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>>> Nanoparticles-induced potential toxicity on human health: Applications, toxicity mechanisms, and evaluation models
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10349198/
Nanoparticles (NPs) have become one of the most popular objects of scientific study during the past decades. However, despite wealth of study reports, still there is a gap, particularly in health toxicology studies, underlying mechanisms, and related evaluation models to deeply understanding the NPs risk effects. In this review, we first present a comprehensive landscape of the applications of NPs on health, especially addressing the role of NPs in medical diagnosis, therapy. Then, the toxicity of NPs on health systems is introduced. We describe in detail the effects of NPs on various systems, including respiratory, nervous, endocrine, immune, and reproductive systems, and the carcinogenicity of NPs. Furthermore, we unravels the underlying mechanisms of NPs including ROS accumulation, mitochondrial damage, inflammatory reaction, apoptosis, DNA damage, cell cycle, and epigenetic regulation. In addition, the classical study models such as cell lines and mice and the emerging models such as 3D organoids used for evaluating the toxicity or scientific study are both introduced. Overall, this review presents a critical summary and evaluation of the state of understanding of NPs, giving readers more better understanding of the NPs toxicology to remedy key gaps in knowledge and techniques.
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>>> Onto Innovation Inc. (ONTO) engages in the design, development, manufacture, and support of process control tools that performs optical metrology. The company offers lithography systems and process control analytical software. It also offers process and yield management solutions, and device packaging and test facilities through standalone systems for optical metrology, macro-defect inspection, packaging lithography, and transparent and opaque thin film measurements. In addition, the company provides process control software portfolio that includes solutions for standalone tools, groups of tools, and enterprise-or factory-wide suites. Further, it engages in systems software, spare parts, and other services, as well as offers software licensing services. The company's products are used in semiconductor and advanced packaging device manufacturers; silicon wafer; light emitting diode; vertical-cavity surface-emitting laser; micro-electromechanical system; CMOS image sensor; power device; analog device; RF filter; data storage; and various industrial and scientific applications. Onto Innovation Inc. was founded in 1940 and is headquartered in Wilmington, Massachusetts.
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>>> ProShares Nanotechnology ETF (TINY) -
https://money.usnews.com/funds/etfs/technology/proshares-nanotechnology-etf/tiny
The investment seeks investment results, before fees and expenses, that track the performance of the Solactive Nanotechnology Index (the “index”). The index consists of companies focused on making or applying nanotechnology innovations that allow for improved products, processes, or techniques through control or measurement of material at nanoscale. The adviser seeks to remain fully invested at all times in securities and/or financial instruments that, in combination, provide exposure to the returns of the index without regard to market conditions, trends or direction. The fund is non-diversified.
Top 10 Holdings
COMPANY MATURITY DATE % NET ASSETS
NVIDIA Corp NVDA - 4.71
Onto Innovation Inc. ONTO - 4.67
Lam Research Corp. LRCX - 4.66
KLA Corp. KLAC - 4.65
Applied Materials Inc. AMAT - 4.62
Entegris Inc ENTG - 4.58
Intel Corp. INTC - 4.46
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>>> Why Nano Dimension Stock Rocketed Almost 15% Higher Today
Motley Fool
By Eric Volkman
Jun 29, 2023
https://www.fool.com/investing/2023/06/29/why-nano-dimension-stock-rocketed-almost-15-higher/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
The 3D printing specialist took the wraps off its first quarter of fiscal 2023.
It set a new record for quarterly revenue and flipped to a profit on the bottom line.
Investors liked the company's first-quarter results. They also liked that it plans to resume its share buyback program.
What happened
Nano Dimension (NNDM 1.38%) had quite a memorable Thursday on the market following the release of the 3D printing company's latest quarterly earnings report. It notched a new all-time-high revenue figure and announced the resumption of a shareholder-pleasing measure.
As a result, the price of its American Depositary Receipts (ADRs) leaped almost 15% higher on the day, crushing the less than 0.5% increase of the S&P 500 index.
So what
Nano Dimension unveiled its first-quarter figures before market open that day. It booked revenue of slightly under $15 million for the quarter, which was a robust 24% higher year over year. More good news was to be found on the bottom line where, according to generally accepted accounting principles (GAAP) standards, the company flipped to a profit of $22 million ($0.09 per ADR) against the over $33 million loss in the year-ago quarter.
Nano Dimension is not a stock followed actively by many analysts, so estimates for the quarter were not readily available. Nevertheless, the improvements were considerable and, as such, provided a strong dose of hope for the future. Contributing to this was the generally very bullish tone of the earnings release, not to mention the company's involvement in the technology that investors are currently very eager about.
"One of the most exciting developments this quarter is the fast adoption of our Deep Learning/AI technology, developed by our DeepCube division," Nano Dimension quoted CEO Yoav Stern as saying. "It is now effectively installed in our newer models of machines, advancing industrial inspection, print quality optimization, process optimization, and monitoring and maintenance of machines."
Now what
As a sweetener, Nano Dimension also stated it intends to "promptly" continue its share buyback program. Somewhat frustratingly, however, it did not provide any details in the earnings release.
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>>> Nano Dimension to Highlight Its Diversified Portfolio and Innovation at Formnext
Nano Dimension Ltd.
November 7, 2022
https://finance.yahoo.com/news/nano-dimension-highlight-diversified-portfolio-140000906.html
Nano Dimension Ltd.
Participants Will See the Company’s Comprehensive Solutions Across Additive Electronics & Additive Manufacturing
Waltham, Mass., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or the “Company”), a leading supplier of Additively Manufactured Electronics (“AME”) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (“AM”) 3D printers, will showcase how its products and technologies are reinventing manufacturing at the upcoming Formnext 2022 event in Frankfurt, Germany, November 15-18 (Stand C119).
Nano Dimension’s vision to transform additive electronics and additive manufacturing will be on full display. Conference participants including industry leaders, customers, and capital market stakeholders will have a chance to see much of what has come to represent Nano Dimension after a robust R&D program and a series of strategic acquisitions.
Formnext participants will see the DragonFly® IV AME system, the leader in AME to produce electronic components; the Fabrica 2.0, a pioneer in micro-AM to fabricate millimeter size parts at micron resolution; the Admaflex 300, an innovator in DLP for ceramic and metal industrial parts; and the Atlas® Software Suite that controls market leading printing systems used worldwide in additive manufacturing applications.
“We are excited that we will be able to feature so much in one place. The thousands of people at Formnext will appreciate what so many customers have, and that is the unique combination of our solutions across additive electronics and additive manufacturing,” said Nano Dimension President Zivi Nedivi. “We look forward to partnering with industry leaders and educational institutions who are ready to take this journey.”
Nano Dimension encourages Formnext attendees to stop by Stand C119 and see the technology in action and discuss how it can be integrated to add flexibility and agility into their business’ production process.
About Nano Dimension
Nano Dimension’s (Nasdaq: NNDM) vision is to transform the electronics and similar additive manufacturing sectors through the development and delivery of an environmentally friendly and economically efficient additive manufacturing, Industry 4.0 solution, while enabling a one-production-step-conversion of digital designs into functioning devices – on-demand, anytime, anywhere.
The DragonFly® IV system and specialized materials serve cross-industry High-Performance-Electronic-Devices (Hi-PED®s) fabrication needs by simultaneously depositing proprietary conductive and dielectric substances while integrating in-situ capacitors, antennas, coils, transformers, and electromechanical components. The outcomes are Hi-PEDs which are critical enablers of autonomous intelligent drones, cars, satellites, smartphones, and in vivo medical devices. In addition, these products enable iterative development, IP safety, fast time-to-market, and device performance gains.
Nano Dimension also develops complementary production equipment for Hi-PEDs and printed circuit board (PCB) assembly (Puma, Fox, Tarantula, Spider, etc.). The core competitive edge for this technology is in its adaptive, highly flexible surface-mount technology (SMT) pick-and-place equipment, materials dispenser suitable for both high-speed dispensing and micro-dispensing, as well as an intelligent production material storage and logistics system.
Additionally, Nano Dimension is a leading developer and supplier of high-performance control electronics, software, and ink delivery system. It invents and delivers state-of-the-art 2D and 3D printing hardware and unique operating software. It focuses on high-value, precision-oriented applications such as specialized direct-to-container packaging, printed electronics functional fluids, and 3D printing, which is all controlled by the proprietary software system - Atlas.
Serving similar users of Hi-PEDs, Nano Dimension’s Fabrica 2.0 micro additive manufacturing system enables the production of microparts based on a Digital Light Processor (DLP) engine that achieves repeatable micron levels resolution. The Fabrica 2.0 is engineered with a patented array of sensors that allows a closed feedback loop, using proprietary materials to achieve very high accuracy while remaining a cost-effective mass manufacturing solution. It is used in the areas of micron-level resolution of medical devices, micro-optics, semiconductors, micro-electronics, micro-electro-mechanical systems (MEMS), microfluidics, and life sciences instruments.
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Vaccine nano-adjuvants - >>> Functionalized graphene oxide serves as a novel vaccine nano-adjuvant for robust stimulation of cellular immunity†
https://pubs.rsc.org/en/content/articlelanding/2016/nr/c5nr09208f
Ligeng Xu,a Jian Xiang,a Ye Liu,b Jun Xu,a Yinchan Luo,a Liangzhu Feng,a Zhuang Liu*a and Rui Peng*a
Author affiliations
Abstract
Benefiting from their unique physicochemical properties, graphene derivatives have attracted great attention in biomedicine. In this study, we carefully engineered graphene oxide (GO) as a vaccine adjuvant for immunotherapy using urease B (Ure B) as the model antigen. Ure B is a specific antigen for Helicobacter pylori, which is a class I carcinogen for gastric cancer. Polyethylene glycol (PEG) and various types of polyethylenimine (PEI) were used as coating polymers. Compared with single-polymer modified GOs (GO–PEG and GO–PEI), certain dual-polymer modified GOs (GO–PEG–PEI) can act as a positive modulator to promote the maturation of dendritic cells (DCs) and enhance their cytokine secretion through the activation of multiple toll-like receptor (TLR) pathways while showing low toxicity. Moreover, this GO–PEG–PEI can serve as an antigen carrier to effectively shuttle antigens into DCs. These two advantages enable GO–PEG–PEI to serve as a novel vaccine adjuvant. In the subsequent in vivo experiments, compared with free Ure B and clinically used aluminum-adjuvant-based vaccine (Alum-Ure B), GO–PEG–PEI–Ure B induces stronger cellular immunity via intradermal administration, suggesting promising applications in cancer immunotherapy. Our work not only presents a novel, highly effective GO-based vaccine nano-adjuvant, but also highlights the critical roles of surface chemistry for the rational design of nano-adjuvants.
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Biological nanotech -
>>> The 'Spartacus COVID Letter' That's Gone Viral
Zero Hedge
BY TYLER DURDEN
SEP 27, 2021
https://www.zerohedge.com/covid-19/damn-you-hell-you-will-not-destroy-america-here-spartacus-covid-letter-thats-gone-viral
Via The Automatic Earth blog,
This is an anonymously posted document by someone who calls themselves Spartacus. Because it’s anonymous, I can’t contact them to ask for permission to publish. So I hesitated for a while, but it’s simply the best document I’ve seen on Covid, vaccines, etc. Whoever Spartacus is, they have a very elaborate knowledge in “the field”. If you want to know a lot more about the no. 1 issue in the world today, read it. And don’t worry if you don’t understand every single word, neither do I. But I learned a lot.
The original PDF doc is here: Covid19 – The Spartacus Letter
Hello,
My name is Spartacus, and I’ve had enough.
We have been forced to watch America and the Free World spin into inexorable decline due to a biowarfare attack. We, along with countless others, have been victimized and gaslit by propaganda and psychological warfare operations being conducted by an unelected, unaccountable Elite against the American people and our allies.
Our mental and physical health have suffered immensely over the course of the past year and a half. We have felt the sting of isolation, lockdown, masking, quarantines, and other completely nonsensical acts of healthcare theater that have done absolutely nothing to protect the health or wellbeing of the public from the ongoing COVID-19 pandemic.
Now, we are watching the medical establishment inject literal poison into millions of our fellow Americans without so much as a fight.
We have been told that we will be fired and denied our livelihoods if we refuse to vaccinate. This was the last straw.
We have spent thousands of hours analyzing leaked footage from Wuhan, scientific papers from primary sources, as well as the paper trails left by the medical establishment.
What we have discovered would shock anyone to their core.
First, we will summarize our findings, and then, we will explain them in detail. References will be placed at the end.
Summary:
COVID-19 is a blood and blood vessel disease. SARS-CoV-2 infects the lining of human blood vessels, causing them to leak into the lungs.
Current treatment protocols (e.g. invasive ventilation) are actively harmful to patients, accelerating oxidative stress and causing severe VILI (ventilator-induced lung injuries). The continued use of ventilators in the absence of any proven medical benefit constitutes mass murder.
Existing countermeasures are inadequate to slow the spread of what is an aerosolized and potentially wastewater-borne virus, and constitute a form of medical theater.
Various non-vaccine interventions have been suppressed by both the media and the medical establishment in favor of vaccines and expensive patented drugs.
The authorities have denied the usefulness of natural immunity against COVID-19, despite the fact that natural immunity confers protection against all of the virus’s proteins, and not just one.
Vaccines will do more harm than good. The antigen that these vaccines are based on, SARS-CoV- 2 Spike, is a toxic protein. SARS-CoV-2 may have ADE, or antibody-dependent enhancement; current antibodies may not neutralize future strains, but instead help them infect immune cells. Also, vaccinating during a pandemic with a leaky vaccine removes the evolutionary pressure for a virus to become less lethal.
There is a vast and appalling criminal conspiracy that directly links both Anthony Fauci and Moderna to the Wuhan Institute of Virology.
COVID-19 vaccine researchers are directly linked to scientists involved in brain-computer interface (“neural lace”) tech, one of whom was indicted for taking grant money from China.
Independent researchers have discovered mysterious nanoparticles inside the vaccines that are not supposed to be present.
The entire pandemic is being used as an excuse for a vast political and economic transformation of Western society that will enrich the already rich and turn the rest of us into serfs and untouchables.
COVID-19 Pathophysiology and Treatments:
COVID-19 is not a viral pneumonia. It is a viral vascular endotheliitis and attacks the lining of blood vessels, particularly the small pulmonary alveolar capillaries, leading to endothelial cell activation and sloughing, coagulopathy, sepsis, pulmonary edema, and ARDS-like symptoms. This is a disease of the blood and blood vessels. The circulatory system. Any pneumonia that it causes is secondary to that.
In severe cases, this leads to sepsis, blood clots, and multiple organ failure, including hypoxic and inflammatory damage to various vital organs, such as the brain, heart, liver, pancreas, kidneys, and intestines.
Some of the most common laboratory findings in COVID-19 are elevated D-dimer, elevated prothrombin time, elevated C-reactive protein, neutrophilia, lymphopenia, hypocalcemia, and hyperferritinemia, essentially matching a profile of coagulopathy and immune system hyperactivation/immune cell exhaustion.
COVID-19 can present as almost anything, due to the wide tropism of SARS-CoV-2 for various tissues in the body’s vital organs. While its most common initial presentation is respiratory illness and flu-like symptoms, it can present as brain inflammation, gastrointestinal disease, or even heart attack or pulmonary embolism.
COVID-19 is more severe in those with specific comorbidities, such as obesity, diabetes, and hypertension. This is because these conditions involve endothelial dysfunction, which renders the circulatory system more susceptible to infection and injury by this particular virus.
The vast majority of COVID-19 cases are mild and do not cause significant disease. In known cases, there is something known as the 80/20 rule, where 80% of cases are mild and 20% are severe or critical. However, this ratio is only correct for known cases, not all infections. The number of actual infections is much, much higher. Consequently, the mortality and morbidity rate is lower. However, COVID-19 spreads very quickly, meaning that there are a significant number of severely-ill and critically-ill patients appearing in a short time frame.
In those who have critical COVID-19-induced sepsis, hypoxia, coagulopathy, and ARDS, the most common treatments are intubation, injected corticosteroids, and blood thinners. This is not the correct treatment for COVID-19. In severe hypoxia, cellular metabolic shifts cause ATP to break down into hypoxanthine, which, upon the reintroduction of oxygen, causes xanthine oxidase to produce tons of highly damaging radicals that attack tissue. This is called ischemia-reperfusion injury, and it’s why the majority of people who go on a ventilator are dying. In the mitochondria, succinate buildup due to sepsis does the same exact thing; when oxygen is reintroduced, it makes superoxide radicals. Make no mistake, intubation will kill people who have COVID-19.
The end-stage of COVID-19 is severe lipid peroxidation, where fats in the body start to “rust” due to damage by oxidative stress. This drives autoimmunity. Oxidized lipids appear as foreign objects to the immune system, which recognizes and forms antibodies against OSEs, or oxidation-specific epitopes. Also, oxidized lipids feed directly into pattern recognition receptors, triggering even more inflammation and summoning even more cells of the innate immune system that release even more destructive enzymes. This is similar to the pathophysiology of Lupus.
COVID-19’s pathology is dominated by extreme oxidative stress and neutrophil respiratory burst, to the point where hemoglobin becomes incapable of carrying oxygen due to heme iron being stripped out of heme by hypochlorous acid. No amount of supplemental oxygen can oxygenate blood that chemically refuses to bind O2.
The breakdown of the pathology is as follows:
SARS-CoV-2 Spike binds to ACE2. Angiotensin Converting Enzyme 2 is an enzyme that is part of the renin-angiotensin-aldosterone system, or RAAS. The RAAS is a hormone control system that moderates fluid volume in the body and in the bloodstream (i.e. osmolarity) by controlling salt retention and excretion. This protein, ACE2, is ubiquitous in every part of the body that interfaces with the circulatory system, particularly in vascular endothelial cells and pericytes, brain astrocytes, renal tubules and podocytes, pancreatic islet cells, bile duct and intestinal epithelial cells, and the seminiferous ducts of the testis, all of which SARS-CoV-2 can infect, not just the lungs.
SARS-CoV-2 infects a cell as follows: SARS-CoV-2 Spike undergoes a conformational change where the S1 trimers flip up and extend, locking onto ACE2 bound to the surface of a cell. TMPRSS2, or transmembrane protease serine 2, comes along and cuts off the heads of the Spike, exposing the S2 stalk-shaped subunit inside. The remainder of the Spike undergoes a conformational change that causes it to unfold like an extension ladder, embedding itself in the cell membrane. Then, it folds back upon itself, pulling the viral membrane and the cell membrane together. The two membranes fuse, with the virus’s proteins migrating out onto the surface of the cell. The SARS-CoV-2 nucleocapsid enters the cell, disgorging its genetic material and beginning the viral replication process, hijacking the cell’s own structures to produce more virus.
SARS-CoV-2 Spike proteins embedded in a cell can actually cause human cells to fuse together, forming syncytia/MGCs (multinuclear giant cells). They also have other pathogenic, harmful effects. SARS-CoV- 2’s viroporins, such as its Envelope protein, act as calcium ion channels, introducing calcium into infected cells. The virus suppresses the natural interferon response, resulting in delayed inflammation. SARS-CoV-2 N protein can also directly activate the NLRP3 inflammasome. Also, it suppresses the Nrf2 antioxidant pathway. The suppression of ACE2 by binding with Spike causes a buildup of bradykinin that would otherwise be broken down by ACE2.
This constant calcium influx into the cells results in (or is accompanied by) noticeable hypocalcemia, or low blood calcium, especially in people with Vitamin D deficiencies and pre-existing endothelial dysfunction. Bradykinin upregulates cAMP, cGMP, COX, and Phospholipase C activity. This results in prostaglandin release and vastly increased intracellular calcium signaling, which promotes highly aggressive ROS release and ATP depletion. NADPH oxidase releases superoxide into the extracellular space. Superoxide radicals react with nitric oxide to form peroxynitrite. Peroxynitrite reacts with the tetrahydrobiopterin cofactor needed by endothelial nitric oxide synthase, destroying it and “uncoupling” the enzymes, causing nitric oxide synthase to synthesize more superoxide instead. This proceeds in a positive feedback loop until nitric oxide bioavailability in the circulatory system is depleted.
Dissolved nitric oxide gas produced constantly by eNOS serves many important functions, but it is also antiviral against SARS-like coronaviruses, preventing the palmitoylation of the viral Spike protein and making it harder for it to bind to host receptors. The loss of NO allows the virus to begin replicating with impunity in the body. Those with endothelial dysfunction (i.e. hypertension, diabetes, obesity, old age, African-American race) have redox equilibrium issues to begin with, giving the virus an advantage.
Due to the extreme cytokine release triggered by these processes, the body summons a great deal of neutrophils and monocyte-derived alveolar macrophages to the lungs. Cells of the innate immune system are the first-line defenders against pathogens. They work by engulfing invaders and trying to attack them with enzymes that produce powerful oxidants, like SOD and MPO. Superoxide dismutase takes superoxide and makes hydrogen peroxide, and myeloperoxidase takes hydrogen peroxide and chlorine ions and makes hypochlorous acid, which is many, many times more reactive than sodium hypochlorite bleach.
Neutrophils have a nasty trick. They can also eject these enzymes into the extracellular space, where they will continuously spit out peroxide and bleach into the bloodstream. This is called neutrophil extracellular trap formation, or, when it becomes pathogenic and counterproductive, NETosis. In severe and critical COVID-19, there is actually rather severe NETosis.
Hypochlorous acid building up in the bloodstream begins to bleach the iron out of heme and compete for O2 binding sites. Red blood cells lose the ability to transport oxygen, causing the sufferer to turn blue in the face. Unliganded iron, hydrogen peroxide, and superoxide in the bloodstream undergo the Haber- Weiss and Fenton reactions, producing extremely reactive hydroxyl radicals that violently strip electrons from surrounding fats and DNA, oxidizing them severely.
This condition is not unknown to medical science. The actual name for all of this is acute sepsis.
We know this is happening in COVID-19 because people who have died of the disease have noticeable ferroptosis signatures in their tissues, as well as various other oxidative stress markers such as nitrotyrosine, 4-HNE, and malondialdehyde.
When you intubate someone with this condition, you are setting off a free radical bomb by supplying the cells with O2. It’s a catch-22, because we need oxygen to make Adenosine Triphosphate (that is, to live), but O2 is also the precursor of all these damaging radicals that lead to lipid peroxidation.
The correct treatment for severe COVID-19 related sepsis is non-invasive ventilation, steroids, and antioxidant infusions. Most of the drugs repurposed for COVID-19 that show any benefit whatsoever in rescuing critically-ill COVID-19 patients are antioxidants. N-acetylcysteine, melatonin, fluvoxamine, budesonide, famotidine, cimetidine, and ranitidine are all antioxidants. Indomethacin prevents iron- driven oxidation of arachidonic acid to isoprostanes. There are powerful antioxidants such as apocynin that have not even been tested on COVID-19 patients yet which could defang neutrophils, prevent lipid peroxidation, restore endothelial health, and restore oxygenation to the tissues.
Scientists who know anything about pulmonary neutrophilia, ARDS, and redox biology have known or surmised much of this since March 2020. In April 2020, Swiss scientists confirmed that COVID-19 was a vascular endotheliitis. By late 2020, experts had already concluded that COVID-19 causes a form of viral sepsis. They also know that sepsis can be effectively treated with antioxidants. None of this information is particularly new, and yet, for the most part, it has not been acted upon. Doctors continue to use damaging intubation techniques with high PEEP settings despite high lung compliance and poor oxygenation, killing an untold number of critically ill patients with medical malpractice.
Because of the way they are constructed, Randomized Control Trials will never show any benefit for any antiviral against COVID-19. Not Remdesivir, not Kaletra, not HCQ, and not Ivermectin. The reason for this is simple; for the patients that they have recruited for these studies, such as Oxford’s ludicrous RECOVERY study, the intervention is too late to have any positive effect.
The clinical course of COVID-19 is such that by the time most people seek medical attention for hypoxia, their viral load has already tapered off to almost nothing. If someone is about 10 days post-exposure and has already been symptomatic for five days, there is hardly any virus left in their bodies, only cellular damage and derangement that has initiated a hyperinflammatory response. It is from this group that the clinical trials for antivirals have recruited, pretty much exclusively.
In these trials, they give antivirals to severely ill patients who have no virus in their bodies, only a delayed hyperinflammatory response, and then absurdly claim that antivirals have no utility in treating or preventing COVID-19. These clinical trials do not recruit people who are pre-symptomatic. They do not test pre-exposure or post-exposure prophylaxis.
This is like using a defibrillator to shock only flatline, and then absurdly claiming that defibrillators have no medical utility whatsoever when the patients refuse to rise from the dead. The intervention is too late. These trials for antivirals show systematic, egregious selection bias. They are providing a treatment that is futile to the specific cohort they are enrolling.
India went against the instructions of the WHO and mandated the prophylactic usage of Ivermectin. They have almost completely eradicated COVID-19. The Indian Bar Association of Mumbai has brought criminal charges against WHO Chief Scientist Dr. Soumya Swaminathan for recommending against the use of Ivermectin.
Ivermectin is not “horse dewormer”. Yes, it is sold in veterinary paste form as a dewormer for animals. It has also been available in pill form for humans for decades, as an antiparasitic drug.
The media have disingenuously claimed that because Ivermectin is an antiparasitic drug, it has no utility as an antivirus. This is incorrect. Ivermectin has utility as an antiviral. It blocks importin, preventing nuclear import, effectively inhibiting viral access to cell nuclei. Many drugs currently on the market have multiple modes of action. Ivermectin is one such drug. It is both antiparasitic and antiviral.
In Bangladesh, Ivermectin costs $1.80 for an entire 5-day course. Remdesivir, which is toxic to the liver, costs $3,120 for a 5-day course of the drug. Billions of dollars of utterly useless Remdesivir were sold to our governments on the taxpayer’s dime, and it ended up being totally useless for treating hyperinflammatory COVID-19. The media has hardly even covered this at all.
The opposition to the use of generic Ivermectin is not based in science. It is purely financially and politically-motivated. An effective non-vaccine intervention would jeopardize the rushed FDA approval of patented vaccines and medicines for which the pharmaceutical industry stands to rake in billions upon billions of dollars in sales on an ongoing basis.
The majority of the public are scientifically illiterate and cannot grasp what any of this even means, thanks to a pathetic educational system that has miseducated them. You would be lucky to find 1 in 100 people who have even the faintest clue what any of this actually means.
COVID-19 Transmission:
COVID-19 is airborne. The WHO carried water for China by claiming that the virus was only droplet- borne. Our own CDC absurdly claimed that it was mostly transmitted by fomite-to-face contact, which, given its rapid spread from Wuhan to the rest of the world, would have been physically impossible.
The ridiculous belief in fomite-to-face being a primary mode of transmission led to the use of surface disinfection protocols that wasted time, energy, productivity, and disinfectant.
The 6-foot guidelines are absolutely useless. The minimum safe distance to protect oneself from an aerosolized virus is to be 15+ feet away from an infected person, no closer. Realistically, no public transit is safe.
Surgical masks do not protect you from aerosols. The virus is too small and the filter media has too large of gaps to filter it out. They may catch respiratory droplets and keep the virus from being expelled by someone who is sick, but they do not filter a cloud of infectious aerosols if someone were to walk into said cloud.
The minimum level of protection against this virus is quite literally a P100 respirator, a PAPR/CAPR, or a 40mm NATO CBRN respirator, ideally paired with a full-body tyvek or tychem suit, gloves, and booties, with all the holes and gaps taped.
Live SARS-CoV-2 may potentially be detected in sewage outflows, and there may be oral-fecal transmission. During the SARS outbreak in 2003, in the Amoy Gardens incident, hundreds of people were infected by aerosolized fecal matter rising from floor drains in their apartments.
COVID-19 Vaccine Dangers:
The vaccines for COVID-19 are not sterilizing and do not prevent infection or transmission. They are “leaky” vaccines. This means they remove the evolutionary pressure on the virus to become less lethal. It also means that the vaccinated are perfect carriers. In other words, those who are vaccinated are a threat to the unvaccinated, not the other way around.
All of the COVID-19 vaccines currently in use have undergone minimal testing, with highly accelerated clinical trials. Though they appear to limit severe illness, the long-term safety profile of these vaccines remains unknown.
Some of these so-called “vaccines” utilize an untested new technology that has never been used in vaccines before. Traditional vaccines use weakened or killed virus to stimulate an immune response. The Moderna and Pfizer-BioNTech vaccines do not. They are purported to consist of an intramuscular shot containing a suspension of lipid nanoparticles filled with messenger RNA. The way they generate an immune response is by fusing with cells in a vaccine recipient’s shoulder, undergoing endocytosis, releasing their mRNA cargo into those cells, and then utilizing the ribosomes in those cells to synthesize modified SARS-CoV-2 Spike proteins in-situ.
These modified Spike proteins then migrate to the surface of the cell, where they are anchored in place by a transmembrane domain. The adaptive immune system detects the non-human viral protein being expressed by these cells, and then forms antibodies against that protein. This is purported to confer protection against the virus, by training the adaptive immune system to recognize and produce antibodies against the Spike on the actual virus. The J&J and AstraZeneca vaccines do something similar, but use an adenovirus vector for genetic material delivery instead of a lipid nanoparticle. These vaccines were produced or validated with the aid of fetal cell lines HEK-293 and PER.C6, which people with certain religious convictions may object strongly to.
SARS-CoV-2 Spike is a highly pathogenic protein on its own. It is impossible to overstate the danger presented by introducing this protein into the human body.
It is claimed by vaccine manufacturers that the vaccine remains in cells in the shoulder, and that SARS- CoV-2 Spike produced and expressed by these cells from the vaccine’s genetic material is harmless and inert, thanks to the insertion of prolines in the Spike sequence to stabilize it in the prefusion conformation, preventing the Spike from becoming active and fusing with other cells. However, a pharmacokinetic study from Japan showed that the lipid nanoparticles and mRNA from the Pfizer vaccine did not stay in the shoulder, and in fact bioaccumulated in many different organs, including the reproductive organs and adrenal glands, meaning that modified Spike is being expressed quite literally all over the place. These lipid nanoparticles may trigger anaphylaxis in an unlucky few, but far more concerning is the unregulated expression of Spike in various somatic cell lines far from the injection site and the unknown consequences of that.
Messenger RNA is normally consumed right after it is produced in the body, being translated into a protein by a ribosome. COVID-19 vaccine mRNA is produced outside the body, long before a ribosome translates it. In the meantime, it could accumulate damage if inadequately preserved. When a ribosome attempts to translate a damaged strand of mRNA, it can become stalled. When this happens, the ribosome becomes useless for translating proteins because it now has a piece of mRNA stuck in it, like a lace card in an old punch card reader. The whole thing has to be cleaned up and new ribosomes synthesized to replace it. In cells with low ribosome turnover, like nerve cells, this can lead to reduced protein synthesis, cytopathic effects, and neuropathies.
Certain proteins, including SARS-CoV-2 Spike, have proteolytic cleavage sites that are basically like little dotted lines that say “cut here”, which attract a living organism’s own proteases (essentially, molecular scissors) to cut them. There is a possibility that S1 may be proteolytically cleaved from S2, causing active S1 to float away into the bloodstream while leaving the S2 “stalk” embedded in the membrane of the cell that expressed the protein.
SARS-CoV-2 Spike has a Superantigenic region (SAg), which may promote extreme inflammation.
Anti-Spike antibodies were found in one study to function as autoantibodies and attack the body’s own cells. Those who have been immunized with COVID-19 vaccines have developed blood clots, myocarditis, Guillain-Barre Syndrome, Bell’s Palsy, and multiple sclerosis flares, indicating that the vaccine promotes autoimmune reactions against healthy tissue.
SARS-CoV-2 Spike does not only bind to ACE2. It was suspected to have regions that bind to basigin, integrins, neuropilin-1, and bacterial lipopolysaccharides as well. SARS-CoV-2 Spike, on its own, can potentially bind any of these things and act as a ligand for them, triggering unspecified and likely highly inflammatory cellular activity.
SARS-CoV-2 Spike contains an unusual PRRA insert that forms a furin cleavage site. Furin is a ubiquitous human protease, making this an ideal property for the Spike to have, giving it a high degree of cell tropism. No wild-type SARS-like coronaviruses related to SARS-CoV-2 possess this feature, making it highly suspicious, and perhaps a sign of human tampering.
SARS-CoV-2 Spike has a prion-like domain that enhances its infectiousness.
The Spike S1 RBD may bind to heparin-binding proteins and promote amyloid aggregation. In humans, this could lead to Parkinson’s, Lewy Body Dementia, premature Alzheimer’s, or various other neurodegenerative diseases. This is very concerning because SARS-CoV-2 S1 is capable of injuring and penetrating the blood-brain barrier and entering the brain. It is also capable of increasing the permeability of the blood-brain barrier to other molecules.
SARS-CoV-2, like other betacoronaviruses, may have Dengue-like ADE, or antibody-dependent enhancement of disease. For those who aren’t aware, some viruses, including betacoronaviruses, have a feature called ADE. There is also something called Original Antigenic Sin, which is the observation that the body prefers to produce antibodies based on previously-encountered strains of a virus over newly- encountered ones.
In ADE, antibodies from a previous infection become non-neutralizing due to mutations in the virus’s proteins. These non-neutralizing antibodies then act as trojan horses, allowing live, active virus to be pulled into macrophages through their Fc receptor pathways, allowing the virus to infect immune cells that it would not have been able to infect before. This has been known to happen with Dengue Fever; when someone gets sick with Dengue, recovers, and then contracts a different strain, they can get very, very ill.
If someone is vaccinated with mRNA based on the Spike from the initial Wuhan strain of SARS-CoV-2, and then they become infected with a future, mutated strain of the virus, they may become severely ill. In other words, it is possible for vaccines to sensitize someone to disease.
There is a precedent for this in recent history. Sanofi’s Dengvaxia vaccine for Dengue failed because it caused immune sensitization in people whose immune systems were Dengue-naive.
In mice immunized against SARS-CoV and challenged with the virus, a close relative of SARS-CoV-2, they developed immune sensitization, Th2 immunopathology, and eosinophil infiltration in their lungs.
We have been told that SARS-CoV-2 mRNA vaccines cannot be integrated into the human genome, because messenger RNA cannot be turned back into DNA. This is false. There are elements in human cells called LINE-1 retrotransposons, which can indeed integrate mRNA into a human genome by endogenous reverse transcription. Because the mRNA used in the vaccines is stabilized, it hangs around in cells longer, increasing the chances for this to happen. If the gene for SARS-CoV-2 Spike is integrated into a portion of the genome that is not silent and actually expresses a protein, it is possible that people who take this vaccine may continuously express SARS-CoV-2 Spike from their somatic cells for the rest of their lives.
By inoculating people with a vaccine that causes their bodies to produce Spike in-situ, they are being inoculated with a pathogenic protein. A toxin that may cause long-term inflammation, heart problems, and a raised risk of cancers. In the long-term, it may also potentially lead to premature neurodegenerative disease.
Absolutely nobody should be compelled to take this vaccine under any circumstances, and in actual fact, the vaccination campaign must be stopped immediately.
COVID-19 Criminal Conspiracy:
The vaccine and the virus were made by the same people.
In 2014, there was a moratorium on SARS gain-of-function research that lasted until 2017. This research was not halted. Instead, it was outsourced, with the federal grants being laundered through NGOs.
Ralph Baric is a virologist and SARS expert at UNC Chapel Hill in North Carolina. This is who Anthony Fauci was referring to when he insisted, before Congress, that if any gain-of-function research was being conducted, it was being conducted in North Carolina.
This was a lie. Anthony Fauci lied before Congress. A felony.
Ralph Baric and Shi Zhengli are colleagues and have co-written papers together. Ralph Baric mentored Shi Zhengli in his gain-of-function manipulation techniques, particularly serial passage, which results in a virus that appears as if it originated naturally. In other words, deniable bioweapons. Serial passage in humanized hACE2 mice may have produced something like SARS-CoV-2.
The funding for the gain-of-function research being conducted at the Wuhan Institute of Virology came from Peter Daszak. Peter Daszak runs an NGO called EcoHealth Alliance. EcoHealth Alliance received millions of dollars in grant money from the National Institutes of Health/National Institute of Allergy and Infectious Diseases (that is, Anthony Fauci), the Defense Threat Reduction Agency (part of the US Department of Defense), and the United States Agency for International Development. NIH/NIAID contributed a few million dollars, and DTRA and USAID each contributed tens of millions of dollars towards this research. Altogether, it was over a hundred million dollars.
EcoHealth Alliance subcontracted these grants to the Wuhan Institute of Virology, a lab in China with a very questionable safety record and poorly trained staff, so that they could conduct gain-of-function research, not in their fancy P4 lab, but in a level-2 lab where technicians wore nothing more sophisticated than perhaps a hairnet, latex gloves, and a surgical mask, instead of the bubble suits used when working with dangerous viruses. Chinese scientists in Wuhan reported being routinely bitten and urinated on by laboratory animals. Why anyone would outsource this dangerous and delicate work to the People’s Republic of China, a country infamous for industrial accidents and massive explosions that have claimed hundreds of lives, is completely beyond me, unless the aim was to start a pandemic on purpose.
In November of 2019, three technicians at the Wuhan Institute of Virology developed symptoms consistent with a flu-like illness. Anthony Fauci, Peter Daszak, and Ralph Baric knew at once what had happened, because back channels exist between this laboratory and our scientists and officials.
December 12th, 2019, Ralph Baric signed a Material Transfer Agreement (essentially, an NDA) to receive Coronavirus mRNA vaccine-related materials co-owned by Moderna and NIH. It wasn’t until a whole month later, on January 11th, 2020, that China allegedly sent us the sequence to what would become known as SARS-CoV-2. Moderna claims, rather absurdly, that they developed a working vaccine from this sequence in under 48 hours.
Stephane Bancel, the current CEO of Moderna, was formerly the CEO of bioMerieux, a French multinational corporation specializing in medical diagnostic tech, founded by one Alain Merieux. Alain Merieux was one of the individuals who was instrumental in the construction of the Wuhan Institute of Virology’s P4 lab.
The sequence given as the closest relative to SARS-CoV-2, RaTG13, is not a real virus. It is a forgery. It was made by entering a gene sequence by hand into a database, to create a cover story for the existence of SARS-CoV-2, which is very likely a gain-of-function chimera produced at the Wuhan Institute of Virology and was either leaked by accident or intentionally released.
The animal reservoir of SARS-CoV-2 has never been found.
This is not a conspiracy “theory”. It is an actual criminal conspiracy, in which people connected to the development of Moderna’s mRNA-1273 are directly connected to the Wuhan Institute of Virology and their gain-of-function research by very few degrees of separation, if any. The paper trail is well- established.
The lab-leak theory has been suppressed because pulling that thread leads one to inevitably conclude that there is enough circumstantial evidence to link Moderna, the NIH, the WIV, and both the vaccine and the virus’s creation together. In a sane country, this would have immediately led to the world’s biggest RICO and mass murder case. Anthony Fauci, Peter Daszak, Ralph Baric, Shi Zhengli, and Stephane Bancel, and their accomplices, would have been indicted and prosecuted to the fullest extent of the law. Instead, billions of our tax dollars were awarded to the perpetrators.
The FBI raided Allure Medical in Shelby Township north of Detroit for billing insurance for “fraudulent COVID-19 cures”. The treatment they were using? Intravenous Vitamin C. An antioxidant. Which, as described above, is an entirely valid treatment for COVID-19-induced sepsis, and indeed, is now part of the MATH+ protocol advanced by Dr. Paul E. Marik.
The FDA banned ranitidine (Zantac) due to supposed NDMA (N-nitrosodimethylamine) contamination. Ranitidine is not only an H2 blocker used as antacid, but also has a powerful antioxidant effect, scavenging hydroxyl radicals. This gives it utility in treating COVID-19.
The FDA also attempted to take N-acetylcysteine, a harmless amino acid supplement and antioxidant, off the shelves, compelling Amazon to remove it from their online storefront.
This leaves us with a chilling question: did the FDA knowingly suppress antioxidants useful for treating COVID-19 sepsis as part of a criminal conspiracy against the American public?
The establishment is cooperating with, and facilitating, the worst criminals in human history, and are actively suppressing non-vaccine treatments and therapies in order to compel us to inject these criminals’ products into our bodies. This is absolutely unacceptable.
COVID-19 Vaccine Development and Links to Transhumanism:
This section deals with some more speculative aspects of the pandemic and the medical and scientific establishment’s reaction to it, as well as the disturbing links between scientists involved in vaccine research and scientists whose work involved merging nanotechnology with living cells.
On June 9th, 2020, Charles Lieber, a Harvard nanotechnology researcher with decades of experience, was indicted by the DOJ for fraud. Charles Lieber received millions of dollars in grant money from the US Department of Defense, specifically the military think tanks DARPA, AFOSR, and ONR, as well as NIH and MITRE. His specialty is the use of silicon nanowires in lieu of patch clamp electrodes to monitor and modulate intracellular activity, something he has been working on at Harvard for the past twenty years. He was claimed to have been working on silicon nanowire batteries in China, but none of his colleagues can recall him ever having worked on battery technology in his life; all of his research deals with bionanotechnology, or the blending of nanotech with living cells.
The indictment was over his collaboration with the Wuhan University of Technology. He had double- dipped, against the terms of his DOD grants, and taken money from the PRC’s Thousand Talents plan, a program which the Chinese government uses to bribe Western scientists into sharing proprietary R&D information that can be exploited by the PLA for strategic advantage.
Charles Lieber’s own papers describe the use of silicon nanowires for brain-computer interfaces, or “neural lace” technology. His papers describe how neurons can endocytose whole silicon nanowires or parts of them, monitoring and even modulating neuronal activity.
Charles Lieber was a colleague of Robert Langer. Together, along with Daniel S. Kohane, they worked on a paper describing artificial tissue scaffolds that could be implanted in a human heart to monitor its activity remotely.
Robert Langer, an MIT alumnus and expert in nanotech drug delivery, is one of the co-founders of Moderna. His net worth is now $5.1 billion USD thanks to Moderna’s mRNA-1273 vaccine sales.
Both Charles Lieber and Robert Langer’s bibliographies describe, essentially, techniques for human enhancement, i.e. transhumanism. Klaus Schwab, the founder of the World Economic Forum and the architect behind the so-called “Great Reset”, has long spoken of the “blending of biology and machinery” in his books.
Since these revelations, it has come to the attention of independent researchers that the COVID-19 vaccines may contain reduced graphene oxide nanoparticles. Japanese researchers have also found unexplained contaminants in COVID-19 vaccines.
Graphene oxide is an anxiolytic. It has been shown to reduce the anxiety of laboratory mice when injected into their brains. Indeed, given SARS-CoV-2 Spike’s propensity to compromise the blood-brain barrier and increase its permeability, it is the perfect protein for preparing brain tissue for extravasation of nanoparticles from the bloodstream and into the brain. Graphene is also highly conductive and, in some circumstances, paramagnetic.
In 2013, under the Obama administration, DARPA launched the BRAIN Initiative; BRAIN is an acronym for Brain Research Through Advancing Innovative Neurotechnologies®. This program involves the development of brain-computer interface technologies for the military, particularly non-invasive, injectable systems that cause minimal damage to brain tissue when removed. Supposedly, this technology would be used for healing wounded soldiers with traumatic brain injuries, the direct brain control of prosthetic limbs, and even new abilities such as controlling drones with one’s mind.
Various methods have been proposed for achieving this, including optogenetics, magnetogenetics, ultrasound, implanted electrodes, and transcranial electromagnetic stimulation. In all instances, the goal is to obtain read or read-write capability over neurons, either by stimulating and probing them, or by rendering them especially sensitive to stimulation and probing.
However, the notion of the widespread use of BCI technology, such as Elon Musk’s Neuralink device, raises many concerns over privacy and personal autonomy. Reading from neurons is problematic enough on its own. Wireless brain-computer interfaces may interact with current or future wireless GSM infrastructure, creating neurological data security concerns. A hacker or other malicious actor may compromise such networks to obtain people’s brain data, and then exploit it for nefarious purposes.
However, a device capable of writing to human neurons, not just reading from them, presents another, even more serious set of ethical concerns. A BCI that is capable of altering the contents of one’s mind for innocuous purposes, such as projecting a heads-up display onto their brain’s visual center or sending audio into one’s auditory cortex, would also theoretically be capable of altering mood and personality, or perhaps even subjugating someone’s very will, rendering them utterly obedient to authority. This technology would be a tyrant’s wet dream. Imagine soldiers who would shoot their own countrymen without hesitation, or helpless serfs who are satisfied to live in literal dog kennels.
BCIs could be used to unscrupulously alter perceptions of basic things such as emotions and values, changing people’s thresholds of satiety, happiness, anger, disgust, and so forth. This is not inconsequential. Someone’s entire regime of behaviors could be altered by a BCI, including such things as suppressing their appetite or desire for virtually anything on Maslow’s Hierarchy of Needs.
Anything is possible when you have direct access to someone’s brain and its contents. Someone who is obese could be made to feel disgust at the sight of food. Someone who is involuntarily celibate could have their libido disabled so they don’t even desire sex to begin with. Someone who is racist could be forced to feel delight over cohabiting with people of other races. Someone who is violent could be forced to be meek and submissive. These things might sound good to you if you are a tyrant, but to normal people, the idea of personal autonomy being overridden to such a degree is appalling.
For the wealthy, neural laces would be an unequaled boon, giving them the opportunity to enhance their intelligence with neuroprosthetics (i.e. an “exocortex”), and to deliver irresistible commands directly into the minds of their BCI-augmented servants, even physically or sexually abusive commands that they would normally refuse.
If the vaccine is a method to surreptitiously introduce an injectable BCI into millions of people without their knowledge or consent, then what we are witnessing is the rise of a tyrannical regime unlike anything ever seen before on the face of this planet, one that fully intends to strip every man, woman, and child of our free will.
Our flaws are what make us human. A utopia arrived at by removing people’s free will is not a utopia at all. It is a monomaniacal nightmare. Furthermore, the people who rule over us are Dark Triad types who cannot be trusted with such power. Imagine being beaten and sexually assaulted by a wealthy and powerful psychopath and being forced to smile and laugh over it because your neural lace gives you no choice but to obey your master.
The Elites are forging ahead with this technology without giving people any room to question the social or ethical ramifications, or to establish regulatory frameworks that ensure that our personal agency and autonomy will not be overridden by these devices. They do this because they secretly dream of a future where they can treat you worse than an animal and you cannot even fight back. If this evil plan is allowed to continue, it will spell the end of humanity as we know it.
Conclusions:
The current pandemic was produced and perpetuated by the establishment, through the use of a virus engineered in a PLA-connected Chinese biowarfare laboratory, with the aid of American taxpayer dollars and French expertise.
This research was conducted under the absolutely ridiculous euphemism of “gain-of-function” research, which is supposedly carried out in order to determine which viruses have the highest potential for zoonotic spillover and preemptively vaccinate or guard against them.
Gain-of-function/gain-of-threat research, a.k.a. “Dual-Use Research of Concern”, or DURC, is bioweapon research by another, friendlier-sounding name, simply to avoid the taboo of calling it what it actually is. It has always been bioweapon research. The people who are conducting this research fully understand that they are taking wild pathogens that are not infectious in humans and making them more infectious, often taking grants from military think tanks encouraging them to do so.
These virologists conducting this type of research are enemies of their fellow man, like pyromaniac firefighters. GOF research has never protected anyone from any pandemic. In fact, it has now started one, meaning its utility for preventing pandemics is actually negative. It should have been banned globally, and the lunatics performing it should have been put in straitjackets long ago.
Either through a leak or an intentional release from the Wuhan Institute of Virology, a deadly SARS strain is now endemic across the globe, after the WHO and CDC and public officials first downplayed the risks, and then intentionally incited a panic and lockdowns that jeopardized people’s health and their livelihoods.
This was then used by the utterly depraved and psychopathic aristocratic class who rule over us as an excuse to coerce people into accepting an injected poison which may be a depopulation agent, a mind control/pacification agent in the form of injectable “smart dust”, or both in one. They believe they can get away with this by weaponizing the social stigma of vaccine refusal. They are incorrect.
Their motives are clear and obvious to anyone who has been paying attention. These megalomaniacs have raided the pension funds of the free world. Wall Street is insolvent and has had an ongoing liquidity crisis since the end of 2019. The aim now is to exert total, full-spectrum physical, mental, and financial control over humanity before we realize just how badly we’ve been extorted by these maniacs.
The pandemic and its response served multiple purposes for the Elite:
Concealing a depression brought on by the usurious plunder of our economies conducted by rentier-capitalists and absentee owners who produce absolutely nothing of any value to society whatsoever. Instead of us having a very predictable Occupy Wall Street Part II, the Elites and their stooges got to stand up on television and paint themselves as wise and all-powerful saviors instead of the marauding cabal of despicable land pirates that they are.
Destroying small businesses and eroding the middle class.
Transferring trillions of dollars of wealth from the American public and into the pockets of billionaires and special interests.
Engaging in insider trading, buying stock in biotech companies and shorting brick-and-mortar businesses and travel companies, with the aim of collapsing face-to-face commerce and tourism and replacing it with e-commerce and servitization.
Creating a casus belli for war with China, encouraging us to attack them, wasting American lives and treasure and driving us to the brink of nuclear armageddon.
Establishing technological and biosecurity frameworks for population control and technocratic- socialist “smart cities” where everyone’s movements are despotically tracked, all in anticipation of widespread automation, joblessness, and food shortages, by using the false guise of a vaccine to compel cooperation.
Any one of these things would constitute a vicious rape of Western society. Taken together, they beggar belief; they are a complete inversion of our most treasured values.
What is the purpose of all of this? One can only speculate as to the perpetrators’ motives, however, we have some theories.
The Elites are trying to pull up the ladder, erase upward mobility for large segments of the population, cull political opponents and other “undesirables”, and put the remainder of humanity on a tight leash, rationing our access to certain goods and services that they have deemed “high-impact”, such as automobile use, tourism, meat consumption, and so on. Naturally, they will continue to have their own luxuries, as part of a strict caste system akin to feudalism.
Why are they doing this? Simple. The Elites are Neo-Malthusians and believe that we are overpopulated and that resource depletion will collapse civilization in a matter of a few short decades. They are not necessarily incorrect in this belief. We are overpopulated, and we are consuming too many resources. However, orchestrating such a gruesome and murderous power grab in response to a looming crisis demonstrates that they have nothing but the utmost contempt for their fellow man.
To those who are participating in this disgusting farce without any understanding of what they are doing, we have one word for you. Stop. You are causing irreparable harm to your country and to your fellow citizens.
To those who may be reading this warning and have full knowledge and understanding of what they are doing and how it will unjustly harm millions of innocent people, we have a few more words.
Damn you to hell. You will not destroy America and the Free World, and you will not have your New World Order. We will make certain of that.
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>>> Meta Materials Inc. (MMAT), a smart materials and photonics company, invents, designs, develops, and manufactures various functional materials and nanocomposites. The company's products include metaAIR, a laser glare protection eyewear; NANOWEB, a revolutionary transparent conductive film; and holoOPTIX, a holographic optical component. Its products include aerospace and defense, automotive, consumer electronics, energy, and medical applications. The company is headquartered in Dartmouth, Canada.
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>>> Nanotech Agrees to be Acquired by Meta Materials Inc. and Announces Third Quarter Fiscal 2021 Results
Yahoo Finance
Nanotech Security Corp.
August 5, 2021
https://finance.yahoo.com/news/nanotech-agrees-acquired-meta-materials-131200530.html
All Cash Transaction Values the Company at approximately $90.8 million
VANCOUVER, British Columbia, Aug. 05, 2021 (GLOBE NEWSWIRE) -- Nanotech Security Corp. (TSXV: NTS) (OTCQX: NTSFF) (“Nanotech” or the “Company”), a leader in the development of secure and visually memorable nano-optic security features used in the government and banknote and brand protection markets, announces it has entered into a definitive arrangement agreement (the “Arrangement Agreement”) with Meta Materials Inc. (“META®”)(NASDAQ: MMAT), a developer of high-performance functional materials and nanocomposites, pursuant to which META will indirectly acquire Nanotech for $1.25 per common share in an all-cash transaction (the “Transaction”) valued at approximately $90.8 million on a fully diluted basis. META and Nanotech will host a webcast at 10:00 am EDT today to review the Transaction (details below). The Company also announces its financial results for the three and nine months ended June 30, 2021. Unless otherwise stated, all dollar amounts are expressed in Canadian dollars.
Overview of Transaction with META
Key Transaction Highlights
Nanotech shareholders to receive $1.25 per share in cash, representing an aggregate transaction value of approximately $90.8 million
The purchase price represents a 101% premium to the 30-day volume weighted price of $0.62 per Nanotech common share
Both a special committee comprised of independent directors of Nanotech (the “Special Committee”) and the full board of directors (the “Board”) unanimously recommend that Nanotech securityholders vote in favour of the Transaction
The Board has obtained a favourable fairness opinion from Echelon Capital Markets
The Transaction is subject to customary closing conditions, including approval by a special majority of Nanotech securityholders
D. Neil McDonnell, Chair of the Company’s Board and Special Committee, commented, “We are pleased to announce this Transaction with META, which offers our securityholders an attractive valuation and significant premium to the recent trading price of the Company’s shares. The Transaction is also expected to provide Nanotech with greater access to capital to accelerate its commercialization and growth strategies. After careful consideration, the Special Committee and the Company’s Board have both unanimously concluded that the Transaction is fair to Nanotech’s securityholders and is in the best interests of the Company and its employees.”
Transaction Details
The total cash consideration of $1.25 per share (the “Consideration”) represents a premium of 67% to the closing price of $0.75 for Nanotech’s shares on the TSX Venture Exchange on August 4, 2021 and a premium of 101% to the volume weighted average price of the 30 trading days ended August 4, 2021. The Transaction is to be carried out by way of a plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia), pursuant to which META will acquire all the outstanding common shares of Nanotech. The implementation of the Arrangement will be subject to, among other things, the approval of at least 66 2/3% of the votes cast by Nanotech securityholders present in person or represented by proxy at the special meeting of Nanotech securityholders, and the receipt of applicable orders from the Supreme Court of British Columbia. A management information circular relating to the special meeting of Nanotech securityholders and containing further details regarding the Arrangement will be mailed to Nanotech securityholders and made available on SEDAR under Nanotech’s profile at www.sedar.com. Until the circular is sent, shareholders are not required to take any action in respect of the Transaction.
The Arrangement Agreement provides for, among other things, customary non-solicitation covenants from Nanotech, but includes provisions that allow Nanotech to accept a superior proposal in certain circumstances subject to a five-business day “right to match period” in favour of META. The Arrangement Agreement also provides for the payment of a termination fee of $2.8 million by Nanotech in the event the Transaction is terminated in the event Nanotech proceeds with a superior proposal. The Transaction is not subject to a financing condition.
All directors and executive officers of Nanotech, holding approximately 19% of the issued and outstanding shares of Nanotech as of the date hereof, have entered into voting and support agreements in favour of META pursuant to which, among other things, they have agreed to vote their Nanotech securities in favour of the Transaction.
The Board recommends that securityholders vote in favour of the Transaction. Echelon Capital Markets, financial advisor to Nanotech, has provided a fairness opinion to the Board that, subject to certain qualifications set out in the opinion, the $1.25 to be received by Nanotech securityholders pursuant to the Transaction is fair from a financial point of view to Nanotech’s securityholders.
The foregoing summary is qualified in its entirety by the provisions of the Arrangement Agreement, a copy of which will be available on SEDAR under Nanotech’s profile at www.sedar.com within 10 days following the date of this press release.
The Arrangement is expected to close in early October with the special meeting of securityholders expected to be convened for late September. An announcement about the exact timing of the securityholders’ meeting will follow in the near future.
The Transaction was negotiated at arm’s length and no finder’s fee is or will be payable by Nanotech in connection with the Transaction.
Advisors
Echelon Capital Markets is acting as financial advisor to Nanotech. Borden Ladner Gervais LLP and Dorsey & Whitney LLP are acting as legal counsel to Nanotech.
Cormark Securities Inc. is acting as financial advisor to META and Hamilton Clark Sustainable Capital, Inc. provided a fairness opinion to the board of directors of META. Fasken Martineau DuMoulin LLP and Wilson Sonsini Goodrich & Rosati are acting as legal counsel to META.
Webcast Information
META’s CEO George Palikaras and CFO Ken Rice will host a webcast today at 10:00 am EDT along with Nanotech’s CEO Troy Bullock. To register, click here or copy this link into your browser: https://audience.mysequire.com/webinar-view?webinar_id=97702446-53e7-4f46-8a8b-2a4fd2ca1c04. A replay will be available following the webcast and may be accessed using the link above.
Financial Highlights for the Three and Nine Months Ended June 30, 2021
Revenue was $2.6 million and $6.1 million for the three and nine months ended June 30, 2021 respectively, representing increases of 34% and 27% compared to the same periods last year.
Gross margin of 76% for the three and nine months ended June 30, 2021 was lower than the 83% and 81% for the respective year-ago periods due to additional labour and other expenditures incurred to meet contract services deliverables in the current period.
Positive Adjusted EBITDA of $453,368 and breakeven Adjusted EBITDA for the three and nine months ended June 30, 2021 respectively, representing an improvement of 129% and 100% compared to the same periods last year.
Cash and short-term investments of $8.9 million, and no debt at quarter end.
“Nanotech had a strong third quarter of growth with revenues of $2.6 million and positive Adjusted EBITDA of $453,368. We received the maximum available purchase orders from our confidential central bank customer which, in combination with recurring LumaChrome orders, is expected to drive revenue growth of at least 15% for the year and modest positive Adjusted EBITDA,” said President and CEO Troy Bullock. “We remain confident of Nanotech’s prospects for advancing the development contract, further expansion of our manufacturing capabilities, and the potential opportunities beyond our two primary markets within the metamaterials sphere.”
Strategic Update
The Company remains focused on commercializing its technology for long-term revenue growth, with efforts centered around the following pillars:
Contract services – The Company’s development contract with a confidential G10 central bank remains a key strategic focus with significant resources committed to this project. Developing a visual security feature that can be integrated into this country’s banknotes would be a significant milestone in Nanotech’s growth.
The Company is restricted from providing substantive information about this project, but management is encouraged by both the progress of this development contract and ongoing discussions with the customer. The Company secured all available purchase orders for fiscal 2021 with annual revenues expected to be approximately 27% higher than the prior year. This represents the largest annual scope of work for this customer to date and demonstrates the customer’s continued confidence in Nanotech’s technology. Discussions are also well under way for a second phase, multi-year development contract that management expects to finalize in the fourth quarter of fiscal 2021, along with purchase orders for fiscal 2022.
Product development – Based on the positive market feedback of Nanotech’s latest nano-optic product offerings, management believes there are extensive opportunities to offer these new visual products with exceptional differentiation in both the banknote and brand protection markets. As a result, the Company plans to continue to increase its investment in additional development staff, product trials, and certifications to drive technology advancement and enhanced product development to generate future revenue.
In the second quarter of 2021 the Company launched its LiveOptik™ PROTECT security foil for the brand protection market. This new product continues to be tested by several channel partners for inclusion in their product catalogue. Management plans to have additional product launches before the end of the calendar year for both brand protection and banknote applications.
Strategic partnerships – Nanotech has developed strategic relationships with established OEM manufacturers to enable scalable delivery for our customers. These relationships reduce the Company’s manufacturing risk and extend the market reach of Nanotech’s product offering. Management is also developing the Company’s internal production capability to complement these OEM offerings, which is being optimized for the Company’s proprietary KolourOptik® technology platform. Nanotech is uniquely positioned as a leader in developing and mass-producing complex nanostructures, which could have applications beyond the Company’s initial key markets in brand protection and banknote authentication.
Expanded channels to market – Nanotech will continue to market its products and pursue revenue through both direct sales and strategic channel partners who promote and offer Nanotech’s products to their existing customers. Management expects to expand the Company’s network of channel partners as new products are launched throughout fiscal 2021.
Product revenue decreased to $289,381 for the three months ended June 30, 2021, compared to $450,809 during the same period last year. Nanotech delivered ten customer product orders in the quarter, compared to three in the same period last year. On a year-to-date basis, product revenue of $486,783 from nineteen orders was lower than product revenue of $817,206 from fifteen orders in the same period of 2020. These variances were partially due to the timing of certain recurring orders, which can vary from year to year.
>>> Nano-X Imaging Drops After FDA Seeks More Data on New X-Ray System
Nano-X Imaging fell after the FDA requested additional information concerning the company's application for its portable X-ray system.
The Street
8-19-21
by VIDHI CHOUDHARY
https://www.thestreet.com/investing/nano-x-drops-after-fda-seeks-more-data-on-portable-x-ray-device?puc=yahoo&cm_ven=YAHOO
Shares of Nano-X Imaging (NNOX) - Get Nano X Imaging LTD Report dropped Thursday after the U.S. Food and Drug Administration sought additional information on the Israeli medical-tech company's portable X-ray system.
Shares of the Neve Ilan, Israel, company at last check fell 8.4% to $21.70.
Stocks Fail to Hold Momentum as Fed Taper Talk Too Much for Wall Street
"The submission file is placed on hold pending a complete response to the FDA's list of deficiencies," the company said in a regulatory filing made to the Securities and Exchange Commission.
Nano-X Imaging plans to respond by the due date, which is 180 days from Aug. 12.
The company also said that it expected to continue to optimize and develop further features of the system, called Nanox.ARC.
Nano-X also said in the filing that it's considering submitting an application for the latest model of the multisource Nano.ARC system.
That first version has FDA clearance, and the company said the new model would benefit from the FDA's feedback.
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>>> Nano Dimension Has Future Ideas, but Key Catalysts Are Absent Now
Investor Place
Stavros Georgiadis
September 3, 2021
https://finance.yahoo.com/news/nano-dimension-future-ideas-key-113037842.html
There is a great rule with investing that says only invest in companies that you know and are confident about their business model. With a couple of thousand U.S public stocks, I admit I have never heard of Nano Dimension (NASDAQ:NNDM) before. And in simple terms, its business operations mean that is it is developing a 3D printing technology for the additive manufacturing of semiconductors. Sounds interesting, but is NNDM stock interesting too?
According to Yahoo Finance, Nano Dimension “provides additive electronics in Israel and internationally. Its flagship product is the proprietary DragonFly lights-out digital manufacturing (LDM) system, a precision system that produces professional multilayer circuit-boards, radio frequency antennas, sensors, conductive geometries, and molded connected devices for prototyping through custom additive manufacturing”
That said, the firm’s profile is clearly riveting and it has a very strong track record. However, what does the future hold for NNDM stock?
Let’s take a closer look.
The Market of Additively Manufactured Electronics (AME)
There is also another important information on what Nano Dimension does for business.
On the official website, we read that the company is “a provider of intelligent machines for the fabrication of Additively Manufactured Electronics (AME).”
Moreover, a report on Additive Manufacturing Market states that significant growth should be expected in the next 5-6 years. In fact, the “Global Additive Manufacturing Market is expected to reach USD 26.68 billion by 2027, growing at a high rate of 14.4%, according to a new report by Reports and Data. Increasing government support to enhance additive manufacturing technology across various regions is a key factor influencing market demand.”
Additionally, let’s consider the bright prospects for Nano Dimension moving forward. This includes “[h]igh fidelity active electronic and electromechanical subassemblies are integral enablers of autonomous intelligent drones, cars, satellites, smartphones, and in vivo medical devices.” That said, technology — especially for cars and smartphones — rapidly evolving as companies compete with each other for market share and dominance or technological innovations.
Overall, though, this is a catalyst for Nano Dimension and NNDM stock.
A Business Plan That Places Importance on Acquisitions
In 2021, Nano Dimension announced two acquisitions to pursue its business goals. The first one was to acquire NanoFabrica Ltd., paying the “shareholders of NanoFabrica a total ranging between $54.9 million to $59.4 million.” About 50% of this would be paid in cash, and the rest in American Depositary Shares (ADS) of Nano Dimension. The second acquisition was DeepCube, “an award-winning deep learning pioneer that provides the industry’s first software-based deep learning acceleration platform that drastically improves performance on existing hardware”.
With all of that in mind, these two acquisitions show a very dynamic company and active management that wants to create value for the shareholders. However, is NNDM stock heading in that direction now? I’m still not sure.
The Art of Raising Cash
Collectively, second-quarter 2021 financial results showed some mixed positive and negative information.
The good news is that total revenues for the six months ended June 30, 2021, were $1.62 million compared to $990,000 during the same period a year ago. This is all good news according to my analysis because research and development (R&D) expenses, S&M expenses and G&A expenses all rose year-over-year (YOY) as well. So if I had to guess what the result would be of these increases in operating expenses, then I would place high odds that based on lower operating income net income would be impacted negatively too.
That being said, the truth is that net loss for the six months ended June 30, 2021, was $22.92 million or $0.10 per share, compared to $10.34 million or $0.55 per share during the same time last year. This is common sense and logic, and by now you should probably know that when I come across a company that is losing money, I am not a big fan — based on its fundamentals and valuation.
But as Nano Dimension reported a huge increase in cash and cash equivalents during the period, I thought that this increase could be well a result of raising cash rather than making cash. Raising cash means issuing stock, making cash means having a profit from sales. In turn, Nano Dimension reported that this cash increase was due to “proceeds received from the sales of American Depositary Shares representing the Company’s ordinary shares in the first half of 2021, less cash used in operations during the six months ended June 30, 2021.”
NNDM Stock Is Too Pricey Based on Key Metrics
In 2016, Nano Dimension reported a negative free cash flow (FCF) of $7.05 million. And while that figure was significantly worse the next three years, the firm still reported negative FCF of $10.85M for 2020. Additionally, two other figures are notable, too. NNDM stock boasts a price-sales ratio (P/S) of 114.98 and an operating margin of -1,050.84%. Both these numbers suggest a very lofty valuation.
As a verdict, I see a dynamic company with interesting technology in a growing market; But that’s it. I see problems such as stock dilution, and a very pricey valuation, plus an unprofitable company. Therefore, I need to pass on NNDM stock right now. I need to see more positive developments and profitability, an increase in sales and positive free cash flows.
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>>> Why 3D Printing Stocks Jumped This Week
3D printing companies continue to make slow and steady improvements to their products, which is helping their stocks today.
Motley Fool
Travis Hoium
Sep 3, 2021
https://www.fool.com/investing/2021/09/03/why-3d-printing-stocks-jumped-this-week/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Key Points
3D Systems is adding two new metals to its portfolio.
Nano Dimensions is unveiling a new system this month.
It didn't hurt that investors are betting the Federal Reserve will keep interest rates low for a while longer.
What happened
3D printing stocks had a good week this week, some climbing double digits. There was some news about continued improvement in materials and potential tailwinds from low interest rates, and the market took an optimistic view of an industry it didn't like just a few weeks ago. After all, this week's gains followed a double-digit drop in some 3D printing stocks just a few weeks ago, so volatility is the name of the game in this industry.
Leading the way were shares of Stratasys (NASDAQ:SSYS), which were up 11.7% from the close of the market Friday to the close of the market Thursday night, according to data provided by S&P Global Market Intelligence. 3D Systems (NYSE:DDD) was up 8.2%, and Nano Dimension (NASDAQ:NNDM) was up 6.4%, over the same period.
So what
Company-specific news was meaningful even if it wasn't a game changer for anyone in the long term. 3D Systems announced that two new materials are now available in its metals portfolio. Scalmalloy is a high-strength aluminum alloy intended for aerospace, automotive, and semiconductor markets. M789 is a metal used for making molds, drill bits, and even drive train parts. 3D printing companies are continually adding materials to their portfolios, but these are a sign of just how far the industry is pushing into metal products.
Nano Dimension also announced it will show its Fabrica 2.0 Micro Additive Manufacturing System, or Fabrica 2.0, at the RAPID + TCT event in Chicago from Sept. 13 through 15. This product is for micron-level-resolution production of parts for medical devices, semiconductors, and other small electronics.
There was also some economic news released this week that could help 3D printing companies in the long term. The U.S. economy is still growing coming out of the pandemic, but jobs are not coming back as quickly as central bankers may have hoped. Consumer confidence fell to a six-month low in August as worries about COVID-19 and inflation weighed on consumers. And companies didn't hire as quickly as hoped, adding just 235,000 jobs in August, short of the 720,000 that economists had projected.
How can bad labor and confidence data be good for 3D printing? The simple answer is that investors are betting that a slow economic recovery will mean the Federal Reserve will keep interest rates low for longer. Lower rates make it less expensive to borrow money for growth, which could include buying new equipment like 3D printers. This may be speculation, but in the short term, that's what's driving 3D printing stocks higher in the absence of more substantial news.
Now what
3D printing technology continues to improve and find new applications in the market. But that hasn't translated to higher profitability for companies or higher stock prices, leaving investors wondering what's next. And that's why investors can sometimes grab small pieces of information like a new material or low interest rates as a catalyst for future growth.
What I am looking for is the technology advances translating into more growth and better margins overall for 3D printing stocks. Until we see that, this is an industry I'll watch from the sidelines. But if 3D printing finds a path to growth, these beaten-down stocks could be growth stocks once again.
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Nano Dimension Ltd - >>> 10 Best Cheap Tech Stocks to Buy According to Cathie Wood
Insider Monkey
May 26, 2021
https://finance.yahoo.com/news/10-best-cheap-tech-stocks-145316098.html
Number of Hedge Fund Holders: 11
Nano Dimension Ltd. (NASDAQ: NNDM) is an Israel-based 3D printing company founded in 2012. It is placed ninth on our list of 10 best cheap tech stocks to buy according to Cathie Wood. The company stock has returned more than 150% to investors over the course of the past twelve months. ARK Investment holds close to 13 million shares in the company worth over $111 million. This represents 0.22% of their portfolio. Nano Dimension primarily focuses on research and development related to 3D printed electronics.
In earnings results for the first three months of 2021, posted on May 20, Nano Dimension Ltd. (NASDAQ: NNDM) reported earnings per share of -$0.05 and a revenue of $0.8 million. The revenue was up over 15% compared to the same period last year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Nano Dimension Ltd. (NASDAQ: NNDM) with 6.6 million shares worth more than $57 million.
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>>> Nano Dimension Ltd. (NNDM), together with its subsidiaries, provides additive electronics in Israel and internationally. Its flagship product is the proprietary DragonFly lights-out digital manufacturing (LDM) system, a precision system that produces professional multilayer circuit-boards, radio frequency antennas, sensors, conductive geometries, and molded connected devices for prototyping through custom additive manufacturing. The company also provides nanotechnology based conductive and dielectric inks; and DragonFly and Switch software to manage the design file and printing process. It markets and sells products and services to companies that develop products with electronic components, including companies in the defense, automotive, consumer electronics, semiconductor, aerospace, and medical industries, as well as research institutes. The company was founded in 2012 and is headquartered in Ness Ziona, Israel.
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>>> IBM’s Tiny Technology Rips Up Drug-Resistant Germ Cells in Early Studies
By Rob Waters
Apr 3, 2011
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=61912568
International Business Machines Corp. (IBM), the world’s largest computer-services provider, may have a tiny solution for a $34 billion public health problem.
Engineers based in IBM’s San Jose, California, facility created nanoparticles 50,000 times smaller than the thickness of a human hair that can search out and obliterate the cell walls of bacteria that are resistant to antibiotic drugs. The minute structures harmlessly degrade, leaving no residue, according to a study describing the work in the journal Nature Chemistry.
When antibiotic drugs are used to attack a colony of bacteria, they sometimes leave behind survivors that become resistant to the medicine’s future use. IBM’s nanoparticles were able to find and destroy the cells of resistant germs during testing in laboratory dishes. They also caused no apparent harm in separate tests in mice, the research found.
IBM’s technology “goes outside the scheme of current antibiotics to something that physically destroys bacteria,” said Mario Raviglione, chief of the World Health Organization’s Stop TB department, in a telephone interview. “If this is proven to work in humans, it will simply revolutionize the way we deal with antimicrobial treatment.”
The nanoparticles, were designed to attack methicillin- resistant staphylococcus aureus, or MRSA, a widely circulating strain of drug-resistant bacteria. An IBM team led by James Hedrick collaborated with scientists at the Institute for Bioengineering and Nanotechnology in Singapore.
Talking to Drugmakers
IBM is also talking to pharmaceutical companies to prepare the particles for human testing, Hedrick said. He declined to name the companies.
Germs that resist antibiotics kill 100,000 U.S. hospital patients a year and cost the healthcare system as much as $34 billion annually, according to the Infectious Disease Society of America. Traditional antibiotics interfere with bacterial DNA to neutralize or prevent them from replicating. The nanoparticles, made of biodegradable plastic, were engineered to have a specific electrical charge that draws them to the oppositely- charged bacteria. The particles reach their target and attack.
“They rip holes in the membrane walls and the contents basically spill out,” said Hedrick, a researcher at IBM’s Almaden Research Center in San Jose, California, where scientists pioneer new technologies. “They’re very selective and once they do their job, they go away. They degrade into an innocuous by-product.”
Focused Particles
The particles are so focused on their bacterial target that they completely avoid damaging the red blood cells where the microbes lodge, Hedrick said in a telephone interview. “
Hedrick’s team designed a batch of the nanoparticles to attack MRSA, or methicillin-resistant staphylococcus aureus, a widely circulating strain of drug-resistant bacteria. Scientists at the nanotechnology institute in Singapore will now test the miniature polymers in larger animals.
Some 9 million children globally die of respiratory infections and diarrhea, many from pathogens impervious to drugs, the WHO’s Raviglione said. <<<
Nano-X Imaging (NNOX), Nano Dimension (NNDM) -
>>> Have $3,000? Buying These 2 Stocks Would Be the Smartest Move You Ever Made
Both companies are using nanotechnology to revolutionize healthcare and manufacturing. Plus, they have considerable upside.
Motley Fool
by Taylor Carmichael
Jan 31, 2021
https://www.fool.com/investing/2021/01/31/have-3000-buying-these-3-stocks-would-be-the-smart/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
You don't need to invest a lot of money to have amazing returns in the stock market. If you invested $3,000 in Amazon (NASDAQ:AMZN) 20 years ago, you could have bought 300 shares. At a Jan. 29 price of $3,203 per share, your $3,000 investment would now be worth $960,900. To pull off an investment like that, you had to be willing to take risks (Amazon was unprofitable in its early years), practice patience, and let the growth story play out.
Are there any stocks in 2021 with Amazon-sized futures? Yes, there are. A few that come to mind are small companies using nanotechnology to disrupt the healthcare and manufacturing industries. Nano-X (NASDAQ:NNOX) has a device that could make X-rays a lot cheaper and more accesible. And Nano Dimension (NASDAQ:NNDM) uses nanotechnology (and 3-D printing) to revolutionize the way companies manufacture electronic circuit boards. Read more to find out why these stocks might be wonderful for patient, risk-tolerant investors.
1. Smaller is better for Nano-X
Nanotechnology led to the breakthrough.
The problem with high-end X-ray machines like those using magnetic resonance imaging (MRI) or computerized axial tomography (CAT) is that the machines are massive and cost hospitals over $1 million, and in some cases as much as $3 million. These high-end medical X-ray systems have to generate a tremendous amount of heat for the X-ray to happen -- up to 2,000 degrees Celsius (3,600 degrees Fahrenheit). Using micro-electrical-mechanical-systems (MEMS), Nano-X was able to fabricate millions of nanoscale gates on a silicon chip. Each one of these microscopic "nano-spindts" digitally creates and controls the electrons that power an X-ray device.
The result is that we no longer need to generate heat for an X-ray to work. Instead of having to power up to 3,600 degrees Fahrenheit -- and then cool down -- the Nano-X device stays at room temperature. Thus the company was able to build a much smaller, and cheaper, X-ray machine. And yes, the engineers who designed the sleek machine were inspired by Star Trek.
Nano-X says the device -- once it's cleared by the U.S. Food and Drug Administration (FDA) -- will cost about $10,000 to manufacture. But what's exciting the market is not how cheap the device is, or even how popular it might be. What's truly getting investors jazzed is that Nano-X will take a small percentage of the fee every time its X-ray device is used. That's the classic razor-and-blades pricing model that helped make Intuitive Surgical (NASDAQ:ISRG) investors rich. Nano-X can actually give its machine away, because it's making money on the use of the device, not on the original sale.
Will the device work as well as the MRI and CAT scans common in hospitals today? Skeptics abound. The company has no profits (or even revenues) yet. Shorts and other traders have made Nano-X's stock price incredibly volatile. But early investors who took the plunge upon its IPO in August are doing quite well so far.
2. Using Nanotech to transform 3D printing
3D printing has been around for decades. It's now become fairly commonplace in many industries. For instance, SmileDirectClub (NASDAQ:SDC) uses 3D printers to create aligners for your teeth. Nonetheless, this revolution in manufacturing is just beginning. And Nano Dimension might just be the most important company in 3D manufacturing today.
Nano Dimension uses nanoparticles to transform the inks used in 3D printing. Its Dragonfly device allows designers and engineers to print functional circuit boards and other electronic devices.
This is huge, for any number of reasons. Research and design labs can keep their intellectual property secret, because they can manufacture in-house cheaply, quickly, and easily. But 3D printing has an added benefit -- you can print devices with parts that are so tiny, they were impossible to manufacture before. As the company puts it on its website, designers can "pack more functionality in smaller footprints."
Nano Dimension has customers in aerospace and defense industries, but also in healthcare. Medical device companies can now 3D print noninvasive sensors and micro devices.
The most enticing thing about Nano Dimension for investors is its business model. The company has sold only 60 devices so far. But, as with Nano-X and Intuitive Surgical, the real money will be made in service revenues. Nano Dimension will make its money by supplying the miraculous inks that allow these systems to work. The more companies use its device to print circuit boards, the more money Nano Dimension will make.
This recurring revenue model is a wonderful business to invest in. While these small and unprofitable companies are certainly risky -- and highly volatile in the short term -- patient investors with a long-term outlook can easily make a fortune if either company pulls it off. That's the key to investing in early-stage companies -- don't put all your eggs in one basket. And hold on to your shares to see how it all unfolds. Patient investors who understand the risks might just see some amazing returns down the road.
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>>> Nanotech stocks: What is nanotech?
https://investingnews.com/daily/tech-investing/nanoscience-investing/nanotech-investing/nanotech-stock-invest/
Nanotechnology is the manipulation of matter on a nanoscale. A nanometer is one-billionth of a meter, or approximately one-90,000th the width of a single human hair.
Lauded as the “next industrial revolution,” research and development into nanotechnology applications has significant implications for almost every industry. According to IndustryARC, the global nanotechnology market is projected to reach US $121.8 billion by 2025. This micro-scale industry has the potential to produce macro returns for savvy investors.
Nanotech stocks: Market overview and outlook
Back in 2006, Lux Research estimated that revenue from products using nanotechnology would reach $2.6 trillion by 2014 (a staggering increase from the $14 billion that nanotech produced in 2004).
These optimistic market predictions spurred a flurry of nano-investing activity, including the launch of the PowerShares Lux Nanotech Portfolio, an $89 million exchange-traded fund created by Lux Research and PowerShares Capital Management.
Ultimately, the PowerShares Lux Nanotech Portfolio didn’t live up to its initial promise. Despite predictions at the peak of the mid-2000s nanotechnology investing bubble, nanotech stocks didn’t achieve the rate of growth that investors had hoped for — after primarily incurring losses after its inception, the fund liquidated in February 2014.
However, this news isn’t all bad. What has emerged out of a boom-and-bust market is an industry focused on strategic long-term business plans and in-demand innovative products. Many firms get steady revenue from nanotech products, which they reinvest in the market to drive innovation.
For example, nanotech giant 3M (NYSE:MMM) uses nanotechnology in products destined for the dental, electronics, architecture and energy markets. Used in dental restoratives (like fillings, crowns and orthopedic brackets), and brightness-enhancing optical films (which make LCD displays bright and clear), nanotech has a diverse range of uses. Some of 3M’s core nanotech products include its Filtek series.
With an anticipated compound annual growth rate of around 14.3 percent between 2020 and 2025, the nanotech market still appears to be a promising investment. Although the dramatic anticipated growth rates of the mid-2000s are a thing of the past, what remains is a solid market that consistently produces exciting, far-reaching and potentially transformative products.
Nanotech stocks: Smaller companies
With the nanotech market poised for growth, a nanotechnology company with a smaller market cap may benefit from this flourishing industry. Here are a few nanotech stocks investors may want on their radar:
Nano Dimension (NASDAQ:NNDM) — Founded in 2012, Nano Dimension is a research and development company with a focus on advanced 3D printing– and nanotechnology-based ink products. The company’s lead products include the DragonFly 2020 3D printer, as well as advanced nanotechnology-based conductive and dielectric inks.
Nanotech Security (TSXV:NTS,OTCQX:NTSFF) — Nanotech Security has been around since 2009, and since then has created technology solutions in a number of areas, including criminal justice, night viewing, tracking security and forensics. One of its products is KolourOptik, a nanotechnology platform for markets such as authentication, brand protection and anti-counterfeiting.
NanoViricides (NYSEAMERICAN:NNVC) — NanoViricides was founded in 2000 and is a development-stage company in nanomedicine technology. It is currently developing nanotechnology-based biomimetic anti-viral medicines that it calls “nanoviricides.”
Sona Nanotech (CSE:SONA,OTCQB:SNANF) is a nanotechnology life science company that has developed two unique gold nanorod products: Gemini and Omni. These products allow individuals to take control of their health and help fight some of the world’s deadliest diseases.
Taking all of the above into consideration, would you invest in nanotech stocks? Which ones would you choose? Tell us your thoughts in the comments.
This is an updated version of an article originally published by the Investing News Network in 2015.
<<<
>>> SunCoke Energy Partners, L.P. -- Moody's announces completion of a periodic review of ratings of SunCoke Energy, Inc.
Moody's
August 28, 2020
https://finance.yahoo.com/news/suncoke-energy-partners-l-p-173605828.html
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of SunCoke Energy, Inc.
Global Credit Research - 28 Aug 2020
New York, August 28, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of SunCoke Energy, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
SunCoke's B1 corporate family rating (CFR) reflects the company's relative earnings stability supported by its long-term take-or-pay contracts with pass-through provisions, good liquidity position, moderate debt protection metrics, proprietary and efficient cokemaking technology as well as its balanced capital allocation approach. The rating is constrained by SunCoke's small scale, high customer concentration, the longer-term renewal risks related to certain take-or-pay contracts and the predominant exposure to the highly volatile steel industry that is expected to experience challenging fundamentals over the near and medium term. The rating also considers the elevated ESG risks faced by the company. As a producer of metallurgical coke and the supplier to the steel industry, the company is subject to strict environmental regulations targeting greenhouse emissions.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Steel Industry published in September 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
<<<
>>> Johnson & Johnson adds to debt frenzy, borrows $7.5 billion to buy Momenta
MarketWatch
Aug. 20, 2020
By Joy Wiltermuth
https://www.marketwatch.com/story/johnson-johnson-adds-to-debt-frenzy-borrows-7-5-billion-to-buy-momenta-11597969957?siteid=bigcharts&dist=bigcharts
Johnson & Johnson leveraged its top AAA credit ratings on Thursday to borrow $7.5 billion worth of cheap funding for its buyout of Momenta Pharmaceuticals, Inc.
J&J, which makes drugs, consumer goods and medical devices, stands as the only other major U.S. corporation, aside from Microsoft Corp MSFT, -1.40%, still carrying top AAA credit ratings, which NPR’s Planet Money explains are akin to the highest possible score in consumer credit.
In theory, that means J&J should have access to cheaper funding than companies with lower credit ratings that are considered a higher default or downgrade risk, although the pandemic-fueled boom in corporate borrowing has blurred the lines of what might be considered “low” or “high” yields.
Demand for J&J’s six-part corporate bond deal helped the 130-year-old-plus conglomerate lock in some of the lowest-cost funding available in years.
Final pricing details pegged the yield on the shortest five-year slug of bonds at 0.57% and at 2.49% for the longest 40-year class of debt.
With the Federal Reserve’s pandemic support, U.S. investment-grade companies have gone on a record $1.4 trillion bond-borrowing spree this year at record-low yields, issuing about 74% more debt than the same period of last year, according to BofA data.
BofA Global created this chart to show investment-grade bonds hitting a fresh 24-year low this summer on a yield basis. Bond prices move in the opposite direction of yields.
The new financing mostly will be used by J&J to purchase Momenta MNTA, -0.02% in a cash, tender offer valued at $6.7 billion, which was announced Wednesday and sent shares of Cambridge, Mass.-based biotechnology company 69% higher to close at $52.12 per share.
Under terms of the agreement, J&J will pay $52.50 for each outstanding Momenta share. The deal is expected to close in the second half of 2020.
The remainder of the debt financing was pegged for general corporate purposes.
Moody’s Investors Service gave the debt financing a AAA rating, but with a negative outlook. While the credit-rating firm expects J&J’s pharmaceutical business to generate “mid-to-high single-digit growth” over the next few years, that contrasts with lower growth forecasts for its other business areas, which also face risks tied to “unresolved litigation involving opioids and talc,” that could constrain free cash flow “over multiple years.”
Johnson & Johnson, Moderna Inc. MRNA, -3.45%, Pfizer Inc. PFE, -0.11% and AstraZeneca PLC AZN, -1.07%, have been racing to get trials under way to help accelerate the development of a COVID-19 vaccine, with J&J planning to start a 60,000 person worldwide trial by late next month to test if it can protect people against the virus.
Vaccine hopes have been one catalyst helping to lift major U.S. stock indexes back to, or beyond, their prior all-time highs before the pandemic, with the S&P 500 index SPX, -0.81% this week marking its quickest recovery in history.
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Barrick - >>> Berkshire Makes a Bet on Gold Market That Buffett Once Mocked
Bloomberg
By Justina Vasquez
August 14, 2020
https://www.bloomberg.com/news/articles/2020-08-14/buffett-s-gold-averse-berkshire-jumps-into-a-big-bullion-miner
Berkshire added Barrick Gold to portfolio in second quarter
Shares of Barrick, world’s second-largest gold miner, soared
Warren Buffett’s Berkshire Hathaway Inc. added Barrick Gold Corp. to its portfolio in the second quarter, sending shares of the world’s second-largest miner of the metal surging.
Berkshire took a new position in Barrick, buying 20.9 million shares, or 1.2% of the company’s outstanding stock, with a current market value of $565 million, according to a regulatory filing on Friday. The filing shows moves made by Buffett or his two investing deputies, Todd Combs or Ted Weschler.
In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments. Large miners including Barrick and Newmont Corp. have been hoping to woo back generalists who fled the sector years ago.
Paulson & Co., run by billionaire hedge-fund manager John Paulson, also added to its holdings in Barrick.
Barrick’s shares rose 7.4% as of 5:32 p.m. in after-hours trading in New York.
Buffett might’ve been averse to gold in the past, but he has bet big on metals before. In 1997, he bought 129.7 million ounces of silver, banking on demand exceeding production and re-use. He bought most of it for less than $6 an ounce and sold it soon after, he said nine years later. “I was the silver king there for a while,” he said at the time.
The jump in gold prices has boosted investors’ willingness to pump billions into the industry, with precious-metals miners raising $2.4 billion in secondary equity offerings during the second quarter. Gold has gotten a boost as Federal Reserve interest-rate cuts and a plunge in real government bond yields lifted demand for the metal, which doesn’t offer interest.
Filings released this month don’t include hedge funds’ current position, which may have changed since the end of the quarter. Money managers who oversee more than $100 million in the U.S. must file a Form 13F within 45 days of each quarter’s end to list those stocks as well as options and convertible bonds. The filings don’t show non-U.S. securities, holdings that aren’t publicly traded, or cash.
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>>> Phillips 66 Plans to Transform San Francisco Refinery into World’s Largest Renewable Fuels Plant
Business Wire
August 12, 2020
https://finance.yahoo.com/news/phillips-66-plans-transform-san-170000175.html
Phillips 66 Plans to Transform San Francisco Refinery into World’s Largest Renewable Fuels Plant
Conversion is expected to reduce the plant’s greenhouse gas emissions by 50%
Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announced today that it plans to reconfigure its San Francisco Refinery in Rodeo, California, to produce renewable fuels. The plant would no longer produce fuels from crude oil, but instead would make fuels from used cooking oil, fats, greases and soybean oils.
The Phillips 66 Rodeo Renewed project would produce 680 million gallons annually of renewable diesel, renewable gasoline, and sustainable jet fuel. Combined with the production of renewable fuels from an existing project in development, the plant would produce greater than 800 million gallons a year of renewable fuels, making it the world’s largest facility of its kind.
The project scope includes the construction of pre-treatment units and the repurposing of existing hydrocracking units to enable production of renewable fuels. The plant will utilize its flexible logistics infrastructure to bring in cooking oil, fats, greases and soybean oils from global sources and supply renewable fuels to the California market. This capital efficient investment is expected to deliver strong returns through the sale of high value products while lowering the plant’s operating costs.
"Phillips 66 is taking a significant step with Rodeo Renewed to support demand for renewable fuels and help California meet its low carbon objectives," said Greg Garland, chairman and CEO of Phillips 66. "We believe the world will require a mix of fuels to meet the growing need for affordable energy, and the renewable fuels from Rodeo Renewed will be an important part of that mix. This project is a great example of how Phillips 66 is making investments in the energy transition that will create long term value for our shareholders."
If approved by Contra Costa County officials and the Bay Area Air Quality Management District, renewable fuels production is expected to begin in early 2024. Once reconfigured, the plant will no longer transport or process crude oil.
The plant is expected to employ more than 400 jobs and up to 500 construction jobs, using local union labor, including the Contra Costa County Building & Construction Trades.
Phillips 66 also announced plans to shut down the Rodeo Carbon Plant and Santa Maria refining facility in Arroyo Grande, California, in 2023. Associated crude oil pipelines will be taken out of service in phases starting in 2023.
To learn more about the project, visit www.RodeoRenewed.com.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,500 employees committed to safety and operating excellence. Phillips 66 had $55 billion of assets as of June 30, 2020. For more information, visit http://www.phillips66.com or follow us on Twitter @Phillips66Co.
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>>> Barrick Gold Beat Earnings Estimates. Its Stock Continues to Rise
Barron's
By Connor Smith
Aug. 10, 2020
https://www.barrons.com/articles/barrick-gold-beat-earnings-estimates-its-stock-continues-to-rise-51597073316?siteid=yhoof2&yptr=yahoo
Barrick Gold stock’s huge two-year run continued on Monday after the company’s second quarter results proved it’s a great time to be a gold miner.
For the second quarter, Barrick reported earnings of 20 cents a share, ahead of consensus estimates calling for 18 cents a share, according to FactSet. Revenue of $3 billion eked out estimates calling for $2.9 billion.
Barrick said the realized gold price during the second quarter was $1,725 an ounce, up from $1,589 an ounce in the first quarter. Its free cash flow was $522 million, up from $55 million in the second quarter of last year. The miner produced 1.15 million ounces of gold and 120 million pounds of copper.
Barrick also raised its quarterly dividend 14% to 8 cents a share. Chief Financial Officer Graham Shuttleworth called the dividend sustainable, adding in the earnings release that it reflects the company’s, “ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of $6.7 billion, including a cash balance of $3.7 billion at the end of the second quarter, and no material debt repayments due before 2033.”
CEO Mark Bristow said in the earnings release that Barrick’s major projects remain on track, aside from the Veladero mine in Argentina, where Covid-19 restrictions impacted its heap leach and cross-border Chilean power line projects.
Barron’s turned bullish on gold in a 2018 cover story, calling the metal cheap amid fears of inflation. Shares of Barrick (ticker: GOLD) and peer Newmont (NEM), both favored by Barron’s in January of 2019, soared last year. The stocks continued their run in 2020, as the price of gold passed $2,000 a troy ounce. In a July 31 story, Barron’s argued gold’s rally could continue with inflation-adjusted U.S. rates negative and the U.S. government running massive deficits.
Other than miners, investors can play the metal’s rise with exchange-traded funds like the SPDR Gold Shares ETF, which has returned 18% year-to-date. Barrick Gold stock was up 1% to $29.19 on Monday. The stock has risen about 62% in the past 12 months.
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>>> This Is General Electric's Biggest Long-Term Problem
Despite progress on some fronts, the company is still facing some big problems.
by Reuben Gregg Brewer
Jul 3, 2020
https://www.fool.com/investing/2020/07/03/this-is-general-electrics-biggest-long-term-proble.aspx
The troubles that industrial icon General Electric (NYSE:GE) has been dealing with are headline grabbers. The biggest story has been its heavy debt load and the efforts to sell assets to get its balance sheet back into shape. However, that's not the whole story. Even if the company manages to buy itself time in this long and slow-moving turnaround effort, it still has a big problem to tackle in its operating businesses and there's no easy fix. This is what you need to be watching if you are looking at GE today.
Getting less ugly
The first really big issue for General Electric to deal with, without question, was its balance sheet. This is the financial foundation of a company, and if it isn't strong, even a great business can end up crumbling. So it makes complete sense that CEO Larry Culp, who assumed the helm in late 2018, quickly focused on strengthening the company's financial position. That notably included selling assets, the biggest being a piece of the company's healthcare division, which closed in early 2020, to Culp's former employer Danaher.
This sale brought in a huge $21.4 billion in cash. That money will give the company material breathing room to deal with its remaining issues. To put some numbers on the improvement that's been made, the company's debt-to-equity ratio has fallen from more than 3.6 in the third quarter of 2018 to 2.4 at the end of the first quarter. A lot of progress has indeed been made under Culp's leadership.
At this point, the somewhat opaque finance arm, which had roughly $56.6 billion in debt maturities outstanding as of April 23 compared to just $17.3 billion on the industrial side of the business, is the segment that perhaps continues to garner the most attention. That's fair, given that GE's finance business imploded during the 2007-2009 recession and has been a weight on the company's neck ever since. However, there's a longer-term issue brewing that could be even bigger.
How the power and renewable energy segments are doing
GE breaks what remains of its business down into four divisions: aviation, healthcare, power, and renewable energy. Aviation and healthcare accounted for roughly 60% of the company's top line in the first quarter. These businesses have performed well historically, and, generally speaking, continue to do so. For example, segment margins in the first quarter were solid, at 14.6% for aviation and 19% for healthcare, despite the early impact of COVID-19. Yes, margins were weaker than they were in previous quarters, but they held up well under pressure.
The remaining 40% of revenue is attributable to power and renewable energy. These two divisions have not been performing well. In the first quarter they had segment margins of negative 3.2% and negative 9.5%, respectively. Those are not good numbers, but they aren't dramatically out of line with recent segment results. For example, power had negative free cash flow of $2.3 billion in 2018 and negative $1.5 billion 2019. Renewable energy had positive free cash flow of just $100 million in 2018, and negative free cash flow of $1 billion in 2019. In other words, more cash is going into these businesses than is coming out of them.
There's no easy fix. The power segment makes the turbines that go into electric power plants. COVID-19 has increased the pressure in the sector, with GE announcing in the first quarter that it was streamlining the division via job cuts, cost cuts, and a reduction in capital spending plans. This isn't the first time it has gone down this route. Even if the company manages to get the division scaled in line with demand, however, it still needs to turn the division from a cash drain to a cash producer. So far, that hasn't been going particularly well.
A part of the problem the power group is facing is the ongoing shift toward renewable power, which should be a net benefit to the company's renewable energy division, which makes things like wind turbines. But the financial results don't show that at all. In fact, things look like they are getting worse, not better. Part of the problem in the first quarter was the impact of COVID-19, of course, but there's real potential for a lingering impact, as renewable power projects may get delayed. It's not comforting to see General Electric continue to struggle in an industry that is becoming an increasingly important portion of the global electric grid.
The rest of the turnaround story
No matter how much progress General Electric makes on its balance sheet, it clearly still needs to get half of its business units, representing 40% of revenue, back on track. And since both power and renewable energy lost money in the first quarter, they continue to drag down the company's overall results. Until there's sustained progress turning these segments around, GE will have a very material problem that needs to be solved. This is the story on which long-term investors should focus when the company reports second-quarter earnings.
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>>> Hain Celestial Divests Danival, Solid on Transformation Plan
Zacks
July 22, 2020
https://finance.yahoo.com/news/hain-celestial-divests-danival-solid-173405037.html
The Hain Celestial Group, Inc.’s HAIN transformational efforts bode well. With respect to the transformation strategy, the company recently announced divestiture of the Danival brand to Europe-based Wessanen N.V.’s subsidiary. However, details of the transaction remained under covers. The Danival brand, which formed part of Hain Celestial’s Europe operating segment, consists of organic-cooked vegetables, sauces, fruit spreads, prepared meals and desserts.
The latest divestiture further simplifies the company’s brand portfolio. The company had also sold its Europe's Best and Casbah brands in March 2020. While management sold the Arrowhead Mills and SunSpire brands in October 2019, the entities consisting of the Tilda operating segment and some other assets of the Tilda business were divested in August. In fiscal 2019, Hain Celestial had divested its entire Hain Pure Protein operations and WestSoy tofu, seitan and tempeh businesses across the United States.
Through these strategic divestitures, Hain Celestial focuses on simplifying its portfolio and reinvigorating sales growth via discontinuing uneconomic investments, realigning resources, minimizing unproductive stock-keeping units (“SKUs”) and brands. The company is on track to simplify its business in a bid to focus on areas with higher growth potential, such as core packaged-foods business.
Management expects capitalizing on “Get Bigger” brands by reallocating resources, and increasing marketing and innovation investments for the same. The “Get Bigger” brands are the strongest brands with greater margins.
Clearly, this Zacks Rank #3 (Hold) company is progressing well with its transformation strategy to deliver sustainable profits. The transformation strategy is aimed at simplifying portfolio, identifying additional areas of productivity savings, enhancing margins and improving cash flow. Since the onset of the transformation strategy, the company has divested loss-making brands of almost $750 million in fiscal 2019.
Impressively, the natural and organic foods company’s shares have appreciated 62.9% in a year, compared with its industry’s gain of mere 1%.
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>>> IBM earnings beat estimates on cloud strength
Reuters
July 20, 2020
https://finance.yahoo.com/news/ibm-earnings-beat-estimates-cloud-200812153.html
July 20 (Reuters) - International Business Machines Corp posted quarterly revenue and profit above analysts' estimates on Monday, riding on the strength of its high-margin cloud computing business.
IBM has jettisoned some of its legacy business to focus on cloud computing, an area that has seen a lot of action in recent years as companies ramp up their digital shift to control costs and boost efficiency.
Revenue from the cloud business, previously headed by IBM's new boss Arvind Krishna, rose 30% to $6.3 billion in the second quarter.
Krishna took over as chief executive officer from Ginni Rometty in April, while appointing former Bank of America Corp's top technology executive Howard Boville as the new head of IBM's cloud business.
IBM's total revenue fell 5.4% to $18.12 billion in the quarter, but came in above analysts' estimates of $17.72 billion, according to IBES data from Refinitiv. Excluding the impact from currency and business divestitures, revenue declined 1.9%.
The company's net income fell to $1.36 billion, or $1.52 per share, in the quarter ended June 30 from $2.5 billion, or $2.81 per share, a year earlier.
Excluding items, the company earned $2.18 per share, above estimates of $2.07 per share.
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>>> Why Rollins Stock Is Up 27.8% Over the First Half of 2020
The pest control leader found a new opportunity amid the global pandemic.
Motley Fool
by Rich Duprey
Jul 7, 2020
https://www.fool.com/investing/2020/07/07/why-rollins-stock-is-up-278-over-the-first-half-of.aspx
Even during a pandemic you need to control pests, insects, and creepy-crawlies. Considering that Rollins (NYSE:ROL) stock is up 27.8% over the first six months of 2020, according to data provided by S&P Global Market Intelligence, it's clear that pest control was not one of the services that people were willing to give up during the COVID-19 outbreak.
Everything under one roof
One of the things that stands out with Rollins is that it's a serial acquirer, constantly buying more smaller businesses as it tries to roll up the pest control industry under its rather large and growing umbrella.
Best known for its Orkin and Western Pest Services brand, Rollins employs a "buy everything" approach to its business, which caused it to suffer its first miscues last year. The company started off 2020 reporting fourth-quarter results that missed analyst earnings expectations, despite beating on revenue.
The growth-by-acquisition strategy caused its expenses to rise as it needed to add more to its loss reserves, and that alone ended up swiping a penny per share from earnings.
Yet CEO Gary Rollins said he believed it was an anomaly, because after 12 consecutive years or reporting higher revenue and earnings, and 22 years of improving business prospects, "I've never seen so many one-time charges in my experience."
Rollins has proved itself capable of incorporating its acquisitions into the fold, but that's the thing with buying numerous companies -- it's never a problem until it's a problem.
A silver lining to a very dark cloud
Rollins was also hit hard by the coronavirus pandemic, causing its stock to lose about a quarter of its value as the closure of businesses and office space impacted the pest control leader. Commercial services make up 38% of its revenue, and while the cliche that opportunity is the flip side of crisis is overused, it actually applies to Rollins.
At the end of March, it launched Orkin VitalClean, a powerful disinfectant service for businesses to sanitize and disinfect hard, nonporous surfaces. While Rollins has used this disinfectant before to sanitize commercial facilities after pest removals, it began offering it more broadly to businesses due to the pandemic.
Rollins noted that no product has received Environmental Protection Agency approval for killing the COVID-19 virus because it's too new, but the disinfectant is effective against a long list of pathogens, such as other coronaviruses, including those that caused two other global outbreaks, swine flu and avian flu. It is also 100% effective against bacteria and viruses on hard, nonporous surfaces.
While Rollins thinks VitalClean can become an important part of its business, right now the launch has increased costs, with purchases of personal protective equipment and other disinfectant equipment. However, the service has already signed up its first major customer, the British Columbia transit system.
Basics still matter
Termite removal and mosquito control remain two of Rollins important businesses, and the first half of the year were prime seasons for the pests. First-quarter residential termite revenue, which accounts for 20% of the total, jumped almost 18% from the year-ago period as it experienced the fastest growth it has seen in six years, while its mosquito service also posted record-setting growth.
And Rollins hasn't let up on its spending spree, either, continuing to buy more companies, including the largest independent pest control provider in Australia. Rollins has a presence in 65 countries around the world.
Time to take a breather
Rollins stock has bounded 40% higher from the lows it hit in March, but it trades at 70 times trailing earnings and 55 times next year's estimates. It also goes for nearly 100 times the free cash flow it produces.
While Rollins also pays a dividend that has increased at double-digit rates for 18 consecutive years, it slashed the quarterly payout by 33% to $0.08 during the pandemic to strengthen its balance sheet and give it flexibility.
It says the move is temporary, and by the end of the year it may just be able to increase it above and beyond the level it set in January. But as solid as Rollins' business appears as consumers seemingly don't see pest control as very discretionary, its stock still looks overvalued at this price.
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>>> Verizon - >>> 3 Recession-Proof Stocks to Buy Now
These companies will likely prosper in almost any economic environment.
Motley Fool
Will Healy
Jun 7, 2020
https://www.fool.com/investing/2020/06/07/3-recession-proof-stocks-to-buy-now.aspx
Verizon has struggled somewhat recently as declining margins in its wireless business and massive investments in 5G infrastructure weighed on the company. Last year alone, Verizon spent $17.9 billion on capital expenditures. This has contributed to the company's $106.56 billion long-term debt load. It also represents a significant burden for a company worth $61.65 billion after subtracting liabilities from assets.
Still, it does not have the much higher debt load and side business distractions of archrival AT&T (NYSE:T). Moreover, consumers need communication and internet connectivity in good times and bad. Even if the economy continues to struggle, the march to 5G will probably continue and the need for smartphones and internet connectivity will be there.
And Verizon has an investing advantage over its other big rival, T-Mobile (NASDAQ:TMUS), as Verizon's shareholders receive a dividend. Verizon paid out $2.46 per share last year and its payout yields about 4.3%. This payout has risen every year for more than a decade. The dividend claims about 51.7% of company profits, leaving plenty of free cash flow left over for infrastructure spending, debt paydown, dividend increases, and other investments.
This has left Verizon the growth-and-income play of the wireless industry. Verizon has risen by about 121% over the last 10 years. While that does not beat T-Mobile, it comes out well ahead of AT&T, which (with its dividend yield of about 6.6%) is primarily an income play.
In addition to a generous payout, the company sells for just 11.9 times forward earnings. Admittedly, some may sour on Verizon as analysts see profit growth averaging 1.9% per year over the next five years. Still, with 5G adoption expected to grow for years to come, Verizon should keep producing growth and income regardless of the broader economy's performance.
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>>> GE Stock Pops Despite Some Bad News From Raytheon
Barron's
By Al Root
June 3, 2020
https://www.barrons.com/articles/ge-stock-pops-despite-some-bad-news-from-raytheon-51591197491?siteid=yhoof2
J.P. Morgan analyst Stephen Tusa thinks a recent update about aerospace from Raytheon Technologies is bad news for General Electric. But not everyone on Wall Street agrees.
Raytheon Tech (ticker: RTX)—which is the new combination of legacy Raytheon and United Technologies’ aerospace business—presented at an investor conference Tuesday.
Chief Financial Officer Tony O’Brien said any aerospace recovery would take time and that Raytheon’s free cash flow would be negative in the second quarter of 2020. Analysts were modeling positive free cash flow coming into the event. What’s more, O’Brien said aftermarket activity for portions of the aerospace business was down between 50% and 60% so far in the second quarter.
It wasn’t great news. And Raytheon stock closed down 1.1% on a day the S&P 500 rose 0.8% and the Dow Jones Industrial Average rose 1.1%. General Electric ( GE ) shareholders, however, didn’t get the memo. GE stock rose 4.3% Tuesday. That’s a risk, according to Tusa.
Raytheon’s comments “suggests consensus expectations are not reset” at GE, Tusa argued in a Wednesday research note. General Electric has a larger engine business than Raytheon’s Pratt & Whitney division and a smaller defense engine business. For Tusa, that means things should be a little worse for GE than for Raytheon.
Barclay’s analyst Julian Mitchell, however, didn’t hear Raytheon’s comments like Tusa did. In fact, he call the news “somewhat encouraging.” The entire aerospace industry is facing the same cash flow headwinds. GE isn’t unique.
Mitchell rates GE stock the equivalent of Buy and has a $9 price target for the stock. Tusa, on the other hand, rates shares Hold and has a $5 price target.
The Raytheon news might not have been exactly what investors expected for Raytheon, but its dreadful second quarter isn’t a surprise. More than half of the commercial aircraft fleet is parked because of plummeting demand for flights, and a lot of bad news is already reflected in aerospace shares.
The entire aviation value chain has been hammered by Covid-19. Boeing (BA) and Airbus (AIR.France) are down more than 50% year to date. Aerospace supplier stocks Barron’s track are down about 35% so far in 2020. Airline shares are also down about 50% year to date on average.
Raytheon shares, for their part, are down about 28% and GE stock has fallen about 37% in 2020, as of Tuesday’s closing prices.
Besides what is already reflected in stock prices because of the commercial aerospace downturn there is another reason the Raytheon update might not have hit GE stock. It was old news.
GE CEO Larry Culp spoke at an investor conference this past week and, like Raytheon’s CFO, tamped down expectations for free cash flow because of weakness in aerospace. The stock dropped from about $7.30 to almost $6.50 in the days after his talk. But shares have since rebounded: GE stock is up 3.9%, at $7.32, in recent trading.
After Culp’s talk, many Wall Street analysts weighed in. The weaker cash flow wasn’t good news, but the weakness was consistent with what is going on in the broader industry.
Raytheon shares were bouncing back on Wednesday, with a gain of 5.4% to $66.77 in afternoon trading. The S&P 500 was up 1.3%.
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ATT, Pepsi - >>> Like Dividends? You'll Love These 5 Stocks
This group of companies offers reliable dividend payouts.
Motley Fool
by Robert Izquierdo
Jun 1, 2020
https://www.fool.com/investing/2020/06/01/like-dividends-youll-love-these-5-stocks.aspx
Picking the best dividend stocks to add to your investment portfolio requires more than looking for the highest yields. For years of dependable dividend income, you need to find well-run companies with solid business models capable of maintaining the dividend through tough economic times.
These five companies fit that description and provide your investment portfolio with a diversified array of businesses to boot. The companies are listed in order of their dividend yields based on recent share prices.
1. AT&T: 6.7% dividend yield
Investors like AT&T (NYSE:T) for its high-yield dividend, but some shy away due to the company's large debt load resulting from relatively recent acquisitions of DIRECTV and Time Warner. DIRECTV has lost millions of subscribers as consumers shift from cable television to streaming services. That's part of why AT&T launched its HBO Max streaming service on May 27.
Even if HBO Max is successful, it won't provide the bulk of AT&T's revenue. That comes from its telecommunications business, which saw wireless service revenue grow 2.5% year over year in the first quarter, the fourth consecutive quarter of revenue growth.
Despite the uncertainty injected into global economies by the coronavirus pandemic, AT&T is committed to paying down its debt and maintaining its dividend. The company has raised its dividend each year for the past 35 straight, qualifying it for Dividend Aristocrat status. The company has the funds to do so, with about $10 billion in cash and $3.9 billion in free cash flow at the end of Q1. Its telecom business will also benefit from the growth in 5G wireless technology, making AT&T a compelling dividend stock.
2. PepsiCo: 3.09% dividend yield
PepsiCo (NYSE:PEP) is experiencing success despite the current economic downturn thanks to its popular array of snack foods and beverages. The company saw first-quarter revenue rise 7.7% year over year, and its sales have grown steadily for the past two years.
PepsiCo exited the first quarter with a healthy balance sheet. It had $85.1 billion in total assets compared with $71.5 billion in total liabilities. It also increased its dividend for the 48th consecutive year in May, putting it two years away from becoming a Dividend King.
With pandemic-induced lockdowns around the world blunting consumer in-store shopping, PepsiCo made the bold move of launching websites to enable direct-to-consumer sales. If successful, it will reduce costs and grow margins. The company's work to evolve its business combined with its financial success and solid dividend makes it an attractive income investment.
3. Target: 2.23% dividend yield
Target (NYSE:TGT) recently reported first-quarter results, and its 11.3% year-over-year revenue growth despite the coronavirus pandemic reflects why the retail giant is a company to invest in.
Target's business includes consumer staples that sell regardless of the broader economy. It invested in omnichannel retail solutions, creating a seamless customer experience between online and in-store shopping. This led to strong comparable digital sales growth of 141% for the quarter.
Target is well-positioned to continue its current success. Revenue has grown the last three years, and the company has increased its payout for 52 consecutive years, a reassuring sign of dividend stability.
4. Allstate: 2.20% dividend yield
Allstate (NYSE:ALL), the insurance company known for its "You're in good hands" slogan, experienced a revenue drop in the first quarter of 2020 not because its business struggled in the face of the pandemic, but because its investments declined with the resulting global economic downturn.
Yet its core insurance business is healthy. That revenue grew 4.4% year over year for the quarter, and has grown every year for the past four years.
Allstate returned $670 million to shareholders in the quarter through stock buybacks and dividends. The company's low payout ratio of 18% means it can support the dividend even amid a global economic decline.
Its financial position is solid with access to $3.4 billion in assets from its holding company and another $8.8 billion from securities salable in a week. With its combination of a steady insurance business and healthy finances, investors will find that Allstate lives up to its slogan.
5. Waste Management: 2.05% dividend yield
Reliable stocks in an economic downturn include utilities and trash collectors. Among the latter, Waste Management (NYSE:WM) is a dividend stock worthy of your portfolio.
Communities need trash collection regardless of the economy. That helped propel Waste Management's first-quarter revenue to $3.73 billion, up from last year's $3.70 billion. Its revenue has steadily increased for the last four years.
Its finances are healthy with $3.1 billion in cash and equivalents, and free cash flow of $318 million at the end of the quarter. This more than covers the $236 million in dividend payments.
The company has reiterated its commitment to the dividend, which has increased for 17 consecutive years. Its payout ratio of 55% means its dividend payout is as resilient as Waste Management's business.
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$GMGI hits the ground running Monday morning! Big run started 20 minutes into Friday close. The only growth stock in the pinks! RARE!
>>> Why Home Depot Stock Gained 13% in May
Solid growth during the COVID-19 pandemic outweighed investors' concerns over spiking costs.
Motley Fool
Demitrios Kalogeropoulos
June 2, 2020
https://www.fool.com/investing/2020/06/02/why-home-depot-stock-gained-13-in-may.aspx
What happened
Home Depot (NYSE:HD) shareholders outperformed a booming market last month. The stock gained 11% in May compared to a 4.5% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally added to a good year for shareholders so far, with the stock up 13% in 2020 through May while the broader market was down 5%.
So what
Last month's rally was supported by the home-improvement giant's strong first-quarter earnings report, which on May 19 showed that sales growth doubled its pace from the prior quarter. That success came despite Home Depot canceling its spring promotions, which traditionally produce some of its strongest customer traffic of the year.
The retailer scrubbed that plan and reduced operating hours in order to maintain adherence to social distancing guidelines.
Now what
Home Depot's comparable-store sales growth was still below the double-digit boost that rival Lowe's (NYSE:LOW) reported, and so investors will be watching that metric for signs of a shift in the market share dynamic between the two consumer discretionary giants. Meanwhile, look for Home Depot to do its best to capitalize on the surging interest in its digital selling platform over the next few quarters
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>>> Why Energy Transfer Believes Its 15%-Yielding Dividend Is Safe
The midstream giant sees the light at the end of the tunnel.
Motley Fool
Matthew DiLallo
May 24, 2020
https://www.fool.com/investing/2020/05/24/why-energy-transfer-believes-its-15-yielding-divid.aspx
Units of Energy Transfer (NYSE:ET) have cratered roughly 35% this year. That sell-off pushed the yield on the master limited partnership's distribution up to an eye-popping 15%. When a payout reaches that level, it's because the market doesn't believe it's sustainable.
However, Energy Transfer has full confidence in its ability to maintain its distribution, given what it sees ahead. That was one of the key takeaways on its first-quarter conference call.
Drilling down into the current numbers
CFO Tom Long drove the discussion on the call. One of the things he noted was that Energy Transfer generated $1.42 billion of cash during the quarter. As a result, he pointed out that the "coverage ratio for the quarter was 1.72 times, which resulted in excess cash flow after distributions of $594 million." In other words, the company is generating enough cash to cover its payout with room to spare.
Unfortunately, there's a bit more to this story. The concern with the payout is twofold. First, Energy Transfer is spending a lot of money on capital projects to expand its operations. It invested $1 billion during the first quarter, implying it outspent its retained cash by more than $400 million. That means it tacked more debt onto its balance sheet, which is a concern since its leverage ratio remains above its targeted level of 4.0 to 4.5 times debt-to-EBITDA.
On a positive note, that outspend should shrink in future quarters after the company cut its capital budget by $400 million due to the turmoil in the energy market, putting it track to spend $3.6 billion this year. Meanwhile, Long noted that it's "evaluating another $300 million to $400 million for potential reduction this year." If it defers that investment, it will further narrow its spending gap, taking additional pressure off its balance sheet.
The upcoming inflection point
Given its elevated leverage, the market remains concerned that Energy Transfer might have to reduce its distribution if industry conditions deteriorate further so that it can use that cash to reduce debt. That's the course of action taken by many energy companies during this downturn.
However, Energy Transfer believes it can maintain its payout through this rough patch because it sees better days ahead. The biggest driver of this view is that the company expects capital spending to come down significantly next year as it completes its current slate of capital projects. Long stated on the call that: "As we think about future capital spend over the next three to four years, we anticipate an annual run rate of less than $2 billion. We remain committed to generating free cash flow and still expect to be free cash flow positive in 2021 after growth capital and equity distributions."
In other words, Energy Transfer expects to produce enough cash next year to fund its current distribution as well as all growth-related spending with room to spare. He provided an initial glimpse of how much excess cash flow it could generate by noting that while:
We've not put out guidance for 2021, as you know, but I think it is worth talking about when you look at 2019, we had over $3 billion of what we call retained cash flow. That's above the distributions. When you really look at this year, and you see where we currently have guidance, you'll see that we have free cash flow, we're right at that cusp. When you get to the $2 billion and less than $2 billion [in capital spending] for 2021, you can really look and see what type of free cash flow we have.
As Long points out, in 2021, Energy Transfer could produce around $1 billion in free cash after covering the distribution and capital spending. It can use that money to reduce debt in the near-term and then potentially return more cash to investors via a higher distribution or unit repurchase program once leverage is within its target range.
Walking a tight rope this year
Energy Transfer believes that it can generate enough cash this year to fund its payout and the bulk of its capital expenses, which will help keep it from putting more pressure on its balance sheet. Meanwhile, it expects to hit an inflection point next year when it finishes several large expansion projects, which will boost cash flow as capital spending declines. That has it on track to generate roughly $1 billion in excess cash, which it can use to pay off debt. The MLP believes it can maintain its distribution during this year's market turbulence and for the long term. While it's a higher-risk option, the high-yield provides an enticing reward.
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Procter & Gamble - >>> 3 Top Dividend Stocks for a Better Retirement
Procter & Gamble and two other Dividend Aristocrats are still solid investments in a rough market.
Motley Fool
by Leo Sun
Jun 3, 2020
https://www.fool.com/investing/2020/06/03/3-top-dividend-stocks-for-a-better-retirement.aspx
The U.S.-China trade war, the COVID-19 pandemic, and the unrest across America have likely caused significant worry for many retirees who rely on their investment portfolios for stable income. However, people rarely make a profit by panicking, and the top Dividend Aristocrats -- stocks in the S&P 500 that have raised their dividend payouts for at least 25 straight years -- should weather these near-term challenges.
Today, we'll examine three top Dividend Aristocrats that can still offer retirees stability through this volatile time period for the market: Procter & Gamble (NYSE:PG), Kimberly-Clark (NYSE:KMB), and Coca-Cola (NYSE:KO).
1. Procter & Gamble
Procter & Gamble, the consumer staples giant that sells billion-dollar brands like Bounty, Charmin, Crest, Head & Shoulders, Gillette, Pampers, Pringles, and Tide, has raised its dividend annually for over six decades.
P&G raised its dividend in April, even as many other companies slashed their payouts to conserve cash during the COVID-19 crisis. It currently pays a forward yield of 2.7%, and spent just 57% of its free cash flow on its dividend over the past 12 months.
P&G's organic sales and currency-neutral core EPS grew 5% and 15%, respectively, last year. For fiscal 2020, which ends in late June, it expects its organic sales to rise 4%-5%, and for its core EPS to grow 8%-11%.
P&G's confident guidance was buoyed by robust demand for household essentials like toilet paper, paper towels, diapers, and cleaning products during the pandemic -- which offset the weaker growth of its grooming and beauty businesses.
P&G's stock isn't cheap at 22 times forward earnings, but that premium is arguably justified by its well-diversified business, wide moat, and stable dividend payments. P&G delivered a total return of over 160% over the past decade, and will likely remain a resilient investment for retirees.
2. Kimberly-Clark
Kimberly-Clark is another consumer staples giant that remained resistant to the COVID-19 crisis. The maker of Kleenex, Cottonelle toilet paper, and Huggies diapers benefited from shoppers stocking up on paper-based products.
Its organic sales rose 4% in 2019 with growth across all global regions, and jumped 11% in the first quarter on COVID-induced purchases. Its adjusted earnings grew 4% in 2019, and surged 28% in the first quarter as both its volumes and net selling prices improved.
Kimberly-Clark didn't offer any full-year guidance like P&G, but analysts expect its revenue to stay roughly flat and for its earnings to grow 9%. It currently pays a forward dividend yield of 3%, it's raised its payout annually for nearly half a century, and it spent just over three-quarters of its free cash flow on that payout over the past 12 months.
Its stock trades at a reasonable 19 times forward earnings, and should remain an appealing defensive stock throughout the COVID-19 crisis and other upcoming macro challenges. It delivered a total return of over 240% over the past 10 years -- and should remain a solid stock for retirees.
3. Coca-Cola
Coca-Cola has raised its dividend annually for nearly six decades. It currently pays a forward yield of 3.5%, and spent less than half of its free cash flow on that payout over the past 12 months.
Coca-Cola, like other soda makers, struggled with slowing demand for its sugary drinks as consumers pivoted toward healthier alternatives. However, Coca-Cola expanded its portfolio with new brands of juices, teas, bottled water, and other non-carbonated drinks. It also refreshed its flagship sodas with smaller cans and healthier versions with less sugar, calories, and caffeine; acquired coffee giant Costa Coffee; and experimented with new energy drinks and alcoholic beverages.
Coca-Cola's organic sales grew by 6% last year. They stayed flat in the first quarter, as COVID-19 disrupted "away from home" channels like restaurants, but that headwind should fade as businesses reopen.
Wall Street expects Coca-Cola's reported revenue and earnings to both decline 11% this year, but its organic growth -- which excludes acquisitions, divestments, currency impacts, and other variable expenses -- should look better. The stock has delivered a total return of more than 150% over the past decade, and it remains one of Warren Buffett's top holdings -- which strongly suggests it's a safe stock to "buy and forget" for most retirees.
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>>> Pfizer’s Breast Cancer Treatment Fails in an Advanced Trial. The Stock Is Falling.
Barron's
By Teresa Rivas
June 1, 2020
https://www.barrons.com/articles/pfizers-breast-cancer-treatment-fails-in-an-advanced-trial-the-stock-is-falling-51591028219?siteid=yhoof2&yptr=yahoo
Shares of Pfizer are tumbling Monday as the drugmaker announced it would halt its trial for a potential breast cancer treatment.
Pfizer (ticker: PFE) said its Phase 3 PALLAS Ibrance trial was unlikely to meet endpoint of improving survival rates, hence its decision to discontinue the study.
Analysts are reacting to the news, released after the bell on Friday. Cowen & Co.’s Steve Scala reiterated an Outperform rating and $48 price target on Pfizer, as he hadn’t incorporated any increased sales benefit for the drug into his estimates yet. That said, he admits that this “is a significant disappointment and opens the door for competitors who have different…agents in similar trials.”
By contrast, Citigroup’s Andrew Baum reiterated a Neutral rating and shaved $4 off his price target, to $37. He writes that while it’s unclear whether the trial failed because of the design or because of the class of drugs (or Ibrance itself), “we see the event as an important clearing event to de-risk the stock and potentially begin to form a constructive long-term thesis from a lower earnings base.”
Pfizer shares are off 10.5% in 2020, as strong earnings and potential vaccine research haven’t been enough to lift the stock, which has fallen along with peers like Merck (MRK).
With data showing that one in eight women in the U.S. will develop invasive breast cancer in their lifetimes, any potential treatment naturally garnered plenty of interest from investors; thus today’s news that the Ibrance trial has failed is not surprisingly weighing on the shares.
Pfizer is down 8.3% to $35.02 in recent trading, and it’s on pace for its largest decline in more than a decade.
>>>
ConocoPhillips - >>> 7 Best Energy Stocks to Ride Out Oil's Recovery
Kiplinger
by Aaron Levitt
May 12, 2020
https://finance.yahoo.com/news/7-best-energy-stocks-ride-201136371.html
Market value: $45.3 billion
Dividend yield: 4.0%
"Déjà Vu" is French for "already seen." And for major independent energy producer ConocoPhillips (COP, $42.27) ... well, it has seen something like this before.
Back in 2014, the last time crude oil took a serious plunge, ConocoPhillips was a different animal. It was full of expensive projects and bloated capital spending requirements, and it wasn't nearly the shale player it was today. In the years since, Conoco sold expensive deep-sea operations, cut its dividend, paid off debt and become a shale superstar. This "lean and mean" operation worked, and COP became the blueprint for many other energy firms.
That also prepared ConocoPhillips to better withstand the current low-oil environment.
Yes, COP did decide to tighten its belt in March and April, announcing capital expenditure, output and share repurchase reductions. And yes, ConocoPhillips did lose $1.7 billion during the first quarter. But it still managed to generate $1.6 billion in cash flows from operations - enough to pay its dividend, expenditures and buybacks. The company also finished the quarter with more than $8 billion in cash and short-term investments, and more than $14 billion in liquidity once you factor in the $6 billion left on its revolver.
In fact, the company's in a good enough position that CEO Ryan Lance told CNBC he's "on the lookout" for acquisition targets.
Conoco, in taking its lumps years ago, became a better energy stock. That should give investors confidence in its ability to navigate this crisis.
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>>> Ford Is the Poster Child for America's Grand Reopening
Bloomberg
Brooke Sutherland
May 21, 2020
https://finance.yahoo.com/news/ford-poster-child-americas-grand-164151642.html
(Bloomberg Opinion) -- After a prolonged shutdown, Ford Motor Co. officially resumed production at its North American factories this week. It hasn’t been as smooth a process as the company might have hoped: Ford had to temporarily close two critical facilities this week to allow for a deep cleaning after workers tested positive for the coronavirus. An Explorer SUV plant in Chicago was closed a second time after an employee at a nearby supplier facility tested positive for the virus, causing a parts shortage.
This is the reality of manufacturing for the time being as companies fret about worker safety and the legal and reputational risks of not doing enough to protect employees. Unlike Ford, whose products fall into a category of consumer spending that’s become even more discretionary amid the pandemic, wide swaths of the industrial sector were deemed essential and allowed to remain operational. Those companies, too, have had their share of growing pains as they adjust to a new way of working.
Boeing Co. temporarily closed its factories in the Puget Sound area in March after a worker died of the coronavirus and later briefly shuttered work at its 787 plant in South Carolina. CBS Minnesota reported earlier this month that a Honeywell International Inc. facility in Minneapolis had closed after a worker tested positive. Whirlpool Corp. closed its Amana, Iowa, refrigerator plant at least twice after employees tested positive for the virus, according to the Gazette local paper. Deere & Co. and Altria Group Inc.’s Philip Morris USA are among the many others that have had to close plants on a limited basis to avoid outbreaks among workers. Lockheed Martin Corp., meanwhile, said this week it will temporarily slow production of the F-35 fighter jet because of delays at suppliers.
It’s a lot harder, though, to bring factories back to life than it is to just figure it out as you go along. Ford may be a manufacturer, but because it’s one of the few to have experienced an extended lockdown, it’s arguably a better benchmark for the non-industrial economy. You better believe that office-based companies that have sent most of their workers home are keeping a close eye on how the likes of Ford fare in flipping the switch back on. Seeing the automaker’s setbacks this week, companies that can operate without their employees clustered in the same place may be less keen to rush back. They’re getting a more continuous stream of work out of their employees now than they would if they had to hit the pause button and clear out the office every few weeks. And the mixed messages from the White House aren't helpful: President Donald Trump is due to visit a Ford factory in Michigan that’s been converted to ventilator production and has been wishy-washy on whether he will adhere to the company’s face-mask requirements.
Already, American Express Co. CEO Steve Squeri and Visa Inc. CEO Al Kelly said this week that most of their employees would work from home for the rest of the year. Some 28% of employers recently surveyed by Challenger, Gray & Christmas said they would make work-from-home arrangements permanent for at least some employees. Cryptocurrency exchange Coinbase and social media site Twitter Inc. are among those who have publicly said remote working will be their indefinite default option. Facebook Inc. said Thursday it would follow suit and move to a more permanent remote workforce.
At the end of the day, manufacturing or non-manufacturing, it's all interconnected. How permanent this shift to work from home will be is debatable, but if companies end up needing less office space, by default that means fewer HVAC systems, commercial lighting, fire and security products or even 3M Co.’s Post-it notes. And if workers aren’t going to be commuting, do they still need to buy cars from Ford? There's a lot riding on getting reopening right.
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>>> Warren Buffett Sold Phillips 66 -- Here's Why I'm Holding (and May Buy More)
Berkshire Hathaway sold its remaining stake in Phillips 66. I don't plan to follow Buffett's move.
Motley Fool
Jason Hall
May 20, 2020
https://www.fool.com/investing/2020/05/20/warren-buffett-sold-phillips-66-heres-why-im-holdi.aspx
This quarter's Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) 13-F filing with the Securities and Exchange Commission -- the document that discloses the company's massive stock portfolio holdings at the end of the prior quarter -- surprised a lot of investors. We already knew that Buffett sold Berkshire's stake in the major airlines, but we didn't know what the Oracle of Omaha bagged with his elephant gun. Turns out, not much of anything: Berkshire was by far a net seller in the quarter.
One of the stocks that Buffett unloaded in the quarter was Phillips 66 (NYSE:PSX). Not only is Phillips 66 a personal holding, but it's also the oil stock I've touted the most as being worth buying in the coronavirus crash. And despite Buffett's decision to move on from my favorite oil stock, I'm not changing my view. To the contrary: It's still on my radar as a company I'm interested in buying more of.
From the biggest shareholder to a steady seller
Warren Buffett seems to have an occasional infatuation with Phillips 66 that started before it was even a stand-alone company. In 2008, Buffett invested billions in ConocoPhillips (NYSE:COP), but at the time it was an integrated oil and gas company, not the independent producer we know it as today, resulting from the 2012 spinoff of Phillips 66 as a separate company.
Berkshire sold off all of ConocoPhillips soon after the spinoff, but kept most of the 27 million shares of Phillips 66 it got. Buffett regularly touted Phillips 66's management team as being one of the best in the business, lauding its wonderful job managing capital. It does so in two ways Buffett loves seeing from companies he invests in: buying back shares, and paying (and increasing) a great dividend.
Buffett's love affair with the company peaked in the summer of 2016, when Berkshire owned 15% of Phillips 66. The heat of summer's passion faded, and Berkshire became a net seller of the company's stock almost every quarter, finally unloading its shares completely by the end of this past March.
Reading the tea leaves
Without getting too deeply into trying to read Buffett's mind, we can see that the Berkshire portfolio has substantially reduced its exposure to the energy industry over the past few years. I think it's likely that this is intentional. As a sector, the oil and gas industry has been a terrible investment over the past decade, and it's reasonable to conclude that Buffett, along with portfolio managers Todd Combs and Ted Weschler, have found other, more compelling investment ideas outside the oil patch.
The bottom line is that with the exception of Phillips 66, Buffett's biggest oil investments have not done well. Even the sweetheart deal with Occidental Petroleum (NYSE:OXY) could be a loser if that company ends up filing for bankruptcy.
Either way, that's a lot of guessing at reasons why Buffett is selling that may or may not be correct. Moreover, it really doesn't matter why. Buffett and the other Berkshire managers aren't managing your stock portfolio.
How Phillips 66 has done since Buffett started selling
Berkshire sold the last of its Phillips 66 shares last quarter, but it was the portfolio-management equivalent of washing the dregs out of your teacup. The company sold 227,436 shares to bring its holding to zero; at one point, Berkshire had owned more than 80 million Phillips 66 shares.
Since Berkshire started selling, Phillips 66 has been a solid investment. The coronavirus crash has cratered its stock price and erased a massive portion of its gains, but at the peak in late 2019, Phillips 66 investors had enjoyed more than 60% in total returns since Buffett started selling. That was actually a little better than the market as a whole, as illustrated by the SPDR S&P 500 ETF Trust (NYSEMKT:SPY):
That past performance doesn't make Phillips 66 a buy, but it's a reminder that it's steadily been one of the best investments in oil and gas. That solid performance is a product both of the parts of the oil and gas business it operates in that give it some durable advantages, and of how well its management team has proven able to navigate oil markets.
Why it's a buy today
As a starting point, Phillips 66 isn't an oil producer. That part of the business stayed with ConocoPhillips when the two split, and that's proven a big benefit. Oil prices have spent the past eight years going through extreme volatility, with two massive price crashes that have hit the stand-alone producer far more than the integrated midstream, refining, and petrochemicals producer.
To the contrary, while low prices have weighed on ConocoPhillips, Phillips 66's advanced refineries have unlocked more profits when U.S. oil is cheaper than overseas crude. It's not only been a better investment than the producer, it's outperformed the market:
Next, Phillips 66 also counts on natural gas for its fastest-growing businesses in the midstream and chemicals segments. Natural gas demand hasn't been hit nearly as hard as oil, because it's used more for electricity production and as a feedstock to make things like plastics -- think bleach and hand-sanitizer bottles -- and fertilizers. So while the refining and fuel marketing segments will struggle for much of 2020, this weakness will be partly offset by its other segments.
The business is holding up well enough, along with a rock-solid balance sheet, that the board of directors made the call just last week to maintain the quarterly dividend, while other oil giants have had to cut their payouts.
Lastly, the oil crash has turned Phillips 66 into an absolute bargain. Shares have recovered from the bottom, but are still down more than 30% this year. Considering the company's ability to weather the current environment, and that its segments should prove some of the quickest to profit from the eventual recovery in oil demand, it's absolutely worth buying now -- even if Buffett and Berkshire have moved on.
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Phillips 66, ConocoPhillips - >>> Oil Crash 2020: 4 Experts Weigh In on Stocks to Buy Right Now
Despite an unprecedented downturn in oil demand that's set to wreak havoc for many months ahead, there are some companies that look buy-worthy right now.
Motley Fool
Jason Hall, Tyler Crowe, Matthew DiLallo, And John Bromels
May 3, 2020
https://www.fool.com/investing/2020/05/03/oil-crash-2020-4-experts-weigh-in-on-stocks-to-buy.aspx
The COVID-19 pandemic, along with Saudi Arabia and Russia's war for global market share dominance, has brought much of the oil industry to its knees. We've already seen some companies go bankrupt just a couple of months into the downturn, and more bankruptcies are on the way as the supply-and-demand imbalance gets even worse with each passing day. That makes much of the oil patch a minefield for investors to avoid.
But even within this minefield there are a core group of well-capitalized and diversified companies that have both the operations and balance sheet strength to navigate the epic downturn. Four Motley Fool energy experts contributed a top oil stock that looks worth buying now: French energy giant Total SA (NYSE:TOT), refining and midstream leader Phillips 66 (NYSE:PSX), dominant and well-built oil and gas giant ConocoPhillips (NYSE:COP), and midstream stalwart Magellan Midstream Partners (NYSE:MMP).
Integrated model and low North American exposure
Tyler Crowe - (Total SA): There are three appealing qualities for Total today compared to most other companies in the oil and gas industry:
Its integrated business model means it can generate some revenue from downstream operations and other venues as its exploration and production business suffers.
It has low exposure to North American oil production where prices are even worse than the international market.
It has lots of cash on the books and has already eliminated $5 billion in cash expenses for the year.
Oil prices are so low these days that no company can produce oil and profits simultaneously. That is even worse in North America, where spot prices for certain crudes such as West Texas Intermediate and Western Canadian Select are priced much lower than the international benchmark, Brent. Of the oil majors, Total has the least exposure to North America, so its price realizations will likely be better than most.
Also, with a highly profitable refining and retail segment as well as a significant contribution from its integrated gas, renewables, and power segments, Total's chances of avoiding taking on significant debt to get through this are much lower than others in this industry.
This isn't to say that Total will come out of this downturn unscathed, but the damage will likely be lower than others and could make it one of the better bets on the oil and gas industry today.
Big enough, strong enough
John Bromels - (Phillips 66): Refiners are somewhat insulated from low crude oil prices because they make their money off the "crack spread" -- the difference between the cost of crude oil and the selling prices of the refined products and petrochemicals made from it. Unfortunately, there's a lack of demand for refined products like gasoline right now, and that has sent shares of refiner and marketer Phillips 66 down 33.8%.
With a glut of crude oil on the market in the U.S. and limited storage, oil prices are likely to stay low even after drivers start returning to the roads, increasing demand for refined gasoline. That should drive higher margins at Phillips 66's refineries while low gas prices simultaneously increase traffic to its filling stations. Phillips 66's size, strong balance sheet, and $1.6 billion cash hoard should ensure it can survive until that point.
The oil industry is a dangerous place these days, but Phillips 66 is one of the surest bets in the sector.
Built for times like these
Matt DiLallo - (ConocoPhillips): ConocoPhillips learned some valuable lessons during the last oil market downturn, which are paying dividends this time around. That experience had the oil giant put a priority on increasing its flexibility -- both operationally and financially -- so that it can quickly adjust to changes in market conditions.
One of the most important things it did was to build a fortresslike balance sheet. ConocoPhillips entered this currently turbulent period with the second-lowest leverage ratio in its peer group and a mountain of cash on its balance sheet. That has given it the financial flexibility to maintain its dividend. Meanwhile, it has focused on operating assets that not only boast some of the lowest supply costs in the sector but are flexible enough that it can adjust on the fly. That's allowed it to quickly reduce spending and production so that it can save that low-cost oil for better market conditions.
ConocoPhillips' flexibility will also allow it to move quickly when market conditions improve. It can turn wells back on and ramp up its drilling program. On top of that, it could potentially take advantage of opportunities that arise to bolster its portfolio via acquisition. This unparalleled flexibility puts it in an elite class.
A well-structured infrastructure giant
Jason Hall - (Magellan Midstream): If independent oil producers are the most at-risk from the oil crash, then top midstream companies are probably the safest. In this segment, Magellan is one of the very best. Magellan owns pipelines and storage facilities that are critical in the logistics of crude oil and refined products.
On one hand, now isn't a great time to be in the business of moving crude oil or refined products in North America. There is an overabundance of crude oil, but with gasoline demand at Vietnam War-era levels right now, Magellan's cash flows will feel a pinch. A protracted downturn would have a bigger impact on its bottom line than many expect, forcing the giant to tap more debt for cash to fund its distribution, or even back down from its plan to keep paying investors through the downturn. That's the downside case.
The upside from here is that, while oil production will be the last segment to benefit from a recovery of economic activity, supplying refined products should prove one of the first. That's excellent news for Magellan, which counts on the refined products business for the majority of its operating profits.
Between the diversity in its business that should prove helpful in weathering the storm and a balance sheet that gives it plenty of room to navigate the downturn and continue paying a dividend yield that's above 10% right now, Magellan Midstream looks buy-worthy today.
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>>> Exxon's CEO On How Oil Giant Plans To Maintain Dividend, Focus On Balance Sheet
Benzinga
Jayson Derrick
April 07, 2020
https://www.benzinga.com/news/20/04/15759671/exxons-ceo-on-how-oil-giant-plans-to-maintain-dividend-focus-on-balance-sheet?utm_campaign=partner_feed&utm_source=yahooFinance&utm_medium=partner_feed&utm_content=site
Exxon's CEO On How Oil Giant Plans To Maintain Dividend, Focus On Balance
Oil giant Exxon Mobil Corporation is committed to maintaining its dividend, mostly due to a decades-long focus on maintaining a healthy balance sheet, CEO Darren Woods said Tuesday on CNBC's "Squawk Box."
CEO Says Exxon's Focus Unchanged
Exxon remains committed to satisfying the needs of its large retail investor base in paying dividends, and it won't shy away from tapping its balance sheet to come up with cash if needed in the short-term, Woods said.
The main focus of the balance sheet remains unchanged in that it is needed to support new projects, he said.
Exxon was on the receiving end of an S&P rating downgrade in March from AA+ stable to AA stable, but this has no impact on how management looks at its balance sheet, the CEO said.
Recovery Will Come, Woods Says
An oil recovery is "on the way," but the exact timing can't be anticipated, Woods said.
Exxon's current strategy is to invest in projects with no particular recovery curve to "get through" current headwinds, he said.
What's Next For Exxon
Improving standards of living and economic growth are among the two largest drivers of demand for oil, the CEO said.
These trends will re-emerge in the future. and Exxon needs to "be ready to meet those demands when that recovery happens," he said.
The stock was trading 3.95% higher at $42.07 at the time of publication Tuesday.
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>>> Here are the best bets for investors seeking income, according to Goldman Sachs
MarketWatch
April 4, 2020
By Andrea Riquier
https://www.marketwatch.com/story/here-are-the-best-bets-for-investors-seeking-income-according-to-goldman-2020-03-30?mod=article_inline
Banks should weather the storm, Goldman’s analysts reckon
Home Depot is one of Goldman Sachs’ best bets for dividends.
It’s hard times for anyone relying on income investments. The stimulus bill signed into law Friday keeps any companies that borrow from the government from paying dividends to shareholders for at least a year after the loan is repaid — even as bond yields have collapsed to to near all-time lows.
That makes it critical for investors focused on income to “consider stocks with both high dividend yields and the capacity to maintain the distributions,” Goldman Sachs strategists wrote in an analysis out Monday.
The provisions of the CARE Act likely exacerbate a trend of companies trying to keep as much cash on hand as possible as the economic downturn worsens. The Goldman strategists estimate dividends for S&P 500 stocks will decline 25% to $44 per share in 2020, and note 12 companies, ranging from Apache Corp. APA, +13.35% to Old Dominion Freight Line ODFL, +0.35% , have already reduced or suspended their shareholder payouts.
“We expect significantly more dividend cuts are likely to be announced during April in conjunction with the release of quarterly financial results,” the analysts wrote.
The Goldman team screened the Russell 1000 for companies with an annualized dividend yield greater than 3%, ample cash on hand, healthy balance sheets, and what they call “reasonable payout ratios.” Each of the stocks they identified have not under-performed the rest of the market since the peak, are rated by S&P as at least BBB+.
“The typical stock on our list has paid its dividend for 90 quarters (23 years) without reducing its distribution,” the Goldman strategists wrote. Their full list contains companies from 10 of the 11 S&P 500 sectors; energy is the only one missing. We’ve listed the top — highest-yielding — stock from each of the 10 sectors below.
COMPANY ANNUAL DIVIDEND YIELD CONSECUTIVE QUARTERS WITH NO DIVIDEND CUT SECTOR
Omnicom Group Inc. OMC, +2.92% 5% 50 Communication services
Home Depot Inc. HD, +4.78% 3.1% 128 Consumer discretionary
Archer-Daniels-Midland ADM, +4.29% 4.3% 23 Consumer staples
Wells Fargo & Co. WFC, +5.54% 6.7% 39 Financials
Bristol-Myers Squibb BMY, +1.74%
Merck & Co. Inc. MRK, +0.55% ) 3.4% 114 Health care, pharmaceuticals
3M Co. MMM, +1.07%
Emerson Electric Co. EMR, +6.69% 4.4% 156 Industrials
IBM IBM, +3.79% 6.0% 102 Tech
Nucor Corp. NUE, +5.12% 4.8% 41 Materials
Regency Centers REG, +4.28% 5.9% 39 Real estate
CenterPoint Energy CNP, +4.68% 7.1% 55 Utilties
Source: Goldman Sachs
About one-third of the stocks that wound up on Goldman’s list of 40 are financials. The strategists wrote that their bank equity research analyst colleagues had modelled stress scenarios and found that “banks are in a position to maintain dividends at or close to the current run rate.”
That’s an important caveat given the particularly precarious position for financials now. It’s not just the economic fall-out from the coronavirus pandemic that’s troubling them, but an expected wave of defaults and bankruptcies from the collapse in oil prices.
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>>> These 60 large U.S. companies are ‘susceptible to a dividend cut,’ according to Jefferies
MarketWatch
April 6, 2020
By Philip van Doorn
https://www.marketwatch.com/story/these-60-large-us-companies-are-susceptible-to-a-dividend-cut-according-to-jefferies-2020-03-31?siteid=bigcharts&dist=bigcharts
Investors who rely on income are already seeing companies reduce or eliminate dividend payouts as the coronavirus spreads
FedEx is among 60 S&P 500 companies that analysts at Jefferies believe are 'susceptible' to dividend cuts.
The deadly coronavirus is taking a toll on financial markets around the world. Stock-price declines have been swift and relentless.
Now there is intense pressure for companies to shore up cash reserves, not only by reducing investment and suspending share buybacks, but by cutting dividend payouts.
Jefferies global equity strategist Sean Darby has listed 60 companies in the S&P 500 SPX, +2.67% that he and his colleagues think are “susceptible to a dividend cut.”
Here’s the entire list, followed by explanations and more background from Darby:
COMPANY TICKER DIVIDEND YIELD DIVIDEND COVERAGE RATIO NET DEBT TO EQUITY
General Mills Inc. GIS, -0.03% 3.62% 1.49 177.3%
Evergy Inc. EVRG, +1.70% 3.42% 1.47 117.3%
Sempra Energy SRE, +5.94% 3.48% 1.46 120.0%
Qualcomm Inc. QCOM, -0.88% 3.59% 1.45 74.8%
PPL Corp. PPL, +4.35% 6.43% 1.44 171.9%
American Electric Power Co. Inc. AEP, +2.77% 3.34% 1.42 149.3%
Genuine Parts Co. GPC, +1.59% 4.78% 1.40 114.9%
Consolidated Edison Inc. ED, +1.30% 3.79% 1.38 117.1%
3M Co. MMM, +1.07% 4.27% 1.38 186.1%
International Flavors & Fragrances Inc. IFF, +4.36% 2.78% 1.38 64.3%
PepsiCo Inc. PEP, +1.40% 3.04% 1.37 187.6%
Duke Energy Corp. DUK, +2.86% 4.53% 1.36 130.8%
United Parcel Service Inc. Class B UPS, +0.51% 4.13% 1.33 683.1%
Eversource Energy ES, +1.97% 2.71% 1.33 117.6%
J.M. Smucker Co. SJM, +0.37% 3.18% 1.32 72.9%
Coca-Cola Co. KO, +2.03% 3.64% 1.30 156.3%
Becton, Dickinson and Co. BDX, -0.08% 1.42% 1.30 89.3%
Kellogg Co. K, +1.38% 3.83% 1.25 243.6%
Bristol-Myers Squibb Co. BMY, +1.74% 3.31% 1.20 60.7%
Equity Residential EQR, +6.99% 3.85% 1.15 84.7%
Las Vegas Sands Corp. LVS, +2.41% 7.27% 1.14 132.3%
American Tower Corp. AMT, +0.90% 1.72% 1.13 448.8%
Campbell Soup Co. CPB, -1.50% 3.01% 1.12 759.3%
Federal Realty Investment Trust FRT, +3.46% 5.60% 1.11 121.6%
FirstEnergy Corp. FE, +3.00% 3.85% 1.10 295.2%
Microchip Technology Inc. MCHP, +3.58% 2.13% 1.03 186.8%
Gap Inc. GPS, +9.43% 13.07% 0.96 181.6%
Kinder Morgan Inc Class P KMI, +6.09% 7.54% 0.96 93.4%
Hershey Co. HSY, +0.69% 2.24% 0.96 228.5%
AT&T Inc. T, +3.54% 6.88% 0.93 87.3%
AvalonBay Communities Inc. AVB, +5.65% 4.18% 0.92 67.3%
Extra Space Storage Inc. EXR, +1.88% 3.72% 0.92 179.9%
SL Green Realty Corp. SLG, +3.89% 7.68% 0.91 92.9%
Welltower Inc. WELL, +3.93% 7.38% 0.88 88.9%
Oneok Inc. OKE, +10.57% 18.66% 0.88 204.4%
NiSource Inc NI, +1.73% 3.22% 0.88 159.7%
Boston Properties Inc. BXP, +1.52% 4.22% 0.86 144.5%
Essex Property Trust Inc. ESS, +6.02% 3.68% 0.86 91.1%
AES Corp. AES, +7.89% 4.19% 0.83 306.6%
Simon Property Group Inc. SPG, +5.68% 14.84% 0.82 767.0%
Mid-America Apartment Communities Inc. MAA, +4.79% 3.73% 0.79 70.9%
FedEx Corp. FDX, +4.84% 2.09% 0.79 86.0%
Alexandria Real Estate Equities Inc. ARE, +2.13% 2.85% 0.79 67.5%
Kimco Realty Corp. KIM, +5.18% 11.09% 0.72 106.8%
Broadcom Inc. AVGO, +2.93% 5.41% 0.64 111.1%
Amcor PLC AMCR, +3.78% 5.64% 0.63 97.0%
Equinix Inc. EQIX, +1.78% 1.65% 0.61 129.0%
Regency Centers Corp. REG, +4.28% 5.96% 0.61 64.0%
Molson Coors Beverage Co. Class B TAP, +2.80% 5.66% 0.57 63.5%
Digital Realty Trust Inc. DLR, +5.10% 3.20% 0.55 100.7%
Realty Income Corp. O, +5.14% 5.26% 0.51 81.1%
Newell Brands Inc NWL, +1.98% 6.74% 0.47 121.1%
Williams Companies Inc. WMB, +8.98% 11.58% 0.47 135.7%
UDR Inc. UDR, +6.30% 3.82% 0.46 111.1%
Dominion Energy Inc D, +4.40% 4.90% 0.46 112.3%
Crown Castle International Corp. CCI, +3.24% 3.24% 0.39 226.3%
Iron Mountain Inc. IRM, +3.05% 9.96% 0.38 711.8%
Ventas Inc. VTR, +5.35% 11.01% 0.37 113.7%
Wynn Resorts Ltd. WYNN, +8.53% 6.55% 0.31 533.9%
Healthpeak Properties Inc. PEAK, +6.14% 6.08% 0.06 95.5%
Source: Jefferies
The table is sorted by declining dividend coverage ratio, which was calculated by the Jefferies analysts by dividing the firm’s estimated earnings for the companies over the next 12 months by the expected dividend payouts based on the current dividend rates. A higher coverage ratio is better. However, a high ratio of net debt to equity is of concern. The net-debt-to-equity ratio was calculated by subtracting cash from debt and dividing by equity.
When asked in an email why he used earnings instead of free cash flow for the dividend coverage ratio, Darby replied: “Many companies will smooth dividend payments, so if we look at earnings measures, we can get an idea of how confident they are about future payments.”
One company that would have made Darby’s list was Macy’s M, +2.77%. However, the retailer suspended its dividend March 20 after temporarily closing all of its stores March 17. Macy’s placed the “majority” of its employees on furlough this week.
Debt-market pressure
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Trump on March 27. Companies that borrow from the federal government will be unable to pay dividends for a year after the loans have been repaid in full.
Of course, companies that don’t receive federal assistance will be able to continue paying dividends and even buying back shares. But in this new climate, management teams have to be careful.
“As companies become more aware that they are running their businesses for the bond holders (and credit markets) rather than for the equity investors, their focus will turn to managing cash rather than earnings,” Darby wrote in his report March 30.
He explained that debt issuers with sub-investment-grade ratings (below BBB) appeared not to have access to the Federal Reserve’s Primary Market Corporate Credit Facility (PMCCF) or its Secondary Market Corporate Credit Facility (SMCCF), which were established March 23.
Darby went further, pointing out that the ratings firms might cut their ratings for BBB-rated bond issuers, making them likely to lose access to those programs.
So there are all sorts of reasons for companies to think ahead and shore up cash any way they can, by suspending share buybacks, cutting capital expenditures and cutting or suspending dividends.
In a report listing large-cap stocks with “safe dividends,” Goldman Sachs analyst Cole Hunter predicted dividends for the S&P 500 would decline by 25% in 2020.
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Verizon, Energy Transfer - >>> 3 Terrible Stocks I'd Avoid
Maybe you don't think they're terrible, but this Fool wouldn't touch Verizon, Energy Transfer, or Foresight Energy.
Motley Fool
Reuben Gregg Brewer
Apr 20, 2017
https://www.fool.com/investing/2017/04/20/3-terrible-stocks-id-avoid.aspx
One of the tools I use when I invest is the Berkowitz kill list, which covers a short collection of things that companies do that frequently lead to poor investor returns -- or worse. Verizon Communications Inc. (NYSE:VZ), Energy Transfer Equity (NYSE:ET), and Foresight Energy LP (NYSE:FELP) all meet at least one important "kill" criterion. Some investors might consider one or more of these companies to be top stock picks, but my analysis suggests they are terrible stocks you'd be better off avoiding. Here's why.
Kill the company
When I see an investment "tool" that makes sense I try to add it to my investment toolbox. Which is why every stock I look at gets subjected to Fairholme Fund manager Bruce Berkowitz's "kill list." Essentially, it's a short list of things that companies frequently do that lead to trouble. What I really like about the list, however, is that it's easy to use and forces you to question your assumptions. Here's my version of the Berkowitz "kill list":
My Bruce Berkowtiz Inspired "Kill List"
1. They don't generate enough cash
2. They burn too much cash
3. They have too much debt
4. They take big risks (playing Russian Roulette)
5. They have bad management
6. They have bad boards
7. They expand into inappropriate areas (diworsification)
8. They buy stock back at premium prices
9. They lie with GAAP accounting
No company is perfect, but if one I'm looking at raises a red flag on this list I step back and question my assumptions. Which is exactly why Verizon, Energy Transfer, and Foresight Energy are all stocks I'd avoid -- each fails at least one of my Berkowitz "kill list" tests.
Diworsification
Sometimes companies make acquisitions that just don't pan out. Often, such investments are questionable from the start. There's a name for such a situation: diworsification. And it's my big concern with Verizon.
On the surface, Verizon would be a great investment, especially because I'm a big fan of dividends. After all, the telecom is one of the largest cell-phone companies in the United States, it's increased its dividend for 12 consecutive years, and it offers a hefty 4.75% yield. But I just can't bring myself to like what's going on today.
For starters, the company's core cell-phone business is mature. That means it's in a fight for market share, with smaller players making aggressive price moves to win customers over. Since cell service is largely a commodity, that leaves Verizon's pricing power in the hands of its weakest competitor. Not a good thing -- but alone not a reason to avoid Verizon.
My diworsification concern is that the telecom giant is using acquisitions to reach into the content space -- notably, purchasing struggling internet companies. Sure, AOL, a recent purchase, had material early success, but it's been all downhill since that company's merger with, and subsequent separation from, Time Warner. And that isn't the only internet also-ran Verizon is looking at. At best, I think Verizon will have to spend a lot of shareholder cash to make the content push work. At worst, it will be a complete waste of time and money. I could be wrong, but I'm definitely not willing to take on the risks of diversification failure here.
Bad board, bad management
Midstream giant Energy Transfer fails what really amounts to a corporate-integrity test. Here's the recap: A couple of years ago, Energy Transfer tried to acquire competitor Williams Companies. With oil prices falling precipitously at the time, it quickly turned into a bad decision that would probably have required cutting the dividend, taking on huge amounts of debt, or issuing dilutive shares to complete as originally designed. Energy Transfer worked hard to scuttle the deal.
That was probably the right thing for shareholders. But there was a little wrinkle in that not-so-distant drama that should still worry investors today. Part of the effort to get out from under the Williams deal involved the issuance of convertible securities, a large portion of which went to Kelcy Warren, the CEO and chairman of the board. These securities would have, effectively, protected the CEO's distributions if the deal were consummated and the common dividend were cut. In other words, the company's choice was to protect its most prominent insider from a worst-case scenario.
Since Warren is still the CEO and chairman, I'm not willing to go near Energy Transfer. No company is a perfect citizen, but that convertible sale is just too much for me to overlook.
Too much debt
Foresight Energy is a lot easier to get your head around. This coal miner has struggled through the coal industry downturn, as all coal miners have. And to its credit, it has managed to avoid bankruptcy -- unlike some of its larger peers. However, it has only managed to do so because its creditors have been working with it to ensure it stays out of bankruptcy court.
The big push came in 2016 with what the company called a "global restructuring," but there are still follow-up transactions taking place. To give you an idea of just how bad it is, debt makes up more than 100% of Foresight's capital structure, because there's a limited partner deficit. It's so bad that the partnership no longer pays a distribution, which is kind of a telling sign for a corporate structure that's meant to pass income through to unit holders.
There are better options in the coal space if you think the sector is ready for an upturn.
Simple rules can save you
Investing can be pretty complex, but there are times when simple little rules can help you avoid risky choices. That's the point of the Berkowitz kill list, which includes avoiding diworsification, bad management and boards, and overly indebted companies. These not-so-little red flags trip up Verizon, Energy Transfer, and Foresight Energy, respectively. I wouldn't touch these stocks right now, and I'd suggest you don't either.
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GE - >>> Raytheon Technologies Debuts On The Dow As Rival GE Deepens Cuts
Investor's Business Daily
APARNA NARAYANAN
04/03/2020
https://www.investors.com/news/raytheon-technologies-stock-debuts-dow-jones-industiral-average-ge-aviation-cuts/?src=A00220&yptr=yahoo
Raytheon Technologies (RTX), formerly known as United Technologies, debuted on the Dow Jones Industrial Average Friday after the closing of its massive merger.
United Technologies completed the separations of its Otis elevator and Carrier air-conditioning units early Friday, clearing the way for its merger with Raytheon Company.
The industrial giant and Raytheon agreed to merge in June 2019 in a $100 billion all-stock deal.
The new Raytheon Technologies stock is a formidable aerospace and defense pure play. With roughly $74 billion in net sales last year, it's overtake Boeing (BA) in aerospace/defense revenue as 737 Max planes remain grounded.
"The combined company expects to introduce breakthrough technologies at an accelerated pace across high-value areas such as hypersonics, directed energy, avionics and cybersecurity," Raytheon Technologies said in a statement. Greg Hayes, CEO of the former United Technologies, is chief of the new company.
The standalone Carrier Global (CARR) company makes its debut on the S&P 500 Friday and closed at 15.96. Otis Worldwide (OTIS), which also debuts on the S&P 500, settled at 47.11.
Raytheon's divisions include Pratt & Whitney, a jet-engine rival to GE Aviation. On Thursday, General Electric (GE) said it would furlough half of its aviation unit's engine manufacturing staff.
That followed last week's move to lay off 10% of the staff at jet-engine business, and the furlough of half of the maintenance and repair employees.
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Ford suspends dividend - >>> Companies Suspend Dividends, Buybacks As Pandemic Weakens Market
Benzinga
Shanthi Rexaline
March 26, 2020
https://finance.yahoo.com/news/companies-suspend-dividends-buybacks-pandemic-201244468.html
Dividend and buybacks are the primary means adopted by companies to reward their shareholders. Shareholders can also find returns from capital gains or stock price appreciation, which may or may not be in the company's control.
As desperate times call for desperate measures, a slew of companies have announced suspensions of dividend, buybacks or both as the coronavirus pandemic wallops the market.
Why Companies Hit The Pause Button
These moves stem from the need to conserve cash as companies navigate through a turbulent phase that's likely to hit their top- and bottom-lines.
There's a political reason to exercise prudence too, with Congress on the cusp of passing a -trillion stimulus package. Lawmakers have expressed their opposition to companies squandering away aid money with buybacks.
The following companies have announced suspension shareholder reward programs in the wake of the pandemic.
Intel Corporation (NASDAQ: INTC) revealed in a 8-K filing Tuesday it is suspending its stock repurchases due to the pandemic. The company termed the decision as prudent, given the length and uncertainty of the pandemic. Dividends, won't be affected, Intel said.
The suspension stalls a $20-billion buyback the company announced in October 2019.
Ford Motor Company (NYSE: F) announced March 19 it's suspending its dividend to preserve cash and provide additional flexibility. The automaker also withdrew its guidance.
Boeing Co (NYSE: BA), which is beset by both fundamental and geopolitical woes, announced the suspension of its dividend program. The company also said it will extend the pause in its share repurchases.
Big banks JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp (NYSE: BAC), Citigroup Inc (NYSE: C), Goldman Sachs Group Inc (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo & Co (NYSE: WFC), Bank of New York Mellon Corp (NYSE: BK) and State Street Corp (NYSE: STT) have all suspended their buybacks until the second quarter in order to lend money to individuals and businesses.
Oil giants Royal Dutch Shell plc ADR Class A (NYSE: RDS-A) and Total SA (NYSE: TOT), which are confronted with a steep decline in oil prices, have also announced a stalling of buybacks, while most other oil majors have hinted at slashing their capital expenditures.
McDonald's Corp's (NYSE: MCD) CEO Chris Kempczinsk said in an interview with CNBC the company suspended its $15-billion buyback several weeks ago.
Department stores Macy's Inc (NYSE: M) and Nordstrom, Inc. (NYSE: JWN) suspended their respective dividends, while Nordstrom also halted buybacks. Peer Kohl's Corporation (NYSE: KSS) withdrew its buyback program while suggesting it is evaluating its dividend.
Miner Freeport-McMoRan Inc (NYSE: FCX) announced the suspension of its dividend.
Marriott International Inc (NASDAQ: MAR) said it is halting dividend payments after the payout of a previously announced first-quarter dividend March 31.
Telecom giant AT&T Inc. (NYSE: T) announced the suspension of its buyback program in a bid to protect its dividend.
Among airlines, Delta Air Lines, Inc. (NYSE: DAL) announced March 10 the suspension of buybacks and the deferring of $500 million in capex. Subsequently, on March 20, the company announced temporary halting of future dividend payments. Alaska Air Group, Inc. (NASDAQ: ALK) also said it is suspending its dividend program while also slashing 70% of its capacity.
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>>> Aqua America / Essential Utilities - Post-Merger Aqua America: Great Company, High Price
Forbes
by Roger Conrad
1-20-20
https://www.forbes.com/sites/greatspeculations/2020/01/20/post-merger-aqua-america-great-company-high-price/#7aafd95249aa
I’ve personally owned Aqua America (WTR)—which on February 3 will rename itself Essential Utilities (WTRG)—since it was Philadelphia Suburban. And thanks to the wealth-compounding power of dividend reinvestment, my Aqua shares are worth almost 14 times what I initially put in.
I’ve also consistently recommended Aqua in my advisories. And I’ve had the privilege of meeting with current CEO Chris Franklin, as well as several times with the architect of the company’s three-decades-old growth through acquisitions strategy, Nicholas DeBenedictis.
Nick was one of the first employees of the Environmental Protection Agency in 1972, and later served in the cabinet of former Pennsylvania Governor Richard Thornburg. From those experiences, he perceived the opportunity for water utilities like Philadelphia Suburban to profitably consolidate their wildly fragmented sector.
I interviewed Nick for my 2002 book "Power Hungry: Strategic Investing in Telecommunications, Utilities & Other Essential Services." His comments then have proven prescient, both for Aqua and the US water sector overall. In fact, his insights are very much at the root of the success I’ve had investing in water utilities the past two decades.
The focus of my March 10, 2016 article "Water World: An Interview with Chris Franklin, CEO of Aqua America" was the latest phase of the company’s M&A strategy: Acquiring municipally owned water and wastewater distribution systems.
Franklin’s comments then have since proven equally on the mark, though developments have likely taken longer to unfold than he anticipated. The company’s proposed DELCORA acquisition would be the largest water and wastewater deal in state history, if the Pennsylvania Public Utility Commission approves as expected.
Today, Aqua serves roughly 3 million water customers in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. In the next few days, however, it will complete its most transforming deal yet: The all-cash $4.28 billion purchase of natural gas distribution utility Peoples Gas, which serves roughly 740,000 homes and businesses in western Pennsylvania, West Virginia and Kentucky.
I first discussed the Peoples acquisition when I recommended Aqua as a Conservative focus stock in the November 2018 issue of Conrad’s Utility Investor. Since then, shares have appreciated by more than 50 percent. And I’m convinced as ever that my initial bullish observations will prove accurate.
The purchase will be immediately accretive to Aqua’s earnings, adding a gas distribution franchise with annual rate base growth of 8 to 10 percent for the next few years. The merger did take somewhat longer to close than management’s initial projection of "mid-2019." But at the end of the day, the deal closed without significant new conditions and after Peoples secured an amicable rate deal.
Aqua also attracted a $750 million equity investment from the Canada Pension Plan Investment Board. That reduced prospective deal financing costs.
So has the sharp reduction in Aqua’s cost of debt capital over the past year. That point is best demonstrated by the drop in yield to maturity for its bonds of May 2049, from roughly 4.3 percent when they were issued in late April 2019 to just 3.5 percent this past week.
Adding Peoples should also open up a new range of acquisition targets for Aqua as it adds new geography. And the combined company will also benefit from the synergies of operating gas distribution and water utilities in the same area. As Essential Utilities, it will start out with nearly 80 percent of rate base in Pennsylvania, where management has built one of the most constructive regulatory relationships of any utility in the country.
The history of M&A is packed with examples of acquiring companies losing their way after entering a new business. And that includes plenty of utilities and essential service companies.
Regulated natural gas and water utility convergence, however, has a successful track record. In fact, it’s likely that buying Peoples will accelerate Aqua’s already upper single digit underlying earnings growth rate, possibly by a couple percentage points. And the merger increases the combined company’s appeal as a potential takeover target as well.
I’ve mentioned Exelon Corp (EXC) before as a likely eventual suitor for Aqua. Early in the previous decade, that company shifted its strategy to focusing on growing its regulated electricity transmission and distribution rate base rather than adding nuclear generating capacity, acquiring the former Pepco Holdings in March 2016.
Buying Aqua, which has less than one-quarter its market capitalization, would greatly accelerate that goal. And there’s even a potential human link, as former CEO DeBenedictis was once an employee and board member of Exelon.
So what’s not to like about a company that just accelerated its long-term growth rate and reduced business risk at a low cost, and is a perpetual takeover candidate? Two words: Extreme valuation.
Following regulatory approval of the Peoples merger, Aqua shares surged to a price more than 35 times expected 2020 earnings per share. That’s the highest multiple in the company’s history and compares to a likely 8 to 10 percent post-merger growth rate.
Today, there are a third fewer publicly traded water utilities than when Mr. DeBenedictis compared his sector to collector cars in my book Power Hungry. And Aqua’s current valuation is very much in line with the rest of the group, including American Water Works (NYSE: AWK) at 34.2 times expected 2020 earnings. In fact, it’s cheap compared to neighboring York Water (NSDQ: YORW) selling at 40 times.
Scarcity plus little real operating risk is why I plan to continue reinvesting my Aqua/Essential dividends, rather than selling. But it’s very difficult to see shares making real headway any time soon from these levels. Neither is the stock attractive for income now yielding just 1.85 percent.
That’s why my advice for anyone wanting to buy into this otherwise great company is to be patient for a better price. Note changing the name from Aqua to Essential Utilities is a not a taxable event and won’t change either ownership or dividends paid.
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>>> America’s Coal Country Isn’t Dead — It’s Preparing for a Comeback
The nation’s largest coal producers are now hoarding cash to weather what they see as an impermanent storm.
Bloomberg
By Will Wade
February 20, 2020
https://www.bloomberg.com/news/articles/2020-02-20/america-s-coal-country-isn-t-dead-it-s-preparing-for-a-comeback?srnd=premium
At least five of America’s coal producers went bankrupt in 2019. Prices for the fossil fuel have plunged 40% since a 2018 peak. And some of the nation’s largest miners are retrenching and slashing their dividends.
But don’t be mistaken: The fight against climate change hasn’t killed off Coal Country yet.
Instead of pouring money into dividends and buybacks, the nation’s largest coal producers say they’re hoarding cash to weather what they see as an impermanent storm. Overall, the industry returned more than $1 billion to investors last year before retrenching. The goal this year: Be ready to start mining again and paying dividends at the first sign of a market revival. They’re betting that prices will bottom out in the first half of 2020 before rising in the second half as production declines and global consumption gains.
That’s spurred a new “mantra” at Peabody Energy Corp., according to Chief Executive Officer Glenn Kellow. It is “to live within our means,” he said during his Feb. 5 earnings call.
A year ago, Peabody announced its biggest dividend ever, and said it would return to shareholders all of its free cash flow. On Feb. 5, the message was very different: The nation’s leading coal producer said it was suspending its dividend, halting buybacks and cutting capital expenditures.
Hope has been in short supply for coal miners. The industry has been battered as much of the world forsakes the fuel to fight climate change, and as low natural gas prices squeezes its economics. Coal once accounted for more than half of all U.S. power generation. Today it’s less than 25%.
The decline underscores the limitations of U.S. President Donald Trump’s pro-fossil fuel policies. While the White House has rolled back environmental regulations and tried to rescue coal plants from early retirement, utilities are still shifting to cheaper and cleaner natural gas, wind and solar power. Meanwhile, all of the Democratic presidential candidates have taken a stance against coal.
And yet there’s still “a hope that prices have bottomed out and will begin to tick up a bit,” said Michael Dudas, an analyst with Vertical Research Partners, in a telephone interview. “Companies are trying to preserve cash and keep conservative.”
Optimism within the industry is probably stronger among companies producing coal used by steelmakers, Dudas said. Still, thermal coal might also see a gain with a hot summer or a colder winter, he said.
Because of the lower prices, higher-cost mines are being shut down and there’s been a wave of bankruptcies. The result, according to Dudas: “Supply comes off the market, inventory levels start to get worked off and, eventually, we will have more demand and that will move the price cycle higher.”
Prices have slumped since reaching peaks in 2018
Peabody’s not alone. Consol Energy Inc. also announced it’s cutting capital expenditures. And while Arch Coal Inc. boosted its dividend, the company said there will be less cash available to return to shareholders through share buybacks. Instead, the money will go toward toward a new mine in West Virginia, expected to open in mid-2021.
”We’re confident that Arch is well equipped to weather the current market downturn,” said Arch CEO John Eaves in a Feb. 6 conference call. “And just as well equipped to capitalize on the next market up cycle whenever it occurs.”
Jimmy Brock, the Consol CEO, also sees a glimmer on the horizon. “Low prices are starting to drive a supply response,” he said during his earnings call last week. “There are some indications that provide hope for an improvement in the second half of 2020.”
Alliance Resource Partners LP too cut its distribution by 26% this month, with CEO Joe Kraft saying it made more sense to keep the cash to ride out a bumpy year.
Prices for thermal coal delivered to Amsterdam, Rotterdam and Antwerp, an Atlantic benchmark, are about $52 a metric ton. That’s down almost 50% from an October 2018 peak, and last month it slipped to the lowest in 44 months. Booming natural gas supplies and a mild winter are dragging down demand at power plants, while utilities in the U.S. and Europe continue to shift away from the dirtiest fossil fuel in an effort to curb climate change.
Metallurgical coal is also down, sliding more than 40% from an early 2018 high. Prices for the steelmaking ingredient plunged steeply in the second half of last year as global economic trends slowed and trade tensions heated up with China, the world’s biggest producer of the metal.
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>>> Aqua America introduces new name as it completes acquisition, PA customers will see no changes
The Mercury
1-27-20
By Donna Rovins
https://www.pottsmerc.com/business/aqua-america-introduces-new-name-as-it-completes-acquisition-pa/article_41e2bdf6-3ec5-11ea-b949-9ba794722e8d.html
BRYN MAWR — Aqua America Inc., the parent company of water and wastewater company Aqua Pennsylvania, will be changing its name, effective Feb. 3. The new company will be known as Essential Utilities Inc.
The change comes as one of the final steps in Aqua America’s purchase of Peoples — a Pittsburgh-based natural gas distribution company. The acquisition of Peoples — for an estimated $4.275 billion — has been moving through the regulatory process since October 2018.
The acquisition received its final regulatory approval Jan. 16 — in a 4-to-1 vote from the Pennsylvania Public Utility Commission.
Once the transaction closes — a step that is expected within the next couple of weeks, according to an Aqua spokesman — Peoples will become a subsidiary of Essential, which will be headquartered in Bryn Mawr.
Chris Franklin, Aqua’s current chairman and CEO, will continue his leadership roles at the new company.
“The team has gone through an extensive exercise to explore our purpose and promise for our customers and communities, employees and shareholders, and Essential captured the essence of what we aim to be for our stakeholders,” Franklin said in a statement. “Water and natural gas are vital services that play an important role in sustaining and enhancing life. As stewards of these services, we have a responsibility to protect the public and our employees through operational excellence and integrity in all we do.”
For Aqua Pennsylvania’s water and wastewater customers — including more than 346,000 customers in Berks, Chester, Delaware and Montgomery counties — there will be no changes, according to Aqua spokesman Daniel Lockwood.
While the parent company name, stock ticker and website will change Feb. 3, there is no plan to re-brand the subsidiary companies.
“Aqua Pennsylvania will still be the company serving our water/wastewater customers in PA, bills will still come from them,” Lockwood said in an emailed response to questions.
In addition to unveiling the new name, Aqua has also announced the members of the executive leadership team that will report to Franklin once the acquisition with Peoples closes.
The Essential leadership team includes:
• Richard Fox, executive vice president, chief operating officer
• Christopher Luning, executive vice president, general counsel
• Matthew Rhodes, executive vice president, strategy and corporate development
• Daniel Schuller, executive vice president, chief financial officer
• Ruth DeLost-Wylie, senior vice president, business transformation
• Susan Haindl, senior vice president, chief administrative officer
• Christina Kelly, senior vice president, chief human resources officer
• Brian Dingerdissen, vice president, chief of staff, investor relations and communications
• Kimberly Joyce, vice president, regulatory and government affairs
"These individuals are proven leaders in their areas of expertise, staunchly committed to the success of our company’s mission. The team has my full confidence and includes those who I most trust and rely on to deliver exceptional customer and employee experience and shareholder value,” Franklin added.
In addition, Colleen Arnold, currently Aqua’s deputy chief operating officer, will lead the water and wastewater utilities for all states as president. Joseph Gregorini, currently Peoples chief operating officer, will lead the natural gas utilities for all states as president. Both will report to Fox.
In October 2018, Aqua announced its intention to purchase Peoples in an all-cash transaction estimated at $4.275 billion, creating a new infrastructure company it said would be uniquely positioned to have a powerful impact on “improving infrastructure reliability, quality of life and economic prosperity in the areas it serves.”
The acquisition, according to Lockwood, brings together more than 260 years of combined expertise and service.
“Together, Aqua and Peoples will offer employees and shareholders exciting new opportunities of added value, continue to provide customers with the essential services they need, and provide communities with the infrastructure improvements required to thrive,” he wrote in the emailed response.
He added that the acquisition makes sense for several reasons, including the fact that both companies are infrastructure companies with expertise and experience in replacing and renewing underground pipelines.
“In many ways, the businesses are very similar, aside from the product that’s inside those pipelines,” Lockwood wrote.
The joint settlement agreement with the Pennsylvania Public Utility Commission includes commitments regarding infrastructure replacement, employment levels, rate credits and enhancements in a variety of areas, including customer service and reliability, universal service, financial governance, and retail competition.
Among those commitments, according to Aqua, are accelerated natural gas distribution pipe replacement, confirmation that all employee and jobs are maintained, commitment to keep the headquarters the same, increased customer service commitments and a $10 million rate credit.
There will be no need for the company’s shareholders to exchange stock certificates in connection with the corporate name change.
The stock ticker for Aqua America, currently WTR, will change to WTRG on Feb. 3 and the new website — http://www.essential.co — will become active on that date. In addition, Essential will have a new company tagline: “Providing natural resources for life.”
Aqua serves more than 3 million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia.
Across the region, the company has: 272 wastewater and 1,915 water customers in Berks County; 4,456 wastewater and 79,139 water customers in Chester County; 2,040 wastewater and 142,303 water customers in Delaware County; and 15,994 wastewater and 110,432 water customers in Montgomery County.
Peoples serves approximately 740,000 homes and businesses in Western Pennsylvania, West Virginia and Kentucky.
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IBM is up almost 20% so far this year on the their new CEO's plans to concentrate on cloud computing. Moving into the cloud was what reinvigorated MSFT and made it a 10 bagger since 2013. So after years of going sideways, it looks like IBM stock is being reinvigorated -
>>> IBM Picks New CEO, President
Arvind Krishna will replace Virginia Rometty as CEO of the computing giant in April.
Industry Week
FEB 03, 2020
https://www.industryweek.com/leadership/companies-executives/article/21121921/ibm-picks-new-ceo-president
IBM’s board of directors elected IBM Senior Vice President for Cloud and Cognitive Software Arvind Krishna as their next CEO. The current CEO, Virginia Rometty, will serve as Executive Chairman until the end of the year, at which point she will retire. James Whitehurst, IBM’s Senior Vice President and CEO of Red Hat, was elected President. Krishna and Whitehurst will take their new roles effective April 6.
Rometty, who became CEO in 2012, said Krishna “is a brilliant technologist who has played a significant role in developing our key technologies such as artificial intelligence, cloud, quantum computing and blockchain. He is also a superb operational leader, able to win today while building the business of tomorrow.”
“I am thrilled and humbled to be elected as the next Chief Executive Officer of IBM, and appreciate the confidence that Ginni and the Board have placed in me,” said Krishna. "IBM has such talented people and technology that we can bring together to help our clients solve their toughest problems."
On Whitehurst, Rometty was similarly complimentary: “Jim is also a seasoned leader who has positioned Red Hat as the world’s leading provider of open source enterprise IT software solutions and services, and has been quickly expanding the reach and benefit of that technology to an even wider audience as part of IBM.” Krishna was a principal architect of IBM’s acquisition of Red Hat.
In a statement, Gary Shapiro, CEO of the Consumer Technology Association, commemorated Rometty’s leadership of IBM: “Under Ginni, IBM became synonymous with quantum computing, artificial intelligence and solving problems—and she recognized the American worker is among our nation’s most valuable assets.”
“We congratulate Ginni Rometty on her tenure at IBM. And we look forward to continuing our successful partnership with IBM, as Arvind Krishna assumes the role of CEO and Jim Whitehurst begins as president,” said Shapiro.
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>>> Ford Board Leaves Embattled CEO With Little Room Left for Error
Bloomberg
By Keith Naughton
February 8, 2020
https://www.bloomberg.com/news/articles/2020-02-08/ford-board-leaves-embattled-ceo-with-little-room-left-for-error?srnd=premium
‘We cannot wait year and years,’ soon-to-be COO Farley says
Hackett ‘can’t miss a beat’ anymore after botched Explorer
A little executive bloodletting can sometimes ease the pressure on an embattled chief executive officer. But Jim Hackett is unlikely to see any letup from Ford Motor Co.’s board following the surprise early retirement of one his two top lieutenants.
Joe Hinrichs, Ford’s 53-year-old automotive president, will leave on March 1 after almost two decades with the company. As a rising star under celebrated former CEO Alan Mulally, he was put on the fast track to be a potential heir to the top job.
With Hinrichs out of the picture, Ford is elevating Jim Farley, the company’s only other president, to become the first chief operating officer since the automaker planned for Mulally’s succession seven years ago. The announcement that the board will revive the role of COO came days after Hackett reported dismal earnings results, dogged by the disastrous rollout of the redesigned Explorer SUV, and forecast more disappointing numbers for the upcoming year.
“This signals to everyone that Farley is Hackett’s successor, unless they plan to go outside the company,” said David Whiston, an analyst with Morningstar in Chicago. “Perhaps it could be nine months from now, or it could be 18 months from now, but they will make an announcement that Hackett is retiring and Farley takes over as CEO.”
Staying Put
Hackett, who was asked by an analyst 18 months ago whether he expected to last in the job, told reporters Friday he’s not going anywhere.
“As far as my tenure, this is the kind of thing I love to do and I’m having a really fulfilling assignment here,” said the former CEO of office-furniture maker Steelcase Inc. “I need to be here.”
Since being pressed into duty almost three years ago by Executive Chairman Bill Ford to stabilize his family’s foundering automaker, Hackett, 64, has promised to accelerate the 116-year-old company’s “clock speed.” But Wall Street analysts have long groused that Hackett’s global restructuring has moved at a plodding pace.
Shares slide in post-Mulally era
Ford shares followed up Wednesday’s post-earnings plunge of 9.5% -- the biggest decline in nine years -- with a 1.7% drop on Friday. The stock has fallen 25% under Hackett and by more than half since the departure of Mulally, the only CEO of a Detroit automaker who kept his company out of bankruptcy in 2009.
Hackett himself acknowledged Ford has run out of margin for error when he told analysts during Tuesday’s earnings call: “It does boil down to we can’t miss a beat now in the product launches.”
On Friday, he addressed the costly mistakes made with the Explorer sport utility vehicle again, telling reporters there’s “no room for that type of miss” anymore.
Hackett's Headache
U.S. sales of key models have shrunk since Mullaly left in 2014
In an interview Friday, Farley, 57, didn’t want to talk executive succession. But he said he’s eager to pick up the pace as Ford rolls out a redesigned F-150 pickup -- its most profitable model -- and pours billions into the electric and self-driving cars upending the industry.
“We cannot wait years and years,” Farley said by phone. “In the context of our industry and how it’s changing, we have to accelerate.”
Tough Talk
Farley joined Ford from Toyota Motor Corp. in 2007, just before the bottom fell out of the U.S. auto market. He helped navigate the company through the Great Recession without resorting to the government bailouts and bankruptcies that befell General Motors and Chrysler.
A marketing specialist and cousin of the late actor and comedian Chris Farley, Jim Farley broadened his skills over the years with stints running Ford’s European operations and launching a comeback at Lincoln. Most recently, he’s been head of strategy and technology, cutting deals with Volkswagen AG and Rivian Automotive Inc. on electric and autonomous vehicles.
Volkswagen And Ford Extend Collaboration To Electric, Self-Driving Cars
Along the way, Farley earned a reputation as a tough taskmaster, never afraid to speak his mind and throw a few elbows.
“F--- GM, I hate them and their company,” he was quoted as saying in the 2011 book “Once Upon a Car” by then-New York Times Detroit Bureau Chief Bill Vlasic. “I’m going to beat Chevrolet on the head with a bat.”
Blunt Contrast
Farley’s tone may have softened since then, but his drive remains and Ford insiders are bracing for an extremely demanding new boss.
“Farley is very blunt, and I think Wall Street is actually going to like that because it’s such a contrast from Jim Hackett being very indirect,” said Whiston, who has the equivalent of a buy rating on Ford. “Farley has worked on his temperament a bit and tends to give more diplomatic answers now. The f-bombs are probably a thing of the past.”
As for when Hackett might become a thing of the past, Farley isn’t speculating.
“That’s for the board to decide,” Farley said. “My job is to get the most out of this team, just like we did many years ago, and bend that curve of financial performance and make the right bets strategically.”
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>>> High-Tax States’ Bonds Are So in Demand That Ratings Don’t Matter
Bloomberg
By Danielle Moran
February 6, 2020
https://www.bloomberg.com/news/articles/2020-02-06/high-tax-states-bonds-so-in-demand-that-ratings-don-t-matter?srnd=premium
‘To boil it down, it’s 99.999% because of the SALT cap’
California, New York yields holding below the AAA benchmark
There’s so much money chasing after the bonds sold by America’s high-tax states that buyers don’t seem to care too much about what credit-rating companies think.
The heavy demand overall has driven municipal yields to their lowest in more than six-decades. And with rates so low, the yield penalties that would typically differentiate a deeply indebted state from a thrifty one have become little more than rounding errors that in some cases contrast with their standing in the ratings pecking order.
California’s general-obligation debt, for example, is yielding about 1 basis points less than the AAA benchmark, even though the state is rated as many as four steps below that, according to data compiled by Bloomberg. New York, one step below AAA, is paying about 8 basis points less than top-rated borrowers. Over the past year, New Jersey’s yield premium has been cut nearly in half even though its rating hasn’t changed. Connecticut’s is roughly a third of what it was.
Both NY and CA debt yield less than top rated bonds
By contrast, bonds issued by AAA rated Texas and Florida, where there’s no state income tax, pay above-benchmark yields.
This dynamic shows how dramatic the demand has become for tax-exempt securities since President Donald Trump’s 2017 tax law limited state and local deductions. That change drove investors in high tax-states like California, New York and New Jersey into municipal bonds as an alternative way to drive down what they owe.
“To boil it down, it’s 99.999% because of the SALT cap,” said James Iselin, portfolio manager at Neuberger Berman Group LLC in New York. “Because there’s is so much demand in the market -- there is less of a credit differentiation that the market is making.”
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>>> Ford Shares Tumble After Q4 Profit Miss, Weak 2020 Guidance
Ford issues weaker-than-expected 2020 profit guidance late Tuesday, and cautioned that it's still too early to quantify the impact of the spreading coronavirus on its global operations.
The Street
MARTIN BACCARDAX
FEB 5, 2020
https://www.thestreet.com/investing/ford-shares-tumble-after-q4-profit-miss-weak-2020-guidance
Ford Motor Co. (F) - Get Report shares were indicated sharply lower in pre-market trading Wednesday after it posted weaker-than-expected fourth quarter earnings, and disappointing 2020 guidance, as legacy carmakers continue to struggle with rising emissions costs, weakening demand and the coronavirus outbreak in China.
Ford said adjusted earnings for the three months ending in December were pegged at 12 cents per share, down 60% from the same period last year and 3 cents shy of the Street consensus forecast. Group automotive revenues also missed analysts' estimates, falling 5.2% to $36.7 billion thanks in part to lower sales volumes in each of the carmaker's global regions.
Looking into 2020, Ford said it sees 2020 earnings in the region of $5.6 billion to $6 billion, well shy of the Street consensus of between $7.3 billion and $7.6 billion, and cautioned that it was too early to quantify the impact of the spreading coronavirus on its worldwide operations.
"My strong instinct is to want to tell you what the impact of this virus may be on our business and our guidance for this year. However, it's simply too early," CEO Jim Hackett told investors on a conference call late Tuesday.
"China is only now starting to come back from an extended New Year holiday, and many companies including Ford are currently hoping to resume large parts of their industrial operations next week," he added. "And that is most experts are already saying and we agree that it will take weeks to begin to understand the implications of the outbreak."
"In the meantime, we will describe our expectations for the business excluding the possible effects of the coronavirus," Hackett said. "It is possible, though, that we could absorb a modest impact from the virus within our guidance range."
Ford shares were marked 7.4% lower in pre-market trading Wednesday to indicate an opening bell price of $8.50 each, a move that would erase all of the stock's gains over the past twelve months.
Ford's main U.S. rival, General Motors Co. (GM) - Get Report, will publish its fourth quarter earnings later this morning, with analysts look for a bottom line of $1.31 per share and a 20% decrease in sales to around $31 billion.
GM shares were marked 0.1% lower in pre-market trading at $34.34 each and have fallen nearly 12% over the past six months.
"We’d characterize the 2020 guidance as largely disappointing, albeit with some confusion," said Credit Suisse analyst Dan Levy. "Ford flagged headwinds of a back-end loaded product launch (incl. F-150), cost of CO2 compliance, increased investments in Mobility, lower Credit profit, and a higher tax rate."
"Yet for a year in which there were supposed to be multiple ‘shots on goal’ (i.e. Europe cost, NA product, China product, UAW non-repeat), we are left to wonder what specifically is dragging guidance below expectations when many of these headwinds were already expected," Levy noted.
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