Dragon Claws/iStock via Getty Images The last article talked about ignoring the noncash impairment charges. Now that article hinted at paying attention to what was left. Additionally, both John Goff and KKR (who combined for the Crescent Energy ( CRGY ) project) both are known for building and selling companies. To get the best price at the time of sale, one needs to maximize free cash flow while ...
Dragon Claws/iStock via Getty Images The last article talked about ignoring the noncash impairment charges. Now that article hinted at paying attention to what was left. Additionally, both John Goff and KKR (who combined for the Crescent Energy ( CRGY ) project) both are known for building and selling companies. To get the best price at the time of sale, one needs to maximize free cash flow while making sure business prospects are also maximized. One of the greatest mistakes (that can sometimes fool the market) is to maximize free cash flow while impairing business prospects and current competitiveness. This is why free cash flow growth is so important. But that growth has to be done correctly for a good price. John Goff and KKR are two of the most experienced investors in such a venture. One of the advantages of higher commodity prices is the announcement of more free cash flow. Crescent Energy management announced about $1 billion of free cash flow now that commodity prices rose. So far, Mr. Market is not impressed because the history of the assets once the company gained control of them has not been impressive. But the whole point of the acquisition program was to improve asset management by purchasing from unnatural owners or suboptimal owners. These are entities that most likely did not want the assets in the first place (or came to not want the assets). Mr. Market often projects the past into the future. That means that any improvement made by the assets is not factored into the current market valuation. There are immediate cost reductions that often improve operations right away. That is part of the notion that the acquisition was accretive from the start (this is in addition to purchasing at a bargain price). But there is often a slower, more drawn-out process of implementing lower cost practices going forward that take time to predominate and lower overall costs. Things like reworks can accelerate the process of higher cost production becoming less prevalen...
Up against Norway’s heart and skill and Florida’s heat, talisman got England through – but there is much to fix Jude against the sun. For much of this game there was a feeling of three separate entities struggling to assert their will in the heavy air of Miami Gardens. First, Norway, in their first World Cup quarter-final, who played with heart, skill and patience, and were by any Jude-free metric...
Up against Norway’s heart and skill and Florida’s heat, talisman got England through – but there is much to fix Jude against the sun. For much of this game there was a feeling of three separate entities struggling to assert their will in the heavy air of Miami Gardens. First, Norway, in their first World Cup quarter-final, who played with heart, skill and patience, and were by any Jude-free metric probably the better team. Alongside this, forcing itself centre stage, was the July Florida heat, the kind of air that congeals around you like an invisible white sauce, that makes your vision blur and your brain sag, and to which England seemed uniquely vulnerable. Continue reading...
Investing.com -- Xiaomi is well positioned to emerge as one of the biggest beneficiaries of China’s AI-powered home appliance market, according to Morgan Stanley, which reiterated its Overweight rating and HK$45 price target, citing the company’s expanding AI ecosystem, smart home leadership and long-term growth potential.
Investing.com -- Xiaomi is well positioned to emerge as one of the biggest beneficiaries of China’s AI-powered home appliance market, according to Morgan Stanley, which reiterated its Overweight rating and HK$45 price target, citing the company’s expanding AI ecosystem, smart home leadership and long-term growth potential.
Sunshine Seeds/iStock via Getty Images I covered electronics distributor Avnet (NASDAQ: AVT ) back in June. This industry has two dominant players, and it's worth checking in on the rival, Arrow Electronics (NYSE: ARW ). I had previously been bullish on Avnet because I saw it as an exceptionally cheap company that happened to be a better business than the market was giving it credit for. However, ...
Sunshine Seeds/iStock via Getty Images I covered electronics distributor Avnet (NASDAQ: AVT ) back in June. This industry has two dominant players, and it's worth checking in on the rival, Arrow Electronics (NYSE: ARW ). I had previously been bullish on Avnet because I saw it as an exceptionally cheap company that happened to be a better business than the market was giving it credit for. However, I downgraded to a hold in June as Avnet’s valuation had come up to a more standard level and I didn't see further near-term upside in the stock. By contrast, I still see some potential for Arrow Electronics to trade higher from here, particularly as the stock has pulled back about 15% off the recent highs. Here's why I am more bullish on Arrow Electronics than Avnet at the moment. Arrow's Historical Valuation And Market Position Arrow Electronics and Avnet have been competing with each other in the electronics and semiconductor distribution space for many years now. In fact, they've been leading players in the industry dating back to the dot-com era. So, it's fair to say there's something of a duopoly market dynamic with both these firms have a strong market position. Neither of the two firms tends to garner much of a premium for their stocks. On an EV/EBITDA basis, these companies have traded at highly comparable multiples over the past 20 years, with there rarely being a more than 10% gap between their respective multiples: Data by YCharts On average, you could get both of these stocks for between six and nine times EBITDA for the greater portion of the past 20 years, though we're up to 9.9x for Arrow and 12.4x for Avnet today. These muted multiples are understandable as Arrow Electronics and Avnet are distribution companies with not much of an economic moat. Semiconductor manufacturers don't want to pay the middle man too big a cut for distributing products across the supply chain, and in some cases, we’ve seen producers sell direct to customers to cut out Arrow and Avne...
Getty Images From a purely fundamental standpoint, things are going exceptionally well for shareholders of Twin Disc ( TWIN ) right now. Revenue and profitability are improving rapidly and management seems on track to significantly grow the business over the next few years. This is great to see in and of itself. But my problem with the company is that shares are not exactly cheap. Relative to othe...
Getty Images From a purely fundamental standpoint, things are going exceptionally well for shareholders of Twin Disc ( TWIN ) right now. Revenue and profitability are improving rapidly and management seems on track to significantly grow the business over the next few years. This is great to see in and of itself. But my problem with the company is that shares are not exactly cheap. Relative to other similar firms, the stock looks perhaps slightly undervalued. But even if we assume that management is correct about what growth will look like between now and the end of this decade, performance is likely to be worse than what the market will experience. In light of this, and the fact that the stock is up 27.1% since I downgraded the business to a ‘hold’ in April of this year at a time when the S&P 500 is up 11.3%, I actually think that downgrading it further to a soft ‘sell’ is the right move. This reflects my view that the stock is likely to underperform the market for the foreseeable future. Shares offer limited upside The newest data that investors have when it comes to Twin Disc covers through the third quarter of the company's 2026 fiscal year . During that time, revenue amounted to $96.7 million. That represented a healthy 19.1% jump over the $81.2 million that the company reported a year earlier. About $7.5 million, or 48.4%, of the sales increase for the company came from foreign currency fluctuations. So excluding that, revenue would have risen only 9.9% year over year. Management chalked this foreign currency benefit largely to the strengthening of the euro against the US dollar. Author - SEC EDGAR Data The rest of the rise was driven by organic sales, with management mentioning strong demand for the commercial marine, global defense, and land-based transmission industries. Global sales of marine and propulsion products jumped 20% thanks to improved commercial marine demand in Asia and the phenomenal success of the company’s Veth propulsion products. For contex...
For many K-pop fans in South Korea, the hunt for concert tickets has turned into a high-stakes battle, one where logging on early is no longer enough and ordinary fans find themselves outmatched by organised resellers, bots and shadowy workarounds that can send prices soaring far beyond face value. Previous solutions have failed to rein in the problem, but the government is hoping that the threat ...
For many K-pop fans in South Korea, the hunt for concert tickets has turned into a high-stakes battle, one where logging on early is no longer enough and ordinary fans find themselves outmatched by organised resellers, bots and shadowy workarounds that can send prices soaring far beyond face value. Previous solutions have failed to rein in the problem, but the government is hoping that the threat of massive fines may finally free ticket seekers from the grips of predatory scalpers. From August...
Norway's World Cup campaign ends in a quarter-final defeat by England, but they leave frustrated, arguing that Jude Bellingham's equaliser should not have counted.
Norway's World Cup campaign ends in a quarter-final defeat by England, but they leave frustrated, arguing that Jude Bellingham's equaliser should not have counted.
Replays suggested ball goal-kick struck a camera cable Fifa says ball sensor showed no evidence of contact Norway’s head coach, Ståle Solbakken, complained that England had benefited from the ball hitting an overhead cable before Jude Bellingham equalised in the World Cup quarter-final . Replays appeared to show a Norway goal-kick hitting a cable in the buildup, although Fifa released a statement ...
Replays suggested ball goal-kick struck a camera cable Fifa says ball sensor showed no evidence of contact Norway’s head coach, Ståle Solbakken, complained that England had benefited from the ball hitting an overhead cable before Jude Bellingham equalised in the World Cup quarter-final . Replays appeared to show a Norway goal-kick hitting a cable in the buildup, although Fifa released a statement saying a sensor in the ball showed no evidence it had touched. Continue reading...
Making a loan is a big decision for a lender. The lender must assess the likelihood of repayment in a timely fashion. The higher the loan's risk, however, the higher the interest rate the lender can charge. So there are trade-offs that have to be made. The auto loan space has a history of companies taking on too much risk. That is a problem for investors today, as subprime auto loan delinquency ra...
Making a loan is a big decision for a lender. The lender must assess the likelihood of repayment in a timely fashion. The higher the loan's risk, however, the higher the interest rate the lender can charge. So there are trade-offs that have to be made. The auto loan space has a history of companies taking on too much risk. That is a problem for investors today, as subprime auto loan delinquency rates are high. When you buy a stock , you become a part-owner of the business. This is why it is so important to understand the companies you invest in. If you don't fully understand what the business is doing, you can't properly assess the risks and potential rewards of the investment. This is particularly important for companies that make auto loans. Image source: Getty Images. Continue reading
President says tragedy must never be repeated after secondary explosions from strike devastate residential area on Kyiv outskirts. What we know on day 1,600 Continue reading...
President says tragedy must never be repeated after secondary explosions from strike devastate residential area on Kyiv outskirts. What we know on day 1,600 Continue reading...