Investing – manitimes.com https://manitimes.com Latest News from all around the world Mon, 15 May 2023 09:47:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://manitimes.com/wp-content/uploads/2023/05/cropped-fevicon-32x32.png Investing – manitimes.com https://manitimes.com 32 32 As Oneok acquires Magellan, here are the best MLP stocks to buy https://manitimes.com/as-oneok-acquires-magellan-here-are-the-best-mlp-stocks-to-buy/ https://manitimes.com/as-oneok-acquires-magellan-here-are-the-best-mlp-stocks-to-buy/#respond Mon, 15 May 2023 09:47:06 +0000 https://manitimes.com/as-oneok-acquires-magellan-here-are-the-best-mlp-stocks-to-buy/

Oneok (NYSE: OKE) stock price has moved sideways in the past few days as crude oil and natural gas prices retreats. The stock was trading at $63 on Friday, 31% above the lowest level in  2022. Now, the $28 billion company has agreed to acquire Magellan Midstream Partners in a $19 billion deal. So, which are the best MLP stocks to buy?

Western Midstream Partners

Western Midstream Partners (NYSE: WES) is a leading MLP valued at more than $9.7 billion. The company has operations in the Delaware Basin in West Texas and New Mexico. Like other MLPs, the company has seven pipelines and 71 processing and treating facilities. 

Western Midstream Partners has a dividend yield of 7.87% and a payout ratio of 79.68%. It is also a cheap company, trading at a forward PE ratio of 9.16 and a forward PE of 9.0. This is much lower than that of Magellan Partners, which has a trailing PE of 11.83.

Western Midstream Partners is even growing at a faster pace than Magellan. It has a forward EBITDA growth of 4.30% compared to MMP rate of 3.55%. Also, its EBITDA CAGR rate in the past three years stands at 6% vs MMP’s 0.91%. Western is also more profitable, with an EBITDA margin of 58.22%.

Hess Midstream

Hess Midstream (NYSE: HESM) is a leading midstream company mostly owned by Hess Corporation. The company provides its fee services to both Hess Corporation and other firms. Its assets are in the Bakken and Three Forks area in North Dakota.

Hess Midstream is an MLP that has some better characteristics than Magellan Midstream Partners. For example, it has a forward dividend yield of 8.16% vs MMP’s 7.56%. Its valuation is also much better considering it has a forward PE multiple of 14 and a forward EV to EBITDA ratio of 4.36. Its EBITDA margin stands at 61% vs MMP’s 40%.

Targa Resources

Targa Resources (NYSE: TRGP) is another MLP stock worth considering. The company, which has a market cap of over $15 billion is involved in gathering and processing and logistics and transportation solutions. Targa has a relatively smaller dividend yield of just 2.86% and a payout ratio of 40.26%. 

It has a forward EV to EBITDA of 8.21 vs MMP’s 10.55. Targa Resources is a highly profitable company with an EBITDA margin of 17%. The chart below compares the performance of MMP compared to Targa Resources, Hess Midstream, and Western Midstream Partners.

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]]> https://manitimes.com/as-oneok-acquires-magellan-here-are-the-best-mlp-stocks-to-buy/feed/ 0 Who wants to buy European luxury goods? It seems everybody does https://manitimes.com/who-wants-to-buy-european-luxury-goods-it-seems-everybody-does/ https://manitimes.com/who-wants-to-buy-european-luxury-goods-it-seems-everybody-does/#respond Sat, 13 May 2023 10:13:13 +0000 https://manitimes.com/index.php/2023/05/13/who-wants-to-buy-european-luxury-goods-it-seems-everybody-does/

European luxury goods are “on fire.” Despite the economic challenges posed by high inflation and war in Eastern Europe, the local luxury industry found a way to shine in this environment.

Asian buyers are desperate to own European brands. But they are not alone. In fact, Americans have the largest share, of about 30% of the market.

Luxury goods represent an indulgence rather than a necessity. Most of the industry comprises luxury hospitality, personal luxury goods, or luxury cars.

The excess savings during the pandemic poured into European luxury goods. An index of ten European luxury companies (STOXX Europe Luxury 10) was launched in May 2022.

Since then, it has delivered close to 50% returns – way more than STOXX Europe 600 (about 25% over the same period) or STOXX USA 900 (mostly flat over the period).

It is no surprise, though. As I reported in this article, LVMH recently became the first European company to exceed $500 billion in market capitalization. It reflects that buying European luxury goods is not only a status but also a great investment.

Brunello Cucinelli’s gross returns exceed 100% in one year

The Stoxx Europe Luxury 10 index is made up of 10 companies, such as Ferrari, LVMH, or Moncler. The largest component is LVMH, but that is not necessarily the best-performing company in the index.

Brunello Cucinelli (BIT:BC), gross returns are close to +120% in the last twelve months. The Italian luxury clothing company was founded in 1978 and is headquartered in Corciano, Italy.

Hermes, Burberry, and Christian Dior follow with returns between 55%-80% in one year.

Unsurprising, given the luxury industry trends in 2022. For instance, the luxury hospitality market surged to EUR191 billion, doubling in value compared to 2021.

Moreover, sales of private yachts and jets grew by 18%. Furthermore, sales of luxury cars hit a new record in 2022.

Summing up, everybody appears to buy European luxury goods.

How about their stocks?

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]]> https://manitimes.com/who-wants-to-buy-european-luxury-goods-it-seems-everybody-does/feed/ 0 Wheat prices forecast ahead of Russia harvesting season https://manitimes.com/wheat-prices-forecast-ahead-of-russia-harvesting-season/ https://manitimes.com/wheat-prices-forecast-ahead-of-russia-harvesting-season/#respond Sat, 13 May 2023 06:16:28 +0000 https://manitimes.com/index.php/2023/05/13/wheat-prices-forecast-ahead-of-russia-harvesting-season/

Wheat price has been in a strong bearish trend in the past few months as investors react to the changing supply and demand dynamics. Wheat was trading at $620, which was close to the lowest level since July 2021. It has dropped by more than 52% below the highest level in 2022.

Abundant wheat supplies

The main reason why wheat prices are falling is that the world is sitting on abundant supplies as the Black Sea Initiative holds quite well. This means that Ukraine and Russia are all exporting substantial amounts of wheat even as the war rages on.

In a statement, the Chief Investment Officer at Teucrium Trading argued that Russia is benefiting more than Ukraine with the deal. He said that Russia exports four bushels of wheat for every one bushel that Ukraine sells.

At the same time, Russia has significantly higher wheat inventories than before. Inventories stands at about 80% higher than the five-year average. This is notable since the next harvest in Russia will start in the next few weeks. Russia’s wheat is seeing the lowest prices in Europe.

The most recent WASDE report called for higher wheat supplies and reduced domestic usage in the US. Supplies in the US are expected to jump by 5 million bushels. The report added:

“The global wheat outlook for 2022/23 is for increased supplies, higher consumption, and reduced trade and stocks. Supplies are raised 0.7 million tons to 1,061.1 million, primarily on higher beginning stocks for Syria and increased production for Ethiopia. Global consumption is increased 2.9 million tons to 796.1 million.”

Wheat price prediction

Wheat chart by TradingView

On the daily chart, we see that wheat prices have been in a strong downward trend in the past few months. As a result, wheat remains below the 25-day and 50-day exponential moving averages. Most recently, the price of wheat has moved below the important support level at $720, the lowest level since December last year.

The MACD has moved below the neutral point of zero while the Relative Strength Index (RSI) is below 30. Therefore, as I wrote in this article, I suspect that wheat prices will continue falling in the next few weeks as sellers target the key support at $550.

In the long term, however, I believe that the climate change issues will help push wheat prices higher as the population growth converge with falling yields.

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]]> https://manitimes.com/wheat-prices-forecast-ahead-of-russia-harvesting-season/feed/ 0 Curaleaf stock price analysis: sell in May and go away https://manitimes.com/curaleaf-stock-price-analysis-sell-in-may-and-go-away/ https://manitimes.com/curaleaf-stock-price-analysis-sell-in-may-and-go-away/#respond Sat, 13 May 2023 05:54:59 +0000 https://manitimes.com/index.php/2023/05/13/curaleaf-stock-price-analysis-sell-in-may-and-go-away/

Curaleaf (CURA) stock price has been in a strong bearish trend in the past few months as the cannabis sector’s hype evaporates. The shares plunged to a low of $3.30 on Thursday, meaning that they have fallen by over 85% from the all-time high in 2020. In the same period, the Global X Cannabis ETF (POTX) stock has crashed by over 90%.

Perils of investing in hype

In March, I wrote an article where I warned against the risks of investing in trending areas. At the time, I warned that most hyped artificial intelligence stocks like C3.ai and Guardforce AI would crash. I also cited the hot AI cryptocurrencies like SingularityNET (AGIX) and Fetch.ai.

The same tragedy has happened in the cannabis industry. A few years ago, cannabis stocks like Tilray Brands and Aurora Cannabis were the hottest in the financial market. Today, most of them have seen their shares plunge by over 80%.

Curaleaf stock price has plunged hard in the past few months as the industry has lost hype. Earlier this month, the company said that its revenue jumped by 14% to $352 million in the last quarter. Its gross and EBITDA margins jumped to 47% and 21%, respectively. Further, its operating cash flow came in at $46 million even as the company spent $18 million in its international business.

Curaleaf has also made several strategic initiatives to improve profitability. For example, it has exited some of its key loss-making markets and is now focusing on Florida, Germany, and the UK. In a statement, Boris Jordan, the chairman said:

“Curaleaf will be on offense while others play defense. Make no mistake, we enter 2023 with a cleaner inventory position, ample cash on hand, and we will be investing in our business.” 

Despite these initiatives, the company expects to have low to mid-single-digit growth this year. This is a relatively slow growth for a company in a high-growth industry.

Curaleaf stock price forecast

CURA chart by TradingView

Turning to the weekly chart, we see that the CURA share price has been in a strong bearish trend in the past few months. The shares have moved below the important support level at $3.70, the lowest level on March 2020. It has also retested that support point, which is a sign of a bearish continuation.

Therefore, Curaleaf share price will likely continue falling as sellers target the next key support point at $2.50. At this stage, I don’t support catching this falling knife.

The post Curaleaf stock price analysis: sell in May and go away appeared first on Invezz.

]]> https://manitimes.com/curaleaf-stock-price-analysis-sell-in-may-and-go-away/feed/ 0 Barry Gilbert on S&P 500: ‘inflation may be yesterday’s story’ https://manitimes.com/barry-gilbert-on-sp-500-inflation-may-be-yesterdays-story/ https://manitimes.com/barry-gilbert-on-sp-500-inflation-may-be-yesterdays-story/#respond Sat, 13 May 2023 05:33:16 +0000 https://manitimes.com/index.php/2023/05/13/barry-gilbert-on-sp-500-inflation-may-be-yesterdays-story/

There’s reason to believe that the S&P 500 could push a bit further to the upside in the coming months, says Barry Gilbert – Asset Allocation Strategist at LPL Financial.

Why is he constructive on S&P 500?

Gilbert continues to rate U.S. stocks a “modest overweight” following the latest inflation data that suggests consumer prices eased further to 4.9% in April (read more).

Historically, he said in a note obtained by Invezz, market tends to do well when inflation is trending down.

S&P 500 returns fared better in the year following peak inflation than in the year prior. For markets, it’s been the direction of inflation rather than the level that matters.

Earlier this month, the U.S. Federal Reserve delivered its tenth consecutive rate hike but signalled a “pause” which could also be a tailwind for the benchmark index moving forward.

What else does the historical data suggest?

Gilbert also made another key inference from historical data that factored into his constructive view on the equities market.

Going back to 1937, he revealed, whenever inflation tops 9.0% (as it did last year), the S&P 500 tends to return just over 20% on average in the following year.

Higher inflation at peak increases odds of a larger rebound post peak even though inflation still remains elevated a year later. It tells us that market risks from higher inflation may be yesterday’s story.

Gilbert’s view is in sharp contrast with Citi that recently warned of about a 10% downside in the benchmark S&P 500 index (source).

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]]> https://manitimes.com/barry-gilbert-on-sp-500-inflation-may-be-yesterdays-story/feed/ 0 USD/RUB: ruble is on track for 4th weekly gains as commodities sink https://manitimes.com/usd-rub-ruble-is-on-track-for-4th-weekly-gains-as-commodities-sink/ https://manitimes.com/usd-rub-ruble-is-on-track-for-4th-weekly-gains-as-commodities-sink/#respond Fri, 12 May 2023 18:49:33 +0000 https://manitimes.com/index.php/2023/05/12/usd-rub-ruble-is-on-track-for-4th-weekly-gains-as-commodities-sink/

The Russian ruble is on track for the fourth straight weekly gains even as oil and gas prices remain under pressure. The USD/RUB exchange rate dipped to 76.58, which was a few points below the year-to-date high of 83.32.

Commodity prices on edge

The Russian ruble is one of the most important commodity currencies in the world because of the vast amount that the country sells internationally. Crude oil is the most important, accounting for more than 15% of the total GDP.

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The price of crude oil has been in a strong downward trend in the past few months as concerns about the global economy remains. Brent, the global benchmark, was trading at $76 on Friday, ~15% below the highest point this year. In a statement on Thursday, the Russian central bank estimated that urals will average $55 per barrel this year.

Natural gas, another important Russian export, has also plunged by more than 70% from the highest point in 2022. It is now sitting at the lowest level since 2021 as supplies of both gas and liquified natural gas from the US and the Middle East has surged.

The same trend is happening in the coal industry, where prices have stabilized in the past few months. A report by Caixing noted that Chinese power producers have seen better margins helped by lower coal prices.

Agricultural products like wheat and corn have seen their prices tumble as well. All this means that Russia’s trade dynamics could continue to worsen in the coming months. The most recent data showed that Russia’s trade balance plunged to $9.1 billion in February, the lowest point since 2021.

Why is the USD/RUB falling?

It is unclear why the USD/RUB pair has fallen in the past few weeks. A likely reason is that investors have moved into a profit-taking area since the pair has jumped by over 50% from the lowest point in 2020. 

The other reason is that the Russian ruble comeback coincides with the dollar sell-off. The US dollar index, which measures the greenback against other currencies, is hovering at $101, which is much lower than last year’s high of $115. 

Analysts – I included – believe that the USD to RUB exchange rate will resume rallying in the coming weeks as the ruble sell-off intensifies.

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]]> https://manitimes.com/usd-rub-ruble-is-on-track-for-4th-weekly-gains-as-commodities-sink/feed/ 0 Flare and Rationarium announce partnership to revolutionize Web3 with comprehensive ERP solution https://manitimes.com/flare-and-rationarium-announce-partnership-to-revolutionize-web3-with-comprehensive-erp-solution/ https://manitimes.com/flare-and-rationarium-announce-partnership-to-revolutionize-web3-with-comprehensive-erp-solution/#respond Fri, 12 May 2023 18:08:21 +0000 https://manitimes.com/index.php/2023/05/12/flare-and-rationarium-announce-partnership-to-revolutionize-web3-with-comprehensive-erp-solution/

Blockchain for data company Flare announced on Friday a new strategic partnership with Rationarium, the world’s first full-stack cloud enterprise solution provider for web3. 

This collaboration will result in an advanced enterprise resource planning (ERP) solution, offering an array of cutting-edge features to enhance operational efficiency and financial management within the web3 ecosystem.

Rationarium specializes in assisting web3 and blockchain companies by consolidating both off-chain and on-chain transactions into a unified ledger. Its crypto-native ERP solution includes customizable accounting and tax modules, empowering clients to tweek the software according to their specific requirements.

Flare to integrate Rationarium’s solutions

As part of the partnership, Flare will integrate Rationarium’s suite of solutions to optimize various aspects of their operations. This includes grant management, accounting and finance, tax compliance, human resources, expense management, and payroll services. 

By leveraging Rationarium’s purchase ledger and treasury function, Flare will be able to process data seamlessly in both fiat and cryptocurrency. Additionally, Flare employees and contractors will have the convenience of utilizing Rationarium’s platform for processing expenses and receiving payments in either fiat or crypto.

Amaan Jalwa, founder and CEO of Rationarium, stated: 

“With Rationarium, Flare will streamline the management and record-keeping for their operations, irrespective of whether they deal with fiat or crypto. We have worked closely with the Flare Ecosystem Team to develop a customized grant management platform for Layer 1 protocols, enhancing the efficiency of the grants process.”

Flare’s EVM-based Layer 1 blockchain aims to unlock the full potential of blockchain technology by providing decentralized access to high-integrity data from other chains and web2 platforms. This groundbreaking infrastructure allows for the creation of innovative real-world use cases and decentralized applications, optimized for both enterprise and consumer adoption.

The partnership between Flare and Rationarium represents a significant milestone in the advancement of web3 solutions. By harnessing the power of Rationarium’s ERP expertise and Flare’s robust Layer 1 protocols, businesses operating within the web3 ecosystem can look forward to enhanced operational efficiency and streamlined financial management processes.

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]]> https://manitimes.com/flare-and-rationarium-announce-partnership-to-revolutionize-web3-with-comprehensive-erp-solution/feed/ 0 Linda Yaccarino resigns from NBCUniversal: is she the new Twitter CEO? https://manitimes.com/linda-yaccarino-resigns-from-nbcuniversal-is-she-the-new-twitter-ceo/ https://manitimes.com/linda-yaccarino-resigns-from-nbcuniversal-is-she-the-new-twitter-ceo/#respond Fri, 12 May 2023 17:32:04 +0000 https://manitimes.com/index.php/2023/05/12/linda-yaccarino-resigns-from-nbcuniversal-is-she-the-new-twitter-ceo/

Linda Yaccarino has resigned from her role as the Head of Global Advertising at NBCUniversal effective immediately.

Report: Yaccarino will take over as the CEO of Twitter

That stock market news arrives only a day after Elon Musk confirmed in a tweet that he has finally hired a new Chief Executive for Twitter as Invezz reported here.

Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks.

While he did not name the mystery woman, CNBC’s Julia Boorstin just reported citing sources that Yaccarino was in advanced talks to take on the top role at Twitter.

Musk also said yesterday that he will remain with the social network as its executive chairman and CTO. Shares of Tesla Inc are in the green this morning following his announcement.

What makes her a suitable fit to lead Twitter Inc?

Elon Musk bought Twitter last year for about $44 billion. Under his leadership, the platform has taken a significant hit to its core advertising business.

To that end, Yaccarino could be a great fit as the top boss considering the wealth of connections she has with top marketing and advertising executives.

Also on Friday, NBCUniversal named Mark Marshall – its president of ad sales as the interim chairman of advertising and client partnerships. Last month, NBCUniversal ousted Jeff Shell as its Chief Executive following complaints of sexual harassment from an employee.

Shares of NBCUniversal parent company Comcast Corporation (NASDAQ: CMCSA) are slightly down on Friday.  

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]]> https://manitimes.com/linda-yaccarino-resigns-from-nbcuniversal-is-she-the-new-twitter-ceo/feed/ 0 Disney stock just got downgraded at Wolfe Research: find out more https://manitimes.com/disney-stock-just-got-downgraded-at-wolfe-research-find-out-more/ https://manitimes.com/disney-stock-just-got-downgraded-at-wolfe-research-find-out-more/#respond Fri, 12 May 2023 17:13:11 +0000 https://manitimes.com/index.php/2023/05/12/disney-stock-just-got-downgraded-at-wolfe-research-find-out-more/

Walt Disney Co (NYSE: DIS) is in focus this morning after a Wolfe Research analyst turned dovish on the entertainment conglomerate.

Disney+ lost 4.0 million subscribers in Q2

On Friday, Peter Supino downgraded the California-based company to “peer perform” and suspended his price objective on the stock.

His view is based primarily on the company’s direct-to-consumer business that the analyst warns will be slow in reaching profitability.

The DTC subscriber and linear TV outlooks keep deteriorating. DTC plan for > subs, > prices and < cost seems like cognitive dissonance.

Earlier this week, the mass media company said its flagship streaming service lost 4.0 million subscribers in the second financial quarter (read more). Consequently, Disney stock lost more than 10% in recent sessions and is now down about 20% versus its year-to-date high.

Why else did he turn dovish on Disney stock?

Disney could also take a hit if the U.S. economy slides into a recession that tends to hit advertising.

Supino turned dovish on Disney stock as he expects cutting promotional and SG&A expenses to be a headwind for the direct-to-consumer business in terms of gross additions. His research note reads:

Today’s late cycle consumer environment and deteriorating direct-to-consumer and linear revenue growth leave us more concerned about forecasting risk and time decay.

To that end, he’s not entirely convinced that Disney’s plans of raising prices later this year will be a good idea. Also this week, CEO Bob Iger confirmed that Hulu content will soon be added to the Disney+ streaming app.

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]]> https://manitimes.com/disney-stock-just-got-downgraded-at-wolfe-research-find-out-more/feed/ 0 Walken introduces its next P2E game ecosystem, the CUZE https://manitimes.com/walken-introduces-its-next-p2e-game-ecosystem-the-cuze/ https://manitimes.com/walken-introduces-its-next-p2e-game-ecosystem-the-cuze/#respond Fri, 12 May 2023 16:53:44 +0000 https://manitimes.com/index.php/2023/05/12/walken-introduces-its-next-p2e-game-ecosystem-the-cuze/

Walken’s first year has been absolutely special and the team has gone to great lengths to explore the potential of casual gaming powered by web3, and how this combination may not only prove to be a fun and rewarding experience but also the future of web3 gaming. According to the team, this will balance the flaws of the classic hybrid-casual gaming and boost asset and progress utility to new highs.

So far, Walken has welcomed over 3.5 million registered players and has grown into a fantastic community. It is now moving forward with developing its next stage – the gaming ecosystem called the Cuze.

What is the CUZE?

The Cuze aims to break this vicious cycle of gameplay quickly becoming repetitive by expanding players’ opportunities and inviting more game creators from web2 to web3 to empower both creators and players to leverage the web3 earning potential.

The CUZE is a Walken-centric ecosystem of casual games powered by web3. It is the second game to be developed by Walken after their first game Walken Runner launched towards the end of 2022. Walken Runner game has already proven Walken’s vision and has outperformed the conventional web2 games of similar mechanics.

The CUZE aims at uniting different hybrid-casual games with their own soft currencies by shared NFT and progress utility across the ecosystem and the one governance and utility ecosystem token – WLKN. Besides boosting the monetization of gamers’ skills, gamers will also have tons of diverse experiences and a beautifully designed and ultimately entertaining game all in one place.

From a developer’s perspective, the Cuze is a gaming infrastructure on a Walken-centric ecosystem. It will provide best practices, guidance, and support on every level, from web3 interaction to in-game balance and tokenomics, to the talented teams out there looking to contribute to sustainable web3 gaming.

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]]> https://manitimes.com/walken-introduces-its-next-p2e-game-ecosystem-the-cuze/feed/ 0