Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Bigworld, Thanks, I'll check out the McAlvany interview. Yes, the mountain of debt is clearly a ticking time bomb. The new debt has to be issued at these high % levels, plus existing ultra low % debt has to gradually rolled over into the higher rates also. So a train wreck at some point, unless the % rates come down sufficiently in the interim.
And beyond the US government debt, corporations have gorged themselves on cheap debt for years, so they'll have the same problem. The commercial real estate sector is increasingly vulnerable, and defaults there can not only threaten the banks holding the loans, but cause depositors to flee these banks, as happened earlier this year, leading to an old fashioned 'run on the bank'. So a fine mess. And eventually the dollar reserve system will be under pressure from the ongoing global de-dollarization, and from the rise of the new BRICS currency.
So best to have a sizable allocation in hard assets imo. I plan to remain diversified in all asset classes, but will watch for the 'train wreck timeline' to become clearer. While there is risk in ignoring or downplaying the many problems we face, there is also risk in assuming that the unravelling is imminent. Things might take far longer to unravel than we think.
---
---
>>> Why Badger Meter Stock Slumped 5 Percent Today
Motley Fool
By Rich Smith
Sep 29, 2023
https://www.fool.com/investing/2023/09/29/why-badger-meter-stock-slumped-5-percent-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Badger Meter announced its earnings date yesterday.
This morning, investment bank Northcoast responded by downgrading the stock.
It's run up 68% in 52 weeks, but Northcoast says it's time to sell Badger Meter stock.
What happened
Badger Meter (BMI) stock slumped 5.6% through 10:25 a.m. ET this morning after receiving a downgrade to sell from investment bank Northcoast.
According to the analyst, Badger Meter stock, which cost more than $155 a share just last night, is likely to lose 23% of its value and fall to $120 per share within a year.
So what
So why exactly did Northcoast downgrade Badger Meter stock? That's hard to say. Although two separate ratings watchers -- StreetInsider and TheFly -- confirm that the downgrade happened, neither reporter gave any further details on Northcoast's reasoning. But I think we can guess.
It seems reasonable to assume that the catalyst sparking the downgrade came when Badger Meter announced yesterday that it will report third-quarter earnings on Thursday, Oct. 19 -- and that the analyst is worried Badger Meter might disappoint.
Now what
That's not an unreasonable fear. Over the past 52 weeks, shares of this provider of water metering equipment have rocketed 68%, lifted by strong sales and earnings growth (up 28% and 33%, respectively, in the most recent quarter).
That sounds like good news -- and it is. Furthermore, analysts who follow the stock are predicting even more good news in Q3, where the stock is expected to report 21% sales growth (to more than $179 million) and another quarter of 33% earnings growth (to $0.81) per share.
That being said, these are very optimistic targets being set for the company, and if Badger Meter fails to hit them, the stock could fall hard. At last report, Badger Meter shares were selling for nearly 60 times earnings. But with earnings growth projected to slow over time to average about 15% annually over the next five years, this leaves the stock trading for a rather optimistic price/earnings-to-growth (PEG) ratio of nearly 4 -- quite expensive for any manufacturer, even one as successful as Badger Meter has been lately.
Even if you think the risk of Badger Meter underperforming next month is small, Northcoast's sell rating serves as a reminder: Sometimes it's best to take your winnings and declare victory, rather than roll the dice one more time on a stock that has already gone up quite a lot.
<<<
---
>>> Why Badger Meter Stock Slumped 5 Percent Today
Motley Fool
By Rich Smith
Sep 29, 2023
https://www.fool.com/investing/2023/09/29/why-badger-meter-stock-slumped-5-percent-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Badger Meter announced its earnings date yesterday.
This morning, investment bank Northcoast responded by downgrading the stock.
It's run up 68% in 52 weeks, but Northcoast says it's time to sell Badger Meter stock.
What happened
Badger Meter (BMI) stock slumped 5.6% through 10:25 a.m. ET this morning after receiving a downgrade to sell from investment bank Northcoast.
According to the analyst, Badger Meter stock, which cost more than $155 a share just last night, is likely to lose 23% of its value and fall to $120 per share within a year.
So what
So why exactly did Northcoast downgrade Badger Meter stock? That's hard to say. Although two separate ratings watchers -- StreetInsider and TheFly -- confirm that the downgrade happened, neither reporter gave any further details on Northcoast's reasoning. But I think we can guess.
It seems reasonable to assume that the catalyst sparking the downgrade came when Badger Meter announced yesterday that it will report third-quarter earnings on Thursday, Oct. 19 -- and that the analyst is worried Badger Meter might disappoint.
Now what
That's not an unreasonable fear. Over the past 52 weeks, shares of this provider of water metering equipment have rocketed 68%, lifted by strong sales and earnings growth (up 28% and 33%, respectively, in the most recent quarter).
That sounds like good news -- and it is. Furthermore, analysts who follow the stock are predicting even more good news in Q3, where the stock is expected to report 21% sales growth (to more than $179 million) and another quarter of 33% earnings growth (to $0.81) per share.
That being said, these are very optimistic targets being set for the company, and if Badger Meter fails to hit them, the stock could fall hard. At last report, Badger Meter shares were selling for nearly 60 times earnings. But with earnings growth projected to slow over time to average about 15% annually over the next five years, this leaves the stock trading for a rather optimistic price/earnings-to-growth (PEG) ratio of nearly 4 -- quite expensive for any manufacturer, even one as successful as Badger Meter has been lately.
Even if you think the risk of Badger Meter underperforming next month is small, Northcoast's sell rating serves as a reminder: Sometimes it's best to take your winnings and declare victory, rather than roll the dice one more time on a stock that has already gone up quite a lot.
<<<
---
>>> Severe Crash Is Coming for US Office Properties, Investors Say
https://finance.yahoo.com/news/severe-crash-coming-us-office-000003441.html
(Bloomberg) -- Office prices in the US are due for a crash, and the commercial real estate market faces at least another nine months of declines, according to Bloomberg’s latest Markets Live Pulse survey.
About two-thirds of the 919 respondents surveyed by Bloomberg believe that the US office market will only rebound after a severe collapse. An even greater majority says that US commercial real estate prices won’t hit bottom until the second half of 2024 or later.
That’s bad news for the $1.5 trillion of commercial real estate debt that according to Morgan Stanley is due before the end of 2025. Refinancing it won’t be easy, particularly the roughly 25% of commercial property that is office buildings. A Green Street index of commercial property prices has already fallen 16% from its peak in March 2022.
Commercial property values are getting hit hard by the Federal Reserve’s aggressive tightening campaign, which lifts a key cost of owning property — the expense of financing. But lenders looking to offload their exposure now are finding few palatable options, because there aren’t many buyers convinced the market is close to a bottom.
“Nobody wants to sell at a huge loss,” said Lea Overby, an analyst at Barclays Plc. “These are properties that don’t need to be sold for long periods of time, and that means holders are likely to delay a sale as long as they can.”
Adding to the trouble is stress among regional banks, which held about 30% of office building debt as of 2022, according to a March report from Goldman Sachs Group Inc. Smaller banks saw their deposits shrink by nearly 2% over the 12 months ended in August, according to the Fed, after Silicon Valley Bank and Signature Bank collapsed. That translates to less funding for the banks, giving them less capacity to lend.
Pain from higher interest rates can take years to filter through to owners of the US commercial real estate, which Morgan Stanley values at $11 trillion in total. Investors in office buildings, for example, often have long-term fixed-rate financing in place, and their tenants can be subject to long-term leases as well.
It will take until 2027 for leases that are in place today to roll over to lower revenue expectations, according to research by Moody’s Investors Service published in March. If current trends hold, then revenues by then will be 10% lower than today.
“It tends to be a slow reckoning for US real estate when rates change,” Barclays’s Overby said. “And the office sector is deeply distressed, which will take a long time to work out.”
Even if there is a serious and prolonged downturn in US commercial real estate, including major loan losses from a cratering office sector, Overby isn’t worried it will threaten overall market stability. The property sector is large, but the debt is spread across a wide enough array of investors to absorb losses, she said.
Besides high interest rates, offices are struggling with tenants cutting back or moving out, with the trend especially strong in the US, where office workers are more reluctant to badge in than in Europe or Asia. Some of the resistance to the return to offices could be attributed to commuting pains. More than 40% of MLIV Pulse respondents said they would be enticed to come to the office more often if they had better public transit options available. Faster, more frequent or cheaper public transit options may be of particular appeal to Americans and Canadians. Among 649 respondents from that region, about half said they currently use a car to get to the office.
About 20% of respondents said that they moved farther away from their office during the pandemic and only 3% regretted their escape. Nearly a third said their commutes got longer than before Covid, probably either because they moved, or because of pandemic-era transit service cuts.
<<<
---
>>> Severe Crash Is Coming for US Office Properties, Investors Say
https://finance.yahoo.com/news/severe-crash-coming-us-office-000003441.html
(Bloomberg) -- Office prices in the US are due for a crash, and the commercial real estate market faces at least another nine months of declines, according to Bloomberg’s latest Markets Live Pulse survey.
About two-thirds of the 919 respondents surveyed by Bloomberg believe that the US office market will only rebound after a severe collapse. An even greater majority says that US commercial real estate prices won’t hit bottom until the second half of 2024 or later.
That’s bad news for the $1.5 trillion of commercial real estate debt that according to Morgan Stanley is due before the end of 2025. Refinancing it won’t be easy, particularly the roughly 25% of commercial property that is office buildings. A Green Street index of commercial property prices has already fallen 16% from its peak in March 2022.
Commercial property values are getting hit hard by the Federal Reserve’s aggressive tightening campaign, which lifts a key cost of owning property — the expense of financing. But lenders looking to offload their exposure now are finding few palatable options, because there aren’t many buyers convinced the market is close to a bottom.
“Nobody wants to sell at a huge loss,” said Lea Overby, an analyst at Barclays Plc. “These are properties that don’t need to be sold for long periods of time, and that means holders are likely to delay a sale as long as they can.”
Adding to the trouble is stress among regional banks, which held about 30% of office building debt as of 2022, according to a March report from Goldman Sachs Group Inc. Smaller banks saw their deposits shrink by nearly 2% over the 12 months ended in August, according to the Fed, after Silicon Valley Bank and Signature Bank collapsed. That translates to less funding for the banks, giving them less capacity to lend.
Pain from higher interest rates can take years to filter through to owners of the US commercial real estate, which Morgan Stanley values at $11 trillion in total. Investors in office buildings, for example, often have long-term fixed-rate financing in place, and their tenants can be subject to long-term leases as well.
It will take until 2027 for leases that are in place today to roll over to lower revenue expectations, according to research by Moody’s Investors Service published in March. If current trends hold, then revenues by then will be 10% lower than today.
“It tends to be a slow reckoning for US real estate when rates change,” Barclays’s Overby said. “And the office sector is deeply distressed, which will take a long time to work out.”
Even if there is a serious and prolonged downturn in US commercial real estate, including major loan losses from a cratering office sector, Overby isn’t worried it will threaten overall market stability. The property sector is large, but the debt is spread across a wide enough array of investors to absorb losses, she said.
Besides high interest rates, offices are struggling with tenants cutting back or moving out, with the trend especially strong in the US, where office workers are more reluctant to badge in than in Europe or Asia. Some of the resistance to the return to offices could be attributed to commuting pains. More than 40% of MLIV Pulse respondents said they would be enticed to come to the office more often if they had better public transit options available. Faster, more frequent or cheaper public transit options may be of particular appeal to Americans and Canadians. Among 649 respondents from that region, about half said they currently use a car to get to the office.
About 20% of respondents said that they moved farther away from their office during the pandemic and only 3% regretted their escape. Nearly a third said their commutes got longer than before Covid, probably either because they moved, or because of pandemic-era transit service cuts.
<<<
---
Bigworld, Nice going with those short positions, you are cleaning up :o) Metals not so hot, but they are getting into the buy / add area. Silver especially has been clobbered, but volatility like this isn't really that unusual with the metals.
Fwiw I've been adding to the stock allocation, now up to 28%, but have a 30% limit and that will be it. The S+P 500 is nearing the 200 MA support (4202), so that may be the place to add the final 2%, though the way the market is looking it could overshoot below the 200 MA. I figure Buffett is probably picking up some of the many bargains out there, so might as well follow his lead.
Anyway, GL with the knee this week :o)
---
>>> Why NextEra Energy Stock Plunged to 3-Year Lows This Week
Motley Fool
By Neha Chamaria
Sep 29, 2023
https://www.fool.com/investing/2023/09/29/why-nextera-energy-stock-plunged-to-3-year-lows-th/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
NextEra Energy's subsidiary slashed its long-term dividend growth guidance to 5% to 8%.
NextEra Energy itself, however, still expects to grow annual dividend by 10% through 2024 at least.
The stock's fall appears unjustified and offers investors a great opportunity to buy.
What happened
Shares of NextEra Energy (NEE -8.97%) crashed this week to three-year lows and were trading 15% lower through 1:30 p.m. ET Friday, according to data provided by S&P Global Market Intelligence.
The utility giant reaffirmed its long-term earnings and dividend growth guidance through 2026, but the markets and analysts are spooked after NextEra Energy's subsidiary gave investors a nasty shock this week.
So what
NextEra Energy Partners (NEP -16.70%), a wholly owned subsidiary of NextEra Energy, slashed its annual dividend growth outlook to 5% to 8% through at least 2026, with a target growth rate of 6%. Until last month, the company was confident of growing its dividend payout by 12% to 15% through at least 2026. Management said higher interest rates were making it difficult for the company to fund its growth plans, and it can focus on "higher-yielding growth opportunities" by reducing its dividend growth target.
So while it's easy to understand why NextEra Energy Partners stock tanked this week, what does this have to do with NextEra Energy? There could be three reasons why investors are worried.
First, NextEra Energy's management also manages the subsidiary, and investors perhaps believe the latter's dividend outlook cut is a reflection of NextEra Energy's growth struggles as well.
Second, NextEra Energy Partners typically acquires renewable energy assets from its parent to grow. This week, though, it said while it'll continue to acquire assets from NextEra Energy, it'll primarily focus on revamping its existing wind energy portfolio for growth. Investors in NextEra Energy believe this will mean fewer drop-down transactions for the company and will hurt its own financing plans.
Third, lower dividends from the subsidiary will also mean less extra income for NextEra Energy.
Now what
Several analysts cut their price targets on NextEra Energy stock this week, but I believe the sharp drop in the share price is unwarranted, especially after the two announcements from the company this week that makes the stock appealing right now.
First, NextEra Energy said it will sell its Florida natural gas assets to Chesapeake Utilities for $923 million in cash. It wants to redeploy capital into core business (which could mean its electric utility and renewable energy businesses), and that sounds like a smart move.
Second, NextEra Energy is sticking with its financial goals. It expects to earn at least $2.98 and $3.23 in adjusted earnings per share (EPS) in 2023 and 2024, respectively. The company's adjusted EPS was $2.90 per share last year. For 2025 and 2026, it sees 6% to 8% growth in adjusted EPS off its 2024 range.
NextEra Energy even stated, yet again, that it will be "disappointed" if it cannot deliver numbers at or near the "top end" of its guidance range through 2026. The company also expects to grow its dividend per share by around 10% annually through at least 2024.
<<<
---
>>> Why NextEra Energy Stock Plunged to 3-Year Lows This Week
Motley Fool
By Neha Chamaria
Sep 29, 2023
https://www.fool.com/investing/2023/09/29/why-nextera-energy-stock-plunged-to-3-year-lows-th/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
NextEra Energy's subsidiary slashed its long-term dividend growth guidance to 5% to 8%.
NextEra Energy itself, however, still expects to grow annual dividend by 10% through 2024 at least.
The stock's fall appears unjustified and offers investors a great opportunity to buy.
What happened
Shares of NextEra Energy (NEE -8.97%) crashed this week to three-year lows and were trading 15% lower through 1:30 p.m. ET Friday, according to data provided by S&P Global Market Intelligence.
The utility giant reaffirmed its long-term earnings and dividend growth guidance through 2026, but the markets and analysts are spooked after NextEra Energy's subsidiary gave investors a nasty shock this week.
So what
NextEra Energy Partners (NEP -16.70%), a wholly owned subsidiary of NextEra Energy, slashed its annual dividend growth outlook to 5% to 8% through at least 2026, with a target growth rate of 6%. Until last month, the company was confident of growing its dividend payout by 12% to 15% through at least 2026. Management said higher interest rates were making it difficult for the company to fund its growth plans, and it can focus on "higher-yielding growth opportunities" by reducing its dividend growth target.
So while it's easy to understand why NextEra Energy Partners stock tanked this week, what does this have to do with NextEra Energy? There could be three reasons why investors are worried.
First, NextEra Energy's management also manages the subsidiary, and investors perhaps believe the latter's dividend outlook cut is a reflection of NextEra Energy's growth struggles as well.
Second, NextEra Energy Partners typically acquires renewable energy assets from its parent to grow. This week, though, it said while it'll continue to acquire assets from NextEra Energy, it'll primarily focus on revamping its existing wind energy portfolio for growth. Investors in NextEra Energy believe this will mean fewer drop-down transactions for the company and will hurt its own financing plans.
Third, lower dividends from the subsidiary will also mean less extra income for NextEra Energy.
Now what
Several analysts cut their price targets on NextEra Energy stock this week, but I believe the sharp drop in the share price is unwarranted, especially after the two announcements from the company this week that makes the stock appealing right now.
First, NextEra Energy said it will sell its Florida natural gas assets to Chesapeake Utilities for $923 million in cash. It wants to redeploy capital into core business (which could mean its electric utility and renewable energy businesses), and that sounds like a smart move.
Second, NextEra Energy is sticking with its financial goals. It expects to earn at least $2.98 and $3.23 in adjusted earnings per share (EPS) in 2023 and 2024, respectively. The company's adjusted EPS was $2.90 per share last year. For 2025 and 2026, it sees 6% to 8% growth in adjusted EPS off its 2024 range.
NextEra Energy even stated, yet again, that it will be "disappointed" if it cannot deliver numbers at or near the "top end" of its guidance range through 2026. The company also expects to grow its dividend per share by around 10% annually through at least 2024.
<<<
---
>> individual company <<
The only nuclear stock I own is Centrus Energy (LEU), due to the HALEU angle, but it's only a $500 position (9 shares). I know almost nothing about this sector, but figure that a little exposure might make sense. But lots of potential landmines, so only token positions. I have tiny amounts in NLR, URA, URNM, but only $300 each, so basically just 'winging it' :o)
I figure if a key driver of BRICS expansion is that China and Russia are actively building nuke plants for emerging countries, this should at least ensure global demand for uranium (URA, URNM). And it also pushes the US toward expanding nuclear power, albeit reluctantly. And since the newer generation nuke plants like SMRs will need HALEU, then Centrus should benefit, especially since the US needs to restart its enrichment activities anyway, in order to break Russia's monopoly on enrichment.
But who knows, these are just vague hunches on my part. Some of the posters on Dew's board could have some more informed opinions. One of the posters knows a ton about the lithium mining side (link below), but not sure if he also follows the nuclear sector.
Either way, I'd be cautious with nuke related investing since the US/West globalists have been so dead set against nuclear for decades. The only reason they seem to be back on board with nuclear is they are forced to in order to compete with China-Russia-BRICS. They need to stop BRICS expansion, but it's late, and one desperation move would be to stage a nuclear event, a powerplant explosion, which would once again derail nuclear development worldwide. There's also the proliferation aspect, and it's hard to believe that they'll allow HALEU to proceed very far. Who knows, but best to keep the nuke sector as a very small sliver of one's portfolio imo.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171879461
---
Bigworld, >> Only the timing is still in doubt <<
Yes, clearly circling the drain, but Empires can go on far longer than expected. The US is essentially an extension of the British Empire, and at the top both were / are owned and run by the group of finance ghouls who control the Federal Reserve and City of London. Centuries before, this same finance mafia transplanted itself from Venice to London (with stops in Amsterdam and Frankfurt). The big question now is how does this finance cartel derail the BRICS juggernaut, the deadliest rival they have faced in eons? They have to somehow 'do in' China, and then the entire BRICS threat will fall apart. That's what I originally thought Covid was about, ie a race specific bioweapon released by the US/West to do in China. That would have made a lot of sense, but unfortunately the jury is still out on the idea of a 'Covid caper'.
But looking at the bigger picture, everything has changed completely due to a confluence of factors that now makes it possible for a tiny country or group to neutralize the mighty US. Our total reliance on microelectronics for every aspect of life, and the extreme vulnerability of microelectronics to EMP/Electromagnetic pulse -- this means that anyone capable of putting a single nuclear device into orbit can instantly put the US back into the Stone Age. A situation like this has never existed before in world history -
>>> Helion is a fusion power company focused on generating zero-carbon electricity from fusion. By building on the successes of its latest fusion prototypes, Helion is building the world’s first fusion electricity demonstration facility. Their pulsed non-ignition technology will be capable of low-cost 24/7 power generation that replaces the energy sources the world currently relies on, enabling a future with limitless, reliable and affordable clean electricity.
<<<
https://www.crunchbase.com/organization/helion-energy?utm_source=yahoo&utm_medium=referral&utm_content=profile_cta&utm_campaign=yahoo_finance
---
>>> Helion is a fusion power company focused on generating zero-carbon electricity from fusion. By building on the successes of its latest fusion prototypes, Helion is building the world’s first fusion electricity demonstration facility. Their pulsed non-ignition technology will be capable of low-cost 24/7 power generation that replaces the energy sources the world currently relies on, enabling a future with limitless, reliable and affordable clean electricity.
<<<
https://www.crunchbase.com/organization/helion-energy?utm_source=yahoo&utm_medium=referral&utm_content=profile_cta&utm_campaign=yahoo_finance
---
>>> Small Nuclear Reactors: The Answer To Big Tech's Energy Crisis?
https://oilprice.com/Alternative-Energy/Nuclear-Power/Small-Nuclear-Reactors-The-Answer-To-Big-Techs-Energy-Crisis.html
Microsoft hints at its nuclear plans by posting a job for a "Principal Program Manager Nuclear Technology" to explore integrating SMRs into its operations.
Small Nuclear Reactors offer quick deployment, reduced costs, and enhanced safety features, with over 80 designs under global development.
Challenges like sourcing materials for SMR development, particularly from politically complex regions, may delay their commercial rollout.
Microsoft could be the first of several companies to prepare to use small nuclear reactor (SMR) technology for its high energy consumption, as AI and other technologies become more widely used. There has been great enthusiasm around the potential of SMRs, which could be built faster and at a much lower cost than a traditional nuclear reactor. This month, Microsoft posted a job opportunity for a “Principal Program Manager Nuclear Technology,” suggesting its interest in using SMRs in the future, to support its energy-intensive operations. As companies begin to use a vast range of digital technologies in their day-to-day operations, their energy consumption could increase substantially, making the use of low-carbon nuclear power increasingly attractive.
SMRs are advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, equivalent to around one-third the generating capacity of a traditional nuclear reactor. SMRs are much smaller than traditional reactors and are modular, making it simpler for them to be assembled in factories and transported to site. Because of their smaller size, it is possible to install an SMR on sites that are not suitable for bigger reactors. They are also significantly cheaper and faster to build than conventional nuclear reactors and can be constructed incrementally to meet the growing energy demand of a site.
There are strong safety margins included in SMR production, meaning that the potential for the unsafe release of radioactivity to the environment is significantly reduced. These systems can be shut down automatically, without human assistance, in the case of a malfunction. At present, there are over 80 commercial SMR designs under development worldwide, aimed at responding to a range of needs. Although companies are still trepidatious about investing in SMRs as their economic competitiveness in use has yet to be proven. As energy companies begin to roll out SMRs within the next decade there will be a greater understanding of their applicability and the costs involved.
Despite still being in the development stage, Microsoft appears to be one of the first companies to demonstrate its interest in SMRs. As companies continue to digitalise operations and conduct high-energy operations, they will need an increasing amount of energy to power their activities. For example, AI researchers suggest that training a “single large language deep learning model” such as OpenAI’s GPT-4 creates around 300 tonnes of CO2. The average person is responsible for creating around 5 tonnes of CO2 a year, showing just how significant this is.
Microsoft now appears to be drawing up a roadmap for the use of SMR to power its computation needs. This month, the company posted a job description to hire a nuclear technology expert to lead the company’s technical assessment for integrating small modular nuclear reactors and microreactors “to power the datacentres that the Microsoft Cloud and AI reside on.” The post reads that Microsoft is seeking a “principal program manager for nuclear technology”, who “will be responsible for maturing and implementing a global Small Modular Reactor (SMR) and microreactor energy strategy.”
This is not the first time the tech giant has shown interest in nuclear power. In May, Microsoft signed a power purchase agreement with Helion, a nuclear fusion start-up, to purchase electricity from it starting in 2028. And Bill Gates, Microsoft’s co-founder, is the chairman of the board of Terrapower, a company that is currently developing SMR technology. Although there has been no suggestion that Terrapower will provide Microsoft with any nuclear reactors.
Microsoft is showing an early interest in integrating nuclear power into operations. But, as more companies are using energy-intensive technologies, they will require vast amounts of energy to power their activities. Meanwhile, governments worldwide are putting increasing pressure on companies to decarbonise operations, with some introducing carbon taxes and others encouraging the use of clean energy sources through financial incentives. Renewable energy sources, such as wind and solar power, can take years to develop, and acquiring a stable clean energy source also means investment in battery technology. However, as the use of SMRs becomes more commonplace, their fast manufacturing time and small land footprint will likely appeal to companies looking for alternative clean energy sources.
Despite the optimism around SMR technology, a commercial rollout is likely still a long way off due to recent difficulties in acquiring the materials needed to develop these reactors. Many SMRs under production at present will run on uranium at enrichments as high as 15 to 19.75 percent, known as high-assay low-enriched uranium (HALEU). However, this is currently only commercially available from Russia, with which many governments and private companies have cut ties following the Russian invasion of Ukraine last year. Chris Levesque, the CEO of TerraPower, explained “It has become clear that domestic and allied HALEU manufacturing options will not reach commercial capacity in time to meet the proposed 2028 in-service date for the Natrium demonstration plant.”
There has been a rise in the popularity of SMR technology, thanks to its small size and relatively low-cost and fast manufacturing potential. While the commercial rollout of SMRs is still far off, it could provide the vast amounts of low-carbon energy required to meet the world’s growing electricity needs. And tech companies, such as Microsoft, will likely be some of the first to invest in SMR technology as they look to meet their rising computation needs while striving to decarbonise operations.
By Felicity Bradstock for Oilprice.com
<<<
---
Bigworld, With the US economy so dependent upon consumer spending, the return of student loan payments should definitely take some wind out of economic activity. This could make the Fed's job easier, but on the other hand it increases the risk of recession. The amount that will be diverted to loan payments is estimated at between $70 - 200 bil / year, and these are mostly younger people, who would otherwise be spending that money directly into the economy.
Meanwhile, the govt shutdown has been averted for now, so the market should stage a recovery in the near term. I noticed that last year the market tanked from mid-Aug and bottomed in late Sept, and then a big rebound in Oct. This year it's also been down in Aug and Sept, so maybe another bounce in Oct? Could be, but then the govt shutdown issue will return in mid Nov for another round of angst.
Fwiw, I've basically given up trying to figure out this market, and from here on out will try to just let the asset allocation model take care of risk management. I figure buy / hold in each asset class (stocks, bonds, metals), while keeping a good amount (30%) in cash / T-Bills (10% and 20% respectively). The Fed is nearly done tightening, the economy has been resilient, so it might be time to just buy / hold and let time take its course. 25% in stocks, 30% in bonds (laddered monthly out 2 1/2 years), gold 10%, silver 5%. That's the best I can come up with for now, though I'd still rather have some of that $ in paid-for residential real estate / land, as you have.
GL this week with the knee. Compared to your back procedure, this should be much easier. You will soon be fully 'bionic', and ready for your own TV series :o)
---
Bigworld, >> No energy means we go back to horses and buggies, and 90% of the population dies out <<
Or alternately, 90% of the world's population dies out first, so the globalist planners are merely shrinking the global energy supply in anticipation of the expected smaller world population to come. It's no secret that the globalists have an obsession with overpopulation, since they see it as an existential threat to their oligarchy. They certainly don't need 7 billion of us 'problems' around. Webster Tarpley and Catherine Fitts have discussed this topic in some detail.
A mechanism for achieving the population reduction goal likely began in earnest in 1991 when they began giving the Hep B vaccine to newborns. A newborn baby's acquired immune system isn't even functioning yet (only the innate immune system is), so there are no antibodies produced in response to the vaccine, and therefore no scientific rationale for giving it to a newborn. So why give it? Because it's the perfect platform for introducing population control measures into a population. And kids now get dozens of vaccines, so an easy way to achieve the desired population control.
Vaccines can be designed to induce infertility (links below), but faster acting approaches have undoubtedly been developed over the years, like inducing cancers. Injecting cancer cells directly into a subject goes back to the early 1960s, and now it can be done via genetic means. The explosion of cancer rates in kids correlates exactly with the introduction of the vast array of new mandatory vaccines. Any one of these vaccines could be cooked / designed for population control. One possible theory with the Covid vaccines is that the population reduction effort was taking way too long by targeting only children, so now the entire population gets the jab. And it will be an annual vaccine, and also mandatory, enforced via the CBDC. So as TS Eliot famously said - 'This is the way the world ends, not with a bang but a whimper'.
>>> Anti-fertility vaccines <<<
https://pubmed.ncbi.nlm.nih.gov/2665354/#:~:text=The%20principle%20of%20anti%2DhCG,CTP%20was%20effective%20in%20baboons.
>>> Vaccines for immunological control of fertility <<<
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5904606/
---
Bigworld, >> Great Depression Part 2 is coming <<
Your hard asset / commodity strategy makes sense, though I figure it's better to also have something in the other asset classes, in case things turn out differently than expected. The timeline is the big unknown.
3X is the main problem I see with your strategy, since it's clearly not a vehicle to use for a long term event that might happen 1, 3, 5 years from now. You are using a short term vehicle for a long term event. Of course whether you should be gambling like that at all is a another question to ask. Beware of the slippery slope -
>>> How gambling affects the brain and who is most vulnerable to addiction
https://www.apa.org/monitor/2023/07/how-gambling-affects-the-brain#:~:text=Studies%20have%20linked%20gambling%20disorders,may%20be%20attributable%20to%20genetics.
<<<
---
>>> Lockheed Martin Corporation (NYSE:LMT) -- Goldman Sachs’ Stake Value: $566,208,511
https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/5/
Number of Hedge Fund Holders: 52
Lockheed Martin Corporation (NYSE:LMT) is a company specializing in defense and aerospace, and is organized into four segments – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. It is the largest Goldman Sachs defense stock. Securities filings for Q2 2023 reveal that Goldman Sachs owned 1.2 million shares of Lockheed Martin Corporation (NYSE:LMT) worth $566.2 million.
On July 18, Lockheed Martin Corporation (NYSE:LMT) reported a Q2 non-GAAP EPS of $6.73 and a revenue of $16.7 billion, outperforming Wall Street estimates by $0.28 and $810 million, respectively.
According to Insider Monkey’s second quarter database, 52 hedge funds were long Lockheed Martin Corporation (NYSE:LMT), compared to 58 funds in the earlier quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 791,700 shares worth $364.4 million.
Here is what Vltava Fund has to say about Lockheed Martin Corporation (NYSE:LMT) in its Q3 2022 investor letter:
“LMT is one of the world’s largest aerospace and defense companies. The war in Ukraine has reminded investors and the wider public just how important these companies are. The aerospace and defense industry in the USA is an established oligopoly. This means that a few large firms play a dominant role. While collectively they comprise an oligopoly, individually they often have monopoly positions in particular narrower segments. Their main counterparty is the US government, a key customer in what is known as a monopsonist position. This is a rather unusual situation, but one that is very advantageous for companies such as LMT.
LMT has a strong and long-term sustainable competitive advantage ensuing from the fact that its products are developed and manufactured at an extremely high level of technology and complexity, its development and contract cycles are measured in decades, and the costs for the government to switch to alternative suppliers are high. Moreover, part of the production is classified as secret, which further takes the wind out of the sails of potential competitors. This results in a very high return on capital and admittedly a slowly but steadily growing business.
In most NATO countries, which are LMT’s customers, defense outlays are based upon the size of GDP. This is currently growing very fast in nominal terms due to inflation in most countries. A number of countries have also announced significant increases in defense budgets, whether it be Germany, which aims to get to the NATO-agreed 2% of GDP, or Poland, which wants to spend more than twice as much on defense…”
<<<
---
>>> Lockheed Martin Corporation (NYSE:LMT) -- Goldman Sachs’ Stake Value: $566,208,511
https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/5/
Number of Hedge Fund Holders: 52
Lockheed Martin Corporation (NYSE:LMT) is a company specializing in defense and aerospace, and is organized into four segments – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. It is the largest Goldman Sachs defense stock. Securities filings for Q2 2023 reveal that Goldman Sachs owned 1.2 million shares of Lockheed Martin Corporation (NYSE:LMT) worth $566.2 million.
On July 18, Lockheed Martin Corporation (NYSE:LMT) reported a Q2 non-GAAP EPS of $6.73 and a revenue of $16.7 billion, outperforming Wall Street estimates by $0.28 and $810 million, respectively.
According to Insider Monkey’s second quarter database, 52 hedge funds were long Lockheed Martin Corporation (NYSE:LMT), compared to 58 funds in the earlier quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 791,700 shares worth $364.4 million.
Here is what Vltava Fund has to say about Lockheed Martin Corporation (NYSE:LMT) in its Q3 2022 investor letter:
“LMT is one of the world’s largest aerospace and defense companies. The war in Ukraine has reminded investors and the wider public just how important these companies are. The aerospace and defense industry in the USA is an established oligopoly. This means that a few large firms play a dominant role. While collectively they comprise an oligopoly, individually they often have monopoly positions in particular narrower segments. Their main counterparty is the US government, a key customer in what is known as a monopsonist position. This is a rather unusual situation, but one that is very advantageous for companies such as LMT.
LMT has a strong and long-term sustainable competitive advantage ensuing from the fact that its products are developed and manufactured at an extremely high level of technology and complexity, its development and contract cycles are measured in decades, and the costs for the government to switch to alternative suppliers are high. Moreover, part of the production is classified as secret, which further takes the wind out of the sails of potential competitors. This results in a very high return on capital and admittedly a slowly but steadily growing business.
In most NATO countries, which are LMT’s customers, defense outlays are based upon the size of GDP. This is currently growing very fast in nominal terms due to inflation in most countries. A number of countries have also announced significant increases in defense budgets, whether it be Germany, which aims to get to the NATO-agreed 2% of GDP, or Poland, which wants to spend more than twice as much on defense…”
<<<
---
>>> General Electric Company (NYSE:GE) -- Goldman Sachs’ Stake Value: $443,959,690
https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/2/
Number of Hedge Fund Holders: 71
General Electric Company (NYSE:GE) operates as a high-tech industrial company worldwide. It offers gas and steam turbines, power generation solutions, and data-driven software for different sectors. Additionally, General Electric Company (NYSE:GE) designs and produces commercial and military aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It is one of the best Goldman Sachs defense stocks. In Q2 2023, Goldman Sachs held a $444 million stake in General Electric Company (NYSE:GE).
On July 25, General Electric Company (NYSE:GE) reported a Q2 non-GAAP EPS of $0.68 and a revenue of $16.7 billion, outperforming Wall Street consensus by $0.22 and $1.55 billion, respectively.
According to Insider Monkey’s second quarter database, 71 hedge funds were bullish on General Electric Company (NYSE:GE), up from 59 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the leading stakeholder of the company, with 41.6 million shares worth $4.5 billion.
Vulcan Value Partners made the following comment about General Electric Company (NYSE:GE) in its Q1 2023 investor letter:
“General Electric Company (NYSE:GE) was a material contributor during the quarter. With the successful spin-off of GE HealthCare in early January, the company operates in two major markets: GE Aerospace and GE Vernova. GE Aerospace powers three out of every four commercial flights. GE Vernova helps generate 30% of the world’s electricity and has a meaningful role to play in the energy transition. The company’s service activities, which are higher margin and more resilient, represent approximately 60% of revenue and 85% of its backlog. The company reported strong fourth quarter 2022 results and management’s 2023 outlook is positive.”
<<<
---
>>> General Electric Company (NYSE:GE) -- Goldman Sachs’ Stake Value: $443,959,690
https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/2/
Number of Hedge Fund Holders: 71
General Electric Company (NYSE:GE) operates as a high-tech industrial company worldwide. It offers gas and steam turbines, power generation solutions, and data-driven software for different sectors. Additionally, General Electric Company (NYSE:GE) designs and produces commercial and military aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It is one of the best Goldman Sachs defense stocks. In Q2 2023, Goldman Sachs held a $444 million stake in General Electric Company (NYSE:GE).
On July 25, General Electric Company (NYSE:GE) reported a Q2 non-GAAP EPS of $0.68 and a revenue of $16.7 billion, outperforming Wall Street consensus by $0.22 and $1.55 billion, respectively.
According to Insider Monkey’s second quarter database, 71 hedge funds were bullish on General Electric Company (NYSE:GE), up from 59 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the leading stakeholder of the company, with 41.6 million shares worth $4.5 billion.
Vulcan Value Partners made the following comment about General Electric Company (NYSE:GE) in its Q1 2023 investor letter:
“General Electric Company (NYSE:GE) was a material contributor during the quarter. With the successful spin-off of GE HealthCare in early January, the company operates in two major markets: GE Aerospace and GE Vernova. GE Aerospace powers three out of every four commercial flights. GE Vernova helps generate 30% of the world’s electricity and has a meaningful role to play in the energy transition. The company’s service activities, which are higher margin and more resilient, represent approximately 60% of revenue and 85% of its backlog. The company reported strong fourth quarter 2022 results and management’s 2023 outlook is positive.”
<<<
---
>>> General Dynamics Corporation (GD) -- Goldman Sachs’ Stake Value: $290,874,869
https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/
Number of Hedge Fund Holders: 46
General Dynamics Corporation (NYSE:GD) functions as a global aerospace and defense firm, conducting its operations across four main segments – Aerospace, Marine Systems, Combat Systems, and Technologies. It is one of the top Goldman Sachs defense stocks, with the firm holding a $290.8 million stake in the company.
On August 1, General Dynamics Corporation (NYSE:GD) declared a $1.32 per share quarterly dividend, in line with previous. The dividend is payable on November 10, to shareholders of record on October 6.
According to Insider Monkey’s second quarter database, 46 hedge funds were bullish on General Dynamics Corporation (NYSE:GD), compared to 43 funds in the last quarter. James A. Star’s Longview Asset Management is the leading position holder in the company, with 28.2 million shares worth just over $6 billion.
Here is what Oakmark Global Fund has to say about General Dynamics Corporation (NYSE:GD) in its Q1 2021 investor letter:
“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated products. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”
<<<
---
>>> General Dynamics Corporation (GD) -- Goldman Sachs’ Stake Value: $290,874,869
https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/
Number of Hedge Fund Holders: 46
General Dynamics Corporation (NYSE:GD) functions as a global aerospace and defense firm, conducting its operations across four main segments – Aerospace, Marine Systems, Combat Systems, and Technologies. It is one of the top Goldman Sachs defense stocks, with the firm holding a $290.8 million stake in the company.
On August 1, General Dynamics Corporation (NYSE:GD) declared a $1.32 per share quarterly dividend, in line with previous. The dividend is payable on November 10, to shareholders of record on October 6.
According to Insider Monkey’s second quarter database, 46 hedge funds were bullish on General Dynamics Corporation (NYSE:GD), compared to 43 funds in the last quarter. James A. Star’s Longview Asset Management is the leading position holder in the company, with 28.2 million shares worth just over $6 billion.
Here is what Oakmark Global Fund has to say about General Dynamics Corporation (NYSE:GD) in its Q1 2021 investor letter:
“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated products. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”
<<<
---
>>> Northrop Grumman Corporation (NOC) - Goldman Sachs’ Stake Value: $273,998,676
https://finance.yahoo.com/news/goldman-sachs-defense-stocks-top-035112162.html
Number of Hedge Fund Holders: 40
Northrop Grumman Corporation (NOC) functions as a global aerospace and defense company. Its operations are divided into Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments. At the conclusion of the second quarter of 2023, Goldman Sachs held 601,138 shares of Northrop Grumman Corporation (NOC) worth approximately $274 million.
On August 16, Northrop Grumman Corporation (NOC) declared a quarterly dividend of $1.87 per share, in line with previous. The dividend is payable on September 13, to shareholders of record on August 28.
According to Insider Monkey’s second quarter database, 40 hedge funds were bullish on Northrop Grumman Corporation (NYSE:NOC), compared to 45 funds in the prior quarter. Donald Yacktman’s Yacktman Asset Management is a prominent stakeholder of the company, with 409,839 shares worth $186.80 million.
Like Lockheed Martin Corporation (LMT), RTX Corporation (RTX), and The Boeing Company (BA), Northrop Grumman Corporation (NOC) is one of the top Goldman Sachs defense stocks.
Harding Loevner Global Equity Strategy made the following comment about Northrop Grumman Corporation (NOC) in its Q1 2023 investor letter:
“Our other purchase was Northrop Grumman Corporation (NOC), a US defense contractor whose stock price experienced a pullback. We like that Northrop has a larger presence than its rivals in the most favorable subcategories of the defense industry-namely, nuclear weapons, space systems, and what’s known as C4ISR (which stands for Command, Control, Communications, Computers. Intelligence, Surveillance, and Reconnaissance). C4ISR refers to digital systems that translate data picked up from different sensors-such as an incoming hypersonic missile or advancing troops-into a common format, and then escalate key information to the right people. These differentiated technologies are especially relevant in a time of increased geopolitical tensions. Northrop also benefits from large barriers to entry in this stable industry, which should enable continued strong earnings and cash flow.”
<<<
---
>>> Northrop Grumman Corporation (NOC) - Goldman Sachs’ Stake Value: $273,998,676
https://finance.yahoo.com/news/goldman-sachs-defense-stocks-top-035112162.html
Number of Hedge Fund Holders: 40
Northrop Grumman Corporation (NOC) functions as a global aerospace and defense company. Its operations are divided into Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments. At the conclusion of the second quarter of 2023, Goldman Sachs held 601,138 shares of Northrop Grumman Corporation (NOC) worth approximately $274 million.
On August 16, Northrop Grumman Corporation (NOC) declared a quarterly dividend of $1.87 per share, in line with previous. The dividend is payable on September 13, to shareholders of record on August 28.
According to Insider Monkey’s second quarter database, 40 hedge funds were bullish on Northrop Grumman Corporation (NYSE:NOC), compared to 45 funds in the prior quarter. Donald Yacktman’s Yacktman Asset Management is a prominent stakeholder of the company, with 409,839 shares worth $186.80 million.
Like Lockheed Martin Corporation (LMT), RTX Corporation (RTX), and The Boeing Company (BA), Northrop Grumman Corporation (NOC) is one of the top Goldman Sachs defense stocks.
Harding Loevner Global Equity Strategy made the following comment about Northrop Grumman Corporation (NOC) in its Q1 2023 investor letter:
“Our other purchase was Northrop Grumman Corporation (NOC), a US defense contractor whose stock price experienced a pullback. We like that Northrop has a larger presence than its rivals in the most favorable subcategories of the defense industry-namely, nuclear weapons, space systems, and what’s known as C4ISR (which stands for Command, Control, Communications, Computers. Intelligence, Surveillance, and Reconnaissance). C4ISR refers to digital systems that translate data picked up from different sensors-such as an incoming hypersonic missile or advancing troops-into a common format, and then escalate key information to the right people. These differentiated technologies are especially relevant in a time of increased geopolitical tensions. Northrop also benefits from large barriers to entry in this stable industry, which should enable continued strong earnings and cash flow.”
<<<
---
>>> Perion Network (PERI) may not be a household name, but the ad tech company already has strong returns, up nearly 400% over the last three years. And it was the only ad tech stock to post a positive return last year.
https://www.fool.com/investing/2023/09/29/have-1000-these-2-stocks-could-be-bargain-buys-for/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Perion occupies a unique position in the ad tech space through its intelligent hub, which connects ad buyers and sellers to optimize ad buys and placements. The technology is based on machine learning and is highly scalable, allowing the company to earn higher margins as it grows.
The company also offers premium features like in-game ads during live events and a "connected cart" that allows retailers to update the products being advertised according to conditions like inventory and weather.
Perion is also a preferred partner of Microsoft's Bing, which could be an especially valuable relationship if the ChatGPT-powered version of Bing gains traction in search.
Perion's results speak for themselves. Revenue in the second quarter rose 22% to $178.5 million, and it continues to gain leverage with adjusted earnings per share jumping from $0.51 to $0.84.
The company is seeing solid growth in both search advertising and display advertising, driven by the Bing partnership, and growth in connected TV, which jumped 104% to $7.2 million in the quarter.
However, the best reason to invest in Perion might be its discount valuation, trading at a price-to-earnings ratio of just 13.5. There's still a lot of room for growth in ad tech, and if Perion continues to execute its strategy, the stock could be a big winner.
<<<
---
>>> Perion Network (PERI) may not be a household name, but the ad tech company already has strong returns, up nearly 400% over the last three years. And it was the only ad tech stock to post a positive return last year.
https://www.fool.com/investing/2023/09/29/have-1000-these-2-stocks-could-be-bargain-buys-for/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Perion occupies a unique position in the ad tech space through its intelligent hub, which connects ad buyers and sellers to optimize ad buys and placements. The technology is based on machine learning and is highly scalable, allowing the company to earn higher margins as it grows.
The company also offers premium features like in-game ads during live events and a "connected cart" that allows retailers to update the products being advertised according to conditions like inventory and weather.
Perion is also a preferred partner of Microsoft's Bing, which could be an especially valuable relationship if the ChatGPT-powered version of Bing gains traction in search.
Perion's results speak for themselves. Revenue in the second quarter rose 22% to $178.5 million, and it continues to gain leverage with adjusted earnings per share jumping from $0.51 to $0.84.
The company is seeing solid growth in both search advertising and display advertising, driven by the Bing partnership, and growth in connected TV, which jumped 104% to $7.2 million in the quarter.
However, the best reason to invest in Perion might be its discount valuation, trading at a price-to-earnings ratio of just 13.5. There's still a lot of room for growth in ad tech, and if Perion continues to execute its strategy, the stock could be a big winner.
<<<
---
>>> RTX Corporation (RTX) -- Considering that RTX Corporation (NYSE:RTX) is near 52-week lows, it might be an opportunity to buy one of the best defense stocks. After announcing its second-quarter results, the stock declined by over 10%. The negative reaction was triggered by an issue with its Pratt & Whitney engines.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
Reuters reported that RTX had discovered a defect in 1,200 engines. Microscopic contaminants in the powdered metal in high-pressure turbine discs could cause micro-cracks. As a result, the affected engines must be grounded for inspection over the next year. This was a setback for the company’s ambition to conquer the jet engine market.
But looking at the rest of the second quarter report, the results were impressive. Sales were up 12% YOY and 13% on an organic basis. The Collins Aerospace, Pratt & Whitney and Raytheon Missiles & Defense segments reported 17%, 15% and 12% YOY growth rates, respectively. Meanwhile, the total backlog was a healthy $185 billion — $112 billion commercial and $73 billion defense.
Net income from continuing operations was 1.3 billion, a 2% YOY increase. Additionally, adjusted EPS grew 11% YOY to $1.29. The company also repurchased $596 million of RTX shares in the quarter.
Management highlighted the strong momentum and raised their outlook. “Based on the strong performance year-to-date and strong end-markets, we are raising our full year sales outlook and tightening our adjusted EPS* outlook,” said CEO Greg Hayes.
For FY2023, management expects adjusted EPS of $4.95 – $5.05. Considering a midpoint EPS of 5, the stock trades at 16 times forward price-to-earnings. Buy the world’s largest aerospace and defense company at these bargain prices.
<<<
---
>>> RTX Corporation (RTX) -- Considering that RTX Corporation (NYSE:RTX) is near 52-week lows, it might be an opportunity to buy one of the best defense stocks. After announcing its second-quarter results, the stock declined by over 10%. The negative reaction was triggered by an issue with its Pratt & Whitney engines.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
Reuters reported that RTX had discovered a defect in 1,200 engines. Microscopic contaminants in the powdered metal in high-pressure turbine discs could cause micro-cracks. As a result, the affected engines must be grounded for inspection over the next year. This was a setback for the company’s ambition to conquer the jet engine market.
But looking at the rest of the second quarter report, the results were impressive. Sales were up 12% YOY and 13% on an organic basis. The Collins Aerospace, Pratt & Whitney and Raytheon Missiles & Defense segments reported 17%, 15% and 12% YOY growth rates, respectively. Meanwhile, the total backlog was a healthy $185 billion — $112 billion commercial and $73 billion defense.
Net income from continuing operations was 1.3 billion, a 2% YOY increase. Additionally, adjusted EPS grew 11% YOY to $1.29. The company also repurchased $596 million of RTX shares in the quarter.
Management highlighted the strong momentum and raised their outlook. “Based on the strong performance year-to-date and strong end-markets, we are raising our full year sales outlook and tightening our adjusted EPS* outlook,” said CEO Greg Hayes.
For FY2023, management expects adjusted EPS of $4.95 – $5.05. Considering a midpoint EPS of 5, the stock trades at 16 times forward price-to-earnings. Buy the world’s largest aerospace and defense company at these bargain prices.
<<<
---
>>> RTX Corporation (RTX) -- Considering that RTX Corporation (NYSE:RTX) is near 52-week lows, it might be an opportunity to buy one of the best defense stocks. After announcing its second-quarter results, the stock declined by over 10%. The negative reaction was triggered by an issue with its Pratt & Whitney engines.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
Reuters reported that RTX had discovered a defect in 1,200 engines. Microscopic contaminants in the powdered metal in high-pressure turbine discs could cause micro-cracks. As a result, the affected engines must be grounded for inspection over the next year. This was a setback for the company’s ambition to conquer the jet engine market.
But looking at the rest of the second quarter report, the results were impressive. Sales were up 12% YOY and 13% on an organic basis. The Collins Aerospace, Pratt & Whitney and Raytheon Missiles & Defense segments reported 17%, 15% and 12% YOY growth rates, respectively. Meanwhile, the total backlog was a healthy $185 billion — $112 billion commercial and $73 billion defense.
Net income from continuing operations was 1.3 billion, a 2% YOY increase. Additionally, adjusted EPS grew 11% YOY to $1.29. The company also repurchased $596 million of RTX shares in the quarter.
Management highlighted the strong momentum and raised their outlook. “Based on the strong performance year-to-date and strong end-markets, we are raising our full year sales outlook and tightening our adjusted EPS* outlook,” said CEO Greg Hayes.
For FY2023, management expects adjusted EPS of $4.95 – $5.05. Considering a midpoint EPS of 5, the stock trades at 16 times forward price-to-earnings. Buy the world’s largest aerospace and defense company at these bargain prices.
<<<
---
>>> Lockheed Martin’s (LMT), a Maryland-based defense giant, is a critical defense supplier for the U.S. and its allies. The company develops and manufactures advanced military aircraft. In addition, it provides air-to-ground precision strike weapon systems, tactical missiles and air and missile defense systems.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
Lockheed Martin’s F-35 program will be a key growth driver. In 2022, the F-35 program accounted for 27% of total sales and 66% of the Aeronautics segment’s net sales. Given the rising U.S.-China tensions, the U.S. and its allies are banking on F35 fighter jets to bolster their defenses.
There are reasons for optimism after the debt ceiling deal met President Joe Biden’s $886 billion request for fiscal year 2024. As a result, the F-35 will receive funding to produce 83 F-35 aircraft. Besides, there is increasing interest from allies. For instance, Israel recently approved the purchase of 25 F-35 jets.
As orders increase, revenue growth is accelerating. In the second quarter of FY2023, the aeronautics segment grew sales 17% year-over-year. The increase was mainly due to a rise in production contracts.
Looking at the Missiles and Fire Control segment, sales were flat. While the year-over-year growth was disappointing, the backlog trend was positive. The segment recorded a backlog increase of $5.3 billion to close the quarter at $34 billion.
With a record backlog and growing revenues, the company is in a strong position to return capital to shareholders. It has a strong record of shareholder returns, having repurchased 21% of its outstanding shares in the last 10 years. Additionally, it has increased its dividend for 20 consecutive years.
<<<
---
>>> Lockheed Martin’s (LMT), a Maryland-based defense giant, is a critical defense supplier for the U.S. and its allies. The company develops and manufactures advanced military aircraft. In addition, it provides air-to-ground precision strike weapon systems, tactical missiles and air and missile defense systems.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
Lockheed Martin’s F-35 program will be a key growth driver. In 2022, the F-35 program accounted for 27% of total sales and 66% of the Aeronautics segment’s net sales. Given the rising U.S.-China tensions, the U.S. and its allies are banking on F35 fighter jets to bolster their defenses.
There are reasons for optimism after the debt ceiling deal met President Joe Biden’s $886 billion request for fiscal year 2024. As a result, the F-35 will receive funding to produce 83 F-35 aircraft. Besides, there is increasing interest from allies. For instance, Israel recently approved the purchase of 25 F-35 jets.
As orders increase, revenue growth is accelerating. In the second quarter of FY2023, the aeronautics segment grew sales 17% year-over-year. The increase was mainly due to a rise in production contracts.
Looking at the Missiles and Fire Control segment, sales were flat. While the year-over-year growth was disappointing, the backlog trend was positive. The segment recorded a backlog increase of $5.3 billion to close the quarter at $34 billion.
With a record backlog and growing revenues, the company is in a strong position to return capital to shareholders. It has a strong record of shareholder returns, having repurchased 21% of its outstanding shares in the last 10 years. Additionally, it has increased its dividend for 20 consecutive years.
<<<
---
>>> Lockheed Martin’s (LMT), a Maryland-based defense giant, is a critical defense supplier for the U.S. and its allies. The company develops and manufactures advanced military aircraft. In addition, it provides air-to-ground precision strike weapon systems, tactical missiles and air and missile defense systems.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
Lockheed Martin’s F-35 program will be a key growth driver. In 2022, the F-35 program accounted for 27% of total sales and 66% of the Aeronautics segment’s net sales. Given the rising U.S.-China tensions, the U.S. and its allies are banking on F35 fighter jets to bolster their defenses.
There are reasons for optimism after the debt ceiling deal met President Joe Biden’s $886 billion request for fiscal year 2024. As a result, the F-35 will receive funding to produce 83 F-35 aircraft. Besides, there is increasing interest from allies. For instance, Israel recently approved the purchase of 25 F-35 jets.
As orders increase, revenue growth is accelerating. In the second quarter of FY2023, the aeronautics segment grew sales 17% year-over-year. The increase was mainly due to a rise in production contracts.
Looking at the Missiles and Fire Control segment, sales were flat. While the year-over-year growth was disappointing, the backlog trend was positive. The segment recorded a backlog increase of $5.3 billion to close the quarter at $34 billion.
With a record backlog and growing revenues, the company is in a strong position to return capital to shareholders. It has a strong record of shareholder returns, having repurchased 21% of its outstanding shares in the last 10 years. Additionally, it has increased its dividend for 20 consecutive years.
<<<
---
>>> CACI International (CACI) offers specialized technology services and consulting to the defense and intelligence industry. It is a beneficiary of the modernization efforts in the U.S. military and intelligence. Moreover, it will profit from the increased cyber warfare as we go ahead.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
The company provides digital solutions that modernize federal agencies and their IT. The Engineering Services segment enhances and hardens national technology systems to defend against malicious actors. Its C4ISR, Cyber & Space solutions provide electromagnetic spectrum advantage and deliver precision effects to protect federal agencies against national security threats.
CACI generates a significant portion of revenues from the federal government. In fiscal 2023, federal government contracts made up 94.8% of total revenues. Over the same period, contracts with agencies of the Department of Defense represented 71.9% of total revenues.
Over the past decade, revenues have been steadily increasing, given the growth in defense spending. This growth will likely continue due to the critical nature of CACI’s services to the U.S. government.
The company has secured key defense contracts from the U.S. government. For instance, it won a $5.7 billion Air Force Enterprise IT contract in June to modernize and transform Airforce IT services. And in August, it bagged another $2.7 billion contract from the National Security Agency. These awards highlight why CACI is one of the best defense stocks to buy.
In terms of valuations, the stock is reasonably valued. For the full year ending June 30, 2023, it earned an adjusted diluted EPS of $18.83. Thus, as of this writing, it trades at 17 times trailing earnings. Given the stability of its defense business and expected secular defense spending, CACI stock is a bargain.
<<<
---
>>> CACI International (CACI) offers specialized technology services and consulting to the defense and intelligence industry. It is a beneficiary of the modernization efforts in the U.S. military and intelligence. Moreover, it will profit from the increased cyber warfare as we go ahead.
https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html
The company provides digital solutions that modernize federal agencies and their IT. The Engineering Services segment enhances and hardens national technology systems to defend against malicious actors. Its C4ISR, Cyber & Space solutions provide electromagnetic spectrum advantage and deliver precision effects to protect federal agencies against national security threats.
CACI generates a significant portion of revenues from the federal government. In fiscal 2023, federal government contracts made up 94.8% of total revenues. Over the same period, contracts with agencies of the Department of Defense represented 71.9% of total revenues.
Over the past decade, revenues have been steadily increasing, given the growth in defense spending. This growth will likely continue due to the critical nature of CACI’s services to the U.S. government.
The company has secured key defense contracts from the U.S. government. For instance, it won a $5.7 billion Air Force Enterprise IT contract in June to modernize and transform Airforce IT services. And in August, it bagged another $2.7 billion contract from the National Security Agency. These awards highlight why CACI is one of the best defense stocks to buy.
In terms of valuations, the stock is reasonably valued. For the full year ending June 30, 2023, it earned an adjusted diluted EPS of $18.83. Thus, as of this writing, it trades at 17 times trailing earnings. Given the stability of its defense business and expected secular defense spending, CACI stock is a bargain.
<<<
---
>>> The Hershey Company -- Halloween is just around the corner, and kids will be eager to fill their bags with candy, including some from one of the world's largest chocolate manufacturers, The Hershey Company (HSY). Despite experiencing a nearly 7% decline in 2023, Hershey's stock has delivered an impressive total return of 122% over the past five years, far outpacing the S&P 500's 68% total return.
https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Management recently raised its quarterly dividend by 15% to $1.192 per share, resulting in an impressive yield of 2.3%. And Hershey has raised its quarterly dividend every year since 1972, except for 2009, during the Great Recession.
In recent years, Hershey has expanded its portfolio into snacks by acquiring SkinnyPop and Dot's Homestyle Pretzels. As a result, the company's revenue and net income are hitting record highs. Management recently reaffirmed its guidance for 8% revenue growth for 2023 versus 2022, resulting in net sales of roughly $11.2 billion, compared to $10.4 billion in 2022.
Despite Hershey's strong projected revenue growth, the stock might be experiencing a sell-off because the source of this growth is primarily price increases rather than increased sales volume. The company's second-quarter results show an average price increase of 7.7% for its products, coupled with a 2.7% decrease in sales volume from a year ago.
These price hikes are a result of the historically high costs of essential ingredients such as cocoa and sugar. However, Hershey boosted its gross margins by an impressive 3.4% year over year, reaching 45.5%.
This margin expansion could indicate that Hershey is becoming more efficient in managing its cost of goods sold. If cocoa and sugar prices return to normal levels, this efficiency could lead to further margin expansion, resulting in increased profitability for the company.
In summary, Hershey faces notable inflationary pressures and a potential decrease in consumption. Nevertheless, the stock currently looks undervalued when considering its historical P/E, which has averaged 26.3 over the past five years. With a forward P/E of 22.2, Hershey presents a potential investment opportunity at an attractive valuation.
<<<
---
>>> The Hershey Company -- Halloween is just around the corner, and kids will be eager to fill their bags with candy, including some from one of the world's largest chocolate manufacturers, The Hershey Company (HSY). Despite experiencing a nearly 7% decline in 2023, Hershey's stock has delivered an impressive total return of 122% over the past five years, far outpacing the S&P 500's 68% total return.
https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Management recently raised its quarterly dividend by 15% to $1.192 per share, resulting in an impressive yield of 2.3%. And Hershey has raised its quarterly dividend every year since 1972, except for 2009, during the Great Recession.
In recent years, Hershey has expanded its portfolio into snacks by acquiring SkinnyPop and Dot's Homestyle Pretzels. As a result, the company's revenue and net income are hitting record highs. Management recently reaffirmed its guidance for 8% revenue growth for 2023 versus 2022, resulting in net sales of roughly $11.2 billion, compared to $10.4 billion in 2022.
Despite Hershey's strong projected revenue growth, the stock might be experiencing a sell-off because the source of this growth is primarily price increases rather than increased sales volume. The company's second-quarter results show an average price increase of 7.7% for its products, coupled with a 2.7% decrease in sales volume from a year ago.
These price hikes are a result of the historically high costs of essential ingredients such as cocoa and sugar. However, Hershey boosted its gross margins by an impressive 3.4% year over year, reaching 45.5%.
This margin expansion could indicate that Hershey is becoming more efficient in managing its cost of goods sold. If cocoa and sugar prices return to normal levels, this efficiency could lead to further margin expansion, resulting in increased profitability for the company.
In summary, Hershey faces notable inflationary pressures and a potential decrease in consumption. Nevertheless, the stock currently looks undervalued when considering its historical P/E, which has averaged 26.3 over the past five years. With a forward P/E of 22.2, Hershey presents a potential investment opportunity at an attractive valuation.
<<<
---
>>> Costco Wholesale (COST) -- a membership-only discount retailer with a market capitalization of nearly $250 billion, pays a quarterly dividend of $1.02 per share. The annual yield of 0.73% isn't impressive on the surface, but the company has raised its dividend annually since 2004.
https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
It also pays a special cash dividend roughly every three years. Given that pattern, shareholders can reasonably anticipate another special dividend in the near future since the last one was paid in December 2020 at $10 per share.
With Costco's business model, monitoring membership growth is an essential measure of health and future growth with membership price increases. In its last 12 reported months, the company grew its number of cardholders from 116.6 million to 124.7 million, resulting in a roughly 7% increase.
Costco's annual membership fees generate approximately $4 billion in high-margin revenue. The company's historical pattern indicates it raises these fees about every five or so years, and the most recent change occurred in June 2017, so it stands to reason that an increase in fees is likely on the horizon, which would boost membership revenue even more.
If there is a downside to investing in Costco, it begins and ends with its valuation. Using the standard valuation metric for mature companies of price-to-earnings (P/E) ratio, the stock trades at a P/E of 41.4, significantly higher than competitors Target and Walmart at a P/E of 16.8 and 31.6, respectively. Costco's five-year average P/E is 37.4, meaning the stock is currently trading at an even higher valuation than usual.
Despite maintaining a consistently high valuation, Costco's stock has demonstrated its status as a long-term winner, delivering a total return of 146% over the last five years. When combined with an impressive balance sheet with $7.2 billion more in cash than debt, Costco emerges as an essential holding for long-term dividend-focused investors.
<<<
---
>>> Costco Wholesale (COST) -- a membership-only discount retailer with a market capitalization of nearly $250 billion, pays a quarterly dividend of $1.02 per share. The annual yield of 0.73% isn't impressive on the surface, but the company has raised its dividend annually since 2004.
https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
It also pays a special cash dividend roughly every three years. Given that pattern, shareholders can reasonably anticipate another special dividend in the near future since the last one was paid in December 2020 at $10 per share.
With Costco's business model, monitoring membership growth is an essential measure of health and future growth with membership price increases. In its last 12 reported months, the company grew its number of cardholders from 116.6 million to 124.7 million, resulting in a roughly 7% increase.
Costco's annual membership fees generate approximately $4 billion in high-margin revenue. The company's historical pattern indicates it raises these fees about every five or so years, and the most recent change occurred in June 2017, so it stands to reason that an increase in fees is likely on the horizon, which would boost membership revenue even more.
If there is a downside to investing in Costco, it begins and ends with its valuation. Using the standard valuation metric for mature companies of price-to-earnings (P/E) ratio, the stock trades at a P/E of 41.4, significantly higher than competitors Target and Walmart at a P/E of 16.8 and 31.6, respectively. Costco's five-year average P/E is 37.4, meaning the stock is currently trading at an even higher valuation than usual.
Despite maintaining a consistently high valuation, Costco's stock has demonstrated its status as a long-term winner, delivering a total return of 146% over the last five years. When combined with an impressive balance sheet with $7.2 billion more in cash than debt, Costco emerges as an essential holding for long-term dividend-focused investors.
<<<
---
>>> Winmark -- While many consumers might be unaware of small-cap stock Winmark (WINA), they are probably aware of its franchise-based retail companies that specialize in buying and selling secondhand goods: Music Go Round, Once Upon a Child, Plato's Closet, Play It Again Sports, and Style Encore.
https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Winmark's stock has demonstrated remarkable performance, surging 53% year to date, and even more impressively, delivering a total return of 145% over the past five years.
Like Costco, Winmark has a relatively low annual dividend yield and frequently pays a special dividend. Its yield is 0.9%, and it has paid a special dividend each of the last three years at an average of $4.97 per share. With the announcement of its special cash dividend typically in October, it is possible another one could be soon.
As a franchise business, Winmark is incentivized to expand its network because its revenue is primarily derived from franchise fees and royalties. Prospective franchisees must make an initial franchise payment of approximately $25,000 in the United States and contribute 4% to 5% of their weekly gross sales. CEO Brett Heffes believes there are 2,800 open territories for franchises, with only 1,303 locations as of July 1, 2023.
If there is a negative for Winmark, the recent stock run-up has made its valuation expensive, with a current P/E of 32.7. For comparison, Winmark averaged a P/E of 23.2 over the past five years. Nonetheless, with record revenue of $83.2 million and near-record net income of $39.9 million over the trailing 12 months, the market might finally be taking notice of the resale company valued at a market capitalization of $1.3 billion.
<<<
---
>>> Winmark -- While many consumers might be unaware of small-cap stock Winmark (WINA), they are probably aware of its franchise-based retail companies that specialize in buying and selling secondhand goods: Music Go Round, Once Upon a Child, Plato's Closet, Play It Again Sports, and Style Encore.
https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Winmark's stock has demonstrated remarkable performance, surging 53% year to date, and even more impressively, delivering a total return of 145% over the past five years.
Like Costco, Winmark has a relatively low annual dividend yield and frequently pays a special dividend. Its yield is 0.9%, and it has paid a special dividend each of the last three years at an average of $4.97 per share. With the announcement of its special cash dividend typically in October, it is possible another one could be soon.
As a franchise business, Winmark is incentivized to expand its network because its revenue is primarily derived from franchise fees and royalties. Prospective franchisees must make an initial franchise payment of approximately $25,000 in the United States and contribute 4% to 5% of their weekly gross sales. CEO Brett Heffes believes there are 2,800 open territories for franchises, with only 1,303 locations as of July 1, 2023.
If there is a negative for Winmark, the recent stock run-up has made its valuation expensive, with a current P/E of 32.7. For comparison, Winmark averaged a P/E of 23.2 over the past five years. Nonetheless, with record revenue of $83.2 million and near-record net income of $39.9 million over the trailing 12 months, the market might finally be taking notice of the resale company valued at a market capitalization of $1.3 billion.
<<<
---