According to the DEA, Mexican drug cartels continue to expand their presence and forge partnerships with other transnational gangs, U.S.street gangs, prison gangs, and Chinese money laundering organizations.
The DEA “assesses that the following six Mexican TCOs as having the greatest drug trafficking impact on the United States: Sinaloa Cartel, CJNG, BeltranLeyva Organization, Juarez Cartel, Gulf Cartel, and Los Zetas Cartel”.
Sinaloa Cartel is one of the oldest and most successful drug cartels in Mexico.
It is also the most significant drug trafficking organization in the United States.
Jalisco New Generation Cartel (CJNG) is the youngest of the top 6 Mexican drug cartels.Based in the city of Guadalajara, CJNG is the fastest growing drug cartel and the second biggest player in the United States.
This is probably not the last time you hear about CJNG as it is more willing to engage in violent confrontations with rival cartels and security forces.
Mexican Drug Cartels in America
Beltran-Leyva Organization (BLO) is the third most significant Mexican drug cartel in the United States, followed by Juarez Cartel, Gulf Cartel, and Los Zetas Cartel.”Consistent with previous years, the Sinaloa Cartel maintains the widest national influence, with its most dominant positions along the West Coast, in the Midwest, and in the Northeast.CJNG continues to be the Mexican TCO with second-most widespread national influence.BLO activities remain more dispersed throughout the United States, with heavier concentrations in areas with large heroin markets,” said the DEA.
These cartels primarily employ Mexican nationals to oversee their distribution operations in the United States.Their second choice for leadership positions are U.S.citizens of Mexican origin.They clearly don’t care about violating the employment discrimination laws.Story continues
According to the DEA, these six Mexican drug cartels generate tens of billions of dollars every year and employ a multitude of financial transactions and arrangements to launder and smuggle their earnings into Mexico.
“There has also been evidence of the utilization of cryptocurrencies by Mexican TCOs as a means by which to transfer their wealth internationally” said the DEA.Mexican drug cartels also convert wealthy Chinese nationals’ Renminbi (RMB) to US dollars at a lower rate than the prevailing market rate.Chinese nationals aren’t allowed to transfer their wealth outside of China, so they are willing to pay Mexican drug cartels a premium for the cartels’ US dollar cash holdings in exchange for RMB payments in China.We have no idea what the Mexican drug cartels do with all that RMB and how they smuggle all that cash out of China.
Our ranking methodology is quite simple.We ranked each city by the number of different Mexican cartels that use as a distribution hub.In case of a tie, we rank the city with more powerful cartels higher.We bet you won’t be able to guess the #1 U.S.city that is crowded by these violent Mexican drug cartels.
Here are our rankings using DEA’s data: 13.New Orleans
Los Zetas Cartel is the only Mexican cartel that uses New Orleans as a major hub.Los Zetas Cartel is the least influential of the 6 Mexican cartels, but this doesn’t mean that its members aren’t dangerous people.12.
Dallas
Los Zetas Cartel is also the only Mexican cartel that uses Dallas as a major hub.11.Laredo
Los Zetas Cartel is also the only Mexican cartel that uses Laredo as a major hub.10.Detroit
Gulf Cartel is the only Mexican cartel that uses Detroit as a major hub.Gulf Cartel is the 5th most influential Mexican drug cartel in the U.S..9.
Houston
Gulf Cartel is also the only Mexican cartel that uses Houston as a major hub.8.Oklahoma City
Juarez Cartel is the only Mexican cartel that uses Oklahoma City as a major hub.It is the 4th most powerful Mexican drug cartel operating in the United States.7.
El Paso
Juarez Cartel is also the only Mexican cartel that uses El Paso as a major hub.6.
New York City
Jalisco New Generation Cartel is the only Mexican cartel that uses New York City as a major hub.Mexican cartels aren’t prevalent in New York City probably because smaller Colombian drug operations still supply large quantities of cocaine and heroin into New York City.Exxon Mobil’s Dividend Yield Hits 10%: What Investors Need To Know Exxon Mobil’s dividend yield has continued to rise in a year that the stock has fallen by more than 50%.What Happened: Exxon Mobil Corporation’s (NYSE: XOM) dividend yield is sitting above 10% as of Thursday.The company paid out a dividend of 87 cents in September.Based on the ex-dividend date of Aug.12, the annual dividend rate was 7.9%.The dividend yield was 7.9% and 5.8% at the ex-dividend dates of the other dividends paid in 2020.In 2019, all four ex-dividend dates were at yields of 5% or less.In 2018, all four dates were 4.1% or less.
Charts dating back to 1989 show that Exxon Mobil’s dividend yield is at its highest-ever level.What’s Next: Exxon Mobil has a history of raising its quarterly dividend payout.The 87-cent quarterly payout has stayed the same for six straight quarters.Since 2008, ExxonMobil has never had the same quarterly dividend payout for more than four straight quarters.MKM Partners analyst John Gerdes has suggested ExxonMobil may need to raise $15 billion in debt to support its dividend over the next two years.Options trading trends are also pointing to a potential dividend cut this year or the next.XOM Price Action: Shares of ExxonMobil were down 0.2% at $34.32 at the close Thursday.Photo by Michael Rivera via Wikimedia.See more from Benzinga * Dave Portnoy Shares Thoughts On Penn Stock Offering, Barstool App Figures * Churchill Capital Launches Fifth SPAC * Spotify, Match Group, Epic Games Join Fight Against Apple’s App Store(C) 2020 Benzinga.com.Benzinga does not provide investment advice.All rights reserved.TipRanks J.P.
Morgan Says These 3 Stocks Could Surge Over 100% From Current Levels After the summer bulls, markets corrected themselves – but more than that, the selling was highly concentrated in the tech sector.The tech-heavy NASDAQ is now leading the on the fall, having lost 11.5% since September 2.JPMorgan strategist Marko Kolanovic points out that much of the market is now well-positioned for a rebound.Kolanovic believes that stocks will head back up in the last quarter of the year.“Now we think the selloff is probably over.Positioning is low.
We got a little bit of a purge, so we think actually market can move higher from here,” Kolanovic noted.Acting on Kolanovic’s outlook, JPMorgan’s stock analysts are starting to point out their picks for another bull run.These are stocks that JPM believes they may double or better over the coming year.Running the tickers through TipRanks’ database, we wanted to find out what makes them so compelling.NexTier Oilfield Solutions (NEX)The first JPM pick is NexTier, a provider of oilfield support services.The oil industry is more than just production companies.There are a slew of companies that provide drilling expertise, fluid technology for fracking, geological expertise, pumping systems – all the ancillary services that allow the drillers to extract the oil and gas.
That is the sector where NexTier lives.Unfortunately, it’s a sector that has proven vulnerable to falling oil prices and the economic disruption brought on by the coronavirus pandemic crisis.Revenues fell from Q1’s $627 million to $196 million in Q2; EPS was negative in both quarters.But NexTier has a few advantages that put it in a good place to take advantage of a market upturn.These advantages, among others, are on the mind of JPM analyst Sean Meakim.
“Admittedly we’re concerned about the sector disappointing the generalist ‘COVID-19 recovery’ crowd given the asymmetry of earnings beta to oil, but with 1) a solid balance sheet (net debt $17mm), 2) our outlook for positive (if modest) cash generation in 2021 (JPMe +$20mm), 3) a pathway to delivering comparably attractive utilization levels and margins, and 4) the cheapest valuation in the group (~20% of replacement), we think NexTier stands out as one of the best positioned pressure pumpers in our coverage,” Meakim opined.In line with his optimism, Meakim rates NEX an Overweight (i.e.Buy) along with a $5 price target.His target suggests an eye-opening upside potential of 203% for the coming year.(To watch Meakim’s track record, click here)Similarly, the rest of the Street is getting onboard.
6 Buy ratings and 2 Hold assigned in the last three months add up to a Strong Buy analyst consensus.In addition, the $3.70 average price target puts the potential twelve-month gain at 124%.(See NEX stock analysis on TipRanks)Fly Leasing (FLY)The next stock on our list of JPMorgan picks is Fly Leasing, a company with an interesting niche in the airline industry.It’s not commonly known, but most airlines don’t actually own their aircraft; for a variety of reasons, they lease them.Fly Leasing, which owns a fleet of 86 commercial airliners valued at $2.7 billion, is one of the leasing companies.Its aircraft, mostly Boeing 737 and Airbus A320 models, are leased out to 41 airlines in 25 countries.
Fly Leasing derives income from the rentals, the maintenance fees, and the security payments.As can be imagined, the corona crisis – and specifically, the lockdowns and travel restrictions which are not yet fully lifted – hurt Fly Leasing, along with the airline industry generally.With flights grounded and ticket sales badly depressed, income fell – and airlines were forced to cut back or defer their aircraft lease payments.
This is a situation that is only now beginning to improve.The numbers show it, as far as they can.FLY’s revenue has fallen from $135 million in 4Q19 to $87 million 1Q20 to $79 million the most recent quarter.EPS, similarly, has dropped, with Q2 showing just 37 cents, well below the 43-cent forecast.But there are some bright spots, and JPM’s Jamie Baker points out the most important.“[We] conservatively expect no deferral repayments in 2H20 vs.
management’s expected $37m.Overall, our deferral and repayment assumptions are in line with the other lessors in our coverage.We are assuming no capex for the remainder of the year, consistent with management’s commentary for no capital commitments in 2020 […] Despite recent volatility seen in the space, we believe lessors’ earnings profiles are more robust relative to airlines,” Baker noted.In short, Baker believes that Fly Leasing has gotten its income, spending, and cash situation under control – putting the stock in the starting blocks should markets turn for the better.Baker rates FLY an Overweight (i.e.
Buy), and his $15 price target implies a powerful upside of 155% for the next 12 months.(To watch Baker’s track record, click here)Over the past 3 months, two other analysts have thrown the hat in with a view on the aircraft leasing company.The two additional Buy ratings provide FLY with a Strong Buy consensus rating.With an average price target of $11.83, investors stand to take home an 101% gain, should the target be met over the next 12 months.
(See FLY stock analysis on TipRanks)Lincoln National Corporation (LNC)Last up, Lincoln National, is a Pennsylvania-based insurance holding company.Lincoln’s subsidiaries and operations are split into four segments: annuities, group protection, life insurance, and retirement plans.The company is listed on the S&P 500, boasts a market cap of $5.8 billion, and over $290 billion in total assets.The generally depressed business climate of 1H20 put a damper on LCN, pushing revenues down to $3.5 billion from $4.3 billion six months ago.
Earnings are down, too.
Q2 EPS came in at 97 cents, missing forecasts by 36%.There is a bright spot: through all of this, LNC has kept up its dividend payment, without cuts and without suspensions.The current quarterly dividend is 40 cents per common share, or $1.60 annually, and yields 4.7%.That is a yield almost 2.5x higher than found among peer companies on the S&P 500.Jimmy Bhullar covers this stock for JPM, and while he acknowledges the weak Q2 results, he also points out that the company should benefit as business conditions slowly return to normal.“LNC’s 2Q results were weak, marked by a shortfall in EPS and weak business trends.A majority of the shortfall was due to elevated COVID-19 claims and weak alternative investment income, factors that should improve in future periods […] The market recovery should help alternative investment income and reported spreads as well…”These comments support Bhullar’s Overweight rating.His $73 price target indicates room for a robust 143% upside from current levels (To watch Bhullar’s track record, click here)Overall, the Moderate Buy rating on LNC is based on 3 recent Buy reviews, against 5 Holds.
The stock is selling for $30 and the average price target is $45.13, suggesting a possible 50% upside for the coming year.(See LNC stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts.The content is intended to be used for informational purposes only.
It is very important to do your own analysis before making any investment.MarketWatch Yves Lamoureux, the president of macroeconomic research firm Lamoureux & Co., is back to update investors about where his rolling bear market call stands.He was right in March, and he says the second leg is about to start.
Benzinga Why Harley-Davidson Quit World’s Largest Motorcycle Market Iconic U.S.motorcycle brand Harley-Davidson Inc (NYSE: HOG) has decided to exit India – the world’s largest motorcycle market, as a part of its “Rewire” strategy of having a leaner operating model.What Happened: Harley had been struggling to make in-roads in India’s motorcycle market dominated by low-cost players.As a result, it decided to shut shop in India as a part of its restructuring strategy introduced by Jochen Zeitz, chairman, president, and CEO, who had joined in May this year.Harley expects to complete the revamp in the next 12 months, which will include a reduction of approximately 70 employees, and a restructuring cost of $75 million.The company has hired former Tyson Foods, Inc.(NYSE: TSN) executive Gina Goetter as the new Chief Financial Officer, effective Sept.30.”India is a high volume, low margin market.They weren’t structured to play that game, being at the very pointy end of the pyramid.
The lifestyle element that goes with owning a Harley bike is also not fully developed in India yet,” Hormazd Sorabjee, Editor of Autocar India told BBC.The coronavirus pandemic has dealt a blow to the bike maker, which was struggling already with an average sale of 3,000 units a year.The company could not beat the affordability of Royal Enfield, which dominates the premium motorcycle market.
Harley’s bikes in India started at INR 450,000 ($6,100) compared to Royal Enfield’s lighter vehicles selling for INR 200,000 ($2,717.67), reports the Financial Times.Why It’s Important: Harley’s exit comes after General Motors Company (NYSE: GM) and Ford Motor Company (NYSE: F) scaled back its India operations.
The country’s auto sector has been struggling for some time and Japanese carmaker Toyota Motor Corp (NYSE: TM) has decided to not expand in India owing to higher taxes, reports FT.Indian Prime Minister Narendra Modi’s “Make-in-India” has had limited success in this regard.This will not bode well with the Trump administration, which has accused India of unfair treatment.It can be a sticking point with the U.S., with whom India is negotiating a free trade agreement, according to BBC.See more from Benzinga * Soaring COVID-19 Cases Dampen European Markets * Asian Markets Remain Mixed On Hopes Of Fresh US Stimulus * Delay TikTok Ban Or Defend By Friday, Judge Tells Trump Administration(C) 2020 Benzinga.com.Benzinga does not provide investment advice.
All rights reserved.TipRanks 3 ‘Strong Buy’ Stocks With Over 7% Dividend Yield Markets are volatile, there can be no doubt.So far this month, the S&P 500 has fallen 9% from its peak.The tech-heavy NASDAQ, which had led the gainers all summer, is now leading the on the fall, having lost 11% since September 2.The three-week tumble has investors worried that we may be on the brink of another bear market.The headwinds are strong.The usual September swoon, the upcoming election, doubts about another round of economic stimulus – all are putting downward pressure on the stock markets.Which doesn’t mean that there are no opportunities.As the old saw goes, “Bulls and bears can both make money, while the pigs get slaughtered.” A falling market may worry investors, but a smart strategy can prevent the portfolio from losing too much long-term value while maintaining a steady income.Dividend stocks, which feed into the income stream, can be a key part of such a strategy.Using the data available in the TipRanks database, we’ve pulled up three stocks with high yields – from 7% to 11%, or up to 6 times the average dividend found on the S&P 500 index.
Even better, these stocks are seen as Strong Buys by Wall Street’s analysts.Let’s find out why.Williams Companies (WMB)We start with Williams Companies, an Oklahoma-based energy company.
Williams controls pipelines connecting Rocky Mountain natural gas fields with the Pacific Northwest region, and Appalachian and Texan fields with users in the Northeast and transport terminals on the Gulf Coast.The company’s primary operations are the processing and transport of natural gas, with additional ops in crude oil and energy generation.
Williams handles nearly one-third of all US commercial and residential natural gas use.The essential nature of Williams’ business – really, modern society simply cannot get along without reliable energy sources – has insulated the company from some of the economic turndown in 1H20.Quarterly revenues slid from $2.1 billion at the end of last year to $1.9 billion in Q1 and $1.7 billion in Q2.EPS in the first half was 26 cents for Q1 and 25 cents for Q2 – but this was consistent with EPS results for the previous three quarters.
The generally sound financial base supported the company’s reliable dividend.
Williams has been raising that payment for the past four years, and even the corona crisis could not derail it.At 40 cents per common share, the dividend annualizes to $1.60 and yields an impressive 7.7%.The next payment is scheduled for September 28.Truist analyst Tristan Richardson sees Williams as one of the midstream sector’s best positioned companies.“We continue to look to WMB as a defensive component of midstream and favor its 2H prospects as broader midstream grasps at recovery… Beyond 2020 we see the value proposition as a stable footprint with free cash flow generation even in the current environment.We also see room for incremental leverage reduction throughout our forecast period on scaled back capital plans and even with the stable dividend.
We look for modestly lower capex in 2021, however unlike more G&P oriented midstream firms, we see a project backlog in downstream that should support very modest growth,” Richardson noted.Accordingly, Richardson rates WMB shares as a Buy, and his $26 price target implies a 30% upside potential from current levels.(To watch Richardson’s track record, click here)Overall, the Strong Buy analyst consensus rating on WMB is based on 11 Buy reviews against just a single Hold.The stock’s current share price is $19.91 and the average price target is $24.58, making the one-year upside potential 23%.(See WMB stock analysis on TipRanks)Magellan Midstream (MMP)The second stock on our list is another midstream energy company, Magellan.
This is another Oklahoma-based firm, with a network of assets across much of the US from the Rocky Mountains to the Mississippi Valley, and into the Southeast.
Magellan’s network transports crude oil and refined products, and includes Gulf Coast export shipping terminals.Magellan’s total revenues rose sequentially to $782.8 in Q1, and EPS came in at $1.28, well above the forecast.These numbers turned down drastically in Q2, as revenue fell to $460.4 million and EPS collapsed to 65 cents.The outlook for Q3 predicts a modest recovery, with EPS forecast at 85 cents.The company strengthened its position in the second quarter with an issue of 10-year senior notes, totaling $500 million, at 3.25%.This reduced the company’s debt service payments, and shored up liquidity, making possible the maintenance of the dividend.The dividend was kept steady at $1.0275 per common share quarterly.Annualized, this comes to $4.11, a good absolute return, and gives a yield of 11.1%, giving MMP a far higher return than Treasury bonds or the average S&P-listed stock.Well Fargo analyst Praneeth Satish believes that MMP has strong prospects for recovery.“[We] view near-term weakness in refined products demand as temporary and recovering.
In the interim, MMP remains well positioned given its strong balance sheet and liquidity position, and ratable cash flow stream…” Satish goes on to note that the dividend appears secure for the near-term: “The company plans to maintain the current quarterly distribution for the rest of the year.”In line with this generally upbeat outlook, Satish gives MMP an Overweight (i.e.Buy) rating, and a $54 price target that implies 57% growth in the coming year.(To watch Satish’s track record, click here)Net net, MMP shares have a unanimous Strong Buy analyst consensus rating, a show of confidence by Wall Street’s analyst corps.The stock is selling for $33.44, and the average price target of $51.13 implies 53% growth in the year ahead.(See MMP stock analysis on TipRanks)Ready Capital Corporation (RC)The second stock on our list is a real estate investment trust.No surprise finding one of these in a list of strong dividend payers – REITs have long been known for their high dividend payments.Ready Capital, which focuses on the commercial mortgage niche of the REIT sector, has a portfolio of loans in real estate securities and multi-family dwellings.RC has provided more than $3 billion in capital to its loan customers.In the first quarter of this year, when the coronavirus hit, the economy turned south, and business came to a standstill, Ready Capital took a heavy blow.
Revenues fell by 58%, and Q1 EPS came in at just one penny.Things turned around in Q2, however, after the company took measures – including increasing liquidity, reducing liabilities, and increasing involvement in government-sponsored lending – to shore up business.Revenues rose to $87 million and EPS rebounded to 70 cents.In the wake of the strong Q2 results, RC also started restoring its dividend.In Q1 the company had slashed the payment from 40 cents to 25 cents; in the most recent declaration, for an October 30 payment, the new dividend is set at 30 cents per share.This annualizes to $1.20 and gives a strong yield of 9.9%.Crispin Love, writing from Piper Sandler, notes the company’s success in getting back on track.“Given low interest rates, Ready Capital had a record $1.2B in residential mortgage originations versus our $1.1B estimate.Gain on sale margins were also at record levels.We are calculating gain on sale margins of 3.7%, up from 2.4% in 1Q20,” Love wrote.In a separate note, written after the dividend declaration, Love added, “We believe that the Board’s actions show an increased confidence for the company to get back to its pre-pandemic $0.40 dividend.In recent earnings calls, management has commented that its goal is to get back to stabilized earnings above $0.40, which would support a dividend more in-line with pre-pandemic levels.”To this end, Love rates RC an Overweight (i.e.
Buy) along with a $12 price target, suggesting an upside of 14%.(To watch Love’s track record, click here)All in all, Ready Capital has a unanimous Strong Buy analyst consensus rating, based on 4 recent positive reviews.The stock has an average price target of $11.50, which gives a 9% upside from the current share price of $10.51.(See RC stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts.The content is intended to be used for informational purposes only.It is very important to do your own analysis before making any investment.Investor’s Business Daily The S&P; 500’s September drop is putting bulls to the test.And analysts are going as far as axing their recommendations on some stocks.
Investor’s Business Daily Tesla went on a monster run since hitting a low point in mid-March, energized by a strong second-quarter earnings report and a stock split.Now having pulled back, is Tesla stock a buy? Quartz How much US debt does China own? As tensions escalate between the US and China—over trade, Hong Kong, Taiwan, and even TikTok—officials have expressed concern that Beijing could use its stockpile of US Treasury bonds to destabilize the US economy and pressure Washington into backing down.Regular people are worried too: In a 2018 Pew Research Center survey, America’s debt to China was the top concern among respondents in the US, with 89% saying the problem was “very serious.” There’s a lot of fear, confusion, and misapprehension about why the US is in debt to China and what what would happen if China were to call it in.Benzinga Tesla Accuses Nikola Of Copying Truck Design: Report Tesla Inc’s (NASDAQ: TSLA) all-electric Semi will rely on the progress of Tesla’s newly revealed 4860 battery cells.Nikola Corporation (NASDAQ: NKLA) is in litigation with Tesla, alleging Tesla stole the design of its Nikola One concept.
Now Tesla is striking back in court.Tesla alleges in a Wednesday filing in the U.S.District Court case former Nikola Executive Chairman Trevor Milton was aware of the Road Runner truck design in 2014 and/or 2015, before Nikola unveiled a similarly designed semi concept, according to Electrek.Tesla said in the filing that Nikola stole its truck design from Adriano Mudri, director of design at the automotive company Rimac.If true, this would invalidate the patents Nikola is using to accuse Tesla of stealing its design.Photo courtesy of Tesla.See more from Benzinga * Ring Teams With Tesla To Enhance Security With Built-In Cameras * Elon Musk Jokes About Producing Electric Jet — But Is He Serious? * Elon Musk Has Promised A K Tesla Before: More On The Battery Day Announcement(C) 2020 Benzinga.com.
Benzinga does not provide investment advice.
All rights reserved.Barrons.com Macquarie analyst Chad Beynon launched coverage of the online sports-betting stock with an Outperform rating.
Investopedia Fear not: There are smart ways to ensure that your retirement nest egg keeps growing.Just be aware of the risks and be sure to read the fine print.
Barrons.com An analyst at UBS cautions that while Apple shares typically outperform ahead of an iPhone launch, they have generally underperformed the market after a launch.Bloomberg Li Family Bought $500 Million CK Stock.
Others Aren’t Biting (Bloomberg) — Li Ka-shing, Hong Kong’s richest man, is known to his admirers as “superman” for his knack for picking assets on the cheap.But that magic touch hasn’t been working on his own companies lately.Li and his elder son Victor — who now runs the ports-to-property empire — have spent about HK$3.8 billion ($490 million) since August last year to buy the flagging shares of CK Asset Holdings Ltd.and CK Hutchison Holdings Ltd.Despite the series of purchases, CK Asset’s stock is sinking toward last March’s record low, while CK Hutchison is approaching its lowest level since a group revamp in 2015.The reasons for the stock declines are many.The conglomerate’s retail and port operations have been pummeled by political turmoil arising from Beijing’s tightening grip over Hong Kong, the outbreak of Covid-19 and a slowdown in global trade.In August, the group pointed to the difficulty in foreseeing a rebound in earnings.Adding to the woes, mounting tensions between the U.S.and China are posing a new threat, with overseas deals facing increasing scrutiny and regulatory hurdles.“To investors, being cheap alone is not a good reason to buy a stock,” said Raymond Cheng, an analyst at CGS-CIMB Securities.
“People feel there are uncertainties in Hong Kong with the pandemic and the political environment.There are concerns about the market in the short term.”Although the purchases represent only about 1% of the combined market value of the two firms, the move is more of a show of confidence by the controlling family as they raise their holdings when prices dip.That prompted CGS-CIMB analyst Cheng to briefly raise CK Asset’s stock rating between March and April to a buy from neutral, but he flipped to reduce last month after the company’s first-half results and 35% dividend cut.CK Asset, the Li family’s property development arm, is losing appeal among investors who have a dim outlook on Hong Kong’s real estate market, Cheng said.Representatives for CK group didn’t respond to a request for comment.The property unit is also facing some challenges in mainland China.
Financial regulators have instructed banks to pull credit lines meant to finance a HK$2.5 billion sale of a Chengdu property by the company, people familiar with the matter said.CK Asset has said the project was no longer a subsidiary.Li, 92, and his son bought more than a combined 83 million shares in the two companies over 79 days in the past year, almost all of which were CK Asset.Purchases have occurred every month this year since March, when stocks bottomed in the wake of initial Covid-19 fears.CK Hutchison’s stock is down 37% this year, while CK Asset is down 32%, compared with a 17% decline for the benchmark Hang Seng Index.While it’s rare for controlling families to buy shares of their own firms as frequently as the Lis, they are not alone.
The Kwoks, who control the city’s largest developer, have been adding to their holdings in Sun Hung Kai Properties Ltd.since May, according to filings to the Hong Kong stock exchange.
That’s when shares hit their 2020 low.Apart from the challenging political and economic environment, CK Hutchison’s structure also appears too complicated to many investors who favor companies focusing on one specific sector, said Hong Kong-based Vincent Lam, chief investment officer of VL Asset Management.CK Asset’s recent diversification effort into utilities and aviation has put off some investors who used to be interested in the company, he said.“Globally investors have become less and less interested in conglomerates,” said Lam, whose fund doesn’t hold CK stocks.“Some investors tend to give more weightage to companies with a development plan in mainland China.”(Updates share movement in eighth 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.Barrons.com Costco Earnings Were Really Good.Here’s Why the Stock Is Falling.(COST) Wholesale stock was falling in after-hours trading Thursday, despite a strong fiscal fourth-quarter earnings report.
After the close of regular trading, Costco (ticker: COST) said it earned $3.13 a share on revenue that rose 12.5% year over year to $52.28 billion.Same-store sales climbed 11.4%, just ahead of the 11% consensus estimate.Investor’s Business Daily ChargePoint, the world’s largest provider of electric-vehicle charging stations, said on Thursday it is going public with a reverse-merger agreement worth $2.4 billion.MarketWatch The FIRE movement is a ‘motivational platform’ to get people thinking about their future financial stability, he says Benzinga 10 US Oil Stocks To Buy At Cyclical Lows The economic downturn in 2020 has been particularly hard on oil and gas stocks.
However, Bank of America analyst Asit Sen believes energy earnings have troughed for this cycle and are now on the upswing.Bank of America is projecting volumes and EBITDA margins will improve in coming quarters, and selective traders have plenty of buying opportunities in the space.”We believe the 2H20 outlook is ‘less bad’ following a very tough 1H20 and we are close to a cyclical bottom,” Sen wrote in a Thursday note.Looking ahead to 2022, Sen is projecting a normalization of global oil stockpiles and a recovery in global demand that exceeds supply.Clean Energy Transition: Sen supports the idea of a global transition to clean energy, but he isn’t anticipating that transition will have a meaningful impact on global oil demand for at least another decade.Meanwhile, he said investors don’t seem to fully appreciate the impact that upstream underinvestment will have on oil supply.The first half of 2020 was brutal for North American exploration and production companies, but Sen said the tough environment has forced companies to focus on three main goals: shoring up their balance sheets, eliminating capex growth and providing investors visibility related to dividends and free cash flows.Looking ahead, Sen said investors should closely monitor cash margins, reinvestment ratios and free cash flow in coming quarters.
His preferred stock picks have sustained capex and provided cash flow and dividend visibility for investors.How To Play It: Here are Bank of America’s top 10 US oil & gas shale stocks to buy: * Diamondback Energy Inc (NASDAQ: FANG) * Parsley Energy Inc (NYSE: PE) * WPX Energy Inc (NYSE: WPX) * Ovintiv Inc (NYSE: OVV) * National Fuel Gas Co.(NYSE: NFG) * Suncor Energy Inc.
(NYSE: SU) * Canadian Natural Resources Ltd (NYSE: CNQ) * Enbridge Inc (NYSE: ENB) * TC PIPELINES LP Common Stock (NYSE: TRP) * Brookfield Infrastructure Partners L.P.(NYSE: BIP)Benzinga’s Take: Few investors would argue that the world will still be relying primarily on fossil fuels in 2120.However, oil and gas still account for 69% of U.S.energy consumption, and industry insiders don’t see peak global oil production happening until at least 2030.Related Links:Analyst Upgrades Halliburton, Says Cost Cuts Will Increase Profitability Of Next Cycle Here’s How Much Investing 0 In The USO Oil Fund In 2010 Would Be Worth TodaySee more from Benzinga * Experts React To Jobs Report: ‘Need For Further Fiscal Action Is Obvious’ * Here’s How Much Investing ,000 In Intel At Dot-Com Bubble Peak Would Be Worth Today * ETF Short Sellers Targeting Small Caps, Tech Stocks(C) 2020 Benzinga.com.Benzinga does not provide investment advice.All rights reserved.TheStreet.com Now that NVDA stock has gotten caught up in the stock-market pullback, let’s see what the charts reveal.
Benzinga Nvidia Will Purchase Arm — Only If China Lets It Nvidia Corporation’s (NASDAQ: NVDA) acquisition of British semiconductor company Arm Ltd.is already facing scrutiny in the latter’s home country, and the troubles could be even worse in China, CNBC reports.What Happened: While Nvidia is based in the U.S., and Arm in the United Kingdom, both companies have operations worldwide, including in the European Union and China.Nvidia agreed to a billion purchase agreement for Arm with its parent company — Softbank Group Corp (OTC: SFTBY) — but said the deal would need the approval of authorities in the U.S., the U.K., the E.U., and China.According to Sebastian Hou, the Managing Director and Head of Technology Research at CLSA, the “biggest challenge” for Nvidia and SoftBank would be potential sanction from Chinese regulators, CNBC reported.China would want to avoid the “nightmare” of an American company owning Arm, as that would open a window for the U.S.government to restrict its access to the crucial technology, Hou told CNBC.”Given the U.S.-China tensions and US suppression on a range of Chinese technology enterprises, if Arm falls into U.S.hands, Chinese technology companies would certainly be placed at a big disadvantage in the market,” Chinese state-owned newspaper Global Times wrote.Why It Matters: In April 2018, Arm entered into a joint venture with a consortium of Chinese companies which included the state-backed China Investment Corporation and the Silk Road fund, according to South China Morning Post.A majority stake is collectively held by the Chinese entities, whereas Arm holds 49% in the joint venture.The British chip designer’s business model relies on licensing its technology to other technology companies.Reportedly, over 180 billion chips using Arm’s technology have been shipped worldwide and almost all the smartphones use this technology.
A change in ownership of Arm Holdings could have an overall impact on the semiconductor industry, especially due to the tensions between the two leading economies in the world.Arm co-founder Hermann Hauser last week termed the company’s acquisition as a “disaster” for Europe.Price Movement: After a 1.85% gain during trading hours, Nvidia stock gained an additional 1.03% in the extended trading hours to close at $499.See more from Benzinga * Palantir Estimates B Valuation On Public Debut: WSJ * Ford To Start Building Electric Vehicles In Canada By 2025: WSJ * Facebook, Twitter, YouTube Make Peace With Advertisers Over Harmful Content: FT(C) 2020 Benzinga.com.Benzinga does not provide investment advice.
All rights reserved.Fox Business The recent direction of the U.S.dollar points to former Vice President Joe Biden defeating President Trump in the upcoming election, but a lot can change before Nov.3.
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