managers Stan Druckenmiller and David Tepper , who characterized stocks as the worst investments of their careers. They weren't alone; amid an estimated 47% collapse in gross domestic product, fewer than a quarter of respondents to an Evercore ISI survey said they expected the next 10% move in the market to be higher.So far, though, stocks have held their own as economic indicators sagged, regaining 37% of their value from the low point in mid-March. “The stock market looks increasingly divorced from economic reality,” a New York Times article on the phenomenon proclaimed.Or maybe not — not if you think of it as the Microsoft market. No company has defied the pessimism more than Microsoft Corp., and for a lot of sensible reasons. The Seattle-based maker of global business and consumer software led all publicly traded companies most of the year with a $1.4 trillion market valuation, exceeded only by Saudi Arabian Oil Co. which isn't yet freely traded.Unlike the largest fossil fuel company, which lost 13% since its December $1.9 trillion initial public offering, Microsoft is within 5% of its Feb. 11 record high and appreciated $947 billion since 2015, more than any of the 10 largest companies, including Apple Inc., Alphabet Inc. and Amazon.com Inc. The gap between Microsoft and Aramco narrowed to $229 billion from $840 billion, a trend likely to continue amid weak global growth in the months ahead.That's because Microsoft, unlike Aramco, is a mainstay of the global economy, developing and supplying 75% of the operating systems used by computers and servers worldwide, according to the market-analysis company IDC.Microsoft's vast infrastructure and productivity applications enable companies, governments and individuals to navigate increasing social and workforce disruption caused by the pandemic and other disasters stoked by global warming and climate change.As one of the anchors of the Nasdaq 100 Index (more than 80% are technology firms) Microsoft signifies the growing dependence of the economy on these companies, which this year outperformed the Dow Jones Industrial Average by the most since 2000 (Nasdaq 100 gained 8% as the DJIA lost 10%), according to data compiled by Bloomberg.“Microsoft could emerge stronger than most of its rivals once the Covid-19 crisis subsides, in our view, as enterprises spend more to upgrade their infrastructure and applications, translating into above-consensus, double-digit sales growth from fiscal 2022-2021,” said Anurag Rana, a senior analyst with Bloomberg Intelligence in a May 15 report. “Its deep portfolio of cloud products, client relationships and security spending are differentiators.”Such confidence is prompted by the past five quarters, when Microsoft earnings for the first time exceeded forecasts by at least 10% after beating the average of analyst estimates in all but one of the 23 quarters since 2015, according to data compiled by Bloomberg. Unlike its five more glamorous peers — Facebook Inc., Apple, Amazon, Netflix and Google (Alphabet) — Microsoft has an uninterrupted growth rate with the least volatility, according to data compiled by Bloomberg.To be sure, the Faang companies and similar technology marvels retained much of their value during the Coronavirus pandemic. Netflix has gained 28% since the end of 2019; Amazon is up 30%, Apple 9%, Facebook 10%. Tesla Inc., the maker of electric, battery-powered vehicles, rallied 93% since the end of 2019 and is worth just $59 billion less than No. 1 Toyota Motor Corp.Tesla anticipated the remotely engaged economy by selling its vehicles online and improving the customer experience with periodic, automatic software upgrades. The traditional auto companies haven't fared well. Bayerische Motoren Werke AG, is down 24% since the end of 2019 and General Motors Co., the largest U.S. auto maker, declined 28% and is worth only 26% of Tesla's current market capitalization of $149 billion, according to data compiled by Bloomberg.That's why the Dow, once the benchmark of corporate America, is a shadow of its former self as industrial companies represent just 9% of the average, down from 16% in 2000, according to data compiled by Bloomberg.“Microsoft already had a great relationship with Fortune 2000 tech departments because of its dominance in Windows and Office software products,” said Bloomberg's Rana in a recent interview. “As these legacy companies look to invest more digitally transforming their business post Covid-19, Microsoft should get its fair share of work” — lifting the stock market as it helps transform the economy.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Matthew Winkler, Editor-in-Chief Emeritus of Bloomberg News, writes about markets.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The head of SoftBank Group Corp.’s Vision Fund received a substantial increase in compensation even as the investment business delivered a $17.7 billion loss.Rajeev Misra earned 1.61 billion yen ($15 million) in the year ended March 31, more than double his pay a year earlier, SoftBank said in a statement on Friday. The Vision Fund lost 1.9 trillion yen in the period, triggering the worst loss ever in the Japanese company’s 39-year history.SoftBank had to write down the valuations of companies like WeWork and Uber Technologies Inc. because of business missteps and the coronavirus fallout. Its return on the fund was negative 6%, compared with 62% just a year ago. Still, Misra was SoftBank’s second-highest-paid executive last year after Chief Operating Officer Marcelo Claure, even though Misra received no bonus and most of his compensation was in base pay. Founder Masayoshi Son took a 9% compensation cut, earning 209 million yen.“What kind of message is Son sending by giving Misra a raise despite the disastrous results he delivered?” said Atul Goyal, senior analyst at Jefferies Group. “The optics is just not good.”The pay hike for Misra comes at a time when the Vision Fund is planning deep cuts in staffing. The reductions across all levels of staff could affect about 10% of the fund’s workforce of roughly 500, according to people familiar with the matter. The Vision Fund, which has stopped making new investments after spending 85% of its capital, lists 30 people as investors on its website, including all of its managing partners, partners and directors.The fund has struggled since WeWork botched its efforts to go public last year and SoftBank stepped in to bail the company out. The Vision Fund currently manages more than 80 portfolio companies, but Son expects about 15 of the fund’s startups will likely go bankrupt while predicting another 15 will thrive.Separately, SoftBank is moving two managing partners at the Vision Fund into new roles. Akshay Naheta will become senior vice president, assisting Son in investments and providing strategic advice. Kentaro Matsui will transition to a senior advisory role at SoftBank Group.Claure, who helped close Sprint Corp.’s merger with T-Mobile US Inc. and is leading the effort to turn around WeWork, made 2.11 billion yen, a 17% raise. He also oversees a Latin American investment fund for SoftBank.SoftBank declined to comment on the reasons for changes in pay.Chief Strategy Officer Katsunori Sago earned 1.11 billion yen, a 13% increase for the former Goldman Sachs Group Inc. executive. Ken Miyauchi, head of SoftBank’s domestic telecom operation, made 699 million yen, a 43% drop. Simon Segars, head of its ARM Holdings Plc chip unit, did not make the list because his pay dropped below 100 million yen. Segars earned 1.1 billion yen the previous year.Ronald Fisher, Son’s long-time lieutenant and SoftBank Group vice chairman, saw his pay plunge 79% to 680 million yen. Fisher’s remuneration from the Vision Fund, where he runs the U.S. operations, totaled 1.27 billion yen, including a 767 million yen bonus. But he lost 701 million yen in compensation not related to the fund. SoftBank said the drop reflects a decline in stock price, but didn’t provide further details.SoftBank’s disastrous bet on WeWork has been viewed internally as Fisher’s project. Before SoftBank first invested in the company in 2017, Fisher met with executives at IWG Plc, a European competitor with a much lower valuation and many more sites, according to people familiar with the matter. Fisher interpreted the unfavorable metrics as a sign of growth potential. A month later, the Vision Fund led a $4.4 billion investment round into WeWork at a $20 billion valuation.Last year, after WeWork’s effort to go public fell apart, SoftBank stepped in to organize a bailout and put Claure in charge of turning around the business. But the pandemic has hammered its operations as workers shy away from gathering in shared office spaces. Earlier this month, SoftBank wrote down the value of its stake to $2.9 billion, more than 90% lower than its peak.(Updates with analyst comment in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- SoftBank Group Corp. has named Akshay Naheta senior vice president, moving the Vision Fund managing partner to a new role as the company looks for ways to improve its governance and stem losses, according to people familiar with the matter.Abu Dhabi-based Naheta will assist SoftBank founder and Chief Executive Officer Masayoshi Son in managing the conglomerate’s investments function and will provide strategic advice to its global management team, said some of the people, who asked not to be identified because the appointment isn’t yet public. Naheta will start his new role in June, one of them said.Another Vision Fund managing partner, Tokyo-based Kentaro Matsui, will transition to a senior advisory role at SoftBank Group, one of the people said. The moves were mutual decisions and part of an effort to refine the originally $100 billion fund’s operating model, the person added. Both Matsui and Naheta -- whose previous roles were focused on Asia and the Europe, Middle East and Africa regions, respectively -- are expected to continue to work on select Vision Fund activities.A spokeswoman for SoftBank and a spokesman for SoftBank’s Vision Fund declined to comment. The senior vice president title at SoftBank Group is held by the likes of its chief financial officer and chief legal officer.The executive reshuffle signals a heightened focus on SoftBank’s senior ranks in a period of turbulence for the Japanese conglomerate. The company reported the biggest annual loss in its history this month as Vision Fund portfolio companies lost value, and it’s been facing pressure from hedge fund Elliott Management Corp. to bolster governance and buy back stock.Read more: SoftBank’s Masa-Misra Partnership Strained by Losses, InfightingNaheta, who oversaw investments in the likes of chip designer Nvidia Corp., pharmaceutical company Roivant Sciences Ltd. and German online car trader Auto1, is close to Middle Eastern investor Mubadala Investment Co. and had been working on raising funds for a second Vision Fund, according to a person familiar with the matter.Matsui, who focused on investments in China, oversaw the Vision Fund’s bets on companies including Full Truck Alliance and Ping An Good Doctor.Potential LayoffsSoftBank’s Vision Fund is weighing job cuts that could affect about 10% of the company’s workforce after reporting about $18 billion in losses from the declining value of its startups, people familiar with the matter have said. In recent weeks, a separate SoftBank unit, SoftBank Group International, cut roughly 10% of staff.SoftBank earlier this month said it plans to spend as much as 500 billion yen ($4.6 billion) to buy back shares through next March, on top of an existing repurchase plan of the same size. The conglomerate is accelerating efforts to raise cash and is closing in on a deal to sell about $20 billion of its stock in T-Mobile US Inc., people familiar with the matter said previously.Before joining the Vision Fund, Naheta was managing partner of investment firm Knight Assets & Co. and head of principal strategies at Deutsche Bank AG. Matsui previously worked for Mizuho Securities Co. where he advised on some of SoftBank’s largest bets, including Arm, Vodafone Japan and Sprint.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Pop the roof off the Jeep Gladiator pickup and cruise around on a sunny day and you won’t care at all about the clunky handling, deafening wind noise or plasticky interior. You won’t have to manage the awkward climb-down until you park and get out.
In its 35th year of honoring the nation's most elite high school athletes, The Gatorade Company today announced Jared Kelley of Refugio High School in Refugio, Texas is the 2019-20 Gatorade National Baseball Player of the Year. Kelley won the prestigious award for his accomplishments on and off the field, joining an impressive group of former Gatorade National Baseball Player of the Year winners who have combined for four MLB MVP awards, 40 All-Star appearances and 27 became MLB first round draft picks.
DOW UPDATE Shares of Merck and Pfizer are trading higher Thursday afternoon, sending the Dow Jones Industrial Average into positive territory. Shares of Merck (MRK) and Pfizer (PFE) are contributing to the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 86 points, or 0.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
DOW UPDATE Shares of Boeing and Pfizer are posting strong returns Thursday afternoon, propelling the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 205 points, or 0.
Carmakers across the U.S. have begun to start production since last week, but bankruptcies among their suppliers could mean they will struggle to source individual parts and components for their assembly lines.
Comtech's (CMTL) Location Technologies group introduces a revamped website, which exhibits a diversified range of products specifically designed for public safety infrastructure.